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Due to Contempo’s wide and vast coverage of all aspects of real estate, we often have access to opportunities for one of a kind or tailor made investor deals. Such opportunities come in the form of land, pre-construction discounts, development investments, pre-development investments, raw land investments, creative financing, distressed property, business’s, commercial property, multi-unit developments, blocks of apartments and group individual private homes.
Contempo currently has a number of investment opportunities available; many unique and are only available for a limited time. Speak to our agents who will assist you to find a real estate investment that best suit’s your investment goals. Whether you represent a group, or you are an individual investor, we have a range of levels of investment from speculative land purchasing to multi million dollar development financing.
Because many traditional investments aren’t performing like they used to, more and more investors are turning to real estate, which may offer the opportunity for much higher yields, an attractive alternative to CD’s, stocks and bonds. There are also a number of hidden tax benefits available to property owners.
Let Contempo put you in the right deal at the right time.
DISNEY AREA SHORT TERM RENTAL SUB-DIVISION
Overview - Orlando, Florida. Planned 265 lot single family home sub-division. This planned sub-division is opposite homes for the short-term rental market in the high $300k - low $400k. Location is also less than one mile from planned new middle and high schools.
The area now designated by Polk County for future residential development. Most land now approved for 4 homes per acre (roughly 3.2 homes per acre after allocation for site infrastructure and amenities).
Status - Seller looking for $11,000,000 i.e. $41,509 per lot. Assuming fully permitted an additional $18,000+ per lot needs to be added for development. This would provide fully developed ready to build lots for $59,509 approximately. Presently builders are paying $65,000 - $90,000 (e.g. Providence) per lot.
Seller would want $100,000 deposit (soft) with contract; $1,000,000 further deposit ($500k cash and $500k note, non-interest bearing) close by year end cash balance.
Engineer advises all permits ready for development should be in place in October/November. However Polk County with restrict water availability to only 50% of lots i.e. 133, in 2007 and 50% in 2008.
Opportunity - Good location and potential
Option 1 - Buy, develop and build
Option 2 - Buy, develop and sell
Option 3 - Buy, develop and sell half to another builder and build rest.
Option 4 - Buy, do not develop but 'flip; the permitted lots.
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| Option 1 |
265 x $400,000
(sales price) |
= |
$106,000,000 |
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| Potential |
265 x $100,000
(build profit) |
= |
$26,500,000 |
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| Option 2 |
265 x $80,000
(Developed lots) |
= |
$21,200,000 |
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| Potential |
Land Purchase |
= |
*($11,000,000) |
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265 Lots developed x $18,000 per lot |
= |
*($ 4,770,000) |
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Debt Service (6-8 mths)
$62,500 per month |
= |
*($500,000) |
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Net Profit
(8 months +) |
= |
$4,930,000 |
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| Option 3 |
133 x $400,000
(sales price) |
= |
$53,200,000 |
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| Potential |
133 x $100,000
(build profit) |
= |
$13,300,000 |
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133 x $80,000
(Developed lot sales to other builder) |
= |
*$10,640,000
$23,940,000 |
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Less * costs as (2) above
NET PROFIT (3 yrs+) |
= |
($16,270,000)
$ 7,670,000 |
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| Option 4 |
265 x $50k
('Flip; price of lots) |
= |
$13,250,000 |
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265 lots
(Land Purchase) |
= |
($11,000,000) |
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Debt Service (4 mths)
$62,5000 p.m. |
= |
($250,000) |
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Net Profit (4 mths) |
= |
$2,000,000 |
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