All Forum Posts by: Scott Blake

When you do your own development its important to set your comps. You are in control of your homes to build value. I built it, did a DRSC loan for 70 percent of the appraised value. Its a refi in the companies name. The home is used as a model which will help with sales. I do short term rentals to cover the cost and profit if you are in the right area. The percentage that you take out will help you debt service or pay back investors that you have in the deal. I do a construction loan for the builds and then have some of my own cash in all the homes I build. 

I am looking into a JV or other options of interest for a new multifamily development I am going to do. I am currently platting the units. I am hoping to get between 120 and 150 units. My plan is to hold 10 percent for rentals both long and short. The short-term rentals will be for clients moving here that need a place to live while I build their home in other developments. The rest will be sold for profit.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $1,220,000
Cash invested: $650,000

The property listed is my model home in my development. I only do ground up new construction. I currently have a little over 6 million in active homes being sold. I am getting ready to do a large multi family development.

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

I have been a builder and developer for 30 years. This development is in a gated community nestled in the mountains of Western NC. I needed a model home to promote the homes I build, and it gives people a chance to see the finishes in the homes I have listed for sale during the construction process.

How did you finance this deal?

Construction loan and cash injection.

How did you add value to the deal?

I built it. It appraised at 1.22 million.

Lessons learned? Challenges?

I have been a builder for 30 years. I have built 100s of homes.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a licensed broker, so I list my own properties. This allows me some leverage in case of market downturn and having to fire sale properties and still obtain profit.