24-Year-Old 'Building' Wealth with New Construction Rentals
New construction rentals are an enigma to many real estate investors. When building a new house, you need to understand engineering, permitting, construction, and a more complicated funding structure. This didn’t stop Donovan Adesoro, house hacker turned home builder from keeping the investment train going.
Although Donovan had a background in engineering, he didn’t have much experience with building homes. He started off buying a duplex property to house hack, which turned out so well that he wanted to buy another. The problem? Not enough cash to make the down payment. So he wondered, “what would it cost if I built one of these?” Donovan discovered that he was able to use raw land as a down payment for a new construction loan. So if he had enough to buy the land, he had enough to build the whole house!
Now, at only twenty-four years old, Donovan has twelve lots either ready for a new build, partially through construction, or about to be sold. He’s taken advantage of the huge appreciation we’ve seen in the past two years and makes it clear that even if you don’t have money, you don’t have to give up on a deal.
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Join the Real Estate Rookie Facebook Group:
/ realestaterookie
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Join the Real Estate Rookie Bootcamp Waitlist:
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Follow Donovan on Twitter and Instagram:
Twitter: @donovanbuilds or / donovanbuilds
Instagram: @donovan_651 or / donovan_651
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Grab “The Book on Managing Rental Properties”
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Websites Mentioned by Donovan:
Roomies: www.roomies.com/
Law Depot: www.lawdepot.com/
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Lease Agreements from BiggerPockets:
www.biggerpockets.com/propert...
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Follow Ashley and Tony on Instagram:
@wealthfromrentals or / wealthfromrentals
@tonyjrobinson or / tonyjrobinson
Episode 123
Show notes at: www.biggerpockets.com/rookie123
0:00 Intro
3:56 Ditching High-Rise Rent to House Hack
11:29 Can't Afford a House? Buy the Land!
15:00 Finding Contractors to Make the Build
19:14 Advice for Rookies Pursuing Development
21:37 Permits, Engineering, Contractors & More
32:46 Exit Strategies
34:30 Renting Your Car for Extra Cash
37:29 Mindset Segment
39:22 Rookie Request Line
41:23 Random Questions
46:12 Rookie Rockstar
Пікірлер: 76
Black dude is really good at slowing down the convo and interviewing. Cinnamon guy seems like he really networked and did his hw!! Props to them!!
This is my 4th time watching this video. Truly incredible. “Be like Donovan” instead of “Be like Mike”
@donovanadesoro1371
2 жыл бұрын
You are too kind!
@michaelbatista2869
Жыл бұрын
Wrong way to look at it. Mike inspired donovan. Without mike there is no donovan.
When you have the right network in place the money is there for a solid deal. Kudos to this young man.
Thank you guys for this show and All the information from Donovan, It's refreshing to see people getting it done and making it happen. Thanks and Subscribed !
Y’all ask some of the BEST questions I’ve seen. Very granular! Much appreciated
They asked great questions that would normally not get asked. Thank you
This is an excellent interview. This should give all newbies motivation....there are investors that will put money in a good deal even if you have no experience....that is good to know.
Thank you so much information in each podcast 🔥🔥 Great questions !!
Loving the questions 👏, and the responses are very insightful. Thank you all.
Wonderful Wonder interview informative information of knowledge thank you
High level problem solving right here!!
This kid is dropping jewel’s thank to the interviewers.
Definitely good stuff !!
My guy Donovan!!
Yup this is just up my alley
wow he's incredible! I wish I'd had the guts to do stuff like that when I was in my twenties!
I totally understand 💯
Don’t be like me, 3 years on my first house hack solo lol. He’s quite the accomplished investor! Good for him.
Awesome.
Motivation
GO DONOVAN GO!!!!!!!!!!!!!!!!!🏆
Thanks, What is the construction cost sf? What would u do, if while building 14 houses, the price of the house goes down tp%
I wish I knew the numbers that made sense to the investors
he had faith did the work and everything worked out
40 percent return per investor or as a whole to split between all involved in the investment
this guy is amazing!
@donovanadesoro5546
2 жыл бұрын
Thanks!
I’ve never built a duplex before. To get the construction loan, do they check your DTI?
I am so very impressed with your Accomplishments! You stated Plans & Permitting through the City of Houston (COH) would be 4-6 months but You also stated You would submit your Square Footage or Lot Size to a Design Company or Permitting Company On-Line & they would tell You if the Duplex Design would be feasible or not! Can You give the names of the Companies You have used! I want to do a 4 Plex but I am New to this! I have done 2 Duplex Renovations but the New Build is challenging as I have reached out to an Architect who stated he wanted a certain amount to do project & design. I need those numbers from the Architect & Engineer to project the cost of the Build! Any Suggestions? I’m also in the Houston area! Do You think 🤔 We could Link? I’d love to shadow You on a Job! Thank You 🙏 for the Wealth of Knowledge!
@montrealbailey5322
Жыл бұрын
If you have land purchased and a recent survey decide on what sq footage you want your deplexes to be based on the sq footage of your land. Just know more sq footage more cost to build. Not sure what area you are in but find cost per sq ft to build in your area. New construction price per sq ft should be cheaper than remodel (no demolition cost). Then start the blueprints process
@bigbizproperties4435
Жыл бұрын
@@montrealbailey5322 Thank You! Funny You responded today b/c my Builder just texted Me & said He wanted to discussion an elevation, survey & plotting or is it platting! They are going to be 4 Plexes (Not Duplexes)! For the Designs I think $1.50 per sq Ft!
@montrealbailey5322
Жыл бұрын
@@bigbizproperties4435 yes their gonna need an elevation certificate for you lot. It’s gonna show what current elevation your land is at and based on that you may or may not have raise the building foundation depending on if you are in a floodplain or not. From there you do the design/blueprints process. If it’s 1.50$ sq ft for blueprints that’s really good just make sure it’s a full set of blueprints (architectural, structural, mechanical, plumbing, & electrical)
good show. only issue is contractors are so busy ,$295 sf to build and can one get water meters some area s that is $25k
@montrealbailey5322
Жыл бұрын
Im in Texas in Houston and the cost per sq ft to build new construction is not $295. It's significantly lower. I know because I'm doing one right now
Hi, who was the architect in Houston that designed your affordable duplexes?
Meh,. im outta money.. guess I'll build a hotel.. hehe.. thanks for the video!
"for sure"
Hi Donovan would love to connect with the hard money lenders that you used that let you use your land as collateral. I’m an Architectural Designer getting ready to build and would like to look into that. Thanks!
@djwashx
2 жыл бұрын
Definitely because everyone I contacted said no and my lots are worth over 100k
@bigbizproperties4435
Жыл бұрын
I am so very impressed with your Accomplishments! You stated Plans & Permitting through the City of Houston (COH) would be 4-6 months but You also stated You would submit your Square Footage or Lot Size to a Design Company or Permitting Company On-Line & they would tell You if the Duplex Design would be feasible or not! Can You give the names of the Companies You have used! I want to do a 4 Plex but I am New to this! I have done 2 Duplex Renovations but the New Build is challenging as I have reached out to an Architect who stated he wanted a certain amount to do project & design. I need those numbers from the Architect & Engineer to project the cost of the Build! Any Suggestions? I’m also in the Houston area! Do You think 🤔 We could Link? I’d love to shadow You on a Job! Thank for the Wealth of Knowledge!
@montrealbailey5322
Жыл бұрын
@@djwashx if your lots are paid off free and clear I know a company that will finance your new construction build
@djwashx
Жыл бұрын
@@montrealbailey5322 paid cash for each
@montrealbailey5322
Жыл бұрын
@@djwashx if you paid cash for lots and have a survey of the lot start on getting some blueprints (architectural, structural, mechanical, electrical, plumbing drawings). Once you have a design/blueprints then contact construction loan lender
how did donovan find his general contractor?
🐐 🐐
How do you get a 40% return on new construction?
Who's name(s) did the financing?
I guess I'm too old 'cause I've never heard of this 'house hack' thing.
James who in Seattle?
How much was the building cost for each duplex?
@donovana.6177
2 жыл бұрын
$215k more or less Land was $40k Plans and permitting another $10k Closing cost + interest $10k
@DL-1
2 жыл бұрын
@@donovana.6177 What was the size of the land and what general contractor did you use?
@DL-1
2 жыл бұрын
@@donovana.6177 subscribed.
@DL-1
2 жыл бұрын
@@donovana.6177 Are you going to be posting video tours of your completed builds? That would be a cool first real estate video.
@bdubz_det
2 жыл бұрын
@@donovana.6177 Thanks for sharing. Did you come out of pocket on these after your initial deal or did your investors put up 100% of the money?
What. Oh
Kool but I bought my first piece of real estate at age 19 in Polk county and I have over 16 units now including a 12 unit apartment buildin…I been out hea 🤷🏾♂️ lol
Hey man I mean your same position I wanna build It makes more sense to me as well I have my eighteen year old son here I want to get him started in the real estate the right way If you can lend your expertise and maybe Teach us both I appreciate you Send me away so we can talk when you Free
Are you still looking for partners?
@donovanadesoro1371
2 жыл бұрын
Hey I actually have a waitlist right now but always looking to connect with partners!
He found a whale
@donovanadesoro5546
2 жыл бұрын
The thing is the money is out there as long as you have the deal and ability to execute.
Wow this lady talks WAY too much.
"Im paying this much for a high rise in Houston and still getting no bitches? ah man forget this" lol jkjk I know he didn't say this..
The specifics of these deals were unknown. He gives no numbers.
@donovana.6177
2 жыл бұрын
I gave all the numbers
@tw2800
2 жыл бұрын
Yes he gives the complete breakdown 42:43
He’s kinda , not giving good details , of how he went from point a-z .. so either it’s a sham or he really is naive lol
He will be broke within 5 years.
@torrieb3860
2 жыл бұрын
Why do you think that? He’s not using any of his own money. Almost impossible for him to lose money. As long as he doesn’t get sued for anything stupid he’s golden. This guy is AWESOME!!!
@pastorderinzerjohnson6978
Жыл бұрын
He will definitely be more successful in 5 years 🙏🏿