On today’s show, I talk to Steven, one of our providers at Norada Real Estate. They focus on brand new construction fourplexes in growth markets in the United States. He discusses this niche in detail, as well as the three main growth markets that they are working in.
If you missed our last episode, be sure to listen to 10 Lessons Learned From 100 Successful Real Estate Investors.

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New Construction Fourplexes in US Growth Markets
Welcome to Passive Real Estate Investing. I’m you’re host, Marco Santarelli. On today’s show, I want to bring you one of our great providers that we work with in several different markets around the United States. They have a particular niche. They focus on brand new construction fourplexes in growth markets in the United States. This is a great product for certain types of investors. I would let Steven explain that. I don’t want to steal any of his thunder. First, let me welcome you on the show, Steven.

Thank you, Marco. It’s such a pleasure to meet with you. Thank you so much for taking the time to have me on your show.

It’s my pleasure. I think this is great because the information that you’re going to share today about the three different markets that you’re in and the product that we’ve been selling to clients is going to be very beneficial because we can reach a wider audience and do it very effectively on the podcast. First and foremost, let’s start off with you for a few minutes here. Why don’t you share a little bit about yourself, where you came from and how you got involved with real estate and real estate investing?

One of the mentors that I met with gave me some really insightful advice.

I started out as a full time student. I was going to university. I knew that I wanted to get into real estate. I got my real estate license back in 2007. One of the mentors that I met with gave me some really insightful advice. I live in a mountainous region. He said, “If you go to the top of the mountain and look down on your market, you now have a license to do something that impacts that place for good. You get to choose what’s the highest and best use of your time to do that.” That was my mindset the entire time I was in real estate. What can I do to make a difference? Not just get commissions. What can I do to make a difference in this industry?

At the time when I was working with a builder, there’s plenty to compete with: a first time buyer, home builders, etc. you sit model homes. I didn’t have a flavor for that. I had no desire to sit in a model home and hear about people who wanted to change a room color or a flooring option or move a light fixture over three inches. That just didn’t do well with my brain type. At the time, there was a scarcity of a multi-family. I had investors that wanted to buy fourplexes, duplexes or eightplexes, etc. because of the ability to leverage decently and have one rooftop for more renters, rental sharing. There was very little available.

I talked to this builder I was working with and said, “Why don’t we build them?” The very first product type we put out, I sent out an email just to my database saying, “We’re going to build this fourplexes. We had nine of them. They’ll be new construction. You’ve got to get your own construction loan because we’re not going to finance it for you. It’s a really good return. If you’re interested, let me know.” Within 30 days all nine had sold out. Nothing sold at that speed. It was when the market was down. We found that there was really a lot of demand for stable new construction fourplexes specifically.