Investment Info:
Other fix & flip investment in Grangeville.
Purchase price: $1,550,000
Cash invested: $444,000
Land development.
What made you interested in investing in this type of deal?
I started by helping individuals split their properties into smaller lots to create listings to sell. Then during COVID I was running out of inventory, so I created three development projects with some of my clients to create listings, and on the last project I started investing myself.
How did you find this deal and how did you negotiate it?
I am on our IMLS system every day. This property was just outside of the city impact zone in Grangeville. It was listed as four different parcels. We countered back and forth a couple of times and were able to get $169,000 taken off the purchase price.
How did you finance this deal?
We went through a local credit union.
How did you add value to the deal?
We put about $1.2 million into roads, driveways, underground power, and perc tested most of the lots.
What was the outcome?
We have sold 23 parcels, owner carried 11 of them, and are looking at selling the last 7 parcels in 2024.
Lessons learned? Challenges?
Have a good accountant, bookkeeper, and use the right entity for the project that you are working on. Biggest challenge was moving the inventory fast enough to keep up with expensive in the first two years of the project.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
If you need help with Real Estate in Idaho, I can defiantly help you as an agent. I enjoy working with Freedom Northwest Credit Union, Cottonwood Credit union and a few other financial institutions depending on the project and / or purchase.
