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

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.