MY FIRST & NEW CONSTRUCTION RENTAL IN CAPE CORAL, FL

[Miles Viant]

Investment Info:

Single-family residence buy & hold investment in Cape Coral.

Purchase price: $254,000
Cash invested: $37,200

NEW CONSTRUCTION. WILL BE READY IN JAN 2022!

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

I wanted a new construction as my first investment property to lower the risk, less risk for vacancy, maintenance issues. This new construction homes come with 1/2/10 warranty. Southwest Florida is red hot right now and Cape Coral is a beautiful area and the property is located a few miles from a luxury development including shops, restaurants, marinas, & residential living, replicating what is down in Southwest Cape Coral. Opportunity for built in equity in an 'A' graded neighborhood

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

Simply being a subscriber to Rent to Retirement. New Construction, no competition which was a plus!

How did you finance this deal?

10% down, conventional financing , construction to permanent loan

How did you add value to the deal?

Appraisals of these exact builds in exact same developing neighborhood are appraising for 300K +

What was the outcome?

Purchased the property for $252,000, appraisal came back at 265K before even closing on the property for the construction loan

[Zach Lemaster]

@Khanh Nguyen

Thank you for the mention and questions.  I just want to clarify for you & everyone else reading this thread.  We do not require only one lender to be used.  In fact, we welcome any lender that offers good terms to be used for construction.  The reality is that there are not many options for the average investor that does not have previous build experience to obtain financing for new construction with reasonable terms.  Because of that we have built a network of lenders that do offer construction financing to investor that lack experience.  This includes private financing, institution lenders, conventional lenders, etc.  There are multiple lenders on our list that we put the investor in touch with.  Each of these lenders offer different loan terms, down payment requirements, etc.  Because of that, not every lender is a fit for the individual.  Some people simply won't qualify with some of these lenders.  If it is suggested that you speak to a specific lender, it is because we have evaluated the most likely scenario for you to be successful qualifying for loan based on your specific scenario.  That is why it is vital to have communication with your RTR rep to run through your scenario.  We are always happy to share all lender suggestions, and have you apply with each of them.  If we know upfront that you won't qualify for a certain loan product, and we can save both you and the lender time & energy, then that would be why we have suggested one specific lender.  Hopefully this helps to add clarity on the overall process.  The best advice I can give to anyone interested is to simply schedule a consultation with your RTR rep, and collectively devise the most strategic plan & lending options available to accomplish your goals.  That is what you are here for.