Modular New Construction in Stratford, CT

[Erik Manley]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $75,000
Cash invested: $400,000

My first new construction project started out when I broke ground on March 5th, 2020 and the world shut down a week later. The pandemic definitely made things rough and required tons of problem solving, but in the end we finished it up and got it rented out, then BRRRR'd out of it. The first crack at modular construction was a success!
Bought with hard money, then refinanced out conventionally after finishing construction and renting it out.

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

At the time I had already done two gut renovations and was looking for the next step. There was a lot of competition for fixer uppers in my market, so I chose to take the path less travelled.

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

Found it on the MLS and was able to negotiate the sale of 3 duplex lots on the same block and had 2 of them seller financed on the condition I bought the first on cash (hard money).

How did you finance this deal?

Local Hard Money Lender

How did you add value to the deal?

GC'd the project myself and hired all my sub contractors individually, built new construction

What was the outcome?

Was able to complete a successful BRRRR, even though I left more money than initially planned in the deal.

Lessons learned? Challenges?

Modular construction has a time and place, but was good for my first new construction project since it basically helped me build with training wheels haha. Stick built the next house from scratch with what I learned from this one.

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

Schuyler Goines as always was the agent I used, and I used Sachem Capital in Branford for the hard money.