All Forum Posts by: Jorge Siverio

Thanks for the share. Not subscribed. What is CC ranked?

Thanks Peter!

That's an interesting asset protection setup Patrick. I'll have to talk to G about that. 

Really great information Brad. You must be stoked haha. Those numbers are amazing $1k extra cashflow. Oof. 

You got it Ring. Much success to both of us. 

@Brad S. it is really great to hear your perspective on the matter. Per my research (on Zillow) it seems to be a hit or miss and no discernable rhyme or reason as to some of the sales prices. In some cases, there are very similar homes selling for a 30-40k difference or more, sometimes within the same neighborhood. 

After examining 47 appraisals (supplied by RTR on their recent deals) and running some data analysis (plus plotting that data on a Google map), I have somewhat of high confidence that the valuations should be 375k+ ... I just want to make sure I pick a good lot. Not all lots are equal. There are some particular streets where you don't get a lot of "pride of ownership" and so I am excluding those... but it does take several trips over there to see the lots and explore each neighborhood.

Hopefully, I land a good one, and thanks again for the help.

Let me know! I've been going every weekend to explore the area further and meet with the development group etc. This weekend I am heading back again - I do enjoy due diligence :)

Just recent sales in that area. 

Here are some examples:

Granted these were listed last summer and ended up closing in December. Not sure if this is the pre-construction price, but still doesn't give me any warm and fuzzies to have that type of "potential" comp data out there.

Thanks, @Stetson Miller ! Appreciate the input.

Hey Team - I am looking at lots for my RTR build, and I have found a very nice lot by a huge canal within the "Gator Circle" area. Our Realtor/Partner (from the development group) has mentioned that this area is currently hot and we trust her judgment. However, there are a lot of "DR Horton Express Homes" that are being offered in the area, brand new for around $300k. This worries me a bit, granted they are not in the same playing field in terms of layout and build materials as the RTR build, but it does concern me that from a numbers perspective, there are several homes in the area for sale at substantially less than the estimated $380k valuations. From an appraiser's standpoint, do they factor in materials and build quality when evaluating these new homes, or is it just a numbers game (e.,g., a 4/2 with similar sq. ft. and on freshwater)? Is my concern valid? 

I wanted to reach out because I think I'm heading into analysis paralysis territory with lot selection.

Looking forward to hearing your opinions on the Gator Circle area in Cape Coral and on my concern.

@Bhavya Shah let's use some of my current numbers as an example. Build $258,500 ($5k more for freshwater), lot (estimated $40k... they are going fast and I have not been able to secure one yet). That's a total cost of $298,500 (without lending costs). The total loan would be $258,500. If, and this is a big if, 10 months down the line the LT lender appraises the house at $400,000 then 75% of that would be $300,000. Meaning I would be able to cash out refinance and get back about $40k. Note that this is excluding lending costs (approximately $19k if using hard money). So I'd still have $20k in the deal (assuming I can get 75% LTV). Remember that you will have immediate equity on the home (if the market stays the same) so you will have about 35% equity off the bat (258/400).