Tear down and new build

[Camille Pacht]

Investment Info:

Single-family residence fix & flip investment in Atlanta.

Purchase price: $252,000
Cash invested: $252,000
Sale price: $980,000

Bought a house, tore it down and built a new home.

What made you interested in investing in this type of deal?

Always wanted to build a house from scratch. This opportunity came up as my neighbors were selling the smallest house on the street.

How did you find this deal and how did you negotiate it?

My neighbors put a sign in their front yard and a builder made them an offer. I increased the offer slightly and they chose mine.

How did you finance this deal?

Construction loan

How did you add value to the deal?

Partnered with a builder, worked on the design and arranged the financing.

What was the outcome?

Over 20% return on investment

Lessons learned? Challenges?

So much from working with design, floor plans and optimizing layout to building and financing.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I got my real estate license at that time.