Multi-Family Development
Opportunistic, Ground-Up Construction
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Multi-family homes
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18–24 months
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Build-to-sell
Investing in Multi-Family New Developments
Multi-family home developments represent opportunistic real estate investments, where Hezekiah constructs brand-new multi-family apartment buildings from the ground up. By pooling funds from multiple investors, individuals can own a stake in multi-million-dollar properties without bearing the full financial burden of development.
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Given the higher demand for multi-family buildings with fewer units, Hezekiah focuses on projects of this scale, shortening timeframes and mitigating risks. Typically ranging from 18 to 24 months, these projects offer attractive opportunities for investors seeking to grow their capital without lengthy commitments.
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Thanks to the substantial value generated by ground-up construction, Hezekiah's multi-family developments have historically delivered some of the highest yield returns among its investment offerings.
The benefits of Investing in Multi-Family Development
High Demand
Our multi-family floor plans are in exceptionally high demand, facilitating the process of finding a qualified buyer for a quick sale once the development is complete.
Potential for above-average yields.
New development projects offer the highest return potential because they involve adding substantial value by constructing properties from the ground up.
Investment portfolio diversification.
Investing in our multi-family developments provides a medium-term investment horizon, offering diversification for both short-term and long-term investment portfolios.
Deal by Deal Control
Investing with us offers the flexibility of a deal-by-deal approach, granting you the autonomy to handpick the specific property or properties in which you wish to invest.
The Process of Multi-Family Development Investing
Choosing the Right Property
This investment venture commences with the meticulous selection of an ideal lot for construction. Through a comprehensive market analysis conducted by our seasoned real estate experts, we scrutinize numerous properties within burgeoning markets to identify those with the most promising potential. Whether it be vacant lots or properties with distressed single-family structures, each undergoes rigorous evaluation based on criteria such as location, zoning regulations, lot dimensions, and buildable area.
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Utilizing our extensive industry network and experience, we source deals from various channels, including local brokers, off-market opportunities, foreclosures, probate courts, and auctions. This diverse approach enables us to secure properties with favorable terms and optimal potential for profitability.
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Every property undergoes thorough due diligence before acquisition, wherein we assess building costs against anticipated post-construction value to ensure a lucrative outcome. Our strategy emphasizes the development of small apartment buildings, as they offer swifter construction timelines, easier permitting processes, and broader market appeal. By focusing on smaller-scale projects, we enhance the predictability of returns and expedite the process of selling the completed buildings, thereby facilitating faster distribution of proceeds to investors.
Securing the Property
We enter negotiations to procure the selected property under advantageous terms, aiming for the lowest purchase price to maximize our profit margin. Leveraging our extensive network of local lenders, we secure favorable terms and competitive interest rates on our construction loan. Furthermore, our established track record and volume of projects enable us to negotiate discounted rates on labor and materials for construction.
Once our real estate experts ascertain the viability of the property for our investors, we initiate the establishment of the LLC in which the property will be held. We secure financing, meticulously complete all title and escrow documents, and ultimately seal the deal through a successful closing process.
Designing the Property
Hezekiah's multi-family developments are meticulously crafted to meet the diverse needs of today's buyers and renters in burgeoning metropolitan markets.
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The design, layout, and finishes of our developments are tailored to suit the property's exit strategy. Some properties are primed for sale as a whole to a single buyer, while others are destined to be sold as TICs or condos to multiple buyers. We adapt each property to align with its eventual buyer profile.
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For developments slated as TIC and condo projects, we focus on creating units that exude a sense of home. These properties are crafted to attract individual buyers seeking long-term residences. We target residential locales with a mix of single-family and multi-family residences, crafting upscale units to meet discerning buyer expectations.
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Conversely, for multi-family developments destined for sale to a single buyer, we adopt a different approach. Our units are designed to resonate with prospective renters, thereby generating interest from individual investors seeking rental properties. To cater to today's renter demographic, we construct spacious units with multiple equally-sized bedrooms, each featuring an ensuite bathroom. This layout caters to the burgeoning "co-living" trend, where renters opt for shared living arrangements to mitigate housing costs. Moreover, families priced out of the housing market seek large apartments with ample space to accommodate multiple children and a home office.
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In selecting amenities, we strategize to ensure our buildings are highly sought after by investor-buyers. We eschew high-maintenance amenities such as pools and fitness centers, instead opting for low-maintenance features that confer a competitive edge, such as ample parking, in-unit laundry facilities, and rooftop decks.
Building the House
Once the designs are finalized, we initiate the permit process. Once permits are approved, our construction team can commence building the structure on the prepared lot according to the architect’s design.
Selling the Property
After construction wraps up, we stage the home, capture final property photos, and list it for sale on the market. Qualified buyers are targeted through strategic advertising efforts to ensure a successful sale.
Timeframe
A home development project typically spans 18-24 months, from initiating escrow for property purchase to completing the property sale. This includes phases like design, permitting, construction, and eventual sale. After the property sale closes, Hezekiah disburses proceeds to investors within 30 business days.