New Construction Home

[Jennifer Yankowski]

Investment Info:

Single-family residence other investment in Archbald.

Purchase price: $47,000
Cash invested: $250,000

New construction spec home. This home is under contract to close 10-29-20 for $375,000.
Pictures and walk thru video available upon request.

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

We own a construction company and have built spec homes over the last 20 years. We have begun building specs again due to the favorable market. As you can see the profit margin is a nice investment.

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

I purchased a building lot our right and secured a construction loan.

How did you finance this deal?

A construction loan was taken at my local bank.

How did you add value to the deal?

New construction home was built.

What was the outcome?

It was under contract immediately when the kitchen and floors went in. It is a beautiful home and I have several customers requesting the same home on another building lot in the same development. I currently have 2 lots I own to build on but need to secure construction loans on each.

Lessons learned? Challenges?

Covid was a challenge as it shut our job down by our state governor. We did get back to work after a 12 week shut down so that cost a couple extra months of interest payments. My challenge is that I can not start another construction loan with my bank until this property is sold.

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

Yes, I have a realtor that I have used over 15 years to sell other spec homes. This realtor also lists and rents my investment properties.