All Forum Posts by: Jerry Braun

Investment Info:

Other other investment.

Purchase price: $1,000,000
Cash invested: $1,000,000

40 acre development property for custom homes, adjacent to 160 acres of prior development. will be $200,000 to $350,000 wholesale, and 500,000 to 750,000 retail sales for large gated custom homesites, 5 acres avg.

Lots sold at $550,000, some up to $1,200,000 for highest lots in prior market pre 2008.

New deals now as wholesale deals appear. We bought more lots as they came up over past 10 years. It all happens on the buy side, makes it easy to be profitable, super safe in our low basis

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

Love Land deals in our area of expertise. Adding on to our already improved roads and utils in our gated community i developed

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

Worked with current owners over past two decades and when it was time to sell, we were here

How did you finance this deal?

Financing this deal now to complete development via wholesale investor sales

How did you add value to the deal?

Add access via our Roads and Utils we installed as well as future dev plans

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $400,000
Cash invested: $600,000

Value 2,600,000 currently based on 8% cap rate. Vacation Rentals 30,000 to 40,000 per mo winter rents, approx 1/2 that amount other seasons. 5.7 acres with 6 SFR's totaling 10,000 sf living, Expandable by 50%, Covered RV spaces, Own Wells so pure fresh water with no city chemicals only costs $60 per month for all the homes! Rents can increase by more vigorous marketing in Summer and Fall. Tremendous income 4 x the debt service

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

Tremendous cash flow

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

Scouring available and off market properties

How did you finance this deal?

Private financing, and utilized Profit Sharing Plan funds

How did you add value to the deal?

Improved all the homes, major remodels for the homes and grounds, pool and well and various structures added. Fully furnished all the units including 20 TV's and new appliances and various capital improvements (HVAC etc)

What was the outcome?

Property is now valued at 2.6MM and will be $4MM when rents are maximized

Lessons learned? Challenges?

Should have started the vacation rental aspect sooner, first few years of our 11 yr ownership was wasted on unfurnished low rents, now 5 x that amount is earned