Just Finished a $2.2Mill Georgian Colonial Flip in LA-Take a look

Rehabbing & House Flipping

Just Finished a $2.2Mill Georgian Colonial Flip in LA-Take a look

Real Estate Investor & Consultant · Los Angeles, CA · Member since 2016 · 620 posts · 386 votes

My partner Zerik and I just finished our 4th rehab project since May of 2017. We really took a risk jumping this high in price point as our first 3 projects sold for $600k, $802k and $799k. We skipped over the $1M mark and went straight to a $2M+ home. But the numbers made sense and we really felt if we did some great work (and add our first pool ever), we'd get what we need to make a profit and have a great portfolio property going forward.

As many of you know, I've had a VERY stressful project over in the Jefferson Park HPOZ neighborhood, so this kept us busy while that one has been on hold.

With that being said, I am so proud to announce the completion of our latest rehab project! This historical-registered $2.2 Million Hancock Park home is a reimagined contemporary design of an elegant early 20th Century Georgian Colonial, originally built in 1919. We've been working on this home since January and I couldn't be prouder of how it turned out. Take a look at the Before & After images below.

171 views

Most Popular Reply

Los Angeles, CA · Member since 2018 · 95 posts · 46 votes

Originally posted by @Shawn Ward:

Hey guys!

1. @Account Closed - it took about 12 months. We ran into some issues with the pool install, and the city were very, very slow and unprofessional when it came to the permitting process. We also had to fire our first pool installer and replace them that lost time. Final exit was $1.785M

2. @Eric M. and @Clifford Paul true the numbers did not work out on this deal and we lost a few bucks on this deal. We could have waited to get the price we wanted, but with the softening in the market and the high hard money interest payment every month, it was in our best interest to sale it at the price we could and move on to new deals.

We understand that we'll not hit homeruns on every deal, and this is just a part of the business.

Def many lessons learned and we are stronger because of it.

All the best!

sjw

Shawn,

i feel for you. The dpt of building of safety and the myriad agencies involved in city planning and construction in los angeles are highly corrupted. It is an absolute joke and ripoff

It was a shocker for me when i started development in southern california in 2012; even coming from France where people always complain about the burden of taxes and overwhelming administration. In Europe i can get a fully cleared new construction permit in 1 to 3 months dealing with a single desk and it is 100% free of charge as it is a public service. Since people pay a fair amount of taxes (similar to NY and CA) the least they expect is free of charge public services

Here in LA people have to suffer a burdensome and highly dysfunctional planning administration asking ridiculous amounts of useless studies and documentation, charging insane fees for very bad services.

Architects and owners have to deal with up to 10 different agencies with their own requirements, timeline, fees and applications, resulting in massive delays and costs over the roof. Code requirements are also way too stringent despite being often obsolete and irrelevant resuting in more burden to home buyers

No wonder why there is less and less new construction in LA and why there is a housing crisis

We now try to focus on areas outside of LA jurisdiction

See this reply in the discussion

33 Replies

Jump to latestLatest

Sort by

Robert Campbell
Real Estate Agent · Belleville, IL · Member since 2017 · 44 posts · 17 votes
8y
Its incredible!!!
1 Reply
Eric G.
Real Estate Broker · Orange, CA · Member since 2015 · 79 posts · 86 votes
8y
Did you design and pick out all fixtures/finishes/cabinets/tile work? Or did you use a designer?
1 Reply
Brian Garrett
Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
8y
Wow this is beautiful congrats buddy!
0 Reply
Zackery Gholston
Grand Prairie, TX · Member since 2018 · 16 posts · 7 votes
8y
Fantastic job! Congrats!!
1 Reply
Shawn Ward
OP
Real Estate Investor & Consultant · Los Angeles, CA · Member since 2016 · 620 posts · 386 votes
8y
@Eric G. my partner Zerik designs everything.
Thanks!
sjw
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
Nice work ! something to be very proud of ... do a drone video as well or your pitch book !!!! keep at it.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
1 Reply
Joseph M.
Flipper/Rehabber · Los Angeles, CA · Member since 2009 · 1k+ posts · 732 votes
8y
The house looks beautiful, very cool. Hancock park has some of the nicest architecture in the L.A area for sure.
Would you be able to share the numbers on this project. Best of luck on the sale.
1 Reply
Shawn Ward
OP
Real Estate Investor & Consultant · Los Angeles, CA · Member since 2016 · 620 posts · 386 votes
8y
Oh yes @Joseph M. ! Here are the numbers:
1. Purchase: $1.485M
2. Rehab: $260k
3. Holding: $68k
4. Sell: $2.2M (Projected)
Thanks!
sjw
4 Reply
Armando Rodriguez
Los Angeles · Member since 2018 · 23 posts · 7 votes
8y
Incredible work! This house is perfect. @shawn ward did u purchase this home as a standard sale, REO, or auction? Thanks.
1 Reply
Doug Phillips
Realtor · Cincinnati, OH · Member since 2018 · 140 posts · 53 votes
8y
@Shawn Ward That looks amazing! You and your partner should be so proud. This is truly motivating to me as I'm currently working on my first flip that is minuscule compared to this but wowzers! Keep doing great work.
1 Reply
Jason GottPro Member
Danville, IN · Member since 2017 · 63 posts · 17 votes
8y
That looks awesome man Congrats! Hope you sell fast, can't wait to see what else you put on here!
1 Reply
Shawn Ward
OP
Real Estate Investor & Consultant · Los Angeles, CA · Member since 2016 · 620 posts · 386 votes
8y
@Armando Rodriguez it was via a wholesaler that we've bought from before.
Thanks!
sjw
0 Reply
Joseph M.
Flipper/Rehabber · Los Angeles, CA · Member since 2009 · 1k+ posts · 732 votes
8y
@Shawn Ward , thanks for posting numbers, appreciate it . Do you usually hire an agent to list your flips or do you list yourself or have someone on your team list the property?
1 Reply
Armando Rodriguez
Los Angeles · Member since 2018 · 23 posts · 7 votes
8y
Oh okay. I need to start picking your brain!! This was a huge motivation for me. @shawn Ward
1 Reply
Kuba F.Pro Member
Real Estate Investor · Los Angeles, CA · Member since 2013 · 2k+ posts · 694 votes
8y
Great job guys! When I walked the comps this was a no-brainer for me and with Zerik's design aesthetic there was no doubt you would hit it out of the park, now shut up and take my money!
1 Reply
James MasottiPro Member
Rental Property Investor · Washington Township, NJ · Member since 2015 · 1k+ posts · 976 votes
8y
Looking great @Shawn Ward!
Podcast Guest on Show #312
1 Reply
Shawn Ward
OP
Real Estate Investor & Consultant · Los Angeles, CA · Member since 2016 · 620 posts · 386 votes
8y
@Joseph M. We hire agents to list each of our properties when we are done with the rehab. Thanks!
1 Reply
Cody DeLong
Gorham, ME · Member since 2018 · 280 posts · 186 votes
8y
@Shawn Ward this looks amazing. How much did the tub win tile run you?
1 Reply
Shawn Ward
OP
Real Estate Investor & Consultant · Los Angeles, CA · Member since 2016 · 620 posts · 386 votes
8y
@Cody DeLong To be honest, I do not know how much the tile and tub costs specifically, but we spent $10k on the master bath all together. The budget was $7k, so we went over budget.
0 Reply
Cody DeLong
Gorham, ME · Member since 2018 · 280 posts · 186 votes
8y
@Shawn Ward That is still pretty good! How much did you spend on the other bathrooms? I'm trying to get my costs together for a rehab up here in Maine and trying to figure out averages for pricing on the bathrooms. The rest I have down but I haven't had to significantly update one yet.
0 Reply
Shawn Ward
OP
Real Estate Investor & Consultant · Los Angeles, CA · Member since 2016 · 620 posts · 386 votes
8y
@Cody DeLong $6K ON THE LARGE GUEST BATHROOM UPSTAIRS AND $3K ON THE .5 BATH ON FIRST FLOOR.
All the best!
sjw
1 Reply
Account Closed
Los Angeles, CA · Member since 2018 · 95 posts · 46 votes
7y
Originally posted by @Shawn Ward:

Oh yes @Joseph M. ! Here are the numbers:
1. Purchase: $1.485M
2. Rehab: $260k
3. Holding: $68k
4. Sell: $2.2M (Projected)
Thanks!
sjw
Hey Shawn,
beautiful house.
Can i ask you how long did it take from acquisition till resale and what was your final exit price?
0 Reply
Eric M.
Flipper/Rehabber · Louisville, KY · Member since 2008 · 1k+ posts · 1k+ votes
7y
Shawn can hopefully jump in and explain but sales price was pretty low. 1.785.
https://twitter.com/ShaneandShawn/status/106893109...
From his rough numbers, looks like a loser.
2 Reply
Clifford Paul
Rental Property Investor · Member since 2018 · 483 posts · 956 votes
7y
Originally posted by @Eric M.:

Shawn can hopefully jump in and explain but sales price was pretty low. 1.785.
https://twitter.com/ShaneandShawn/status/106893109...
From his rough numbers, looks like a loser.
That's not good! A quick calculation of the numbers Shawn posted and this was a flop! :(
0 Reply
Victor S.
WorldWide · Member since 2016 · 1k+ posts · 1k+ votes
7y
redfin shows similar sq. ft homes went for about $1000/sq. ft back in Oct and Aug of 2018. Did the market soften since or was there something else at play? @Shawn Ward, would love to hear your story.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.

Log In Join for Free