New Spec Coastal North Carolina

[Keith Bloemendaal]

Ok, I am brand new here and have spent the last 4hrs (at least) reading diaries and listening to the podcast episodes at the same time. I am so impressed with the complete openness in this community, it is truly amazing! 

I am located in Carolina Beach, NC (south of Wilmington, NC) and am just starting out on my own as a new home builder. I have been in construction for over 25yrs, and spent the last 3+ yrs as a project manager where I managed 150+ new homes and townhomes. A couple of months ago, my position as Project Manager was eliminated, and I was let go. I had already seen this was coming, I just thought I had until next year. 

This put me in panic mode, and I immediately started working on getting started. I had no plans designed, no funding, and no cash. Because I had foreseen my making this step eventually, I had pitched my ideas out to some friends with connections in the private investment realm. Nothing had come about by that at this point. 

As soon as I lost my job, I took a hard look at what little bit of cash I had and decided I could survive for a few months and decided to go full speed ahead at making this happen. I started my LLC, invested in a new design, researched competitive market analysis for where I wanted to live, etc...

I knew I wouldn't be able to get traditional financing, so continued courting private funding options. I finalized my plans and put the entire project out to bid. Armed with all this data, it made my project an easier sell. 

Long story (and helluva roller coaster ride), I partnered with an investor and we secured funding for my first three specs, including lots, last week. 

My plan is called "The Aruba", rendering and floorplans:

I have so much more to tell, but for now I will leave you with this:

Lot Cost: $91,500 (it's 5 blocks to ocean, yet out of flood zone, prime lots)

Construction Cost: $185,00 (just under $110/ft for build, I may be able to get that to $100/ft)

Sale Price: $359,900

I plan on closing on the lots in a few weeks, then starting 3 in a row (one every 30 days). 

Ultimately, I have a goal to buy and hold with my profits over my overhead/bills, actually I like to call it a build and hold. Areas I will likely do this will be off the beach, lots $30-$50k, build costs $80/ft, ultimately with no debt initially, so one per year starting in 2016. 

I look forward to learning from you all, and thanks to all of you for creating such a great community and sharing your stories!

[Keith Bloemendaal]

Hey guys/gals,

It's been awhile since I have updated, sorry about that. So much has happened since April! 

First of all, this home is almost complete, and is going under contract for $367,300 today. Some pics below of the home now. 

Numbers:

$367,300 Sale Price

$91,500 lot

$195,000 building/loan costs

$18,365 R/E commission

$5k closing costs

$57,435 estimated profit. (still a few things to complete on home) which is roughly 15%. Not bad for my first build! 

I also have 4 other homes started now (one just starting this week), 2 of which have already sold. One at $370k, the other is at $420k and climbing. I also put 4 more lots under contract, which have now increased to $100-$105k, so that as soon as a home goes under contract I can replace it. Trying to keep 3 specs going at all times.....