Holbox 16 Units SOLD!!!
Investment Info:
Large multi-family (5+ units) private money loan investment in Houston.
Purchase price: $200,000
Cash invested: $150,000
Sale price: $3,500,000
We bought a lot in the island of Holbox, a 1.70 square meter lot. There are 16 units total, 8 studios, 4 condos and 4 ph (with and incredible view)
We were able to do it with little money down, because in Mexico it is legal to pre-sale the units with 25 to 30% down, with some payments before the final sale where the final owner pays 20%.
We took one year on permits because the island is a protected federal zone, we are going to take two years to complete the whole built.
What made you interested in investing in this type of deal?
We always wanted to start our own development company, this project made us go ahead and do it.
It’s an amazing experience I surely recommend it for everyone
How did you find this deal and how did you negotiate it?
We had to put all the money down for the lot, we where able to pay about 50 grand less for the asking price.
How did you finance this deal?
The lot was bought by one investor who is our partner.
The 150 grand where financed by a private lender.
The rest own the project and construction was financed with the sales of units
How did you add value to the deal?
I was able to combine diferente people with different ways of thinking, to help them imagine and really believe in the project.
What was the outcome?
We are about to finish the construction and all of our cliente are very happy with their units.
Lessons learned? Challenges?
The learning curve is expensive, building on an island is expensive and a lot o things are out of your hands like weather or COVID
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I got to work with about 10 or 12 different real estate agencies, with a total of about 60 agents. All doing a great job helping us sell the units.
