Estero Investments experience?

[Allan Gonzaga]

Hi there,

Does anyone have experience with Estero Investments or Buller River Development Partners (they’re joint companies). They specialize in new construction properties for investors. They have new and planned properties in Charlotte, Florida, and Memphis. I’d like to get BP member feedback on them and general experience.

Thanks

Allan

[Cj Powderhorn]

Hi! I was working with Estero(Reed Schweizer) and Norada in Cape Coral. As of today, I am not. I went under contract in early 2021 with a May/June completion date. $248K. 1404 Nelson Road.  Date continually got pushed out to completion now scheduled for Sept.  Today(6 weeks from closing), I receive the song and dance email about a price increase on everything from framing to tile to drywall to appliance, mirrors and bathroom fixtures. The funny part is in the letter they mention...

'While the terms of the As Is Residential Contract for Sale and Purchase allow for a termination of the contract, our hope is that you will move forward with the purchase at an adjusted price. The new adjusted price is your original contract price as well as the attached change orders. In making your decision, it may also be important to note that our current pricing for the same product is now $270-$275K. Based on the current sale price you would still have significant built-in equity in the property. We are able to achieve this discount to market due to our cost basis in the land which is lower than land we are acquiring today and by cutting our margins to the lowest possible level.'

So, my new total is $271,417.  Based on what they shared as cut and pasted above there in NO built in equity but somehow the price is now right in line with TODAY's prices. This will work perfect when they sell the home to another investor.

The other thing that really, really bothers me is that this letter is the first I've been notified of ANY increase. Obviously, there were plenty of other opportunities to share this info with investors as I believe the framing, trusses, plumbing, electrical etc have probably been in the home for quite a while but there was no notice that pricing might increase. I'm just glad I didn't have a construction loan! For cash buyers, please be aware that if you think you are locking into 'today's pricing' you are not. Also, the opportunity to buy a home there 6 months ago, at those prices, has disappeared.

One last thought...if you buy a resale home that has been remodeled and includes the new code requirements for roof and windows, your insurance will not be excessively high. Just make sure that the upgrades were filed with the city.