Smoky Mountain Gold Mine Property

[LaRay Chambers]

Investment Info:

Other hard money loan investment.

Purchase price: $95,000
Cash invested: $140,000
Sale price: $525,000

I own the 1.2 acres outright including the adjoining 17+acres, utilities to both properties are established, septic in place and signed off, zoning approved, building plans are being submitted. Looking to hire a contractor and complete a cabin built in the smoky mountains and drill a well. Property is just 10 minutes from Pigeon Forge, TN which is one of the most traveled to tourist destinations in all the country. Looking to either sell property as soon as the build is complete, sell it as a work in progress, or hold onto it and use it as a short term rental.

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

I saw a large profit opportunity by developing the properties. One purchase price came with two properties near 20 acres in total. Each property is allowed two structures per plot, allowing four structures without any rezoning process. Many different business strategy options to decide to proceed with.

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

Property originally was listed for 140K and it had been on the market for a little while, so I negotiated the price and purchased it out right.

How did you finance this deal?

I paid cash. The 140k invested includes the purchase of the two properties that are adjacent to each other. Totaling a little under 20 acres.

How did you add value to the deal?

I’ve since developed physical access to the property, including 2 lots that are now buildable when there was originally no access to the property. It’s since been cleared and a road built. Some great views.

What was the outcome?

It’s gone well and is a transformation plus a gold mine.

Lessons learned? Challenges?

I’ve learned the ins and outs of implementing utilities, the process, who’s involved, building codes, earth moving techniques. Purchased equipment to clear and shape raw land.

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

Yes, Realtor Greta May has been a local advisor, great help to navigate through the process.