Charleston SC new build results

Real Estate Success Stories
5moFollow

Charleston SC new build results

Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

As I have written in the past I entered the Charleston SC  spec building market about 10 years ago. Have done about 30 infills from my first one with a retail sale of 275k to the house I built and sold to Shep of Southern Charm and higher end homes South of Broad that sold for 2k Plus per sq ft. 

This market is NUTS on pricing I mean when I rolled into town from Oregon a decade ago I could buy lots for 20 to 60k no problem. Now try to find a lot for under 300k is a challenge.. And Old mt. Pleasant has gone nuclear in pricing One lot I offered 600k for about 6 years ago turned at 2.2 mil just for the lot.  WOW.

Anyway finally found a lot at 6 F st. I had already built and sold 20 F st.. backs to the freeway so not ideal but it was the only lot I could finally get that was under 250k my builder who I brought out from Vegas way back when did the vertical and he has created a very nice business for himself there as well so I am proud of that helping him come out of the Bad Vegas market and really thrive there in Charleston. 

Bottom line

250k for the lot

350k for the build 

810K exit 

time 18 months the build was not 18 months it was 6 months the delay was permitting in the BAR zone. 

so Net net net was about 125k in profit I paid cash for the lot borrowed the 350k from my go to banker there in the market at bank rates. 

so 50% profit in 18 months which we normally hit the 50% profit in 12 months or less on the new builds we do. We started at 900k which was aggressive and the freeway was an issue.. But the buyer was all cash and we got it done. 

On the look out for my next Charleston project. There does come a time in a market like this that infill gets absorbed and finding vacant lots is really really hard as there just is not many left.  I was not the only one doing new builds there so between us one other larger company and scattered investors the inventory has been absorbed.

It would be different if you could tear houses down but its hard to demo a house there in Charleston many its simply not allowed. 

Been a great run.. Hope do be able to do one a year going forward but will see.. I dont have the stones to pay 2 mil for a lot and have a 4 or 5 mil spec home.. those you can make 500 to 1 mil on or lose the same amount and you just cant rent them to cash flow them either LOL

Podcast Guest on Show #222
JLH Capital Partners51 Review
WebsiteView Page
7Reply
405 views

Investor-friendly agents in Charleston, SC

See the agents BiggerPockets members work with in Charleston, SC.

Most Popular Reply

Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
5mo

We certainly have the demand, even in the higher price points. The last time I built, I was the GC and that was SO much work, not sure if I am up for that again. Lets find some time to chat, I'll message you. 

1Reply
See this reply in the discussion

19 Replies

Jump to latestLatest
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    5mo

    I am shocked by the build cost, even for 1553 sqft that is really amazing! The key is to find that spread between affordable lot, but yet desirable neighborhood. 

    Claude is giving me this: 

    Neighborhoods Where $500K+ Builds Have Comp Support

    Current Zillow median home values by community:

    CommunityMedian Home Value20% Lot TargetLot Market Reality
    River Hills~$877K≤$175KLots exist $100K–$300K+
    Mequon~$567–586K≤$113KSome lots $75K–$200K
    Elm Grove~$581K≤$116KVery tight, rare lots
    Fox Point~$506K≤$101KFew lots, $100K+ typical
    Brookfield~$635K≤$127KLots avg ~$179K/acre
    Whitefish Bay~$557–563K≤$111KNear-zero lot inventory

    When I look at these lot prices, they are absolute outliers. You'd probably have to chase them down off market, as soon as they are on MLS they are at least 200k. Good news is that the upside is there, new construction is selling for up to 1.5 or even 2M, bad news is our build cost is higher.

    0Reply
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5mo

    generally you can make money on a 200k lot and exit at 900k  that should be a money maker

    Lets do one Marcus I am game. :)

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    2Reply
  • Jaylan ArcherBusiness Member
    Real Estate Agent · Portsmouth, NH · Member since 2014 · 150 posts · 65 votes
    5mo
    Would you say a 20% of the final price being for the purchase of the lot a safe number to use?
    Archer and Associates of KW Coastal588 Reviews
    WebsiteView Page
    0Reply
    • Jay HinrichsBusiness Member
      OP
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      5mo
      Quote from @Jaylan Archer:
      Would you say a 20% of the final price being for the purchase of the lot a safe number to use?

      20% is a rule of thumb the higher the exit price the more you generally can pay for the lot and it gets inverted in high priced markets..  Like Silicon Valley  Cupertino, Palo Alto, Las Altos etc you may pay 3 mil for the lot and pay 1 mil to build the home and exit at 5 mil.. I grew up in Cupertino and lived in Palo Alto so followed those markets closely.  however sub 1 mil exit generally speaking your trying to hit that 20 to 30% mark lot vs retail exit. 
      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      1Reply
    • Alan F.
      Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
      5mo
      Quote from @Jay Hinrichs:
      Quote from @Jaylan Archer:
      Would you say a 20% of the final price being for the purchase of the lot a safe number to use?

      20% is a rule of thumb the higher the exit price the more you generally can pay for the lot and it gets inverted in high priced markets..  Like Silicon Valley  Cupertino, Palo Alto, Las Altos etc you may pay 3 mil for the lot and pay 1 mil to build the home and exit at 5 mil.. I grew up in Cupertino and lived in Palo Alto so followed those markets closely.  however sub 1 mil exit generally speaking your trying to hit that 20 to 30% mark lot vs retail exit. 

       0 Page Mill Road is for sale, apprx 5 acres, $2.4 m.

      0Reply
    • Jay HinrichsBusiness Member
      OP
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      5mo
      Quote from @Alan F.:
      Quote from @Jay Hinrichs:
      Quote from @Jaylan Archer:
      Would you say a 20% of the final price being for the purchase of the lot a safe number to use?

      20% is a rule of thumb the higher the exit price the more you generally can pay for the lot and it gets inverted in high priced markets..  Like Silicon Valley  Cupertino, Palo Alto, Las Altos etc you may pay 3 mil for the lot and pay 1 mil to build the home and exit at 5 mil.. I grew up in Cupertino and lived in Palo Alto so followed those markets closely.  however sub 1 mil exit generally speaking your trying to hit that 20 to 30% mark lot vs retail exit. 

       0 Page Mill Road is for sale, apprx 5 acres, $2.4 m.


      well is it up by skyline or down by 280 :)  
      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      0Reply
    • Alan F.
      Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
      5mo
      Quote from @Jay Hinrichs:
      Quote from @Alan F.:
      Quote from @Jay Hinrichs:
      Quote from @Jaylan Archer:
      Would you say a 20% of the final price being for the purchase of the lot a safe number to use?

      20% is a rule of thumb the higher the exit price the more you generally can pay for the lot and it gets inverted in high priced markets..  Like Silicon Valley  Cupertino, Palo Alto, Las Altos etc you may pay 3 mil for the lot and pay 1 mil to build the home and exit at 5 mil.. I grew up in Cupertino and lived in Palo Alto so followed those markets closely.  however sub 1 mil exit generally speaking your trying to hit that 20 to 30% mark lot vs retail exit. 

       0 Page Mill Road is for sale, apprx 5 acres, $2.4 m.


      well is it up by skyline or down by 280 :)  

       On the ridge, east of 280. Looks like a view of 280. Appears buildable.

      0Reply
    • Jay HinrichsBusiness Member
      OP
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      5mo
      Quote from @Alan F.:
      Quote from @Jay Hinrichs:
      Quote from @Alan F.:
      Quote from @Jay Hinrichs:
      Quote from @Jaylan Archer:
      Would you say a 20% of the final price being for the purchase of the lot a safe number to use?

      20% is a rule of thumb the higher the exit price the more you generally can pay for the lot and it gets inverted in high priced markets..  Like Silicon Valley  Cupertino, Palo Alto, Las Altos etc you may pay 3 mil for the lot and pay 1 mil to build the home and exit at 5 mil.. I grew up in Cupertino and lived in Palo Alto so followed those markets closely.  however sub 1 mil exit generally speaking your trying to hit that 20 to 30% mark lot vs retail exit. 

       0 Page Mill Road is for sale, apprx 5 acres, $2.4 m.


      well is it up by skyline or down by 280 :)  

       On the ridge, east of 280. Looks like a view of 280. Appears buildable.


      east of 280 ?  if buildable thats a good price I was thinking way up the mountain by skyline were its 40 minutes up windy butt road.
      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      0Reply
    • Alan F.
      Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
      5mo
      Quote from @Jay Hinrichs:
      Quote from @Alan F.:
      Quote from @Jay Hinrichs:
      Quote from @Alan F.:
      Quote from @Jay Hinrichs:
      Quote from @Jaylan Archer:
      Would you say a 20% of the final price being for the purchase of the lot a safe number to use?

      20% is a rule of thumb the higher the exit price the more you generally can pay for the lot and it gets inverted in high priced markets..  Like Silicon Valley  Cupertino, Palo Alto, Las Altos etc you may pay 3 mil for the lot and pay 1 mil to build the home and exit at 5 mil.. I grew up in Cupertino and lived in Palo Alto so followed those markets closely.  however sub 1 mil exit generally speaking your trying to hit that 20 to 30% mark lot vs retail exit. 

       0 Page Mill Road is for sale, apprx 5 acres, $2.4 m.


      well is it up by skyline or down by 280 :)  

       On the ridge, east of 280. Looks like a view of 280. Appears buildable.


      east of 280 ?  if buildable thats a good price I was thinking way up the mountain by skyline were its 40 minutes up windy butt road.

      Just went on MLS 3-4 days ago. Appears REA's are marketing as a single estate build. I have no idea of splits

      0Reply
    • Jay HinrichsBusiness Member
      OP
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      5mo
      Quote from @Alan F.:
      Quote from @Jay Hinrichs:
      Quote from @Alan F.:
      Quote from @Jay Hinrichs:
      Quote from @Alan F.:
      Quote from @Jay Hinrichs:
      Quote from @Jaylan Archer:
      Would you say a 20% of the final price being for the purchase of the lot a safe number to use?

      20% is a rule of thumb the higher the exit price the more you generally can pay for the lot and it gets inverted in high priced markets..  Like Silicon Valley  Cupertino, Palo Alto, Las Altos etc you may pay 3 mil for the lot and pay 1 mil to build the home and exit at 5 mil.. I grew up in Cupertino and lived in Palo Alto so followed those markets closely.  however sub 1 mil exit generally speaking your trying to hit that 20 to 30% mark lot vs retail exit. 

       0 Page Mill Road is for sale, apprx 5 acres, $2.4 m.


      well is it up by skyline or down by 280 :)  

       On the ridge, east of 280. Looks like a view of 280. Appears buildable.


      east of 280 ?  if buildable thats a good price I was thinking way up the mountain by skyline were its 40 minutes up windy butt road.

      Just went on MLS 3-4 days ago. Appears REA's are marketing as a single estate build. I have no idea of splits


      doing any land development in Santa Clara or San Mateo county is not for the faint of heart 
      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      1Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    5mo

    We certainly have the demand, even in the higher price points. The last time I built, I was the GC and that was SO much work, not sure if I am up for that again. Lets find some time to chat, I'll message you. 

    1Reply
    • Jay HinrichsBusiness Member
      OP
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      5mo
      Quote from @Marcus Auerbach:

      We certainly have the demand, even in the higher price points. The last time I built, I was the GC and that was SO much work, not sure if I am up for that again. Lets find some time to chat, I'll message you. 

      here is what I usually do in other markets right now I have builds going in NC  and TX and of course just finished out 90 home project in Oregon..  We find or, entrepreneur finds us. Since we are a capital partner firm we provide the capital / CASH to buy the lot.. So say the lot is 200k we put up the cash.. The partner generally if they want a big profit split with us they will get the construction loan and manage the GC. Then we negotiate a split of profits. 

      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      1Reply
  • Volodymyr Domkin
    Investor · Raleigh, NC · Member since 2026 · 8 posts · 3 votes
    5mo

    Those Charleston numbers are wild.
    A $20k–$60k lot turning into a $300k+ entry point really shows how much infill inventory has been absorbed.

    $125k net on a single spec build in today’s market is still a strong result, especially with the permitting delays and freeway issue.

    A lot of investors underestimate how hard it is to consistently find buildable lots in mature markets like Charleston.

    1Reply
  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    5mo

    That is awesome but how is it $125k profit at $250k for the lot and $350k for the build with $810k exit? Is that counting close costs buy side and close costs sell side? Also the carry costs? Sounds like an great project just curious what the real net % people hitting on these builds. I take it you were the GC for these and did not hire it out? Thanks! 

    1Reply
    • Volodymyr Domkin
      Investor · Raleigh, NC · Member since 2026 · 8 posts · 3 votes
      5mo
      Quote from @Henry Lazerow:

      That is awesome but how is it $125k profit at $250k for the lot and $350k for the build with $810k exit? Is that counting close costs buy side and close costs sell side? Also the carry costs? Sounds like an great project just curious what the real net % people hitting on these builds. I take it you were the GC for these and did not hire it out? Thanks! 

      Great question!
      0Reply
    • Jay HinrichsBusiness Member
      OP
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      5mo
      Quote from @Henry Lazerow:

      That is awesome but how is it $125k profit at $250k for the lot and $350k for the build with $810k exit? Is that counting close costs buy side and close costs sell side? Also the carry costs? Sounds like an great project just curious what the real net % people hitting on these builds. I take it you were the GC for these and did not hire it out? Thanks! 


      I was in it 600k lot and build all in .. I hire a GC he actually made 50k out of the 350k build costs. so 810k minus 125k ( my net) = 685k net.. so sales costs and holding costs etc were 85k 
      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      0Reply
    • Jay HinrichsBusiness Member
      OP
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      5mo
      Quote from @Volodymyr Domkin:
      Quote from @Henry Lazerow:

      That is awesome but how is it $125k profit at $250k for the lot and $350k for the build with $810k exit? Is that counting close costs buy side and close costs sell side? Also the carry costs? Sounds like an great project just curious what the real net % people hitting on these builds. I take it you were the GC for these and did not hire it out? Thanks! 

      Great question!

      Answer:  
      I was in it 600k lot and build all in .. I hire a GC he actually made
      50k out of the 350k build costs. so 810k minus 125k ( my net) = 685k
      net.. so sales costs and holding costs etc were 85k


      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      1Reply
  • Jay HinrichsBusiness Member
    OP
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5mo
    Quote from @Account Closed:

    This is the kind of post newer investors need to read because it shows both the upside and the reality of long-term infill development.

    A lot of people see the $125k profit and think “easy money,” but they miss the decade of market knowledge, relationships, financing access, and risk management behind it.

    What really stood out:

    • lot inflation from $20k-$60k to $300k+
    • permitting delays stretching timelines
    • limited infill inventory
    • and the risk jump once specs move into the $4M-$5M range

    That last point is huge. Bigger numbers don’t always mean better risk-adjusted returns. At some point the buyer pool shrinks dramatically and the margin for error gets razor thin.

    Also smart point about having an exit strategy. Luxury specs that can’t realistically cash flow as rentals become much riskier if the market shifts.

    Sounds like you’ve navigated Charleston’s cycle extremely well while staying disciplined instead of chasing bigger and bigger deals just because the market allows it.


    I did 3 LUX specs there we did fabulous on 1 the other two we got caught in covid and just got out o them without losing money just made small return.. But on balance we have done quite well in Charleston over the years. 
    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free