Carriage Way Development

Description written by Best Ever CRE   / bestevercre  

Brandon Cobb and the team at HBG Capital added over $1 million in value to 72 vacant lots, and sold them to a national home builder.
Here's how they did it 👇

🏢 Property details
Purchased December 2021
White Bluff, TN
72 vacant land lots spread across two properties

💸 Finances
Purchase price: $500,000 for one property and $750,000 for the other
Capital raised: $1,783,000 for phase one and $2,200,000 for phase two
Debt structure: The debt for the project came strictly from limited partners who were put in first position, so there was no bank involved.

💼 Business plan
Add value by adding infrastructure to the land in the form of grading, utilities, roads, curbs, and gutters
Phase one: developed 36 improved land lots for 36 townhomes
Phase two: developed an additional 34 improved land lots for 34 single-family homes

🍾 Results
Phase one was sold for $2,340,000, and phase two was sold for $2,880,000 to a national home builder who went on to actually build the townhomes and single-family homes.
Sale produced an 18% return for investors
__________

If you have a deal you'd like to feature here and in our weekly newsletter to over 30,000 investors, leave a comment!

hashtag#newsletter hashtag#cre hashtag#commercialrealestate hashtag#realestate hashtag#realestateinvesting hashtag#realestateinvestor hashtag#investing hashtag#investor hashtag#investment hashtag#landinvestment