1451 Stone Bridge Crossing

[David Slack]

Investment Info:

Condo other investment.

Purchase price: $140,000
Cash invested: $5,000
Sale price: $205,000

I built a new construction condo unit and did a lease with an option to buy. The customer eventually purchased the condo as intended.

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

It was born from necessity. I was building spec duplex condos and when the market turned in 2008 I switched several of the units to this business model for survival.

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

I had to negotiate with my existing construction lender to get then to allow me to use the in place construction funding to get the property to cash flow so I could meet my obligations.

How did you finance this deal?

Portfolio loan.

How did you add value to the deal?

My potential profit that would have been in the job was converted to equity. I managed the properties myself to keep the expenses down.

What was the outcome?

The customer successfully purchased the unit from me in 2009.

Lessons learned? Challenges?

The lesson learned was that I took a situation that went against me suddenly, altered the terms and turned a negative into a positive!