All Forum Posts by: Josh Gaddy

Thanks, I got your drift. I'll be doing that ASAP.

Does anyone know how I could go about finding homes that are in the construction process that are in foreclosure? Or even pre-foreclosed homes under construction?

I am hoping to be able to find homes that arent fully constructed, finish building the homes, and then sell them.

Do you use different tactics in this situation than you do when you are looking for finished foreclosed homes?

Thanks in advance for your comments.

I am looking for advice from someone familiar with infill residential development.

I am looking put a property under contract in a very nice established neighborhood in Charlotte, NC. This is one of the 2 or 3 highest priced areas in the city and houses are selling very well in this particular area. My intentions are to joint venture with a builder once I have the property under contract so that I can learn the ins and outs project management for a luxury house. I have already spoken with a few that would be interested in the JV. If that will not play out, I would consider just assigning the contract to the builder.

I have spoken with a few homebuilders and they have told me that, generally, they only like to pay 20% (MAX) of the final sales price (ARV) for a buildable lot. However, it doesnt seem like this is the case for an infill project.

Does anyone know what percentage of the final sales price a builder would want to pay for a lot as an infill project. Keep in mind that there is currently a house on the lot and this is an extremely nice part of town. I understand that this is a vague description of the situation but I was hoping to get some general comments.

Thanks for the help.[/i][/b]

Chris,

The Triangle Area Real Estate Investors Association (TREIA) meets in Raleigh just off of the beltline on Capital Blvd. at the Hilton, I believe. There is a website, just google above name, and you should be able to find it. I moved to Charlotte about 6 months ago, so I havent been in a while.

Hope this helps.

Josh

In another thread REI Coach said that double closings send the risk of the deal through the roof. Can someone please explain this? Does closing both contracts on the same date mitigate that risk? And how do you deal with the above chicken and egg issue?

Also, do you have to have a buyer lined up to get an assignment contract from the seller?

An advance thanks to you Gurus for the help. Everytime I come onto biggerpockets I am amazed at the amount of knowledge being transfered.

SPG,

Is there a mobile home meeting coming up sometime early next year? I am living in Charlotte and hope to learn mobile home investing.

Gaddy

First of all, I would like to say that I have learned so much in the short period of time that I have been on this forum. It is a great place to learn and connect. So thanks for that.

I have a possible deal that I would like to get some feedback on from some veterans. I found a 1942 brick 2400 sf single family home converted to a duplex in one of Charlotte's premier, established neighborhoods. I have spoken with the owner and she says she is interested in selling and that she would probably sell for around $725,000. The total rent roll is currently $2,200/mo. I am considering trying to get an option on the property and assigning the contract to a developer or investor to either build new construction or renovate the old structure back to single family and add an addition.

I would like to ask everyones opinion on whether my numbers are realistic for the addition from the investor/developers point of view.

-Acquisition cost $750,000
-legal 3,000
-survey 300
-renovation existing structure (very rough estimate) 100,000
-addition (2600 sf @ $100/sf) 260,000
-debt service (held for 1 year @ 10%) 113,500
-insurance 1,200
-architectural 2,000
-contingency 25,000

COST $1,255,450

comps in the area are selling from $325/sf (new construction) to $300/sf, so I will use the lesser.

Sales Price - 5000sf @ $300/sf $1,500,000
less broker fees 90,000
Net Sales Price 1,410,000

NET PROFIT $154,550

If the house sells for $315/sf, net profit goes to $225,050.

Are these number realistic? What issues should I look for? Is 12% return worth this type of endeavor for the investor/developer? I would really appreciate if all you experienced guys would poke some holes in this scenario for me. Thank you in advance for the advice. And once again, I have already learned so much from ya'll in just a few days. I look forward to learning much more.