First time with new construction: Cape Coral, FL

Cape Coral, Florida
Land & New Construction
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First time with new construction: Cape Coral, FL

Don M.
Member since 2021 · 135 posts · 203 votes

Hey guys,
This post is mainly just to share where I'm at with this process, provide opportunities for myself to network with others in the area, and so I can periodically update.  I have connected with several members doing new construction or with boots on the ground in Cape Coral, so thanks to all of you that have discussed and answered questions from me so far.
Here's where I'm at:
-Connected with Rent to Retirement in November/December 2021 to discuss the area and opportunity.
-Closed on build contract January 2022 on a 4/3 (Build price itself is 246k).
-Closed on Freshwater canal Lot February 2022. (39k with closing costs).
-(All in construction+lot cost is 285k before loan and closing costs).
-Sent Deposit to builder February 2022. (13.5k) 
-Surveys, Site Plan, Septic Design approval initiated: February 2022
-Completed Survey/Design Package completed and sent to city of Cape Coral: June 2022
-As of August 2022, Permits are still under review by city.  Most submissions are under "Approved" status, but permit not formally issued.
-Lender currently has an estimated valuation of 410k for the property.


The hope is to buy and hold, LTR.  Current projected rent: ~$2450/mo

Needless to say, it has been a very interesting time to build.  We are excited, at times frustrated, and have a healthy level of anxiety, but all of those elements were expected from the start.

I'll try to keep this thread updated, as it has always been helpful for me to read others' experiences.

-Don

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Zach LemasterBusiness Member
Rental Property Investor · Denver, CO · Member since 2015 · 2k+ posts · 3k+ votes
4y

@Don M.

Thanks for sharing the details of your project!  Please keep us all updated with progress.  All normal emotions for going through the tedious construction process.  I'm right there with you.  Hopefully things continue to progress, and you come out on top with a huge equity position/high cash flow when it's all completed.  We are seeing about 50/50 split of people holding as rentals vs selling.  The avg equity position upon completion is about $150K with avg rent of $2,500 leasing in 3 weeks or less post CO.  Hopefully this gives you some light at the end of the tunnel.  Feel free to reach out at any point with any questions, or just to get a sense of how the market is doing overall.

[email protected]800-311-6781Podcast Guest on Show How to Get 10%+ Off Your Next Real Estate Deal Right Now
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  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    3y
    Quote from @Tom Wang:

    Great post.  I'm in a similar boat and own a freshwater plot in Cape Coral.  I'm attempting to get it zoned to enable building a duplex.  Could you share a bit about how you identified the builder you eventually decided to work with?  Was it through internet search/referral/ other channels?  If you know anything about duplex builders (most seem to be single family only?), could you let me know also? Thanks!


     Hey Tiyu,
    Unfortunately, this is a new process for me (and am doing a single family), so I can't be of much help.  As you're aware, Cape Coral code and zoning can be strict.
    In terms of how I found a builder: I did so through a turnkey provider that you can find mentioned throughout this thread, knowing that I had a lot to learn through this process.
    Good luck moving forward!

    1Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    3y

    Update:
    Digging and form boards placed, ready for underground plumbing.  Eager to get through slab process.

    2Reply
  • Tom Wang
    Investor · Miami, FL · Member since 2022 · 18 posts · 10 votes
    3y
    Quote from @Don M.:
    Quote from @Tom Wang:

    Great post.  I'm in a similar boat and own a freshwater plot in Cape Coral.  I'm attempting to get it zoned to enable building a duplex.  Could you share a bit about how you identified the builder you eventually decided to work with?  Was it through internet search/referral/ other channels?  If you know anything about duplex builders (most seem to be single family only?), could you let me know also? Thanks!


     Hey Tiyu,
    Unfortunately, this is a new process for me (and am doing a single family), so I can't be of much help.  As you're aware, Cape Coral code and zoning can be strict.
    In terms of how I found a builder: I did so through a turnkey provider that you can find mentioned throughout this thread, knowing that I had a lot to learn through this process.
    Good luck moving forward!


     Thanks for letting me know Don!  I'll check out the turnkey provider you mentioned (never heard of such a concept before), so learned something new!

    1Reply
  • Ruchit Patel
    Bay area, CA · Member since 2021 · 383 posts · 306 votes
    3y
    Quote from @Don M.:

    Update:
    Digging and form boards placed, ready for underground plumbing.  Eager to get through slab process.


     How are you getting updates? Do you live in Cape Coral and drive by to get pictures?

    1Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    3y
    Quote from @Ruchit Patel:
    Quote from @Don M.:

    Update:
    Digging and form boards placed, ready for underground plumbing.  Eager to get through slab process.


     How are you getting updates? Do you live in Cape Coral and drive by to get pictures?


     I do not live in the area.  These have come directly from the build team with my recent updates (although I did visit the area during the process and most certainly will again).

    1Reply
  • Tom Wang
    Investor · Miami, FL · Member since 2022 · 18 posts · 10 votes
    3y
    Quote from @Bernard Joseph S.:
    Quote from @Tom Wang:
    Quote from @Bernard Joseph S.:
    Quote from @Tom Wang:

    Great post.  I'm in a similar boat and own a freshwater plot in Cape Coral.  I'm attempting to get it zoned to enable building a duplex.  Could you share a bit about how you identified the builder you eventually decided to work with?  Was it through internet search/referral/ other channels?  If you know anything about duplex builders (most seem to be single family only?), could you let me know also? Thanks!


     How big is your lot?


     Standard Quarter acre 


    Curious about the approval for a duplex on a standard lot. They tend to build out not up in CC from what I’ve seen. Someone with a better understanding will comment I’m sure but I tend to think it will be a difficult move. 


    Quick update here. Spoke to the planner on duty in CC. And his take was that they just mark whatever area doesn't have city sewer yet (they are building these out over 5-10 years), will be in the Single/Multi "catch-all" zoning. Once the public works are there they will just revert to existing zoning which in my case is SFH.

    He did mention that if the lot is facing a major road, they board would consider rezoning to MF, but since my lot is about 7 spaces into the neighborhood, it probably wouldn't be approved. FYI

    2Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    3y
    Quote from @Tom Wang:
    Quote from @Bernard Joseph S.:
    Quote from @Tom Wang:
    Quote from @Bernard Joseph S.:
    Quote from @Tom Wang:

    Great post.  I'm in a similar boat and own a freshwater plot in Cape Coral.  I'm attempting to get it zoned to enable building a duplex.  Could you share a bit about how you identified the builder you eventually decided to work with?  Was it through internet search/referral/ other channels?  If you know anything about duplex builders (most seem to be single family only?), could you let me know also? Thanks!


     How big is your lot?


     Standard Quarter acre 


    Curious about the approval for a duplex on a standard lot. They tend to build out not up in CC from what I’ve seen. Someone with a better understanding will comment I’m sure but I tend to think it will be a difficult move. 


    Quick update here. Spoke to the planner on duty in CC. And his take was that they just mark whatever area doesn't have city sewer yet (they are building these out over 5-10 years), will be in the Single/Multi "catch-all" zoning. Once the public works are there they will just revert to existing zoning which in my case is SFH.

    He did mention that if the lot is facing a major road, they board would consider rezoning to MF, but since my lot is about 7 spaces into the neighborhood, it probably wouldn't be approved. FYI


     Interesting!  Thanks for sharing.  Good luck with whatever you choose to do moving forward!

    2Reply
  • Bernard Joseph S.
    Investor · NJ · Member since 2022 · 155 posts · 224 votes
    3y
    Quote from @Tom Wang:
    Quote from @Bernard Joseph S.:
    Quote from @Tom Wang:
    Quote from @Bernard Joseph S.:
    Quote from @Tom Wang:

    Great post.  I'm in a similar boat and own a freshwater plot in Cape Coral.  I'm attempting to get it zoned to enable building a duplex.  Could you share a bit about how you identified the builder you eventually decided to work with?  Was it through internet search/referral/ other channels?  If you know anything about duplex builders (most seem to be single family only?), could you let me know also? Thanks!


     How big is your lot?


     Standard Quarter acre 


    Curious about the approval for a duplex on a standard lot. They tend to build out not up in CC from what I’ve seen. Someone with a better understanding will comment I’m sure but I tend to think it will be a difficult move. 


    Quick update here. Spoke to the planner on duty in CC. And his take was that they just mark whatever area doesn't have city sewer yet (they are building these out over 5-10 years), will be in the Single/Multi "catch-all" zoning. Once the public works are there they will just revert to existing zoning which in my case is SFH.

    He did mention that if the lot is facing a major road, they board would consider rezoning to MF, but since my lot is about 7 spaces into the neighborhood, it probably wouldn't be approved. FYI


     Thanks for the update, makes sense

    2Reply
  • Yasser Quraishi
    Member since 2021 · 13 posts · 8 votes
    3y

    I have not had a good experience with Delta (DCGI). I had closed on the new construction in January 2022 after acquiring the land through cash. In October 2022, I got notified that my loan through Center Street Lending was cancelled (because there had been no activity on the loan)
    and that I would need to find another source of financing. When I tried following up with Delta, they did not have an answer for me and simply said that they would just stop all progress on my construction until I made the payment for the first draw. So I self-financed the first draw, thinking that it would help move the project along, but that proved to be a big mistake because Delta stopped responding to me after that. I've tried multiple times e-mailing and calling Delta, who have now conveniently started to forward all incoming calls to voicemail. Now I have no idea on if or when the project will ever be picked up again. I'd like to know if anyone else has had the same experience? 

    Here's a timeline:

    December 15, 2021: Land purchased

    January 14, 2022: Closed on loan with Center Street Lending + First deposit made to Delta Build

    August 25, 2022: Permit approved by the city

    October 21, 2022: I was informed by Delta that my loan with Center Street Lending was cancelled (which meant that I lost around $15k which I had used to fund the initial loan) and that I would need to find new source of financing and that the Draw 2 was now due. When I pressed Delta for answers, I was issued the following stern statement: "Let me start with as a courtesy we contacted you regarding Center Street and its not obligation to maintain your financing. Now let’s chat about progress, as per your contract section 8. Commencement shall be 30 days after receipt of permit as a condition. Although your permit was approved on 8/25/22 , you haven’t paid the draw 2 that’s due. So basically, you are on HOLD until this is paid. When are you going to pay this as your lender has not and now you are in breach of the contract and causing the delay."

    November 18, 2022: I self-financed Draw 2 and started searching for another loan provider

    December 5, 2022: I followed up with Delta asking for an update. I received a response from them providing the timeline and that the next step was to Scrap Lot (tentatively scheduled for December 19)

    January 10, 2023: I followed up with Delta to inquire if the Lot was scrapped and if the Permit was picked up. No response

    January 20, 2023: I followed up with Delta again. I also called them a number of times during this process and left voicemails

    January 27, 2023: I received a response from Delta informing me "Due to the volume of requests, we ask that you please do not respond or send another email to Permitting unless there is a change in your request. This will only continue to delay the process."


    3Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    3y
    Quote from @Yasser Quraishi:

    I have not had a good experience with Delta (DCGI). I had closed on the new construction in January 2022 after acquiring the land through cash. In October 2022, I got notified that my loan through Center Street Lending was cancelled (because there had been no activity on the loan)
    and that I would need to find another source of financing. When I tried following up with Delta, they did not have an answer for me and simply said that they would just stop all progress on my construction until I made the payment for the first draw. So I self-financed the first draw, thinking that it would help move the project along, but that proved to be a big mistake because Delta stopped responding to me after that. I've tried multiple times e-mailing and calling Delta, who have now conveniently started to forward all incoming calls to voicemail. Now I have no idea on if or when the project will ever be picked up again. I'd like to know if anyone else has had the same experience? 

    Here's a timeline:

    December 15, 2021: Land purchased

    January 14, 2022: Closed on loan with Center Street Lending + First deposit made to Delta Build

    August 25, 2022: Permit approved by the city

    October 21, 2022: I was informed by Delta that my loan with Center Street Lending was cancelled (which meant that I lost around $15k which I had used to fund the initial loan) and that I would need to find new source of financing and that the Draw 2 was now due. When I pressed Delta for answers, I was issued the following stern statement: "Let me start with as a courtesy we contacted you regarding Center Street and its not obligation to maintain your financing. Now let’s chat about progress, as per your contract section 8. Commencement shall be 30 days after receipt of permit as a condition. Although your permit was approved on 8/25/22 , you haven’t paid the draw 2 that’s due. So basically, you are on HOLD until this is paid. When are you going to pay this as your lender has not and now you are in breach of the contract and causing the delay."

    November 18, 2022: I self-financed Draw 2 and started searching for another loan provider

    December 5, 2022: I followed up with Delta asking for an update. I received a response from them providing the timeline and that the next step was to Scrap Lot (tentatively scheduled for December 19)

    January 10, 2023: I followed up with Delta to inquire if the Lot was scrapped and if the Permit was picked up. No response

    January 20, 2023: I followed up with Delta again. I also called them a number of times during this process and left voicemails

    January 27, 2023: I received a response from Delta informing me "Due to the volume of requests, we ask that you please do not respond or send another email to Permitting unless there is a change in your request. This will only continue to delay the process."


    Just awful to hear man, you may need to pursue legal action? I am unsure, I am not experienced in this. I'd definitely go after Delta and/or any intermediate that facilitated this. It's all fun & games, until someone loses money. If the investor loses money, all parties need to be exposed.
    1Reply
  • Yasser Quraishi
    Member since 2021 · 13 posts · 8 votes
    3y

    Update: I received an e-mail today from Delta updating me on the status - the Lot has been scrapped and several other activities have been completed, so it looks like the project is continuing. I am eager to get this project completed as it has been a while since this journey began. 

    3Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    3y
    Quote from @Yasser Quraishi:

    Update: I received an e-mail today from Delta updating me on the status - the Lot has been scrapped and several other activities have been completed, so it looks like the project is continuing. I am eager to get this project completed as it has been a while since this journey began. 


     Glad you have an update and progress! Hoping that continues for you

    2Reply
  • Abigail T.
    New York, NY · Member since 2015 · 24 posts · 11 votes
    3y

    I’m in a similar situation as most people on here. I signed a contract with delta on 10/2021, and received a permit in July 2022. It was initially looking like we were making progress but it appears the project is stalled for the past 2.5 months.  I’m hoping to get some clarification soon. 

    2Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    3y

    The below timeline is not to express any level of happiness or unhappiness.  It is there to share the timeline, as I best understand it.

    Received an update 2/17/23.  Same status as update received 2/1/23.
    Ready for underground plumbing.

    -Contract January 2022
    - >6 months ago Construction permit approved 8/17/22 (not issued until fees are paid)
    - >5 months ago Alt Seawall permit approved and issued 9/13/22 (slated to expire 3/13/23, but was informed this will be addressed and shouldn't be an issue).
    -As of 2/17/23 update underground plumbing not yet installed, slab not yet poured.

    4Reply
  • Account Closed
    Member since 2020 · 7 posts · 6 votes
    3y
    Quote from @Don M.:

    The below timeline is not to express any level of happiness or unhappiness.  It is there to share the timeline, as I best understand it.

    Received an update 2/17/23.  Same status as update received 2/1/23.
    Ready for underground plumbing.

    -Contract January 2022
    - >6 months ago Construction permit approved 8/17/22 (not issued until fees are paid)
    - >5 months ago Alt Seawall permit approved and issued 9/13/22 (slated to expire 3/13/23, but was informed this will be addressed and shouldn't be an issue).
    -As of 2/17/23 update underground plumbing not yet installed, slab not yet poured.


    Hey Don, 

     Same situation here:

    -Contract March 2022
    - >6 months ago Construction permit approved 8/17/22 (not issued until fees are paid)
    - progress chart says waiting for lot to be scraped

    Waiting on a reply on why no fees have been paid at all on this permit. Draw 1 has already been paid on my end. 

    1Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    3y

    Per last update from team,
    Tentatively scheduled for completion of underground plumbing with inspection 3/10.
    Tentatively scheduled for slab completion week of 3/20.

    2Reply
  • Abigail T.
    New York, NY · Member since 2015 · 24 posts · 11 votes
    3y

    Hi Don, 

    How often are you requesting for updates from them? 

    0Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    3y
    Quote from @Abigail T.:

    Hi Don, 

    How often are you requesting for updates from them? 


     I wouldn't say there's an exact amount.  Lately, it's been about 10 days to 2 weeks when I ask for an update, as I anticipate being close to slab, and have been inquiring which steps are done.  I find the checklist they send helpful.
    When I have a step completed or know I'm in a lengthy part of the process, I inquire less frequently.

    1Reply
  • Stephen Wells
    Tampa, FL · Member since 2017 · 8 posts · 4 votes
    3y

    Thanks for the time line information. I own a lot in the North Port Sarasota County area that I'm also looking to build on. Was previously purchased with a Builder to erect a SFR residence on. Unfortunately, the builder was over their head and went bankrupt. However, I've learned a lot from that experience and am willing start over again- Make sure you stay on the top of them and fully account for the draws being taken as if they (Builder) have multiple projects I've seen where one individual's draw gets comingled with another property.

    2Reply
  • Rong Tan
    Member since 2022 · 36 posts · 26 votes
    3y

    Bought our lot in april of 2022. My builder finally got the approval on the plans and submitted for permits (got number for tracking). Am told we will get permits in 5-6 weeks and construction to be done completely for occupancy in 6 months. Let see...

    2Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    3y
    Quote from @Stephen Wells:

    Thanks for the time line information. I own a lot in the North Port Sarasota County area that I'm also looking to build on. Was previously purchased with a Builder to erect a SFR residence on. Unfortunately, the builder was over their head and went bankrupt. However, I've learned a lot from that experience and am willing start over again- Make sure you stay on the top of them and fully account for the draws being taken as if they (Builder) have multiple projects I've seen where one individual's draw gets comingled with another property.


     Good advice!  New construction has been an adventure so far.  I do have a lender in place that releases draws only after inspection of a step of work is completed.

    1Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    3y
    Quote from @Rong Tan:

    Bought our lot in april of 2022. My builder finally got the approval on the plans and submitted for permits (got number for tracking). Am told we will get permits in 5-6 weeks and construction to be done completely for occupancy in 6 months. Let see...


     Good luck!  Is this project in cape coral, as well?

    1Reply
  • Bernard Joseph S.
    Investor · NJ · Member since 2022 · 155 posts · 224 votes
    3y

    I'm waiting on a seawall permit which was filed last month. Once that's done the fun should begin as my building permit has already been approved. I see most of you are with Delta. I'm contracted with Blacktip, so far so good. Anyone using Beattie or any of the other builders?

    1Reply
  • Rong Tan
    Member since 2022 · 36 posts · 26 votes
    3y
    Quote from @Bernard Joseph S.:

    I'm waiting on a seawall permit which was filed last month. Once that's done the fun should begin as my building permit has already been approved. I see most of you are with Delta. I'm contracted with Blacktip, so far so good. Anyone using Beattie or any of the other builders?

    Im w beattie. 
    2Reply
  • Rong Tan
    Member since 2022 · 36 posts · 26 votes
    3y
    Quote from @Don M.:
    Quote from @Rong Tan:

    Bought our lot in april of 2022. My builder finally got the approval on the plans and submitted for permits (got number for tracking). Am told we will get permits in 5-6 weeks and construction to be done completely for occupancy in 6 months. Let see...


     Good luck!  Is this project in cape coral, as well?


     Yes

    1Reply
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