La Quinta - The Citrus Club & Resort
Inland Development Company will be building three (3) semi-custom homes in a golf course community called The Citrus Club, which is in the city of La Quinta, California, adjacent to Palm Springs. These single story homes will be approximately 3,500 square feet, with ‘Next-Gen’ guest suites, pools, and large flat lots favorable to both full time residents and/or desert vacationers.
The lots, which happen to be the last available in this community, are being purchased permit/shovel-ready. No entitlement or environmental work will be required. The homes themselves will take approximately 5 to 6 months to build from ground breaking. All-in, this is a project that can be finished ‘A-Z’ in less than 12 months. The expected sales prices for each home is $900,000-$1,000,000 – which has been verified by through local brokers and supporting sales data.
In order to show good faith to the investors, the developer will not take any management fees AND they will be investing their own money into the deal as well. Only after investors receive their guaranteed interest and larger portion of the profit, will the developer receive their share of profits. Due to this structure, it is expected that the investors will receive a return of 56% or greater on their money, which happens to be a high multiple (1.56) for only a 12 month hold/deal, all while enjoying an ownership position in this project.
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August 2019 – Close Escrow/Begin Preparing For Groundbreaking
September 2019 – Begin Construction
February 2020 – Finish Construction
March 2020 – List Homes For Sale
Target Final Sales Date (all 3 homes) of June/July 2020
Inland Development is a licensed general contractor and real estate development firm, specializing in residential construction throughout Southern California. The company holds licenses for both A (Engineering) and B (General Construction) within the State of California. The founders have been actively building since the late 1970s and come with a resume of over 6,000 units between entitlement, construction and sales. This includes over 100 residences completed in the desert/Coachella Valley region.
The company currently manages a large land portfolio consisting of over a dozen housing and mixed used tracts across Southern California. The company is involved in active building sites including a nearby development with 23 residential homes and a separate 7 story 89-unit condo project.
During construction, the company will use a program called PROCORE, which allows the investors to see daily pictures and real-time activity at the job site, from anywhere in the world
The three lots are being purchased for $500,000 total, which equates to approximately $165,000 per site. The developer will spend an additional $1.25M in construction costs and another $300,000 in soft costs.
The total project costs of $2,050,000 will be financed with a 60% LTC “Loan To Cost” construction loan of $1,250,000 and 40% equity from investors totaling $800,000. With sales ranging from $900,000 to $1M, the expected revenue for all three homes is $2.9M. The profit after sales commissions is estimated at $700,000, which after a 60/40 split favoring the investors, will result in an ROI of 56% or a multiple of 1.56 to the investors.
Projected Sales Revenue - $2,900,000
Less Total Costs - $2,050,000
Gross Profit - $850,000
Less Sales Costs/Commissions - $150,000
Net Profit - $700,000
8% Preferred Return/Interest to Investors - $64,000
60% of Remaining Profit to Investors - $381,600
40% of Remaining Profit to Sponsor - $254,400
Total Investor Pref/Profit - $445,600
Total Investor ROI - 56%
Total Investor Multiple - 1.56
La Quinta Overview
The city of La Quinta, California is located in Riverside County in the Coachella Valley and is known as the Gem of the Desert. La Quinta is a picturesque town surrounded almost completely by the Santa Rosa Mountains. The current population is 41,304 with a Median Household Income of $76,131. Home to 25 golf courses, 16 parks, and miles of hiking and biking trails, La Quinta is a truly a wonderful place to call home.
The Citrus Club at La Quinta Resort is a beautiful place to live with a myriad of activities. The Citrus Club Community boasts a higher than average home price of $918,742 compared to the overall city of La Quinta. As is evidenced by the recent comparables set forth below.
If you are looking for a beautiful place to live with a wide array of activities, consider moving to The Citrus Club at the La Quinta Resort.
50675 Cereza, La Quinta 92253 - SOLD
3 Beds - 3 Baths - 3,020 sqft - 8,712 sqft lot
$346/per foot sales price
79338 Cetrino, La Quinta 92253 - SOLD
4 Beds - 4 Baths - 3,771 sqft - 14,375 sqft lot
$271/per foot sales price
50565 Breva St, La Quinta, CA – SOLD (SAME STREET)
5 Beds – 7 Baths – 7,980 sqft – 29,621 sqft lot
$256/per foot sales price
79178 Cetrino, La Quinta 92253 - SOLD (May 2019)
4 Beds - 1 Full Baths - 3 Half Baths - 3,771 sqft - 15,682 sqft lot
$358/per foot sales price
79835 Sandia, La Quinta 92253 - ACTIVE LISTING
3 Beds - 3 Baths - 3,417 sqft - 9,148 sqft lot
$352/per foot sales price
50727 Cereza, La Quinta 92253 - ACTIVE LISTING
3 Beds - 3 Baths - 3,466 sqft - 7,841 sqft lot
$316/per foot sales price
50862 Cereza, La Quinta 92253 - ACTIVE LISTING
3 Beds - 3 Baths - 3,020 sqft - 8,276 sqft lot
$278/per foot sales price