​Dre Builds Boston: An Interview with Dre McCray on Developing the Growing Boston Area

Steve Kanaval  |


In January, we featured an article on Dre McCray and the upcoming launch of the Re/Dev Fund 1. The tightly targeted investment fund provides participating investors with an opportunistic focused real estate investment opportunity focused on the growing Greater Boston area. The Boston area is a very hot real estate market and the city government is looking for creative ways to build new and modern developments for buyers looking for a home. McCray and his team are looking to capitalize on their local knowledge of the area and develop the area they call home.

Steve Kanaval: What is the plan for the first 50 units? Unpack this for our readers.

Dre McCray, Principal of Re/Dev Crowd: "The plan is pretty straightforward.We are going to build out in phases so we can stay current with the market. The initial phase will consist of 10 units and, depending on presales and demand, we will determine production numbers for each subsequent phase. This will give us greater flexibility since we aren’t using leverage."

Kanaval: What are soft costs and why is this a critical number to watch?

McCray: "Soft costs are all non-material and labor costs associated with building construction. These costs can include architectural, legal, inspections, insurance, etc. Soft costs make up a good portion of the budget so it is important to understand what these costs are."

Kanaval: If unit sales peak in year 3, how long do I need to leave my money in?

McCray: "When you invest in our Funds your investment will remain until the completion of the term of the Fund which in RE/DEV Fund I is 5-7 years. The duration of the initial project may be 3-5 years,but we may do more than one project so we can maximize your return."


Kanaval: I see your costs steadily decline, while soft costs rise, can you explain how this works?

McCray: "We include professional services (broker fees) as part of our soft costs. The increase in soft costs correlates to units being sold. This is important because more units sold in a faster time frame will enable us to do more projects, which will give the investor a greater return on their investment."

Kanaval: What do you consider the most important metric for me to watch once I invest and why?

McCray: "I would look at how quickly the units are sold. The pace of units sold will determine how many projects can be done."

Kanaval: When do you move in? #dremovesin

McCray: "June 2019."

Equities: Thanks, Dre. Thank you for your candid answers, click here to listen to an audio invite from Dre.

Click here to see photos of target properties

Dre Builds Boston is Part 2 of a multi article series following a local Boston entrepreneur his wife and a cast of locals who love their hometown, click here to sign up for Part 3 Dre Moves In.

You can email Dre McCray at: dre@redevcrowd.com


nvest

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

World Economic Forum at Davos 2019 - Dr Oliver Krause Founder Untitled Inc Part 1

Matt Bird sits down with Dr Oliver Krause, Founder Untitled Inc, in part 1 of this 2 part interview at the World Economic Forum at Davos 2019