Land Development for Single Family Homes.

[Matt Marcus]

Investment Info:

Single-family residence other investment.

Purchase price: $650,000
Cash invested: $210,000

This is a Build 4 property where we subdivided the lot and then since it's taken a couple of years we have been able to reap the rewards of higher sales prices that were not present when we bought them so our comps and our Profit margin has gone from a solid 5.2x to a 7x deal.

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

Land Is at a premium in nashville and wanted to get things rolling with some partners of mine.

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

We found it through some solid connections through some wholesalers.

How did you finance this deal?

Cash for the land, and then institutional financing for the build.

How did you add value to the deal?

Subdivided and building 4 homes on the 2 parcels purchased.

What was the outcome?

Still building but will sell in the next few months.

Lessons learned? Challenges?

Getting clear on what's underneath the property is key, we have been held up since there were abandoned utilities we needed to get a public hearing and sign-off's on all the utility companies to allow us to build and that just takes time and has slowed progress.

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

I am a RE Agent and will be listing these under my company.