All Forum Posts by: Account Closed

This was an abandoned house listed on the MLS for 400,000 in Charlotte, North Carolina. After watching it sit on the market for months and months, I put in an offer and was able to purchase for 287,500. Being a corner property, I rotated the property so that the previous side, was now the front property line and was able to subdivide into 4 lots. All 4 homes either sold during construction, or within 2 weeks of being staged. Square footages and prices starting on the left were:

1,700 sq ft- 385k

1,900 sq ft- 399k

2,050 sq ft- 440k

2,100 sq ft- 450k

Total development time took approximately 3 months to get demo complete and lot lines approved. The 3 homes on the right took between 5-6 months to build. The left house was originally flood plain, and although we built it fast, the FEMA process slowed us down considerably to get CO and avoid flood insurance for our buyer. The way I structured this with the lender, I received construction funding for the 2 middle homes, then after 4 months, funding for the next 2 outside homes. Someone will ask me why, and the answer is I have no clue :) For this reason, and dealing with the flood plain, the entire deal lasted about 14 months. Pictures below

Have you considered partnering up or wholesaling to a builder/flipper?  Is it in a neighborhood where people are flipping/tearing down and building?  Feel free to PM me and I'll help you if I'm interested or can point you to someone who may be.  

HVAC has to be above BFE

I do not think you can prepay insurance. I wanted to prepay liabilty insurance for a few years for an HOA I developed, and the agent wouldn't allow it. I have built in flood plains, but not sure what you mean by "AE"

Interesting.  Not sure if this is the same company, but there was a member in Charlotte, NC who had issues with a company with the same or similar name, although in that case they were borrowers- not potential lenders.  Info below on that:

https://www.biggerpockets.com/forums/87/topics/341...

I hope it works out for you.  I am getting tired of hearing about these types of people and I'm afraid it only seems to get worse as the market improves and more people jump into real estate.  

Hey, thanks @Jack B.  Good to see you on here

@Devon Garbus, generally it's the same rule here.  I try to make money on the dirt and on the build when possible though.  :)

@John Wooten, I develop and build in Charlotte.   Message me if I can help you with your lot.  Thanks!

@Jon Klaus, interesting. We can do ADU's here, but in most zoning categories they can not be split through the planning dept and sold separately. Are you splitting through plat or through deed? Is this a special zoning category that you're targeting? What is your cost to build 850 sf ADU, compared to your normal 2,000 sf build? Every time I try and build a smaller house, my cost per ft is high. Are these 2 story or single story? I agree on the high end, I won't touch it unless I can get a great deal on the lot. Generally this means making a play on the land, where I find a way to subdivide that others didn't recognize to bring down my lot basis. Otherwise I stay away and let the gamblers have at it. It's good to hear from you, and congrats on your newest development deal!

@James Caruso, thank you