I still like new const over rehabbing

[Rich Weese]

I've previously posted results of homes built recently compared to rehabbing. Due to our area BOOMING with new buyers, my most recent closing is what I consider a home run. From first shovel to receiving escrow closing check, less than 90 days.(and that was going through Thanksgiving, Christmas and New Years Holidays!)

The most recent home closed on schedule last week. Nice homecoming present after 2 weeks in Dubai. Here are facts of deal.

Lot purchased 1 year ago for 50K.
Total const costs including loan costs $201,140.22

Total Costs $251,140.22

Sales price $349,900

Net proceeds after all costs, commissions, etc.from closing $330,809.12

Net net $79,668.90

My investment was 50K and return was approx 160% in one year. I still feel there is much more potential in many areas doing new const rather than rehab. Anyone else agree with that? I'm just starting home # 5 and building same plan in same area. #6 should start here in 30-45 days. Rich

p.s. If I'd started this home right after acquiring lot, return would've been over 500%. Home just started is on lot just purchased for 68K. This one could be even better return. CRAZY good in my area

[J Scott]

Originally posted by Travis Haigler:

As Steven Hamilton II said, all I had to do was ask. I did, and I got one heck of an education! It's great that Rich is willing to take the time and help those of us just starting out in real estate!

Like many of us here, I'm guessing Rich has had his share of help along the way from other investors who were more experienced than he was at the time, and now he's paying it forward with other new investors. When ethical, hard working investors volunteer their time to help up-and-coming investors get started, it helps the entire industry, as those values are instilled in the new investors from the beginning.

Just a good reminder to all of us who have had help along the way that we should be paying that forward, not just for the satisfaction of helping others, but in order to better our industry as well. Also a good reminder that despite how much many of us will disagree on some stuff here on BP, when it comes to the really important stuff, most of us are on the same page.

Rich is definitely one of the good guys, and I'm sure there are a lot of people here who owe him a good bit of gratitude for their success...