The Real Estate Investing Club

New Construction Mastery: Ground-Up Development Secrets 🏗️

Gabe Petersen Season 1 Episode 597

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GROUND-UP DEVELOPMENT IS THE ULTIMATE WEALTH BUILDER 💰

In this powerful episode of The Real Estate Investing Club, I sit down with Daniel Angel from Apex Investments to reveal why ground-up development might be your secret weapon for building serious wealth in today's challenging market. Daniel shares his incredible journey from corporate banking in Colombia to building a vertically integrated development company in Atlanta that's crushing it with both build-to-rent and build-to-sell strategies.

WHY NEW CONSTRUCTION BEATS FIX & FLIP 🔨

Daniel breaks down the exact moment he realized ground-up development offered better margins and more predictable outcomes than traditional fix and flip deals. With rising home prices squeezing margins on renovations, buying raw land and building from scratch has become increasingly attractive. The best part? No surprises when you knock down walls because there are no walls yet! This predictability allows for better planning, more accurate budgets, and ultimately higher returns when executed correctly.

THE FOUR-PACKAGE SYSTEM FOR PROFITABLE BUILDS 📊

Discover the exact matrix system Daniel uses to streamline his development process across multiple price points. From builder-grade to high-end finishes, his team has created four distinct packages with three variations each, allowing them to serve markets from $500K to $900K without reinventing the wheel every time. This systematized approach is what separates hobbyists from professionals in the development game, and Daniel walks us through how anyone can implement similar systems in their own business.

FROM COLOMBIA TO ATLANTA: INTERNATIONAL INSIGHTS 🌎

Daniel provides fascinating perspective on the differences between developing in Colombia versus the United States. The availability of financing tools, the sophistication of the debt stack, and the responsiveness of markets to macroeconomic conditions all play differently south of the border. His corporate finance background in both countries gives him unique insight into how to structure deals that work in today's environment, especially when traditional financing has become more challenging post-2022.

MULTIFAMILY TO SINGLE FAMILY: ADAPTING TO MARKET CYCLES 🔄

Learn why Daniel and his partner made the strategic decision to pivot back into single-family development after building a successful multifamily acquisition and value-add business. The cap rate compression and expansion cycle that followed 2021-2022 created a unique dislocation between buyers and sellers that made multifamily deals increasingly difficult to underwrite. Meanwhile, the single-family development space opened up new opportunities for those with strong construction capabilities and patient capital.

Want to learn more about our guest? Connect here: https://apexinvestments.us/

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