Today on the show we hear from Scott Choppin, a real estate developer of highly undersupplied multigenerational urban housing for families. He starts off with an explanation of the niche they specialize in, giving us all the reasons why they choose to focus on these urban properties. You will find out how the new development model they use over at his company, Urban Specific, differs from the value-add model, and which type of investor is best.
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Scott shares the criteria a property should meet before they would consider getting involved and explains why workforce housing is a more defensible market than millennial housing. He gets into a discussion about the anticipated recession, why the construction cycle should be paid close attention to, how developers can best prepare for the downturn and what to do when the recession hits while the property is still under construction. Scott further advises about the importance of mentorship for new developers and what other developers can do to improve their businesses. Tune in to hear all about it!
Key Points From This Episode:
- Being a real estate developer of highly undersupplied multigenerational urban housing.
- The disparity that exists between income and rent or housing prices in California.
- How they are approaching their entry into the Orange County market.
- Their criteria for buying assets and why they use the new development model.
- How the market cycle determines the deals that work best and the influence of a recession.
- The difference between workforce and millennial housing in terms of the tenant base.
- Preparing for the downturn in the context of the new development model.
- What happens if a recession hits while a property is under construction?
- The type of investor that invests in a value-add property versus in a new development one.
- A recent project that did not go as planned.
- The importance of watching your construction cycle as you go into a recession.
- Scott’s best advice for anybody who wants to get into the new development space.
- The value of mentorship, being willing to work for free and why nothing replaces experiences.
- Improving their business by creating standard operating procedures and social media content.
- And much more!
[bctt tweet=”Watch your construction cycle as you get near a recession and plan for contingencies if you get delayed, like a delay to push you into the recession. — @ScottChoppin” username=”Whitney_Sewell”]
Links Mentioned in Today’s Episode:
About Scott Choppin
Scott Choppin the founder of The Urban Pacific Group of Companies. He is a real estate developer of highly undersupplied multi-generational urban housing for families. Scott produces investor opportunities in long term hold new construction investments in high demand urban metros. He has been married for 26 years to Becky, raising 3 kids.
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