Brand new Under construction Duplexes

[Rhonda Hendren]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Lago Vista.

Purchase price: $600,000
Cash invested: $80,000

Contributors:
Rod Cordsen

Under construction new duplex. We will house hack until our 2nd home is complete.

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

My husband and I partnered with a builder/developer and began investing in his projects. We then purchased land and he builds the units we get our initial investment back and percentage of the profits. We found we could make more money in this investment than in the stock market.

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

We found this deal by word of mouth. We knew the builder to be a honest man who worked with integrity and we approached him about partnering with him to build multifamily units.

How did you finance this deal?

We had money in the stock market that we pulled to finance our deal.

How did you add value to the deal?

I find land for the builder to build on as well as sell our completed properties to home buyers and investors.

What was the outcome?

I have definitely been bitten by the real estate bug. We have personally purchased 8 lots to build on and still looking for more great deals.

Lessons learned? Challenges?

Construction is very complex! Weather, material shortages, price increases in labor and material have been the challenges we faced. It's imperative to ensure you have a honest and amazing builder. The team in the projects are also extremely important to move the projects along..