Ground-up construction
Should I build a new property from scratch?
2 minute read
Building new can create the most value. It also takes the longest. Plan on 12 to 24 months or more from land to finished.
Permits, weather, labor and material costs can all cause delays.
If you have no experience, partner with an experienced general contractor (GC) or an experienced partner. Do not learn on your own money alone.
Construction loans usually need more cash down and more experience than a regular mortgage.
Why this matters
The upside is big, but the timeline and risks are bigger than most first-time investors expect.
What to do with this
- Get a GC or partner with a real building track record.
- Keep extra cash for delays and cost overruns.
- Ask a lender early what they require for construction loans.
Want this applied to your own numbers?
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