Investing in Real Estate Development

I made a simple illustration using a single-family development project. Consider a single-family home, constructed in the 1950s and nestled in a high-demand neighborhood. There are plenty of those around Bellevue, WA. Such properties are often prime candidates for redevelopment. In the past, infill builders would be snatching these homes, offering all-cash deals with quick…

“Your deck is going to be hanging over my property!” That was the exclamation from a neighbor upon reviewing our plans for a new custom project. This unexpected claim led us down a path of discovery and resolution that I believe holds valuable lessons for any real estate developer. Initially, we were baffled. Had we…

I had a fun interview with ROIClear the other day. Please check it out and subscribe. Eugene Gershman of GIS Companies visited with ROIClear Podcast for an insightful conversation with Ray Hightower about real estate development. Eugene explained how GIS’s partnership model allows them to make an impact on reducing the housing shortage. The time…

1. Land use code or zoning research. There is nothing fancy here; simply flip through the zoning maps and code to understand basic restrictions like height limit, bulk, setbacks, parking requirements, etc. Most municipalities have that data online. If the site is zoned industrial, you may not be able to build apartments or the other…

I had a fun conversation with Steven Arita about real estate development partnerships. We talked about how we partner with property owners to bring their projects to reality. In the high-interest rate environment and depressed real estate sales, now is the perfect time to begin the design and permitting. By the time the project is…

Eugene Gershman said: I don’t like talking much about where I am from originally. I’m not embarrassed, but I have always felt self-conscious about it. First, it was my accent. Now, the politics. I always tried to steer the conversation away from it. I really enjoyed this interview and the conversation we had, but after…

Some of you might know that I used to be a registered representative by FINRA (when it was still called NASD) at the beginning of my career. The first question we would always ask, and most cover-you-butt forms would re-state, was: “What is your investment objective?” Most experienced investors know the three main investment objectives:…

How can people feel good about buying something with a deep discount when they know the seller might lose everything in that transaction? I recently read an article about a developer who took his own life while facing financial challenges. He was about my age with a similar background. I did not know him, but…

Recap: – Financing projects of less experienced developers is like investing in startups with more predictable outcome; – Real estate projects typically target 2x returns compared to 11.8% average return of S&P 500 over the years; – GIS Companies has put together a structure to reward investors and mitigate their risks;  Full post to follow……………………………….. I’ll define…

I talked about “rookie developers” in another post, and I guess I should apologize. I did not mean it in a disrespectful way. Here is a more serious definition of what I mean by “first-time developers.” First time real estate developers are a diverse group of people who share a common goal: to create value…

First time developers are facing several serious problems on the road to getting their first project built.  In summary, first-time developers encounter a trifecta of challenges: financial limitations, a lack of experience and track record, and a limited professional network. Overcoming these hurdles often requires creative financing solutions, mentorship or partnerships with experienced developers, and…

Investing in real estate can sometimes feel like navigating a labyrinth blindfolded, but what if we add a twist to the plot? Imagine doing that blindfolded dance with a first-time real estate developer. It’s like stepping into a mystery novel where the author is just as new to writing as you are to investing. So,…

This has been published before but it’s hard not to share again.