Silicon Valley Gem - Assets in San Francisco Bay Area

4 Replies

Investment Info:

Single-family residence wholesale investment in San Jose.

Purchase price: $688,000
Cash invested: $50,000
Sale price: $955,000

Single family home. Great area of Silicon Valley. Home just needed some lipstick

What made you interested in investing in this type of deal?

Former lender rep of mine when I was a broker is now an asset manager. He has presented me with quite a few deals.

How did you find this deal and how did you negotiate it?

see above

How did you finance this deal?

I worked with investor partner who we have partnered for over 15 years

@Mario Burnias this is NOT a good deal Much to tight, CC, Carrying cost, broker to sell, repairs will be higher, usually are especially at that price point . I would not touch it . maybe make 150k on 800kish, , again would not touch it

Good luck 

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Originally posted by @Bob Prisco:

@Mario Burnias this is NOT a good deal Much to tight, CC, Carrying cost, broker to sell, repairs will be higher, usually are especially at that price point . I would not touch it . maybe make 150k on 800kish, , again would not touch it

Good luck 

 Bob since this is my sand box here on the west coast what you may not realize and I don't know if this is how he structured this.. but many of these flippers will partner with an equity partner like me.. and their doing TRUE OPM.. so if he makes 75 to 100k on the deal and I make 75k to 100k on the deal  it works out pretty well.. and San Jose is quite liquid even today.. Key is rehab goes quickly.

as well as HML in first position is almost at bank rates in SF bay area not uncommon to get 1 point and 7 to 8% on Drawn funds.. A transaction is a transaction.. and you have to play the cards that are dealt to you in each market.. safer to do it at home then try to rehab half way across the country. and we know that retail sales in many other markets can take a long time to move and usually for a lot less than what you think or your ARV valuations come in at. Just putting a little color into this.. this is retail flipping as compared to flipping lower value assets to investors.. were your % returns are much higher as long as you can do volume and scale which most folks cant do like you do.

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