This investment was New Construction. Using hard money lenders, on the purchase of the property and part of soft costs, and a construction loan through a local bank to fund the construction, I purchased a plot of land in Scarsdale, NY and built this beautiful 5 BR, 6 Bath, 5,408 Sq. Ft. Single Family Home. The numbers were as follows:

Purchase Land = $925,000.00
Closing Costs on Purchase = - $36,000.00
Construction Loan Fees and Interest = - $54,000.00
Closing Costs at Sale (Incl. Transfer Tax and Broker Fees) = - 132,250.00
Interest to Hard Money Lender ($1,068,070.25 @ 10% APR, Funds were provided as needed, Up to C of O was Issued, Total 16 Months) = - $166,778.11
Total Construction Costs = - $982,680.00

Total Profit on Deal = + $228,291.89

Scarsdale Homes Fly Off of the Market along with other Westchester County Areas. We had 2 buyers fall through prior to locking in on the third buyer, because after they sent an offer they asked for costly contingencies that were not acceptable to me.

The home is the highest sold, per square foot house, in the Edgewood Area of Scarsdale in History. I am very Proud of That ! :)

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

I worked for the Village of Scarsdale for many years and did inspections for the builders in the area and saw how much money there was to be made.

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

Through my established connections from working for the Village, I connected with the local agents and through persistence came across it.

How did you finance this deal?

Hard Money Lender and Bank Financing.

How did you add value to the deal?

Built a Modern, Sleek, New Home that has never been seen before in the area.

What was the outcome?

We had a two bidding wars that wound up leading to the potential buyers asking for ridiculous contingencies, and the third time was charm. My finance breakdown is in the description.

Lessons learned? Challenges?

I certainly learned which subcontractors I will be using again and the subs I will never connect with again. I learned that my agent is my best friend and key to executing the deal, It was challenging to put together the financing, but now that I have a reputation, things are getting a bit easier. My hard money lenders certainly love me, as well as the bank.