The Deal: Land Purchase & Property New Construction in Wainscott, NY
Today’s deal comes from Nik Gak, who closed this land purchase & property new construction hard money loan in Wainscott, NY. The parcel of land was purchased for $526,000 with a construction budget of $1,251,500 and a total loan funded at 84% LTC. The borrower is a repeat borrower that works and invests in real estate full-time.This investment first interested the borrower because they weren’t seeing new construction inventory available below the $3 million price point in the area, so they wanted to fill the inventory gap with a more affordable luxury build.
There’s twenty-five percent less inventory than last year and the first quarter of 2021 saw the number of homes that are selling above $2M have almost tripled year-over-year
Nik specializes in the New York markets and has an affinity for luxury builds, so he knew this borrower’s deal was great from the start. “The Hamptons are still on fire, especially the luxury end of the market. There’s twenty-five percent less inventory than last year and the first quarter of 2021 saw the number of homes that are selling above $2M have almost tripled year-over-year.”
The proposed build will be designed as a modern farmhouse style home with 5-bedrooms, 6-bathrooms measured at approximately 3,500 square feet. The home will be highlighted by black framing and include amenities such as a very large master suite, large family room, custom cabinets, quartz or marble countertops, kitchen island, 10-foot-high ceilings, oak flooring, sitting area with fireplace and a partially finished basement. Construction time is expected to take approximately 9 months with final sale occurring shortly after project completion if the property is not pre-sold.
About Wainscott New York
Located in the wealthy weekend getaway of The Hamptons, the town of Wainscott has seen large consistent gains in its real estate market over the last year. As of March 2021, the average home sale price for the area reached $1.25 million, marking a 30% increase year over year. The greater Hamptons area has benefited in a major way due to COVID-19: this luxury market was once a vacation rental destination, but the pandemic helped make the Hamptons a permanent living option for many wealthy NYC residents looking to buy a home. As of last month, the average home price in the Hamptons reached $1.075 million, which marks an impressive 45% increase from the year before and is just shy of the area’s 5-year peak from October. 84 homes sold during the month, which is 25% more some sales than the same time last year. Homes are spending an average of 94 days on the market, which is a 33% decrease from the year before.
Nik studies the New York luxury markets and believes these trends are only going to continue. “There’s no end in sight: anyone looking to secure a place for the summer better move quickly!” In addition to managing the New York markets, Nik has recently taken over the Virginia and Washington DC markets. If you’re looking for hard money loans for fix and flips or new construction, or are interested in our term rental loans, then contact Nik today.