New property development

[Corey Block]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Silsbee.

Purchase price: $106,000

New mobil home park development.

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

I have one park already, stumbled upon the opportunity to buy this land and build another one.

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

Found the deal through a local investor. Purchased the property for the value of the land plus the cost of the improvements made so far.

How did you finance this deal?

Owner finance. I negotiated an interest only period of 6 months and got the seller to add on some of the infrastructure costs into the mortgage. I have a 36 month period of time that I have to wait to refinance the property or pay a penalty.

What was the outcome?

Still in development stages. Water is being brought to the property next week, septic systems being installed next week, electricity being dropped next week.

Lessons learned? Challenges?

Expect delays when dealing with municipal entities like a co-op water office and electricity providers. No one gets in a hurry to do anything. You must stay in constant contact with them and bug them about every step of the process.