Home Build/Investment #3

[Ryan Nickolaus]

Investment Info:

Single-family residence other investment.

Purchase price: $211,188
Cash invested: $80,000
Sale price: $350,000

I built this home in 2017, invested the money I made from the previous house and put that into this one. lived in it for a few years, bought the property for the next house while living in this home and sold the home in 2020 to build the next home.

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

It was my first personal home build and with the market values climbing, it was the perfect fit for an investment.

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

I bought the land and built the home using a contractor to general contract the exterior.

How did you finance this deal?

Construction loan that closed into a 30 year fixed mortgage.

How did you add value to the deal?

Did a lot of the work myself including the basement and put the money I made from the previous home into this home.

What was the outcome?

Closed on the construction loan with a final amount of $211,000 and sold the home a few years later for $350,000.

Lessons learned? Challenges?

Some builders are corrupt and an absolute pain to work with. But the outcome was worth it.

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

I did not. I bought the land through the builder and I sold the home on Facebook in one day all on my own. Used a broker to do the legal work with the title company and collected the rest of the money for the next build.