Donovan
@DonovanBuilds
$10m+ infill housing development | 30+ exits as GP | Missing middle housing in CA, MN & TX | Acquired (small) cleaning business
Very long re-introduction for the new followers! - grew up to working class parents who each made no more than $25/hr (still some of the most incredibly hard working people though) - my two brothers (I’m the middle) and I all shared a room until we went to college - went to Univ…
Young RETwit Developers: working on a deal and feeling stuck? I want to help YOU! Whether it's your first project or your tenth: if you need help structuring the deal, building a pitch deck, or prepping for a potential investor convo, I've got you! I'm offering three 1:1…
After moving from developing in TX to CA can confirm Costs are about 3x compared to the TX projects and take double the amount of time Good for developers because there is zero new product to compete with
Some staggering stats on affordable housing in Red v. Blue states. — Per square foot, it cost 2.3 times as much to build market-rate housing in California as it does in Texas — It also takes on average 22 months longer to bring a project to completion in California v Texas
We have a recent grad that just started and caught myself saying "when I was your age.." It's all downhill from here isn't it? (I'm 28)
End of 2023, I stopped acquiring land for duplexes in Houston The secret was out and saw a ton of supply coming (probably shouldn’t of tweeted about it so much..) These two fourplexes are in the rough-in stage They’ll be 2/2.5 each unit (925sqft) with one parking space each
Rule of thumb for build to sell development In TX, you want to be able to sell something for ~2x your build cost In CA, you want to be able to sell something ~2.5x your build cost Very quick and dirty but if you build at $250 a foot and comps are $400/sqft - on to the next
I'd build very rough version on @lovable_dev then prepare to defend it like a master's thesis to Antonia She'll likely save you millions of VC $ and years of time
If you’re building software that overlaps the design/construction/development space & you reach out to me for feedback, be prepared to answer the two following questions:
This bill could be even more powerful if you include builders who sell to owner occupants as not paying federal tax (Or at a minimum taxed at long term capital gains) Would unleash a huge amount of supply
🚨 NO MORE TAXING THE AMERICAN DREAM! Families who work hard, build equity, and sell their homes shouldn’t be punished with a massive tax bill. I just introduced the No Tax on Home Sales Act to ELIMINATE the federal capital gains tax on home sales. This bill helps homeowners…
Excited to share that the first 2 condos built via @BuildCasa’s partnership with @ChanZuckerberg are now available for reservation in Sacramento for $329K (30% cheaper than typical home). Homeownership has always been the most reliable path, but with high rates and limited…
If you’re curious to learn more about SB1123/SB684 check out a free webinar @BuildCasa is hosting led by @DonovanBuilds and @benjamintink. Link below.
Overshadowed by yesterday's CEQA news, but: SB 1123 goes into effect today. You can now build 3-10 townhomes or condos on most vacant or uninhabited single-family lots in CA, as long as there have been no rental tenants in the past 5 years
Great news on the OZ front but still a few small tweaks to make it amazing Having incentives start in 2027 means LPs will simply delay investment until then With such incredible momentum from OZ 1.0 would be a shame to temporarily pause then hope it comes back in 18 months
The latest Senate draft reflects both important progress and some urgent unfinished business on Opportunity Zones. A quick thread on where things stand now and what I hope happens next. 1/
One day I'll be able to do infill for sale housing development across the country and have it taxed as LTCG
BOOM! The North Carolina State House just unanimously (107 to 0) passed a ban on parking minimums in new developments statewide. This is powerful and bipartisan pro-housing reform that will make it easier to expand multifamily housing. Great work. ncleg.gov/BillLookUp/202…
Tanner's write ups are some of the most value added newsletters I have seen throughout all RE newsletters By far the most actionable on industrial Will be going to @ReconveneLA just to see the masterclass in person
Two promos in one video- not sorry! 1. Here’s what I write about on the newsletter, you should sign up. 2. I’m hosting a breakout panel at @ReconveneLA in September. We’ll be discussing all of the ways to get tenants for your industrial spaces! Going even more in depth than I…
Last 18 months finished 7 properties in Houston Big reason for delays in these HCOL areas - too many departments reviewing plans - not allowing things to be done concurrently
Since the Maui fires a year and half ago that destroyed 2000 homes Only 6 have been rebuilt
Our sourcing algorithm identified this site in the Bay Area last week that we sent out as our first Deal of the Week to our mailing list This is an oversized RM lot (making it eligible for SB684) that would allow for up to 6 additional units Strategy: renovate the existing…
We can fix the housing crises in LA tomorrow if we go back to one page building permits (1905)
Cashflow on just a few C class rentals is a myth Of the 31 projects developed so far we refi’d 8 of them I’m in the process of selling them all The cleaning business I bought last year has distributed more than all 16 units Any amount of cashflow get eaten up by - unit turns…
We have a client in LA who we're finishing up a subdivision for Apparently, he is not allowed to pay his own property taxes Because we are the ones who submitted the application
Met Iman at the very first @ReconveneLA and after speaking to him, immediately went back home and tried to find a fractured condo deal (not smart enough for that) 😂 Excited to have him onboard as an LP in our San Diego development project Highly recommend!
I’m deploying $1M into emerging GPs this year 15 checks, $50K–$100K each. Looking for real estate operators with hustle, local expertise, and real skin in the game. I’m expecting 5 to flop or return capital, 5 to hit steady 10–15% IRRs, and 5 to outperform. That’s the model:…