What is the Price of each multifamily apartment 4-plex or 8-plex?
In general, the price of our 1-bedroom 8-Plex and 2- & 3-bedroom 4-plex range from $1,000,000 to $1,500,000; even though you can still purchase with only $5,000 total out-of-pocket costs. Prices will vary due to location, time of year, manufacturing, amenities, changes in supply chain costs, etc.
Your final price is set at the time the final purchase contract is executed. Your price can never increase once contracted, but can only decrease in the event the appraised amount from the 1st Lien lender's appraiser is less than the sales price after a contract is signed, which in that case would benefit the Investor-Purchaser.
Is my price guaranteed to not increase if you have cost overruns building the buildings?
Once the final sales contract is executed, your price can never increase even if there are costs overruns or delays. Your contract is a "fixed bid" type of contract so that you never have to worry about flucuating costs or price increases, as these would all be absorbed by SCDC.
How many buildings can I buy at once or per year?
You can purchase either 1 building or a 5 building package in any of our multifamily apartment development communities. We limit each individual investor-purchaser to a maximum of 5 buildings purchased per year currently.
If a couple or group is purchasing in the LLC, these limits apply to each invidual in the group. So if a LLC has 5 members for example, they can purchase up to 25 buildings per year.
How does an Investor start the process of buying a new fourplex through SCDC?
The first step to become an Investor-Purchaser is to contact us and request a Pre-Sale Agreement for the building(s) you wish to purchase. Every building in each of our communities has a unique ID number for use with our Pre-Sale agreements.
After reserving your buiding by completing your Pre-Sale Agreement, the next step is when your final Purchase Contract is presented for your review and execution according to the terms of the Pre-Sale agreement. After executing the Purchase Contract, the final step is your scheduled closing at a Title Company or Law Firm to execute your financing agreements.
Do I purchase the building(s) in my personal name? And what if there is a group of us?
All SCDC buildings sold and utilizing our Investor-Purchaser program must be purchased in the name of a LLC, with the a member and qualifying individual personally signing and guaranteeing the loans.
In some cases, multiple members of the LLC may be asked to sign the loan documents, and in other times only 1 qualifying member may be asked to sign and guarantee the loans. If an individual is purchasing one of our buildings via 100% cash or other means, they may purchase it using whatever name or entity that they choose.
How do I know if the price you are selling the building(s) to me for is a fair price?
All SCDC building sales are financed using a 3rd party 1st Lien holder who will request a 3rd party appraisal from a company of their choosing to verifty the value of the building in order to determine the Loan-to-Value percentage that they will make a 1st lien financing agreement with the Investor-Purchaser for.
SCDC has no way to influence or change these 3rd party valuations, insuring each Investor-Purchaser that their purchase price is supported by a licensed appraised value and therefore not over-priced by SCDC.
How can I be sure the quality of your construction will meet all standards and codes?
The 1st Lien holder loans for the purchase of our buildings are "Construction Loans", meaning that once closed we are not given all of the money for the purchase until construction is 100% completed and passes all inspections. SCDC receives money from the Lender at various stages of construction after inspections are completed by the lender before each "draw".
SCDC also has to pass every inspection and permitting requirements by all local authorities every step of the way. This protects the Investor-Purchaser so that they can be assured of a high quality finished product that has been fully inspected and that has passed all permiting requirements before we are fully paid for the sale.