Building A House VS Buying An Old House: Which Is Better?

[@BridgetMiller-]

This is the summary of the rent vs buy decision I’ve been trying to figure out for years. The rental income vs mortgage payment calculation never made sense to me. But this is much more logical and makes far more sense. Thank you for simplifying this!

[@DhanaPayar]

Most people are unable to handle a fall since they are accustomed to bull markets, but if you know where to look and how to get around, you can profit handsomely. It depends on your entry and exit strategy.

[@Michaelparker12]

A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K

[@Theodorebarba]

impressive gains! how can I get your advisor please, if you don’t mind me asking? I could really use a help as of now

[@Michaelparker12]

Stacy Lynn Staples is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.

[@berniceburgos-]

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

[@DonaldMark-ne7se]

I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighborhoods. Then you’ve got Better, average sized homes in nicer neighborhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.

[@Jamessmith-12]

Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.

[@kevinmarten]

Personally, I can connect to that. When I began working with a fiduciary financial counsellor, my advantages were certain. I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2021 this time with guidance, Long story short, its been 2years now and I’ve gained over a million dollars following guidance from my investment adviser.

[@JacquelinePerrira]

consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.

[@kevinmarten]

I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?

[@JacquelinePerrira]

There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

[@ilovecomics2024]

Shelby, I emailed you a couple years ago about a custom mid-century modern style home that me and my wife had recently built, as I figured you might be interested in discussing the process (but I didn't hear back). We're very happy in the house now, but it was a long, stressful process. I bought the vacant land in December 2018. Then I contacted a custom home building contractor. We're lucky to have found an honest group to be the contractor, because you hear horror stories about so many lowlife contractors. We got a construction loan which was very difficult unto itself. Got rejected by one bank after going through a long process. Went through it again with another bank, and we eventually got it with a great interest rate (3.115%). Then COVID hit hard and caused lots of prices spikes and supply delays, specifically for the windows. We broke ground in October 2021 with the estimated completion date to be April-June 2022. Didn't complete until January 2023. I love our house, but custom building a home is not for the faint of heart. I recommend it with the caveat that you're willing to go through a lot of stress to get to the finish line.

[@MrChrisArtStudio]

Yeah I agree. My parents did a new construction as well. And it was so hard. It was a rough couple years and it was almost like a full-time job. A lot of permits and approvals takes so much time and can be very discouraging.

[@ilovecomics2024]

@@MrChrisArtStudio Yes, absolutely. Depending upon the situation, the buyer can be more hands on or more hands off during the build process. It sounds like your parents and I were similar, in that we were very involved throughout the process. I should've added to my original comment that custom building a home is probably best suited for those in very specific circumstances. Most Americans just want a house they can afford. If that's all you really want, building ain't worth the hassle. Custom building made sense for me because I had a very specific desire for the home's position on the land/site plan, more than anything else due to future plans I have for the property. Being able to custom design the house to my mid-century aesthetic preference was important, but secondary to the site plan. Most people don't care about the home's position on the site. Also, I'm a quintessential Millennial age-wise. I bought my bachelor pad dirt cheap at the very bottom of the market (2011), so I paid it off ages ago. Therefore, during the build process I had somewhere to live, and I was only having to pay the construction loan interest payments. Most Americans don't have a paid off house like I did, and the idea of paying a mortgage (or rent) AND simultaneously paying the construction loan contributions and interest payments throughout the build process probably isn't doable. If you don't have the this sort of security lined up, it will be difficult and extra stressful to build a home.

[@sihamomer9927]

My husband and I are considering building our own home, and I found your insights incredibly helpful, especially about the mid-century style home. Would you be open to sharing more about your experience? I can email you if that’s easier.

[@ilovecomics2024]

@@sihamomer9927 Sure, I'd be happy to help. What would you like to know? I'll post the info here as comments, since others may also find the info helpful.

[@BlueCrabCharleston]

Things to remember when buying a home from a new home builder: Use the builder's lender if closing fees are waived, upgrade as much as possible (lighting, fixtures, etc) because you are already paying for the installation, add crown molding to all rooms if it fits the style of the home, ask for real wood cabinets, go with real materials such as wood floor versus vinyl, pay for a home inspector to review the electrical and plumbing areas after installation, request pull down stairs to the attic, see if the builder will add any built ins, it adds character, and make sure the landscaping is graded correctly.

[@brat32179]

For personal use there’s also the extra carry cost of living. If you build new construction, you’re also paying to live someplace else for those 2 years. Vs buying an existing house, you’re able to move in and live there, even if you’re doing some upgrades.

[@OcRefrig]

very good point.

[@InvestWithFFI]

Excellent point that I’ve never heard mentioned before.

[@StudCity]

I built a new house in 2023 cause it was cheaper to build a new home than buy one of similar size 20+ years old. Minimal issues and a beautiful home that we closed on March 2024. Wild that it worked out like this but im pretty damn happy in our new construction!

[@DanielBlak]

Was it essentially a turnkey project with a construction company or did you construct it yourself?

[@veliciahiley7652]

Congratulations Shelby on getting your real estate license 🎉🎉🎉🎉.

[@samoz2856]

Hello, I am an Architect based in the DC metropolitan area. I would say building new vs buying and renovating are very different paths as you say. The one issue I see with clients who want to build new is that building nowadays is EXTREMELY expensive. You are very unlikely to find a vacant lot in this area (which most people want to live in) so you’re buying a tear down lot which still costs between $500k-$800k. That alone destroys your numbers since that’s a sunk cost. Then you add the demolition and all other costs on top of that. Will easily cost you millions to build a simple house. If you do have the luck in finding a good size home with good bones I strongly advise renovating and adding additions onto it rather than tearing down. You can practically get a new house for a fraction of the cost. It’s not cheap still, but less than building new. Unless you have a ton of money lying around or find a cheap lot, building new doesn’t make sense for most people. Most builders in metro areas are charging $250-$350 per square foot. So just simple math and you’re building a 2000 SF house for around $600k not including site work and architectural, permitting, etc. just the build alone. So it gets pricy. Most people want a 3500-4000sf house (which in my opinion is a whole other issue) what America needs are smaller homes built well and affordable. Simply scaling down sizes could positively impact the entire economy and give the country back what it truly meant to have an American dream with your own property. We don’t need mansions to live our lives fully. We need diverse and dense towns, cities, and walkability. I’m on a tangent now. Anyways. Thanks for the video!

[@WTF-sh4is]

Great insight! Thanks for sharing! Building is a very serious commitment. And a death sentence in California! 😂

[@OrangeArdmore]

I am so glad you posted! The DC area is always overlooked when it comes to talking about real estate. The fact you have the background and experience in this field is even better. I live in NW DC Gold Coast area. I live in a studio apartment and I want to move into a 2/2, but I have been priced out of the rental market in NW. I am setting my sights on Capitol Hill Navy Yard area. I have struggled with the idea of buying a row house or a single family home and gutting it to my specifications. My goal is to save more aggressively over the next 3 years. I think we need more people on tangents bc I do not understand the need for sprawling homes in excess of 5,000 s/f. Back in the day people had homes that size due to wealth, large families, or entertaining at home. Unless you live in Utah and have 8 kids I don't get it.

[@johnjohnii5849]

My great grandfather built my home in 1904. It's a Sears 4 square that came in a kit. I wouldn't have new construction over this under any circumstance. This house is built really well. The roof is asbestos slate shingle and other than a broken shingle here or there, it's never been replaced. The supports are all oak wood and it's more solid than pine fresh off the shelf. This house has been hit by an EF3 tornado and it's still standing compared to the 7 year old subdivision a few miles over was flattened. I do ALL repairs myself, including a new septic in 2021 and underground power lines a month ago because paying somebody to do it would definitely wreck my retirement fund. If you're gonna build new, be really mindful about how it's built. The walls in some of these new homes are a small step above cardboard.

[@tgc856]

Underground power lines? Inside the house or going to the meter base ?

[@johnjohnii5849]

@tgc856 meter base to the house.

[@ShelbyChurch]

Those kit homes are so interesting!! Would love to make a video about one one day

[@tonysilke]

I’m a new dad, I moved to the Bay Area a few years ago and I’m thinking of purchasing a single family home, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys.

[@Nernst96]

it’s a personal decision, but according to Forbes, housing activities will remain stagnant for the most part of the year, so maybe hold off a little.

[@PatrickLloyd-]

well you could put a downpayment on a home and as well diversify as much as you can into Ai and pharm. stocks like Pfizer and JnJ.

[@Ji-Min-j7b]

Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I.

[@PhilipDunk]

@@Ji-Min-j7b this is all new to me, where do I find a fiduciary, can you recommend any?

[@PhilipDunk]

Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.

[@RyanRosenquist]

As always, thank you for delivering top notch content for us Shelby!

[@humphrey]

thanks Shelby, this is a question I always wanted answers to!!!

[@123teddyandme]

THIS WAS SO INFORMATIVE u explained it so well loved the graphics and text to him. THANK YOU please make more

[@ShelbyChurch]

Thank you the graphics took a while!!

[@joshuadominictoling5310]

@@ShelbyChurchOr living above Fillmore, Moorpark, or Ojai 2-Story Family Suburban Homes to stay.

[@bjkearns2]

The problem I personally have with most new construction is that most of the lot sizes are absolutely tiny. I’ve got a 1.5Ac lot, there are new houses less than a 1/2mile away that have 5,000sqft lots

[@Justin73791]

Yeah developers suck the life out of whatever land they touch.

[@choochtech]

i got a house built in 2003, and it is crazy how many repairs I have had to do, everything is breaking and it cost so much to fix everything! I want a fancy new construction house so bad!

[@EUCvibes]

Chooch!!!!

[@codybrown9401]

2003 is pretty new, However being 20 years old, that is about the lifespan for a lot of things in a house so what you are saying makes a lot of sense.

[@ShelbyChurch]

Dang and 2003 isn’t even THAT old. But it is about the time that HVAC might need to be replaced, new appliances, etc..

[@choochtech]

@@EUCvibes Lmfao you now know who my youtube crush is! Cheers Thomas!

[@joshuadominictoling5310]

⁠@@ShelbyChurchShelby, I living a Southern California Big Suburban Home there. I like having swimming pool, 3 bedrooms, and 2 full baths.

[@itsnotme07]

I've had friends/co-workers here in the Dallas area build their homes over the last 20-25 years. I've never heard one of them tell me they enjoyed the process or they were "very happy" with the result. Many ended up having to sell the home because the market changed on them during the build. I'm not that patient...and with a Dad who's a Master Plumber and a brother who's a Master Electrician, I've been with them on jobs...sometimes they just get nuts! So for me, I'll stick with older homes and if needed, I'll get the work done after purchase. Great video Shelby and congrats on getting your Real Estate License! Welcome to the nuttiest house of all....the LA Real Estate market. LOL No doubt you'll save costs being your own RE Agent.

[@AC-qo8oq]

What a gem to have a master plumber and an electrician in your family. You’re so lucky wow now you should be a construction manager and fix up old houses

[@itsnotme07]

@@AC-qo8oq What fun that could have been. Dad is no longer with us and my brother lives thousands of miles from me. I did suggest that to them back when I was in high school. They never got into flipping houses.

[@JR-ju9il]

New construction is fine if you’re using a custom builder which costs $$$. The average person buying new construction will most likely be buying from a production builder which follows bare minimum code, low quality materials and sub-contractors. There’s also additional costs associated with buying new construction that you wouldn’t have with an established house like window coverings, landscaping, utility installs, etc. Having bought both new and old houses, I would choose an older house every time if I could. In some markets though, new construction is the only thing available and affordable.

[@codybrown9401]

Old houses are always better as long as they have been maintained. You can always renovate them and at your own pace. The quality of construction materials is so much better in older homes,. There are plenty of inspectors out there who make videos of how even with new construction there can be major issues due to builder error or defective materials. Plus with an older home you don't have to worry about settling as much.

[@ShelbyChurch]

It’s true a lot of them have better quality materials, unless you were accustomed building, then you can ensure that better materials are being used. But if you’re buying from a big builder that’s selling thousands of houses it’s totally possible that they cut corners

[@joshuadominictoling5310]

@@ShelbyChurchShelby, I like 2-story Suburban Homes there to live in Palos Verdes Estates, Rolling Hills Estates, or Rancho Palos Verdes.

[@diemes5463]

This is completely wrong, housing developers and shady contractors have given modern construction a bad name, but the technology behind the materials is objectively superior. Old houses do have more character as residential design and craftsmanship were more valued in the past.

[@codybrown9401]

@@diemes5463 all you have to do is go the wood section of a store to realize what I’m saying

[@IamJonny-o4v]

I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?

[@sharonwinson-m8g]

"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task

[@RaymondKeen.]

Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.

[@Hectorkante]

this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

[@RaymondKeen.]

There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

[@SandraDave.]

She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.

[@tali613]

Please start a podcast, Shelby!! I’d listen to it every day on my way to school. I love your videos, you have so much wisdom!!! I’m 22, and in college, I haven’t started a career yet, and your business advice really helps me and I plan on using it once I finish school! So I’d love to listen to your money advice while traveling, I think it would be successful!!❤❤

[@Courtney-Alice-Gargani]

I believe from state of state the material cost the same to build the house. It’s the land that’s expensive.

[@saulbarron4824]

Informative video. I wasn’t sure expecting that much substance… first time viewer of your channel. I live in a soon to be 60 year old house and I can certainly emphasize as I’ve had plenty of plumbing issues this past year. Looking forward to watching your other videos.

[@jerry101927]

Great video Shelby! I would love a follow up focusing on someone building a home or documenting the journey of the joshua tree home!

[@therealashleycrouch]

Extremely informative thank you! I love the specifics and go you getting your RE license!

[@PaulaCarbonell-n7j]

With real estate prices skyrocketing right now, is it still wise to buy a home, or should I put my money into stocks and wait for a housing market correction? I'm a new father who came to the Bay Area a few years ago and am considering buying a single-family home. AMD and Nvidia are reportedly good investments.

[@wmwoods-l4f]

Although it's a personal choice, Forbes predicts that housing activity will stagnate for the majority of the year, so perhaps wait a little while longer.

[@j.ottinger]

According to rumours, several AI businesses are overpriced and could trigger a market correction. I would advise you to invest in a managed portfolio, but even those don't do very well, so it's ideal that you get advice from a qualified fiduciary. That's what works for my spouse and me.

[@speak2Gary]

this is all new to me, where do I find a fiduciary, can you recommend any?

[@j.ottinger]

Annette Marie Holt is very sound in analysis and her service delivery is top notch. I am so grateful to her for her assistance which has made me a much better and profiting trader.

[@speak2Gary]

Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.

[@TheSelgomez12]

We built a custom home on a property we purchased. We had our plans drawn up and we got bids from 3 builders. I used a standard list of options from a local builder so we were comparing apples to apples. The builder we chose paid us a late fee for every week that he delayed completion. In the end our close date was a month later than the builder guaranteed and he paid us for 4 weeks. It was in the contract that we signed.

[@thereseember2800]

My sister owned 5 homes by the time she was 24. She had a realtor’s license & roofed 3 of them by herself. Her tenants were paying 100% of her mortgages plus extra. Flipping houses resulted in Stachybotrys toxic black mold infections in her lungs & asbetos. The home she’s in now is completely paid off, but she’s an invalid. She had so many tenants who caused damage to her homes. It’s not all rosy like you describe. It takes 4 months to evict non-paying tenants.

[@krystalm_]

Not worth it, if it costs your health & well-being

[@tgc856]

She got that from changing the shingles or she worked inside the homes as well ?

[@beatricerights]

That is so sad. Fouir months is not bad. It took a year and a settlement to get a tenant out in NYC during cov'd. It's not for the faint of heart. I got excited about the video. Thank you for bringing me back to reality.

[@Chutney1luv]

Unfortunately, that is the downside of being a landlord! Having a Property Management Company do the collecting would be so much better! They would handle the good and the bad for 8%.

[@eddiemalvin]

That's so sad because lung infections, rental damage and evictions are all easily avoidable with the right mask/gear, a good neighborhood and a solid screening process. With the right education, real estate investing can be all rosy.

[@irakli4797]

If you can build by yourself from scratch to finish and get wood cement and roofings cheaply from here and there from demolished building or used parts you can save a lot of money. Writing as someone who has seen and took a part in post soviet country

[@jayziac]

Please do a video on modular homes (not manufactured, or mobile homes). modular homes get built in a factory, which reduces waste, costs, and delays. Then they're installed into a lot, seems like it could avoid a lot of the costs overruns with custom build-on-site these days.

[@W12w222]

You are very knowledgeable young lady, love the way you breakdown all your investments to compare if there are losses or gains. You are also easy on the eyes with a good personality, keep up the videos. You are helping people make very crucial decisions.

[@BayWeli]

Great and informative video! I would love to see more videos like this in the future. Congratulations on getting the license! 💫

[@karlyd7274]

Good, informative video Shelby! Congrats on getting your real estate license! 🥳🥂

[@khenry2]

great information! very interested in the Joshua Tree Project!

[@getreal2958]

Build your own. I have built 2 of my own homes and rehabed 1 home. For me I got to pick each material that went into building the house based on what was important to me. Plus I made a killing when I sold the new homes. The rehab was OK but did not have full control due to the bones of the home. I will make money when selling but the next home I will be building new.

[@Beeled6244]

Not all construction loans work the way you described. It depends on the bank/lender. You need to shop around for the one that fits your project and needs the best

[@saratemp790]

As an FYI, my neighbor subdivided their lot, so they ended up building a new house, next to my house. So I could kind of see the whole process. It took him like a year. He built the whole house mostly by himself. He had some help here and there, but he mostly did it by himself. What's interesting is, the outside got put up very quickly. I mean the outside was done in like a month. He had help for that part. So I figured the house was almost done after that, lol. But nope, apparently it takes a long time to finish the inside. I guess plumbing and electrical, drywall, etc, takes a long time. He ended up making a good profit for it.

[@VideoGameRoom32]

Always great videos. I buy lots for new homes, and I flip them for a profit. Do you know anything about flipping lots? I think it would be cool if you made a video about buying lots and flipping it for a profit.

[@ShelbyChurch]

I don’t but would be interested to learn more!

[@joshuadominictoling5310]

@@ShelbyChurchHey, Shelby, I wish I like to live near Calabasas, Agoura Hills, or Malibu 2-story Suburban Home.

[@beatricerights]

Please you should make vides about that. I would love to learn how to do it.

[@stansanders6959]

I’m in Florida and we had a construction to perm loan that wrapped up the land and construction together. It was also a primary so I had to only put down 5%. And paid interest only until I moved in.

[@Riggsnic_co]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[@JacquelinePerrira]

If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

[@Jamessmith-12]

consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.

[@kevinmarten]

I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?

[@Jamessmith-12]

There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

[@kevinmarten]

I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her.

[@daniellelemay2696]

We are building in Canada, it’s REALLY expensive!

[@montyspearo]

If planning to live in it the new build is likely to be lot more expensive than spec house. Those more expensive fittings you want eg lights, carpet, tapware all add up very quickly.

[@skybox3550]

Love your videos and the real topics you report on. Here in Michigan builders are charging $500 a square foot to build so building doesn't make sense here. When you can by the same size house and reno it for much less per square foot. Labor is cheaper in other states. I think this all dependent on where you want to build/buy.

[@wzeng02]

Thank you for sharing. I am always curious on this topic but vs built.

[@eliinthewolverinestate6729]

I am doing both. I have a 200 year old tax sale house. Actually we don't usually flip or work on homes made in the last 100 years. But I am in Michigan where houses and property is cheap. We can put up and finish a timber frame 32x48 passive solar skillion house for 70K. Add on minimal 5 acres for 25k-60k. We target first time home buyers and retries. All wheel chair accessible with handicap bathrooms. We also do A frames. We specialize in cheaper designs and cost of living. That's why we build skillion, A frames, and simple ranches to sell. Insulation and windows are the biggest cost per square foot.

[@WTF-sh4is]

6:42 on other thing to consider is PRAYING 🙏🏻 you have a whale of a buyer at the end to buy it for over $4m!! That is variable! Which you mentioned when demand slows (like right now)

[@vidsvideos]

Congratulations friend. Welcome to the amazing world of Real Estate.

[@austinbar266]

I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?

[@jcurdrayeric243]

I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!

[@rogerwheelers4322]

This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.

[@FabioOdelega876]

Inflation is around 6.5% here in the UK, but as we know it's definitely way more than the Government would like to admit. My plan is to earn more passive income and ride this out, can your Investment-adviser assist?

[@rogerwheelers4322]

‘’Marisa Michelle Litwinsky’’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@FabioOdelega876]

Thank you for this tip. it was easy to find your coach. and I conducted thorough research on her credentials before scheduling a call with her. Based on her résumé, she appears to possess a high level of proficiency, and I am grateful for the opportunity to speak with her.

[@randyreynolds1045]

Soil conditions in FL are critical too. could add to cost.❤

[@alexandermuir8160]

Shelby, I love the amount of information you provide in your videos. You certainly do your homework. It's great to learn about how things are executed in the U.S. I still can't believe the connection costs of utilities though. 😊😊👍👍

[@nwalters7]

I'm just asking questions. I enjoyed your video, shelbs!!!! as I always do!!!!! I freaking love you!!!!

[@NormanF62]

Shelby, congratulations on getting into the family business! Your mom and Monica are also real estate agents and this isn’t like you’ve never done it. You’re in good company, indeed. 😊

[@RarosueAmaraibi]

Congrats Shelby for getting your license 👏🏾

[@NaProbablyNot]

Also the cost per sqf even within LA is a huge swing for the same exact house. Upscale neighborhood vs less desirable. GCs seem to price for the area.

[@zee4265]

My first house was built in 1989, second one was built in 1963. The first one cost me $9,300 in the first year for repairs/maintenance. The older home cost me ~$900 in repairs.

[@Renull55]

I see the play.. The church twins are going to pitch a tv show!

[@filinonunez620]

You can also buy a new Construction home from a private builder you get a new home with maybe not all the features that you want but you avoid worrying about anything else and you can add whatever features you want to the home as time goes on

[@itsgivingbougie]

congrats on your real estate license! And also this was super informative!!!

[@fredscott8436]

....ABSOLUTELY FASCINATING video.................I'm trying to build new, in the Florida west coast...........I have a house plan and the costs and path............the houses are small, one-story, 12-feet high and built with a steel frame.............I have everything nailed down to the penny.............Florida land has to be piered.....which is foundation pilings dug down....etc.......but I am kinda following your build in Joshua Tree.....................so many issues makes building daunting..............but the final costs, in my plan = $1.650mm..........value of the finished home = $3mm.....and I want to do 3-4 at the same time..............

[@nikkitube26]

I think you missed the part where building a house and building a fully custom house are two totally different things. They aren't the same on top of the fact that most people aren't carrying the construction loan, the builder is. The main reason you would carry the construction loan is if you own the land then found a builder to build on it and it is not land developed by the builder or a developer the builder bought the land from. We own our land and when talking with builders for a custom home we are told that the general price is pretty straight across the board for the foundation, framing, drywall, labor, etc. but it's the finishes that makes a house more or less expensive. For example we could do a standard $7k-$10k appliance 'package' or plan to use top of the line appliances for upwards of $25k which makes a huge difference in the final house cost, making it WAY more than a pre-loved home. Secondly, when you are the owner carrying the construction loan you know every itemized price point because your builder has to send that over to the bank before you can even get the loan. This isn't something you see when you're just building any house. I am paying way more to have a custom home on my own land than I would be paying for a pre-loved home or new build with the same specs.

[@chuckb470]

$10.71 per doorstop?? They're $3/each...

[@rhackenb1]

Do a show like this in a nice suburb of a mid-west city. LA seems to be at the end of the spectrum.

[@Chutney1luv]

Shelby, this was so informative and an excellent video! I've always loved new construction but did not know that it was so affordable? The most difficult part is finding land in in the right location? Congrats again on receiving your Real Estate Liscense! You will do very well! 👏 🎉🎈🎉

[@wendypierce5621]

I’ve heard about a lot of problems in buying new construction from the big builders, the quality can be iffy.

[@Outrayjes1]

Currently in a gut renovation of a 1920’s craftsman home in LA which we started last November. The contractor we are working with said it would’ve costed ~$150k extra to demo the entire house and rebuild new. With almost $100k in change orders maybe would have been better to demo completely and rebuild new which would have been much straight forward

[@weekendhomeprojects]

This is one of the most informative videos I've watched in awhile. Sub'in fo sho!

[@gaetano3538]

The numbers you are showing in Cali are astronomical and, in my view, insane. In the city I live in I can buy a lot from around $30,00 to $70,000 and build new for $170,000, with above builder-grade quality. In small towns nearby the cost is even less.

[@platonofffam]

Wonderful video! Thank you so much!❤

[@jjlouis7762]

I plan on building at some point in my Life but my goal is really to grow my business so big I can do everything out of pocket . At the end of the day it’ll be my house so hurting my pockets it’s something I’m not worried about honestly. Especially if I have the cash and significant margins for any unforeseen extras . My biggest thing would just be finding the right piece of land .

[@gregs8685]

Great video. I think there is a big difference between. Builder building anime and some random person building a home. The builder knows the process, has a network of subcontractors and know to make money. A person building their own house will need to hire a builder and pay for his overhead and profit, there will almost certainly be change orders and other cost overruns so the potential to make a profit, and the actual profit, are likely much lower for a regular person. Of course in a hot or rising market it’s much easier to make profit. Plus if you have a full time job it will be difficult to manage the builder or construction manager. The real reason to do this is to control the end details and quality of the end. product. You can get exactly what you want if you are willing to pay for it. You need deep pockets as you will need a place to stay for a year.

[@tjn0110]

You really have to love the process, she's absolutely right when she says "You want to take the risk or build your own custom home" both of these statements imply a passion for risk and/or customization, a deep passion/drive for the project is absolutely necessary, for the example given earlier in the video, the amount of work will make you question if $72k profit is/was even worth it. Especially when you consider all that money laid out could be working in something like the s&p 500, passively churning out 10%, oh and if you sold your previous house to build, well now you're most likely incurring rent that will certainly chew into those profits. If it takes you two years to build, that's $32k that could have been made on the $156k at 10% CAGR. I'd guess you're putting 3,000 hours into building it if you're doing as much work as you can, so $24/hour before taxes (if you're selling it) and not excluding the possible costs of rent, which means investing the money and working an average job (less hours and less stress), may actually get you ahead, but may lack purpose/meaning for some. Delays will happen, contractors will walk off site early because there's some game on TV, they DO NOT care about your project or how much this lost time production is costing you, and if you talk to them about it, it only gets worse. There may be capital gains on the sale, vs. capital gains on the stock market example, selling stocks can be deferred or partialed over years, you can't just sell a couple shares of the house. There is certainly a lot to consider, but after all, there's no place like home, the satisfaction in knowing you made it happen.

[@lizbiancoismydesignsherpa]

Great info. Delays are a 💰 killer that’s quite common! I’ve got a channel all about what to do before 🦺 🏡👩‍🎨 at least in the design and build part.😇

[@allegrabraun7545]

Fires in LA...time to rebuild

[@AlphaOmega333]

This was very helpful, thank you

[@OcRefrig]

Great video ! can't wait for Joshua tree video's. How about some shorts ? Teasers ?

[@MsDivineLegacy]

Construction loans are such a nightmare. I’m from Canada, so it may be different else wear but it’s much harder to qualify for a construction loan than a general mortgage, frankly the requirements can be crazy sometimes. Banks rarely give them out unless you’re a developer or something or have a crazy amount of cash on hand that you don’t want to use for some reason. We are close to completion now so I guess it will be worth it, but it’s a brutal process.

[@jokwonpope1561]

I believe you can also get an construction FHA loan right is that different than a regular construction loan

[@My_Cats_Meow]

Its different for everyone but I believe whole heartly in Sweat Equity for a new build. You learn a trade and its done your way.

[@LL-rx8un]

Thanks for putting in the time and research into this! I have ALWAYS wanted to know this😊Only question would be the added cost of Demo if building?

[@Lanet-ol6fb]

❤ thanks for sharing l don't know if l want to build or buy land old houses are on them

[@faithoverfear6263]

We just bought an acre in 29 palms and plan to do a construction in four years. I’m not sure if the best strategy would be reselling, str, or finding good tenants.

[@Lilacwinedine]

I would prefer renovating just because old houses usually have more more caracter... I'm so curious to what your journey will be with the Joshua Tree project though. One thing i know for sure its going to be great!

[@leepatton1180]

Happy Holidays Shelby

[@rorybellamy2533]

i have 60 year old home with dry basement , have seen new construction houses with foundation cracks and water leaks in one year. I am still reaching for a quality New home with the generous square footage and planning that many old homes do not have

[@troywakeman]

all the downsides of new construction you mentioned relate to the carry cost. but if you were going to pay cash for a house anyway, would it be better to just build new?

[@jeannine1991]

We remodeled and new construction is similar. It’s stressful, very time consuming and more expensive than the bids/contract. Get as much information as possible, and be decisive about design. Choices like colors, finishes, hardware, tile, flooring, lighting, furniture placement, cabinets, etc, should be done and ordered long before you need them.

[@asmaanwar6174]

Could you help as I would love to build a home in LA?

[@internationalbreakfastclub3812]

new builders have to take into account TIME. during building process of one year, this will take huge amount of effort from them, effort which could bring money in other fields. also will miss a lot of nice partys, dinners, brunhces and vacations during that year

[@JB.Olsen7]

As a landscaper, I feel like people CAN do that themselves with a little research on plants and care. But, I know most wouldn’t want to do the labor. 20k is a lot of saving though.

[@FreedomAtRisk]

There will be many surprise costs in building a house. Always have a big budget cushion!

[@richardrowe1538]

One can be creative by getting owner financing on the land. This way you preserve cash for the buildout. The landowner must be willing to allow the construction loan priority over his loan until the end of construction.

[@nationsnumber1chump]

That's why I bought a 150k pos and after the depression I can renovate 😊

[@allenburns3177]

I built a 7000 sq ft home in 1990 acting as my own General Contractor. My back ground was I had worked in remodeling and new home construction from 8 to 18. Trades that I had some experience in were drywall, painting, carpenter, plumber, electrician, roofing, carpet, HVAC, concrete and landscaping. Now add 16 years in the elevator trade and at 34 I tackled building my own home. The reward was I saved about 50% in building cost. Since I did a lot of the work myself. The price was a major amount of stress for a little over a year. When this was finished I had never been so tired in my entire life. Took over a year to recuperate my strength and stamina. No I would never do it again. I have bought a few houses over the years. You need to take an over all look at the age and condition of all of the individual parts. What is the expected useful life and its replacement cost. Are their repairs that need immediate attention? Then spread it out over the time you expect to have this house. This gives a true cost of ownership and if it is affordable and a good value. Don't be fooled by a pretty exterior, get down and x ray the bones.

[@louanndunlap]

Very informative!!!!

[@travisschwartz3397]

Buy a building lot in paradise CA in butte county northern California . Lots with paid permits and utilities. 😊

[@justin_time]

It seems like the most efficient way to do it would be for one to build it themselves. Does anyone do that in LA?

[@randyreynolds1045]

Very good video❤

[@MushtaqAhmed-c8l]

If we are getting at cheap rate or the rate of the plot we should buy old house because we dont have take electricity water permition and we can use scrap in building the new one

[@mirianinoa1964]

Congrats on passing your real estate license ! Happy Holidays!

[@danielyang3995]

useful thanks for sharing

[@dwalker5175]

I’m an investor who has financed construction for a custom builder on high end homes ($1,000,000 + construction cost that typically sell for a big multiple). I participate in the profits. Margins are fabulous. Typically 40%. But, the homeowner gets exactly what they want.

[@Mavesound]

What about building in europe with stone instead of wood?