INNER CITY DEVELOPMENT
First story commercial, 2 stories residential above.
Purchase Price: $250,000
Total Cost of Renovation: $108,000
Construction duration of 3 months + 3 additional months for selling and closing time = 6 months for the total project development!
Sale Price: $638,999
RE and other fees: $32,559
TOTAL PROFIT: $248,440
This project was done using an Investor Pool method. Five investors invested $10,000 each into the project. The investment was used to put 20% down on the purchase of the property. Capital Management help organize the deal and invested the capital for the renovation, approximately 68% of the total costs.
The five investors shared 32% of the profit, receiving over $15,000 each. Not a bad return for a 6 month investment.
For more information visit http://caprealty.us or contact a Capital Management advisor at 973-417-6525
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TWO FAMILY
Existing one family colonial. Conversion to two family.
Architectural & Engineering drawings: 4 months. Construction duration: 5 months. Marketting and closing time: 2 months. Total development duration: 11 months
Purchase Price: $199,000
Total Cost of Renovation: $127,000
RE and other soft costs: $43,000
Property taxes $7,100
Other miscellaneous development related costs: $43,000
Total Development Costs: $419,100
Sale Price: $927,050 (Each unit was sold to separate buyers for an average of $463,525
TOTAL PROFIT: $507,950
This project was totally funded by Capital Management.
For more information visit http://caprealty.us or contact a Capital Management advisor at 973-417-6525
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