In Episode 27 of my video series Real Estate Deal Talk, I’m going to take you through a project in super-hot Kirkwood in Atlanta. We’re going to look at a new build that is underway on the site of what originally was an old, burned-down church with a lot of fire damage. The property was not doing a lot for the community.
This is not our project, but is going in on part of the church property that we bought. The original site we bought was L-shaped and we broke off one piece and sold it to new investors, who are putting in a four-bedroom, two-bath home.
We purchased the L-shaped lot for $250,000 and then subdivided it, so that would make each piece $125,000. We sold this piece at the front to the current owners for $185,000 so we made an immediate $60,000 profit on that.
We kept the land at the back of the site and will put our own 4/3 on it that should be very profitable for us also.
As you can see in the video, the project that is going in on the part that we sold is going to be a really nice house. There are some things I would have done differently, but outside of the few design changes I would have made I think it’s going be a good build. It’s got some design and architectural aspects that are just awesome.
I think they’ll sell this new home right in the mid-$500,000s and get it immediately because Kirkwood is super-hot right now.
If you want to find deals, get in here but make sure you’re not overpaying for deals and make sure your total cost is no more than 70 percent of ARV – your after repair value. Make sure that you’re getting your numbers in and your timeline straight.
Check out the complete video here for a more detailed walk-through of the other investors’ project and a look at how the numbers broke down for us for the overall deal. You can see it here:
https://www.youtube.com/watch?v=Lb9V05jGz3U&feature=youtu.be
So until next time, happy investing, be smart, be safe and go make some money.
About the Author
Abhi Golhar is the host of “Real Estate Deal Talk” and Managing Partner of Summit & Crowne. Abhi uses a “value-added” approach to invest in real estate renovation, new construction and development opportunities in the Southeast United States. He actively educates and works with investors to deploy market-driven strategies that yield success. He holds a B.S. in Electrical Engineering from the University of Michigan. You can find him on Twitter, Snapchat, and Instagram – @AbhiGolhar.
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