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Updated almost 3 years ago,
Land Acquistion and New Construction Duplex
Investment Info:
Small multi-family (2-4 units) private money loan investment.
Purchase price: $308,500
Cash invested: $20,000
This property was a land acquisition deal. My husband and I are building a new construction duplex here and will be doing short-term rentals on both sides. Projected ROI per unit will be $124K per year.
What made you interested in investing in this type of deal?
My husband is GC here in Florida and we are looking to create a higher residual income. I have been managing 30 short-term rentals the past year and wanted to move into a new market with a property that we will own including being able to self-manage.
How did you find this deal and how did you negotiate it?
We found this deal by letting local agents in the area know what we were looking for and less than a month after the perfect opportunity came along to make this happen.
How did you finance this deal?
We financed the deal with a private money lender and my husband is also a tier-one contractor with them.
Lessons learned? Challenges?
Lessons learned the seller was not willing to extend when our deal did not close on time. So instead of only having $10k skin in the game, we ended up with $20k skin in the game. Don't trust the lender's word 100% because we were under the impression everything was good to go based on their response to us regarding closing and on the day of closing everything hit the fan and we had to extend for 3 additional days.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
DLP Capital - Sam Martin
Scott Babbit in St Augustine, FL