Investor purchases, finishes homes at The Lakes

Lonny Schmidt is not your typical investor. In fact, he doesn’t consider himself an investor at all. He would be the first to tell you that he’s just a guy who hates having idle time on his hands. So much so, that he recently purchased 23 partially constructed homes at The Lakes at Rancho El Dorado after the previous developer, Hacienda Builders, filed for bankruptcy.

Schmidt, a 48-year-old Canadian restaurant entrepreneur from Lethbridge, Alberta, closed on the homes in September and has since been finishing the construction himself. And while he’s been in the restaurant business for about 10 years, he’s no stranger to the construction industry.

“I’ve got 30 years of construction background,” Schmidt said. “I like taking a home that’s not finished and finishing it. That’s where I get my pleasure. I really enjoy it.”

Schmidt originally came to Arizona while on vacation with his girlfriend. They fell in love with the area and ended up purchasing a home in Maricopa in March. While closing on that home, he found four homes in Casa Grande that were in foreclosure. He purchased the homes, finished the construction and sold them in May.

“They were former model homes, so there wasn’t much left to do. Appliances, some painting,” Schmidt said. It was during this time that he heard about the homes at The Lakes. For
Schmidt, it was an easy decision. “I put an offer in on these homes without really even looking in the houses.”

The fact that this is some positive news in an otherwise down housing market is not lost on Schmidt. He’s hired many local contractors in Maricopa to help him finish the homes.

“I think it’s very important to use the local businesses,” Schmidt said. “It feels good to do this. I had a lady tell me the other day: ‘Thank you for investing in this community, we really appreciate it.’ That’s nice a nice compliment to hear. There are great people in this town. Everyone is so nice and has treated us so well.”

But being positive is a big part of who he is. “Your attitude is everything. It’s the only thing you have 100 percent control over. There’s a saying: life is 10 percent of what happens to you and 90
percent how you react,” Schmidt said. “Honestly, I’m not in this to make a lot of money. I’m doing it because it’s fun for me, it keeps my mind active, and gives me something to do.”

Schmidt hopes to have the homes sold between six to eight months. “The housing market has started to pick up, and the tax credits have helped. And these homes are ready to move into,
which in today’s market of foreclosures and short sales, a 20- or 30-day move in is almost unheard of.”

The homes run from 1,650 to 3,600 square feet and $139,500 to $265,000 in price. Dan Stoegbauer and Scot Ellis, of Top 5 Real Estate Group, are on site selling the homes. “It’s a tremendous value right now. These are beautiful homes in a great community. You won’t find a better situation,” Stoegbauer said.

For Schmidt, he’s keeping busy. If you come out to The Lakes, you might find him sweeping floors or cleaning tile in one of the models. He doesn’t look like an investor. And he likes it that way.

(This story was previously published in the December issue of InMaricopa News.)

Photo by Jim Williams