All Forum Posts by: Account Closed

@Andrew K., thanks for the nice compliments.  It has been an awesome and fun few years... which for some reason of course, brings up the question "when will it stop?"  I'm actually focusing most of my efforts on 400k-600k- price points right now.  But if I do see another opportunity for a deal on land in a higher end area, I'll be all over it.  Just seems lately, that other builders/developers are willing to pay way more and I assume take a thinner margin on a 1 million sale.  

@Jon Klaus, thanks!   Although I can't take credit on the photos- my realtor handles that aspect.  I try to fill a missing gap on every project.  Sometimes that means I wouldn't go as high end, or if there's a need for a smaller house, or in this case, I saw a lot of projects coming out of the ground right around 3,600 ft-4,200 ft.  In 2016, I sold 5 projects in that size range also, and some common feedback on those was basically they lacked something and were a little too small- maybe they needed one more guest room, or a big game room, etc.  It's funny, we tried to get away from the mcmansions for a few years, but now I think it's back.  It also helped that this was a basement lot.  So, instead of competing with builders doing 975k-1.1 million houses at around 4,000 sq ft we tried to add a little size and build the prices up.  The next step up in neighborhoods (Myers Park), just a mile or 2 away, was still a couple of hundred thousand higher for a similar sized new build.  So, we figured, we could hit the missing gap if that makes sense.  The 5,000 sq ft home in the next neighborhood would be at 1.5m or higher.  Or, they could come to this neighborhood (Cotswold) and get the 5,000 ft at 1.25m, and stay under the competition in the surrounding areas.  Is this how you evaluate what you are going to build in Austin?  Or am I a little nuts?  :)

@Stephen Dickey, thank you!

@Christopher Hopkins, thanks.  New guys?  You should check out some local meetups and REIAs.  There's a group that meets in Monroe or close by I believe, and several in Charlotte.

@James Masotti, infill can get pretty expensive.  We built and sold 4 that were over 1 million in 2016.  1 was in the link at the beginning of this post, and 3 were in the link below. 

https://www.biggerpockets.com/forums/44/topics/361582-latest-multi-million-dollar-spec-development-in-charlotte-nc

We have completed and sold the 2nd house in this development.  Info and pics are at the following link:

https://www.biggerpockets.com/forums/44/topics/408...

To follow up on the post from here:  https://www.biggerpockets.com/forums/44/topics/330...

This land was originally 1 house we purchased from a wholesaler in Charlotte, North Carolina.  We subdivided into 2 lots, and sold the first house over the summer.   After a few months, the bank lent the money to build the second house.  As you can read in the above linked post, my basis in each lot after development (including demo, survey and subdivision cost, utility connections, grading, tree removal, etc) was right around 208k per lot.  We completed this home, staged it, and accepted a full price offer within 30 days.  Total sq footage was about 5,200 and sales price was 1,250,000.  Pics below.  

How'd it turn out?

We do freestanding tubs in modern and craftsman style homes.  Sales prices are from 525k-1.35 million in Charlotte, NC. Pics below

@Willow T., I might've missed it since so many people have replied.  How were you able to reduce your tax liability?  

Are you interested in wholesaling it and making a few bucks?  If it's a good enough deal, that may be a better alternative than spreading yourself thin on this 1 deal.  There'll always be another deal around the corner

I wouldn't be opposed to self insuring if I could withstand the risk of losing my whole investment, and they were diversified.  If I owned 40 houses and they were all on the same block, maybe I'd look at self insuring some but not all.  One storm could wipe out all 40.  

@Willow T., beautiful work!  Congrats on an amazing product and deal!  That being said, how did you avoid taxes on this one?