Dominate your Real Estate Market and create unlimited growth in Business and Life by surrounding yourself with people who have been where you are going. The HyperFast Agent Podcast will give you access to top business leaders like Gary Vaynerchuck & Grant Cardone, along with Top Real Estate Agents, coaches and industry leaders all eager to share their knowledge to help you achieve success at your highest level. If you are ready to join eXp realty and would like Dan Lesniak Tom personally sponsor you so you have access to two nationally recognized coaching programs text 703-638-4393
Episodes
Wednesday Jan 22, 2020
Wednesday Jan 22, 2020
During the second installment of the HyperFast Wealth segment of the HyperFast Agent Podcast, Dan Lesniak and Sunil Saxena broadcast live from the site of a property about to be demolished. Learn the plans that Dan and Sunil have for the property, and how knowing the numbers is the top priority when investing in real estate.
Episode Highlights:
- Dan and Sunil broadcast live from the site of a property that’s about to be demolished, on the one-year anniversary of purchasing the property.
- The plan is to tear down the existing property, and build two new homes.
- Why hasn’t work been done on the property in the year they’ve owned it?
- Sunil explains that the property sits on a large plot of land, by Washington D.C. standards, and they had to go through the approval process to split the site into two separate building sites.
- They budgeted 12 months for the subdivision approval process, building permits, and a demo permit.
- Dividing the property increased the value right away, without even building on it.
- Dan and Sunil explain three possible inflection points for the property: 1. Sell the property immediately after obtaining it, and make a little bit of profit. 2. Go through the subdivision process, and then sell the two property sites individually. 3. Or what Dan and Sunil chose; purchase the site, subdivide it, build two new homes, and then sell the two properties.
- Sunil expects an 18-20 month process before the two new properties are ready to be sold.
- Dan outlines that they bought the property for $1.3 million, and expect to sell both properties for $3 million each, noting that they also invested additional funds into building costs.
- The biggest thing is understanding what you’re getting into.
- Dan and Sunil have both done other site subdivision projects, and they acknowledge that it can be a multi-year project, so you need to plan for that.
- Most people know the purchasing cost, and can calculate what the property will sell for, but it’s the time and carrying costs that people often underestimate and don’t account for.
- That’s why it’s important to surround yourself with people who understand the process, or partner with someone who’s done it before.
- You’ve got to know the numbers involved.
- Real estate investment is all about numbers, and as long as you know those numbers, you’ve budgeted for those numbers, and the deal still makes sense, go for it.
- Lack of proper budgeting for time and money is a top reason that real estate projects go underwater.
3 Key Points:
- Real estate investment is a numbers game.
- Lack of proper budgeting for time and money is a top reason that real estate projects go underwater.
- The most important factors when considering a real estate investment are: The purchase price of the property, the length of time to develop the property, the costs associated with developing the property, the costs associated with carrying the property until it’s finished, and how much you sell the property for.
Resources Mentioned:
- Learn more about Hyperfast Academy; HyperFast Wealth
- Dan Lesniak bio, Facebook, Twitter
- Sunil Saxena LinkedIn