Vacant Lot $1.00 = Perfect Opportunity for a New Build Project

[Garrett White]

Investment Info:

Single-family residence other investment in Durham.

Purchase price: $1
Cash invested: $190,000
Sale price: $270,000

Purchased a vacant lot as a part of acquiring a duplex next door. Used the lot to build a new construction home. (3 Bedroom 2 1/2 Bath 1920 Sq/Ft)

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

Made sense due to the minimal cost of the acquired land.

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

Became apart of the acquisition of the neighboring property. Because the owner didn't want to make repairs to the acquired duplex, he threw the lo in for a dollar.

How did you finance this deal?

Hard money

What was the outcome?

Another investor purchased the new build property in order for long term rental.

Lessons learned? Challenges?

This was the first experience with a new construction project. Awesome learning experience that taught me all the small details of the process.

[Garrett White]

Originally posted by @Nicholas Q.:

@Garrett White how did you get your new construction costs to be so low? That’s less than $100 per sq ft. In my area we are looking at $200-250 per sq ft for below average finishes. Did you do a spec build or manufactured home?

Spec Home. The contractor we worked with already had several homes of the same floor plan being built. He was by far the most cost effective when we were shopping around.