Investing in Real Estate Development

The GP Got Paid. The Project Collapsed.I watched a developer lose $3M in 2023… and their GP walked away with fees intact. That’s the difference between a “structure” and a partnership. We’ve designed our model around one principle:Alignment > upside. At GIS Companies, we structure deals so the investor wins first — and we don’t…

There are 2 types of landowners I meet. 1) The Naïve Owner: “Developments are easy, right? Hire an architect, find a builder, done deal. Nothing could go wrong.” 2) The Terrified Owner: “I wouldn’t touch a development project with a ten-foot pole. Too complicated with too much risk.” That split is what shaped our business…

Investors see 50+ deals a year – here’s what makes them write checks: Last week an investor told me something that stopped me cold… “Eugene… you’re the first developer who showed me a real feasibility study. Everyone else just sends pro formas and pretty pictures.” Here’s what separates amateurs from funded deals: The Due Diligence…

Most developers skip the $25K feasibility study…And lose $1M+ on projects that never should’ve started. I’ve seen it too many times. → Developer gets excited about a property.→ Jumps straight into design.→ Starts pulling permits. 6 months later…“Wait… this doesn’t pencil anymore.” $500K in soft costs. Gone. Here’s how we prevent that. Our 7-step feasibility…

I’m betting my entire business on 200 sq ft homes. Everyone says I’m crazy. Here’s why they’re wrong: The math is brutal right now: → Construction costs ⬆️→ Lenders hate them→ Affordability ⬇️ But there’s a $47B opportunity nobody’s talking about: Micro-living. While developers fight over luxury… the data says: → 68% of millennials can’t…

I’m the last person to get paid on every deal. Here’s the order: • Consultants get paid first• Banks get paid next• Limited partners get their returns• Original property owners get their share• Then me You know what this means? I’m the most motivated person on the entire project. When your profit depends on everyone…

Two years ago, we lost everything… I rarely share this story. But transparency matters: Our construction company grew to 30 employees with three major projects. Then suddenly, everything went into foreclosure… Years of work vanished overnight. We had to fold the company. Was it devastating? Absolutely. Did I question everything? Every day. But here’s what…

“Would you live here for $2,847/month?” That’s my BIG-money investment question. Last week, I walked through a “modern” factory-built home in Idaho that made me laugh out loud. The selling points: • “Premium finishes”• “Innovative design”• “Decades of experience” The reality: • Water heater IN THE MASTER BEDROOM closet• Kitchen island that creates an obstacle…

Have you ever seen $10 million disappear overnight? I have. Not just as a witness, but firsthand when our family business faced this devastating reality. (We didn’t have LP’s in those deals, but the lesson was clear: protecting capital is sacred) This unfortunate financial pain happens when developers skip the feasibility study phase. They saw…

Everyone’s freaking out about tariffs. But here’s the truth the headlines aren’t telling you: A 3–5% construction cost increase? In Seattle, that’s just called Friday. I asked ChatGPT, Grok, and Gemini the same question: “What impact will tariffs have on multifamily construction?” ChatGPT stayed chill: +2–4% cost, mostly from steel, aluminum, HVAC parts, and windows.…

What if someone walked into a city planning meeting today and said, ““Hi yes, we’d like to build a giant flying saucer on stilts…” Would that fly? Probably not. (Unless the stilts came with a parking study, a SEPA checklist, and a 10-point community benefits proposal.) They say Rome wasn’t built in a day, and…

You Want to Make $1,000,000 a Year? Okay, let’s do some quick math. The average American salary is $66,622.To make a million, you’d need 16 jobs.(Or just one job… with 16 of you.) Even if you’re a high-earner making $200/hour, that’s 5,000 hours a year.Which is 96 hours a week.Which is basically two full-time jobs……

Arnold Schwarzenegger made his first million in real estate, even before Hollywood ever put a camera on him. Not from fame. Not from action movies. From buying apartment buildings. Here’s the part most people miss: When he was just starting, barely fluent in English and no big career yet, he took the money he earned…

Whether you love him or hate him, there’s no denying that Elon Musk’s real estate moves are… well, interesting. Right now, the guy’s a walking headline—controversial tweets, DOGE activities, Mars missions, electric cars—but he’s also made smart decisions in the real estate world. In 2012, Musk snagged a Bel Air mansion for $17 million, and…

Every few years, people swear that the housing market is about to collapse. They wait for prices to drop. And while they wait… real estate values keep going up. Since 2000, the average U.S. home price has increased by over 150%. Even during recessions, prices recover. Why? – Population growth – More people need homes.…