Manage episode 360363287 series 2514838
Nick is an expert in ground-up, high-rise, multi-family development strategy with years of experience. In this episode, he shares his insights on the benefits of building a Class A property and why it attracts the best tenants while having lower CapEx expenditures. Nick emphasizes the importance of community building and working with neighborhoods during development. He also mentions that the target exit strategy varies by property, with some investors opting to hold long-term and others choosing to sell in hyper-growth markets. It's all about understanding the market demand and knowing when to strike.
If you want to learn more about developing high-rise properties, this is the episode for you!
[00:01 - 06:38] Opening Segment
- Introducing Nick to the show
- Nick's strategy and what to look for in deals
- Building class-A properties attract the best tenants and provides a more stabilized product
- Communities are built in conjunction with neighborhoods and are good stewards of the land
[06:39 - 12:47] The Journey to Building Skyscrapers
- Nick discusses his journey of building larger apartment complexes
- Nick took eight years of experience and market knowledge to get into high-rise development
- The process involves acquiring land, pre-planning, and understanding construction costs
- High-rise developments have a longer timeline, typically two years for pre-planning and 18-24 months for construction
- Investors are not brought in until after pre-development work is completed
[12:48 - 21:35] Finding the Right Market for New Development Projects
- Local government and permitting office knowledge is crucial for new development projects
- Rising interest rates require a comfortable interest reserve and price stability in construction materials
- Student housing vs. class A development depends on the market and university stability
- American campus communities' acquisition shows a positive outlook for the student housing industry
[21:36 - 28:14] Closing Segment
- Best investment: the real estate that Nick holds on to
- Worst investment: mismanagement of building a house
- The most important lesson learned: getting started early
"If you're looking for a new market, the starting point is looking at that local government's website and then making some phone calls, going and having some meetings with the infrastructure or permitting office just to figure out what incentives they have." - Nick Simpson
"I think the worst deals can unravel from the people behind them. Partnerships are important and making sure that the right people are involved because that can certainly cause things to go the wrong way." - Nick Simpson
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