How to Become a Real Estate Developer (Simple Steps)
ฝัง
- เผยแพร่เมื่อ 28 ก.ย. 2024
- Dirk van der Velde, a member of the Wealthy community, shares insights into his real estate development journey with Ryan...
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Connect with Dirk!
Instagram - / thedirkvandervelde
Still in his twenties, Dirk has engaged in significant development projects, and his family is known for their top ranked resort in Oregon. Ryan expresses admiration for the transformative process of turning a $10 million piece of land into a project worth billions.
In development, the main difficulty is the fewer deals compared to other real estate strategies. Dirk explains his approach to raw land, where he only pays 10% per unit based on the land's future developed value. This method helps attract investors, and Dirk particularly favors developing apartments due to the relatively short 2-year timeline for completion. He highlights two critical considerations in development: construction costs and debt structures. Locking in debt helps mitigate the impact of potential interest rate increases.
Dirk underscores that, unlike other real estate ventures, development doesn't yield immediate returns; profits come upon exiting, which could take several years. To ensure cash flow during this period, Dirk diversifies with other business ventures, including a construction company used for external deals and personal projects.
Assisted living, especially in memory care, is discussed as a lucrative niche due to consistent income streams, with government support adding stability.
Dirk advocates a growth mindset and believes in investing in coaching to learn and progress in desired areas. He aims to provide genuine education for those eager to learn and take action.
The conversation delves into the challenges of starting and hosting events, with both Dirk and Ryan sharing experiences and emphasizing the learning curve involved. Ryan shares his considerations for a potential golf course development, exploring locations and possibilities.
Dirk emphasizes the importance of building a strong acquisitions team and fostering relationships and a reputable brand to attract deals and collaborators.
![Ground Up Real Estate Development for Beginners [And How to Get Started in Development]](http://i.ytimg.com/vi/E7NzUPI-72g/mqdefault.jpg)
![Ground Up Real Estate Development for Beginners [And How to Get Started in Development]](/img/tr.png)
Great video. I admire a guy who takes his blessings to the next level👍🏻 Bravo
As someone who builds buildings just like this, everything Dirk said here was totally on point: how equity raises work, locking in your perm rate at construction loan closing, initial cashflow not being huge but long-term benefits of holding these new assets (higher cashflow, refi opportunities down the road), cost seg is HUGE and has been huge for us - being able to take big chunks of depreciation. The only thing I am skeptical of is 28% expense ratios but maybe if property taxes are low it's possible. Seems a tad low or maybe I am just being jealous.
Shoutout to you, people really need to checkout your content especially you are interested in becoming a developer.
Always, always...get entitlements before closing
I took a hit during Covid with the material boom I was building 3 custom homes and I had 3 flips I had to get rid of the flips and made nothing on the builds prices hit 3 times what they were example lumber package was 75k on a project when Covid hit it cost 125k
flipping properties is a terrible business.
why? @@algroulx1774
@@algroulx1774 explain. a statement goes nowhere without anything to back your claim
I liked my own comment. All day.
8:41
As much as I love this.
Man this is not the real world.
This is a great guy who fell into a great family business.
This doesn’t just happen.
So awesome! Cheers!
Bro. This channel is a joke. Dude basically leveraged pandemic and videos while we are all just catching up to that.
7:53
First comment! 🎉 I hope everyone watching this video and reading this comment good luck and success in real estate and any other field they are researching .
Great Video. I Absolutely love the Development side of RE. 4 years in, however, Industrial is my favorite. Too many moving targets on luxury apartments/Retirement/assisted living homes.
How did you get started in that field? Did you have a team in place? What did the initial jump look like? If you don’t mind me asking…
Bump that!!
The way they say normal is like in the end of the curve where as everyone is at the start or middle. Less than 1% are even close to after middle. 😶
In LA hilside jobs apartments my profit is about 100% or more I'm doing a 29m apartment building but the profit is about 19M it takes about 4 years and more hoops to jump into
@rezatashakori2 I'm just gettin started in Development and I'd love to pick your brain about the hillside project you did that was featured on Darren Kriz's channel. Amazing work btw! I'd ofc offer value for your time.
No way 28-30% expense ratio, guy will loose this place if a tight time comes, should be 40-50%
I have an idea that can turn a home owner into a builder
I really would like to become a student of yours I can look at a piece of land and develop it I can get off on a exit and tell u what it needs to make the economy and population grow
Keep coming back to this video and finally finished it. Its inspired me and has given me visions for the future of my career. Thanks Ryan, and Thank you Dirk.
Good now bring his dad to the channel since he did all the work
Riviera Maya you can build 5 floors with rooftop around $2K fully furnished vacation property. Due diligence will help, and there are always many opportunities. It's growing in momentum and many investors buy land as well 3x.
2000 dollars ? i think you mean at least 200k
Step one be a Vanderbilt
That explains alot
Interesting. I have seen you at the Cash Equity vip party in Dallas. I handle similar deals like that, with the wholesale concept and structure.
Teach me
I’ve been in real estate development for 10 years 15 in total with construction during the pandemic I was trying to scale
How did it go for you?
Ryan is a likeable guy.
Ryan you should definitely make your first CRE development an international one. I hear the Bahamas is a great place for American developers to go and come out profitable! 😂😂😂😂😂 Dirk to his credit despite being born into this without having to what many of us others have had to do with having deep pockets from family and built in relationships which is an absolute cheat code in this business he seemed very humble and came across to be fairly well versed in certain areas accept that expense ratio comment...yikes.
I’m flipping currently and I wanted to build next but this just inspired the hell out of me to do more and not be afraid !!!
Love this!!!!
Dirk is a freaking animal…especially at his age.
Asheville NC scenic golfing
Good vibes lol. Great insight and discussion.
Very interesting, I live in bend. I've worked in tetherow
Does Dirk have a course or group?
Great interview guys!
Glad you enjoyed it!
Love your videos!
Thank you!
Love Cabo but it is way overpriced.
I think so too!
Interested to know if quality care will be provided to the folks staying in the memory care facility? I’d hate for this to be a money grab
Ryan…. STOP trying to be cool🙄…. hey dude🤡
You know already, pay the right people and get fast license to build:)
Ryan check out Puerto Rico 🇵🇷
Not self made. Everything is easy when your born into the business.
That's my feeling tbh