The Gist
New Construction vs Renovation
The 10-Minute Decision Model for Build, Buy-Fix, or Bridge
Compare timeline risk, contingency capital, appraisal friction, and financing paths for build versus renovation strategies.
5 Blinks~10 minutesFree
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Blink 01 · 2 min
Two Projects, Two Risk Shapes
Ground-up builds and renovations fail in different ways
“New construction risk is timeline, budget creep, and draw coordination. Renovation risk is hidden conditions, scope creep, and resale taste mismatch.”
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Blink 02 · 2 min
Contingency Is the Real Down Payment
Thin reserves kill both strategies
“Lenders and operators who survive should budget a 10–20% contingency for unknowns — more for heavy renovations.”
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Blink 03 · 2 min
Financing Path Differences
Construction-to-perm, reno loans, bridge, and hard money
“Ground-up often needs construction or construction-to-perm. Heavy rehab may need renovation products or private capital with takeout planned.”
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Blink 04 · 2 min
Timeline and Carry Cost
Every idle month taxes the deal
“Interest carry, taxes, insurance, and opportunity cost accrue whether the crew shows up or not.”
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Blink 05 · 2 min
Exit Clarity Before Demo Day
Sale, refinance, or owner-occupy — pick one primary exit
“Ambiguous exits create stranded projects. Define the primary exit and a backup before you sign the note.”
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EARL · Mortgage Butler
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Educational content only. Not financial advice. Rates and figures are illustrative.
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