Colorado Custom Build; Finish and Flip Opportunity

[Ted DeKowzan]

Purchase Price - $425,000

Cost of Construction - $325,000

ARV- $1,200,000

This is a new custom 7,000 square foot house on 10 acres that's 60% complete. There's also a new custom 42' X 60' Morton building that includes an apartment and extra tall doors that's 90% complete. All of this is within 30 Minutes of Downtown Denver near Barr Lake State Park. The original owners foreclosed on the property due to a divorce and are giving up a lot of cash they had invested. 

The house has most of the exterior work complete including; Roof, Stucco, Doors, Stone, Grading, Windows, ect. The interior of the house has been framed with some of the rough plumbing, HVAC and geothermal heating system in place. The remaining work would include finishing the plumbing, electrical, HVAC, drywall, texture, flooring, bathrooms, kitchen, deck, landscaping, ect. Due to the size of the house and the added cost of higher end finishes we are estimating approximately $325,000 to complete the construction within a 12 month period.  

This is a unique opportunity to be involved in a high end flip. I'm looking for financial partners with the ability to lend on the project. For this project I'm offering two different lending options. Either option provides a 1st position lien position on the property to protect the lenders interest in the property. 

Option 1 - In exchange for your involvement I would offer a 50% percent split of the profit upon sale of the property. Total profit amounts will be calculated by subtracting the cost of construction, real estate agent commissions, utility costs, and taxes from the sales price of the property. The purchase price will be due at closing and the construction costs will be dispersed by monthly draws based on the percent complete. 

Option 2 - With this option I'm requesting a 8% interest only loan with a 3 year term. The loan amount would cover the purchase price and cost of construction. Payments for construction cost will be dispersed by monthly draws. Interest payments will be paid in arrears upon the sale of the property. 

I have experience with higher end flips and have several other deals on the horizon. I'm looking to build a relationship not only on this deal but for future deals as well. If you're interested email me and I will send you the information on the property.