Idaho - Townhomes - New Construction

[Mike Reynolds]

Investment Info:

Townhouse other investment.

Purchase price: $1,200,000

This is a new development that we bought at preliminary plat. We have taken it through final plat and are now getting started with the horizontal construction. We will sell the completed units individually and set up a HOA to manage the common areas. There are 60 townhome units and a 10,000 sf commercial component.

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

I have been in the project management side of construction for 15 years and I had the chance to bring the project management portion for a percentage of the deal.

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

It came through a contact that I have known for several years

How did you finance this deal?

Private money for the down money and bank for development and construction costs

How did you add value to the deal?

turned raw ground into townhomes

What was the outcome?

Project is still in process

Lessons learned? Challenges?

Each jurisdiction has it's own little curses and blessings. It is wise to consciously look for them early in the process.

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

Not yet...