Update on Building home instead of rehabbing for profit.

[Rich Weese]

This is just an update to a previous thread. Here are the results on the first home completed and sold. The property referred to on the Golf Course has closed. Lot was actually bought for $39,145. The sales price was $319,000 and we had to do some additional itemsfor buyer. Fireplace, some additional granite in laundry room, pet door etc.

I used a private lender who charged 9% and 2 points. I could've paid cash, but wanted to show ANYONE could've done the same deal with under $40,000. The net after ALL costs, including interest, and commission was $84,000. The "net" was just under $45,000 in 6 months on a total investment of 39K. This is an annualized return of 200% on total investment of 39K. (if I calculated correctly) I still think there are other areas where this is possible.

The Parade home referred to is NOT sold yet and return will be less, due to holding time. March 1, I started a 3rd home in St George to be priced at $299,000 for 2300 sq ft- very nice home on a 50K lot. It is also financed with same lender.

As the rehab or wholesale margins are shrinking, you might consider this option in your area. Rich