Livin' La Vida Luna y Luca
Keep away is all fun and games until Luca goes Mike Tyson on Luna's ear.
š” Project Townsend
Ain't she a beaut!?
About a month ago an old friend and business partner invited me to walk a For Sale By Owner property in one of our target markets.
I was recovering from the flu so I couldn't make the appointment, but I let him know I was good to buy it if the number was right.
He managed to put it under contract and gave me exclusive rights to buy it at just below market price. After a lot of hemming and hawing (by me), I decided to move forward.
R&D: Ripoff & Duplicate!
We're R&D'ing a house that recently went under contract for an extraordinary price right down the street.
We'll change the siding pattern, but this is pretty much what we're going for:
Inspo Floorplan
The Numbers:
Let's quickly run through the numbers here.
We'll start with three buckets of expenses and end with our expected After Repair Value.
Acquisition Costs:
Our purchase price is $800K. After closing costs, prepaids, and fees, we'll be all in for just under $840K.
Cost to Build:
We're building a 6 bed, 6 bath, ~6,000 square-foot monster (including basement). At $150/ft, we're looking at a build cost of roughly $900K. We're financing 100% of the project so we expect another $115K in interest expense. The total cost to build will be just over $1M.
Cost to Sell:
Between commissions, closing costs & assoc. fees, we'll spend just under $140K on the sale.
After Repair Value:
- 2.150M - Conservative
- 2.25M - Base Case
- 2.350M - Aggressive
Comps
Comps are pretty cut and dry. The $2.6M inspo comp is on a 400' deep lot so I'm sure those buyers are happy to overpay for the ability to put in a pool + pool house down the line.
The other comps are more in line with our lot size. The 2.2M 5/7 comp is on a corner lot facing a double yellow so we should be able to beat that pretty easily on house orientation alone.
What's Next?
Our closing date is scheduled for April 17th, 2025.
We already have our survey in hand. Our architect is drawing plans right now using the $2.6M comp floorplan as his canvas. The appraisal is scheduled for early next week. Hopefully, we can submit for permits by the end of the month and get shovels in the ground by mid-June.
We have our go-to hard money lender ready to fund the majority of this deal, but as always, we're looking for someone like you to help with the balance...
Get Involved! š°
The cash requirement to fund this deal is ~$500K.
Half of it is already spoken for by an existing investor so only looking for ~$250K more.
As always, if you're interested in participating, please shoot me a text, reply to this email, or schedule a call with me by clicking here.
