Profit soon to be realized on our first new construction!

6 Replies

Investment Info:

Single-family residence other investment in New Orleans.

Purchase price: $45,000
Cash invested: $175,000
Sale price: $325,000

We built this single family residence ground up new construction. We bought the lot in December and were pretty much ready to begin construction in March when COVID hit. We held off for a few months because of uncertainty surrounding the housing market, but decided to move forward with the project around June. We broke ground at the end of July and got our certificate of occupancy in under two months! We listed it just a few weeks later and went under contract within 7 days of listing for OVER asking price! I can't imagine it'll always go this smoothly, but we are definitely excited for the next deal.

What made you interested in investing in this type of deal?

Having the GC license, the real estate license, being able to do all the designs in-house, and being able to manage the project directly. It just made sense for us.

How did you find this deal and how did you negotiate it?

MLS - at the time we found the lot I was not yet licensed as an agent, so we went through a hired agent.

How did you finance this deal?

Cash

How did you add value to the deal?

We built a house where there was a vacant lot ... If that's not adding value, I don't know what is! lol

What was the outcome?

A fantastic experience, tons of learning along the way, and a good profit.

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