New Construction Investing

[Chris Randle]

Investment Info:

Townhouse other investment.

Purchase price: $188,000
Cash invested: $30,000
Sale price: $303,000

So we went the new construction route. Luckily we got in on the second phase of a development in a up and coming area in Bluffdale, UT. We held on to our property for 5 years before listing our on the market. We were able to net over 100k. Purchasing new construction can be pricey because you're paying the top market value for a home, but if you invest at a good time and good location there could be a good opportunity for you to make gains on your property through appreciation.

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

We didn't want any issues with a home. Something turnkey!

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

We drove around the area we wanted to be in and got more information for a few new construction developments.

How did you finance this deal?

We used a convention loan and put 15% down.

How did you add value to the deal?

I got my real estate license post purchasing this property. I was able to list our home and save 10k in commission on the sell on our property.

What was the outcome?

We were able to enjoy a new home for 5 years. We made sure to keep the property in great condition. We took advantage of the timing in the market and sold it for Max price.

Lessons learned? Challenges?

I learned that you can invest in new construction and still make a great return. You must be willing to hold the property from 2years-10 years to get the max ROI. One thing we would've done is finished the unfinished basement to add value to our property.

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

I handle our transaction and would love to work with anyone seeking an investor friendly agent.