9 Single Family Homes New Construction in Durham, NC

[Ramez Qubain]

Investment Info:

Single-family residence other investment.

Building 9 new Single Family Homes between 3,800 and 4,200 SQFT. Mediterranean style in the Maida Vale development in Durham.

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

there were 9 lots available for sale in a fully developed community. We got a good deal on the lots, and now with the very high demand in Durham and with the lack of supply, we decided to start building now.

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

My partners were having a casual conversation with a broker about another deal and he mentioned this one to them, so they went and saw it and we made an offer and the owner accepted.

How did you finance this deal?

Land was paid in cash, the building was through some cash and construction loan

How did you add value to the deal?

bought the lots at a price lower than the market at the time. we are adding value through the design and my partners being the contractors.

What was the outcome?

yet to be determined

Lessons learned? Challenges?

the biggest challenge is that we try not to sell before completion of construction due to the instability of the construction costs. so there is some stress on the cash flow and financing.

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

TBD