New Construction CPR deal in Haiku

[Patrick Franta]

Investment Info:

Single-family residence other investment.

Purchase price: $600,000
Cash invested: $400,000

Purchased a Ag zoned 2.3 Acre parcel in Haiku. Built a 2 bed 2 bath 1,000 SF ADU on the parcel. CPR the parcel and plan to sell the CPR ADU and then build the Second farm dwelling of approximately 3,000 SF.

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

Strong potential upside

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

Found the deal through my network. It was a new development not available to the public so I was able to reserve a lot before it was released.

How did you finance this deal?

Vacant land financing that was converted to construction financing that was then refinanced into a 30 year fixed.

How did you add value to the deal?

Built a house on the lot. Then CPR'd the lot into 2 parcels. In Maui this is sort of a way to subdivide without actually being abel to subdivide.

What was the outcome?

Added significant value

Lessons learned? Challenges?

I have learned a lot throughout this multi year process. From land acquisition to the new construction process to the CPR process, it was all a learning experience.

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

Yes happy to make reccomendations.