Hello everyone,
So I have a great deal on the table I received by a wholesaler. Here’s the problem my money is tied up in another property out of state. I have reached out to some investor friends but they’re either doing huge deals right now or they don’t like big deals.
I am racking my brain trying to come up with anyway to just get this deal going. Let me bring you through my thought process.
There's a property for 300k rehab of 54k ARV 450-475k. It's on a whole 4.7 acres. There are new construction in communities that are selling for 250-290 range around 1400 square feet. There are comparable 1900sq feet on half an acre or close to a full acre, old outdated sold for 360-380k. Also there's an empty lot for sale less than a mile away listed for about 97k per acre. This lot is located less than 15 minutes from downtown. This is the perfect spot to have some land have the suburban life but live only 15 minutes from your high rise office and all of downtown amenities. Plus the new construction is by LENNAR.
So at first I pitched it to my investor friends they loved it but two were already in a big deal currently. And one just didn’t do bigger deals like this.
During this time I’ve been doing my due diligence. Finding out city zoning for new construction on this property, finding out about environmental impact, speaking with the development head in the county, also getting information on the water sewage and electric for the property and what it’s connected to.
I offered one of the investors, let’s do the flip. Let’s separate the lot into 4. Keeping the current house on 1.7 acres and then having 3 separate 1 acre empty lots. I will do all the planning, all the work, mange the project a 100 percent. After the flip of the current house that gives us another comparable, it pays back and makes a profit for this investor. That way he could see how I work, see how I get things done and eliminate some of the risk. Then I would do the same oversee, plan etc for the 3 new constructions on the 3 separate lots after those sold then I would take a percentage we agree on. Also by the time new construction starts my property should be sold and I would be able to put in some of the money as well.
Then I started thinking maybe I'll just get a hard money loan get this deal started flip the current house myself, separate the parcels, build the road and then that would save me some time to find investors or funding for the new construction. But like I said my money is tied up else where so I wouldn't be able to do the typical 80/20 deal with a hard money lender.
Oh also it’s crunch time because of the questions i started asking my wholesaler he was able to catch onto my plans for separation and new construction leading him to pass that info to other investors. Which attracted interested multiple people.
Lastly, I appreciated all my investors taking the time to listening to my plan and for their consideration! This is in no way bashing any investor or wholesaler everyone I have spoken to have been awesome.
