New home community.
Single-family residence other investment.
Purchase price: $5,535,000
Cash invested: $5,535,000
90 lot move up SFR subdivision 5200 to 12,000 sq ft lots homes from 1800 to 3000 sq ft price points 475k to 600k .
absorption 2.5 to 3 per month. Small PPM of 7 investors. My core bank will is doing the infrastructure loans and verticle .. infrastucture will avearge about 50k per lot. build costs to go verticle right at 110 to 120 per foot.. Gross profit margin tagested at 15 ro 20% PLUS up grade profits as buyers customize the homes.
My wife and her team will be the listing agent.
What made you interested in investing in this type of deal?
its what we do we build new home communitys in hot markets.
How did you find this deal and how did you negotiate it?
From a fellow developer .
How did you finance this deal?
cash and bank loans.
How did you add value to the deal?
we are building 90 homes from the ground up plus putting in all the infrastructure.
What was the outcome?
to be determined
Lessons learned? Challenges?
Development is big bucks game and always a challenge on many levels.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
we are real estate professionals.. And my relationship with my bank spans almost 3 decades.