I recently bought something complicated; an old hotel that I bought out of bankruptcy. The owners didn’t have enough money to finish construction. So, we’re going to finish it, but we’re going to convert it to senior housing and assisted living.
As a company, we have three sectors that we focus on: we have multifamily housing, we have assisted living facilities for seniors, and we have office buildings.
We don’t build anything from scratch. Instead, we take a lot of “broken” things and revitalize them because it’s less risk in my calculation. Instead of taking four years to build a building from scratch, it’s more like two years until you can get a pre-built property stabilized. I believe you can get much more value that way.
While we don’t deal in single family homes, the same strategy is often useful in that marketplace. Here’s more on why buying a pre-built home could ultimately make more sense than building one yourself:
Buying a prebuilt property instead of building one from scratch can be a tempting proposition for many individuals, and it’s not hard to see why. While the idea of creating a custom-designed home may appeal to the dreamer in us, there are several practical advantages to opting for a prebuilt option that can make the process smoother and more efficient.
One of the most significant advantages of buying a prebuilt property is the time factor. Constructing a home from the ground up can be a lengthy process, involving various stages such as design, permits, and actual construction. This timeline can extend even further if unexpected delays or issues arise during the building process. On the other hand, a prebuilt property is ready for occupancy as soon as the sale is finalized. This can be particularly advantageous for individuals who need to move quickly due to work commitments, family changes, or other time-sensitive factors.
Cost is another crucial consideration. While it may seem counterintuitive, building a home can often end up being more expensive than purchasing one that is prebuilt. Construction costs can escalate due to unforeseen challenges, fluctuations in material prices, or changes in the initial design. On the contrary, prebuilt properties typically come with a fixed price, providing a clear and predictable financial picture. Additionally, buying a prebuilt home may also save money in the long run, as it eliminates the need for temporary living arrangements during the construction period.
The convenience and reduced stress associated with buying a prebuilt property are significant factors for many prospective homeowners. Building a home involves making countless decisions, from the layout and design to the selection of materials and finishes. For those without a strong background in construction or design, this process can be overwhelming and potentially lead to dissatisfaction with the final result. Opting for a prebuilt property simplifies this decision-making process, as buyers can see the finished product before making a commitment.
Another advantage is the potential for immediate community integration. Prebuilt homes are often located in established neighborhoods, offering residents the opportunity to become part of a community from day one. This can be especially appealing for individuals who value a sense of belonging and want to avoid the uncertainty of moving into a new area where development is ongoing.
In conclusion, while the allure of building a custom home from the ground up is undeniable, buying a prebuilt property has its own set of merits. The time saved, cost predictability, reduced stress, and immediate community integration are compelling reasons for many to choose the path of purchasing a prebuilt home. Ultimately, the decision depends on individual preferences, priorities, and the specific circumstances of each prospective homeowner.