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BiggerPockets Real Estate Podcast

The Hidden Opportunity of Property “Rezoning” Making This Investor Wealthy

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Investing, Business

4.816.6K Ratings

🗓️ 4 November 2024

⏱️ 37 minutes

🧾️ Download transcript

Summary

Is property “rezoning” the trick to making much more money in real estate? Our guest is using zoning laws to his favor by finding areas with hidden potential but NO space left to build. He then changes the zoning, builds new homes, and sells them FAST (and often over-asking price) to the local buyers waiting in line for inventory to arrive. You can do it, too, but you’ll need some beginner information before you start. Since 2016, Stuart Udis has been building homes in areas most investors overlook. The average investor sees an area with growing demand but realizes that they can’t build a home because a piece of land may NOT allow residential units, so they give up. Stuart instead gets both the city AND the local residents on his side, having all parties favor a zoning change, helping him be the only investor to build on that once-overlooked piece of land. So how do YOU do this, too? In this episode, Stuart walks through how he finds hidden opportunities in often-overlooked neighborhoods, the groups you’ll have to meet with before you try to change the zoning, and the types of units he’s building that give him the highest return on his money. In This Episode We Cover: Why “rezoning” property might be one of the most overlooked investing strategies  The big cash flow mistake that Stuart made earlier on in his investing career  The #1 reason you must look into school districts BEFORE buying in an area  Getting approval for rezoning from the city and the neighbors you MUST get on your side  How to tell exactly what a buyer/renter will want BEFORE you rezone/build  And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Grab Henry’s New Book, “Real Estate Deal Maker” Grab Dave’s Newest Book, “Start with Strategy” Find an Investor-Friendly Agent in Your Area Can You Build Wealth by Rezoning Your Property? Yes! Here’s How Connect with Stuart Connect with Henry Connect with Dave (00:00) Intro (01:20) Buying $50K Houses! (05:06) BIG Cash Flow Mistake (09:05) Finding a Hidden Opportunity (13:45) Changing “Zoning” to Meet Demand (20:36) Getting Zoning Approval (24:57) What Buyers/Renters Want (26:37) Buying, Building, and Renovating Rentals Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1039 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

If you're treating your real estate portfolio as a business, as I hope you are,

0:04.3

you should always be thinking about product market fit.

0:07.8

Basically, are you buying the right properties to meet the needs of the tenants or the eventual buyers

0:13.9

who will be interested in that property?

0:16.2

And doing this, thinking about those end users is seriously the easiest trick to maximizing

0:20.7

your profit.

0:21.3

And today's guest is doing this really well and making complex zoning regulations work

0:26.9

in his favor to meet the needs of his future buyers and tenants in Philadelphia.

0:35.9

Hey everyone, Dave Meyer here.

0:38.1

I'm joined today by my on-the-market co-host, Henry Washington.

0:41.9

Hey, Henry, how's it going, man?

0:43.0

What's up, Dave?

0:43.6

Thank you for having me, man.

0:44.6

I love doing these.

0:45.4

This is fantastic.

0:46.7

Yeah, I'm excited to have you here.

0:48.8

And I think we're going to learn a lot from our conversation with Stewart.

0:52.2

I do want to get into his backstory because when we were

0:54.5

looking into this guest, I came across a mistake he made early in his vesting career that I

0:59.7

think everyone here is going to really relate to. But then we'll quickly fast forward to some

1:05.0

amazing progress Stewart's made in his investing career and the way he thinks about his portfolio

1:09.9

and how he's found a really

...

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