Why Smart Investors Are Snapping Up Existing Buildings Instead of Building New
In today’s shifting real estate landscape, one trend is becoming hard to ignore: savvy investors are buying existing buildings for less than the cost of new construction—and reshaping their entire strategy because of it.
In the clip above, Gary explains a simple but powerful shift in thinking. Although he runs a construction company and ultimately wants to develop new buildings, the current market economics tell a different story. With higher construction costs, tougher financing terms, and uncertain timelines, build-new projects come with added risk and shrinking margins.
Meanwhile, there’s a rare opportunity happening right now:
You can buy fully built, already-rented assets for less than it costs to build them from scratch.
That flips the script completely. If an investor can acquire a stabilized property—one that already has tenants, cash flow, and proven operations—for significantly lower than replacement cost, the decision becomes obvious:
Why build something new and take on risk when you can buy something better for less?
This is where strong fundamentals shine.
Lower risk. Lower cost basis. Faster cash flow.
In uncertain markets, that’s the playbook that wins.
Gary’s team has shifted their model accordingly. Instead of focusing on new development, which he wants to do long-term, they’re going heavy on acquiring existing assets that hit three key criteria:
- They cost less than replacement value
- They’re already stabilized or near-stabilized
- They present less risk than ground-up construction
This window won’t last forever, but right now, it’s one of the best opportunities for real estate investors who understand their market and move strategically.
When you can buy for less than you can build, the fundamentals tell you exactly what to do.
