Building A New Home Near Downtown Tucson
The market has significantly risen
(By Scott Autenrieth, Apex Agent & Realtor®)
We were able to connect with an owner of a vacant land lot near downtown Tucson in hopes of purchasing the property. The owner purchased the property a few years ago with the intention of banking on Tucson’s appreciation. Fortunate for him, the market has significantly risen since his purchase in 2013. Per the owner, he only wanted to sell if he was able to double his money. Thankfully, we were able to do just that because the financial projections left a lot of profit on the back end.
Within a week of initial conversations, we had a purchase agreement in place and were set to close in 3 weeks. We were very motivated to make a deal here because we’re beginning the plans of a 9-home development just south of this land-lot. So, this land-lot would provide the opportunity for us to build a model home for the new builds that we’ll be starting next year. Once we had the agreement with the owner, we then gave our investors the chance to actually buy the property in order to have another project to take on.
Vacant land lot near downtown Tucson. Within a week of initial conversations with the owner, we had a purchase agreement in place and were set to close in 3 weeks. We were very motivated to make a deal here because we’re beginning the plans of a 9-home development just south of this land-lot. So, this land-lot would provide the opportunity for us to build a model home for the new builds that we’ll be starting next year.
The investor was very excited about this deal because they have quite a few rental projects going on, and they wanted to add some flips to their portfolio in order to build up their cash reserve. The best part about this is that the buyer is able to facilitate the entire project with Apex Development & Construction. From when the investor signs the closing docs for the purchase, then our construction will do everything necessary to prep the land for building, all the way to detailing the landscaping when we go to sell the home for a profit.
The value of the Apex Real Estate Network is that we can provide every avenue of real estate. In this situation, the investor will leverage our construction team for the building of the home, as well as using our residential sales team to sell the home on the back end.
$235,000 Build Cost
$470,000 Sales Price
-$32,900 Commissions & Concessions
24% Cash on Cash Return
(Autenrieth is a Licensed Realtor® and Investment Specialist with the Apex Real Estate Network.)
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