All Forum Posts by: Don M.

 That's great! Congrats!

Thanks @Bernard Joseph S.
Connecting with other investors has definitely been helpful to me.  It reinforces the normalcy of some of the potential obstacles that come up.  Having that sounding board can help take some of the emotion out of the investment and gets me back to the big picture.
I appreciate our conversations and look forward to continuing to discuss our progress (and potential setbacks) along the way.

@Zach Lemaster I think that is a great point; we are getting a phenomenal education along the way, and it is a heck of a lot cheaper than college.  That is another intangible asset that we are inadvertently growing.
From LLC formation, to working with builders, to understanding what the city is doing, to learning the multiple layers of lending, we have automatically built relationships and a foundation of knowledge that we wouldn't have gotten in the same way through other routes.
We have definitely continued to see land appreciation, which is worth mentioning.  We are so excited to see this through that we generally don't give it too much thought, since we have our eyes on the big picture.
We definitely have an affinity for Florida and plan to keep our eyes out with what R2R is doing once we see this through.

Again, to others considering this, I can't give a definitive "Yes, this is an investment everyone should make."  As much as we've learned, we have a lot to continue to learn.  As with any investment, we're facing risk.  We have an added layer of stress compared to something turnkey in the traditional sense.  Sometimes we have uncertainty with things like the market trends and interest rates.  Some days it is hard to see that light at the end of the tunnel.  What I would be confident in saying is that R2R can be a great facilitator of opportunity, a great opportunity for making connections, and a great opportunity for learning.  At the end of the day, one should always do his/her due diligence, just like any investment.

Thanks Zach for your input and the discussion.

 Thanks Zach, I totally agree.
Here are some things that keep me extremely optimistic about the build, when I have moments of frustration:
-My initial expectation of value was ~340k.  We have far surpassed that number.
-Despite delays, we are locked in on our build price, allowing us to take advantage of significant appreciation over the last 7 months.
-My initial expectation of rent was ~2100/mo.  We have far surpassed that number.
-If we saw a significant market correction in the area of 15% or more from peak (which I don't anticipate in this price range) our equity position is strong enough to weather that storm.
-I learn more about Cape Coral every day.  The business development is booming as much as housing in the area.
-Cape Coral is making an effort to bring on new employees and free up employees to improve permit processing times.  I am hopeful this in conjunction with slightly less new starts on construction will help improve permit timing and material delays.

I think it is also noteworthy that R2R has been as transparent as possible, reflecting timelines as accurately as possible.  While timelines are now longer than the initial expectation, R2R has been updating this information as soon as new timelines become evident.  
@Zach Lemaster, I will definitely be in touch as the traction continues and we have decisions to make.

Is this investment a disappointment, a base-hit, or a homerun?  It would be unfair to say on emotion or speculation until we are 100% done with the build and officially implement our strategy, but we are optimistic.

@Adrian Lemus That's awesome!  How long did the whole process take?  Nice property.

Hey guys,
This post is mainly just to share where I'm at with this process, provide opportunities for myself to network with others in the area, and so I can periodically update.  I have connected with several members doing new construction or with boots on the ground in Cape Coral, so thanks to all of you that have discussed and answered questions from me so far.
Here's where I'm at:
-Connected with Rent to Retirement in November/December 2021 to discuss the area and opportunity.
-Closed on build contract January 2022 on a 4/3 (Build price itself is 246k).
-Closed on Freshwater canal Lot February 2022. (39k with closing costs).
-(All in construction+lot cost is 285k before loan and closing costs).
-Sent Deposit to builder February 2022. (13.5k) 
-Surveys, Site Plan, Septic Design approval initiated: February 2022
-Completed Survey/Design Package completed and sent to city of Cape Coral: June 2022
-As of August 2022, Permits are still under review by city.  Most submissions are under "Approved" status, but permit not formally issued.
-Lender currently has an estimated valuation of 410k for the property.


The hope is to buy and hold, LTR.  Current projected rent: ~$2450/mo

Needless to say, it has been a very interesting time to build.  We are excited, at times frustrated, and have a healthy level of anxiety, but all of those elements were expected from the start.

I'll try to keep this thread updated, as it has always been helpful for me to read others' experiences.

-Don

Agreed with @Wayne Brooks
You and the seller agreed on a purchase price.
The appraisal came back saying that is an appropriate purchase price and fair market value; no seller is going to drop his/her price because you want the property under market value.

If the numbers work (which they should, since you are already closing on the property,) proceed as planned.

Thanks, @Peter Davis!

@Olan Marbun
16 months of planning, surveys, and permitting is definitely the most extreme I've heard thus far.
For the sake of transparency, can I ask who your builder is and what they have said about such major delays with your permits?

 Hey @Arjun S. Any progress since your last update?