managing construction in Seattle from cross-country?

4 Replies

Last year we purchased a property in Seattle with the intention of clearing the existing mobile home and building a 4 or 5 bedroom home to sell for a decent profit.  We had a partner in Seattle to project manage the construction for 1/2 our profits.  As things often happen, we never got out of neutral, spoke with a lot of people but the project stalled.

Long story short we have approx $220k invested in this parcel of land.

It will cost approx $350k to build a home.

New homes in this part of Seattle are selling for $700k+.    

At this point options being discussed... 

  • Sell to another investor (local to Seattle)  
  • Add another partner with cash for construction financing and split profits 3 ways
  • Manage the build ourselves, from cross-country and get a no-income check construction loan (not a great option)

We're pretty sure  we'll sell the land to an investor but I figure put this out to the experts for your thoughts before making any big mistakes.

Thanks!

The number one reason investors lose money is contractor mismanagement.  Do you really want to try to manage a build from a distance? 

@Brett K. thanks for your thoughts. I appreciate all the input and will most probably sell the land to a Seattle based investor who can manage the construction locally.

It sounds like you don't have anyone who is guaranteed reliable.  Or as Rumsfeld would say 'a known known.  

Maybe you can increase your rate of return by offering to carry the land for another investor?  

ok thanks, I'll update when we take the next step

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.