Teardown Lot in HOT Brookhaven Ga. | Why Is My Cell Not Ringing?

Question

I have a contract on a house in Brookhaven to flip to a developer for tear-down and rebuild, which is happening all over Brookhaven. I did all the good marketing, called my decent list of buyers to see if they know any developers, I gave house packets to the present developers in the area, posted in the marketplace on BP, made a drive the hood video for BP and youtube, and contacting developers in Atlanta; my cell should be ringing off the hook. Looking for the lesson of the day from a seasoned investor or developer here on BP. I am a good listener and very teachable. Lay it on me; what am I doing wrong? Or should I see the obvious lesson that even a Brookhaven sell is tough?

Mark Graffagnino · Answer

I am not a home builder but I used to live in Brookhaven, so here is my 2 cents.  I think for a lot cost of $360K the builder would need to sell the home for at least $1 million and nothing south of Dresden Rd, or east of North Druid Hills Rd has sold that high.  Techinically this house is in Brookhaven, but not the high end part of Brookhaven.  New build on this block sold for $665K last year, and that is not enough spread for a $360K lot price.

Brandon Davis · Answer

Hi @Michael Williams,

This is a little bit off topic but do you often have houses that you are looking to wholesale? If so would you be willing to add me to your mailing list of buyers?

Matthew Paul · Answer

Unless its a property that can be sub divided , why would a developer be interested ?  Maybe you should contact builders .  And both builders and developers know their numbers .

Michael Williams · Answer

Hey Mark, we discovered that he creek behind this property created a flood table situation where a builder would only be able to fully rehad this property. This would put it in the same category as this house the 2207 Drew Valley house. Your comment made me preform the necessary due diligence I should have done in the first place. We will try to renegotiate a much lower price for the property. Thanks for the insight......another learning lesson on my way to Real Estate domination. I love it.

Mark Graffagnino · Answer

OK, was just offering up my opinion.  Also, 2207 Drew Valley was a fully rehabbed house, not a teardown lot.  Good luck with it.

Michael Williams · Answer

Hi Mark,I have been driving this area for two days and I sat in front of a rebuild with a Sold sign on it with the price of $745k. The next day I drove it the sign was gone and a car was in the driveway. this house was on the same block around the corner. The houses in the area are selling much higher than 2 years ago. The average buy price is $320k - $390K. 2207 Drew valley sold for $394 on 2/05/17. I also talked to a builder that told me the average price is running around $350k.

Brandon Davis · Answer

@Michael Williams ,

Thats understandable. You can feel free to give me a call anytime today. Or if tomorrow works better anytime after 3:30pm

Michael Williams · Answer

Hey brandon I really like to do business the old fashion way, when you have some time I would love to call and actually talk. I find that to be a good way to improve my social skills and really get back to real values in a text and messaging society. Let me know when it's a good time for you.

Michael Williams · Answer

I sure will, I can send you some today.

Michael Williams · Answer

Thanks Matthew I was getting the builders and developers mixed up. The statement in the main post should be I gave the packets to builders in the area.

Teardown Lot in HOT Brookhaven Ga. | Why Is My Cell Not Ringing?

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