New Construction of Townhome Apartment in Downey, CA
Investment Info:
Large multi-family (5+ units) other investment.
Purchase price: $600,000
Cash invested: $1,600,000
New construction!!! Lot was purchased from owner that put a land for sale on Craigslist. Got a great deal with lot purchase $600,000 and Construction of 6 unit townhome style was $1,600,000. After construction price $3,800,000. I would love to share with people what it take for development. Feel free to reach out! Boom!
What made you interested in investing in this type of deal?
Because California price of Real Estate is so high, it make sense to build new construction.
How did you find this deal and how did you negotiate it?
Found a deal on Craigslist and had the owner come into our office to discuss the price.
How did you finance this deal?
Hard money loan, Investor capital, Bridge loan to Take out loan
How did you add value to the deal?
Building a nice custom Property
What was the outcome?
Estimated Rental income of $240,000 Annually, Apprised around $3,800,000
Lessons learned? Challenges?
Building new construction never goes on time. Working with city, utility companies, fire department, etc. throughs in lots of confusion and delays. Relationship is the key with vendors and people involved.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am Real Estate Broker but we worked with several Lenders, and General Contractors...
