Brentwood, Los Angeles
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $1,750,000
Cash invested: $1,500,000
Sale price: $4,500,000
We added 900 sf on a second story, also added 2 feet of ceiling height to the entire house, renovating it down to the studs and building up.
What made you interested in investing in this type of deal?
As a developer we look for off market properties that has potential others don’t see. For this property it was building a second floor, capturing views from a roof top and mast bedroom of the entire city. We re-designed the entire house to be able to charge a premium in the market.
How did you find this deal and how did you negotiate it?
We have an in house acquisitions team that ring door bells and call hundreds of people a day. We prefer to buy off market.
How did you finance this deal?
Private investors (family and friends) and hard money
How did you add value to the deal?
Added 900 sf, and turned 8 foot ceilings into 10 foot ceilings. We pushed hebackyard back to create a bigger space, opened the house up. Nothing was left when we rebuilt it.
What was the outcome?
A beautiful house and profit to all of our investors (and us) sold after 5 days on market.
Lessons learned? Challenges?
We had a difficult going with the local HOA, will try to steer away from HOAs in the future.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
We do, and we can.
