Custom Lake Lanier Home

[Daniel Nelson]

Investment Info:

Single-family residence other investment.

Purchase price: $354,700
Cash invested: $326,300
Sale price: $898,150

Tear down on Lake Lanier. New construction custom build.

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

I grew up on Lake Lanier and have always seen the potential for high margin construction opportunities.

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

This home was marketed on our local MLS. I was able to reach an agreement with the Seller, but I was forced to complete due diligence including soil testing and surveying in less than 21 days which is very difficult in our market.

How did you finance this deal?

I partnered with a friend to buy the lot/home with cash and we obtained an interest only construction loan for the project with a local banking partner.

What was the outcome?

The outcome was great. We had a beautiful finished project that stayed within our budget and we were able to find a buyer prior to getting our certificate of occupancy. The buyer is a real estate agent that still stays in touch and loves the home she's in.

Lessons learned? Challenges?

The most challenging part of this job was getting our dock permit back prior to closing. Luckily, we were very proactive working with the Corps of Engineers to obtain the new permit.