Investor · San Jose, CA · Member since 2013 · 115 posts · 76 votes
Hello Fellow BPers. Do you have money $100K or more "parked" and making little interest? Here is an opportunity to earn 20% ROI or more.
My team is in contract for a great rehab or wholetail opportunity in Portrero Hill area of San Francisco.
We have a first position lender lined up and are offering a 2nd position note to a private lender (or Hard Money) or possibly an equity/JV arrangement.
Purchase price - $920K
Rehab - $350K
ARV - $1.8M
Exit 1: Wholetail with a 45 day exit.
Exit 2: Complete rehab project in under 9 months and flip for a higher profit margin. Rehab includes converting basement and attic to permitted square footage, doubling the livable s.f.
Call me at 408-475-8180 , PM or email me at [email protected] and I can share a dropbox link to the Proforma to a qualified partner.
As Peter mentioned above, I have met and talked with him quite a few times at meet-ups. A group of us BP investors even went out for a late dinner in Mountain View after listening to Bruce Norris at SJREI a couple of months ago.
Peter seems like an honest and straight up guy to me. It seems he knows the REI business. I haven't done any business with Peter.........yet. However, I have JV'ed with two Bay Arean BP members, and we exited the deal last month with over $230k net profit, or 41% ROI. I have also done some lending to some BP members, but I'm very very very selective to whom I lend to as I'm not in the lending business.
Although I'm looking forward to doing more deals with local fellow BP investors, my partner and I have been keeping all the deals to ourselves lately due to not enough deal flow. Once we get more deal flow, we're open to more JV's.
what is Wholetailing. would you offer a staright up 50/50 for the 350k investment
When is close date.. I have been wanting to do a bay area deal Aug will see us with some payoff volume and need to place funds. so if it has to close in a week I would be out.
Essentially, it's putting the property right back on the MLS, with little to no work done. In this particular case, we are planning to draw plans and pull permits to market it as a "Turn-Key Project". This strategy works well as a Plan A, with Plan B being to complete the project. We usually decide to accept a "wholetail" offer if we can net close to half of the profit that we would by completing the project.
Michael buys directly from a motivated sellers and has provisions in his contract to be able to market the property while in escrow, avoiding double closings and costs. So far, we are closing, then marketing, which adds 5% or so in closing costs.
Benefits are: short exit (less than 45 days total, usually), no project management, less risk (market changes, project delays, inaccurate ARV,etc) and little to no construction costs. This seems to work well in a hot market. In the Bay Area, we are seeing tear downs go for way over "as-is" value with multiple offers. If you can't beat 'em, join 'em!
We completed a wholesale deal in the East Bay a few months ago. The only work that we did was to fumigate for termites, a small amount of clean up. We sold it in under 60 days for $100K over purchase and netted around $65K after closing costs. We would have netted about double that had we completed the project, but with all of the above benefits, it made it an easy decision for us.
Regarding the Bernal Heights deal in San Francisco. Close date is a couple of weeks out. We are probably not interested in a 50-50 on this one as we just received a private money offer for reasonable points/rate with a small back-end. As you know, there is so much money looking for yeild in this area, it's pretty competitive. I may be interested in JV'ing on major construction deals, in the future.
I'll send you an overview of our recent projects and a proforma for the Bernal Heights project. Hopefully, we can find a great project to partner on.
As Peter mentioned above, I have met and talked with him quite a few times at meet-ups. A group of us BP investors even went out for a late dinner in Mountain View after listening to Bruce Norris at SJREI a couple of months ago.
Peter seems like an honest and straight up guy to me. It seems he knows the REI business. I haven't done any business with Peter.........yet. However, I have JV'ed with two Bay Arean BP members, and we exited the deal last month with over $230k net profit, or 41% ROI. I have also done some lending to some BP members, but I'm very very very selective to whom I lend to as I'm not in the lending business.
Although I'm looking forward to doing more deals with local fellow BP investors, my partner and I have been keeping all the deals to ourselves lately due to not enough deal flow. Once we get more deal flow, we're open to more JV's.
