#522: The $750K Townhome Deal That Got Away (And What You Can Learn From It)

Denver Investment Real Estate

Want to know how a covered land play could be the secret to finding lucrative development deals in a tight market? In this eye-opening episode, Chris Lopez sits down with Nathan Adams from RedT Homes to dissect a fascinating off-market development opportunity in Old Town Littleton that slipped away.

Nathan reveals how a $600,000 property with existing rental income could have transformed into a $3.5 million project with potential profits of $750,000. Learn why covered land plays are becoming the sweet spot for developers, allowing for creative financing and reduced risk in today’s challenging market.

Uncover key strategies for:

• Using conventional financing to enter development deals with minimal cash outlay
• Leveraging existing rental income to offset holding costs during entitlement
• Timing your project to hit optimal selling seasons in the market

Plus, get Nathan’s expert insights on current market dynamics, including why three-bedroom townhomes in the $700,000 range are the ideal target for both homebuyers and investors.

Whether you’re a seasoned developer or just getting started, this episode is packed with tactics for navigating the complexities of real estate development in Colorado. Don’t miss this chance to learn from a deal that got away and position yourself for success in your next project!

https://youtu.be/he6WJMm5X-0

Timestamps

(01:33) The Challenges of an Off-Market Development Deal

(04:45) Partnership Issues and Deal Breakers

(08:05) The Appeal of the Covered Land Play

(14:10) Construction and Marketing Process

(19:22) Projecting Profits

Links from Podcast

RedT Homes website: https://redthomes.com/

Email Nathan Adams: [email protected]

LinkedIn: Nathan Adams

Interested in learning more about the Developer Incubator Program? Click here to book a call and learn more.

Check out our other redT podcasts:

Episode 480: Opportunities in Real Estate Development with redT’s Chief Investment Officer Paul Ko

Episode 490: The Strategy Behind Scaling a Company with redT’s New CEO Vincent Deorio

Episode 517: Learn to Develop Properties Like a Pro (For Action Takers)

Who is redT Homes?

red T Homes is a mission-driven, values-based residential real estate development company in Denver, known for offering a comprehensive suite of services encompassing land acquisition, entitlement, design, architecture, construction, marketing, and sales. What sets them apart is their resolute commitment to “Building A Greener Colorado,” prioritizing the well-being of families and the environment. Their projects are built to a LEED Gold Certification standard or better, and they exclusively partner with developers, builders, and investors who share this commitment. As pioneers, red T is the first homebuilder west of the Mississippi to meet the rigorous US Green Building Council standards for LEED Zero Certification, resulting in the design, construction, and sale of healthy, eco-friendly new homes that combine beauty, functionality, and sustainability, making them a transformative force in the real estate industry.