EP 213: From Sales to Syndication: Mastering ADU Developments with Mark Doty

The Gentle Art of Crushing It!

Mark Doty is married with three kids and lives in San Diego, CA. He left a successful career in Medical Device Sales to become a real estate developer in 2021. He combines various rental models with the new ADU regulations on his infill projects. He’s complete 12 projects in San Diego and is building a team to buy, build and improve $50 million dollars of San Diego real estate over the next 3 years. You can find him on YouTube, LinkedIn or at his website to learn more (DotyCapitalGroup.com)

Chapters

00:00 - Intro

02:59 - ADU Development: Addressing the Housing Crisis

06:23 - Finding Properties for ADU Development

08:32 - Zoning and Increasing Density for ADU Projects

11:16 - Financial Aspects of ADU Projects

15:06 - Investing in ADU Projects: Returns and Strategies

Takeaways

1. Mark Doty transitioned from a corporate job to full-time real estate investing and found success in ADU development in San Diego.

2. ADU development addresses the affordable housing crisis in California by utilizing existing infrastructure and increasing housing density.

3. Finding properties suitable for ADU development involves looking for small houses on large flat lots and considering proximity to public transportation.

4. The financial aspect of ADU projects includes the potential for high returns through increased property value and the option to sell or hold the assets.

5. Investors in ADU projects can expect a higher return on investment at the end of the project rather than regular monthly cash flow.

6. Mark Doty is developing a mid-rise apartment complex in San Diego by converting a single-family house and building additional ADUs in the front yard.

7. The project is aimed at accredited investors who are looking for long-term returns.

8. Investors can expect quarterly updates during the entitlement process, which can take up to a year.

9. The project is a development and sell strategy, with a goal of doubling the investment in five years.

10. Understanding zoning regulations and conducting thorough due diligence are crucial in this type of development project.

RANDY SMITH

Connect with our host, Randy Smith, for more educational content or to discuss investment opportunities in the real estate syndication space at www.impactequity.net, https://www.linkedin.com/in/randallsmith or on Instagram at @randysmithinvestor