Business Opportunities - Mid Term

Purchasing a vacant land with intention to build new construction.

In comparison to other investments, the mid term investment is for a period of between one to two years and requires larger down payment, though it provides the best profit.

Mid term model:

Purchasing a land in Brooklyn for $800,000

The zoning allows us to build five houses of 2 families each (3 bdrm over 3 bdrm)

The construction cost is approximately $200,000

The projection is to sell each house for $550,000

Income from selling houses: $ 2,750,000 (550,000 * 5)

Expenses:

Land cost: $800,000

Construction cost: $1,000,000 (200,000 * 5)

Real estate fee: $100,000

Interest: $302,400

Other: $15,000

Total profit: $532,600

Our initial investment is $360,000 (20% out of $1,800,000), which gives us a profit of approximately $532,600 after 18 months (148% yield within 18 months).