New Construction setting the comps in unfirmaliar terriorty

[Yacosa Foster]

Investment Info:

Single-family residence other investment in Spartanburg.

Purchase price: $4,000
Cash invested: $4,000
Sale price: $4,000

I purchased 9 vacant lots of land from Spartanburg tax auction for under $4k total. I plan on build new construction.

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

Community development. The lots where vacant for years. I want to be a part of the solution not the problem. I also want a chance to build nice affordable housing.

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

I found it on a yearly auction. people where not looking at them because they area where most people don't invest. Im cool with that because I want the people that live in the area to be able to afford to own a new house in the area

How did you finance this deal?

I haven't finance the new construction as of yet but I used my own funds to purchase the lots.

How did you add value to the deal?

The value that I add is that I'm bringing new construction to a community to allow the people of the community to stay in the community by not over pricing the homes. And it doesn't come with the qualification and hoops that the HUD homes are Habitat home come with.

Lessons learned? Challenges?

The challenges I face is that I live in The Hampton Roads Area in Virginia and the lots are located in my hometown of Spartanburg SC. So finding a equity partner or a partner period is becoming challenging. Another challenge is trying to figure out the process of new construction.

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

I work with one now to keep me up to date about what's going on in the area as far as housing and community.