Southern CA Oceanfront FLIP

[Ben McMahon]

Investment Info:

Condo fix & flip investment.

Purchase price: $3,250,000

OceanFront property located a few houses down from beacons beach access point. This house was in its original condition when we bought it. So everything was from the early 80s. Owners were having a hard time selling for market value because of a loft over the kitchen put the kitchen ceiling height at 7ft. When price dropped to 4Million, we went in at 3.25 and they accepted it. One hour later another contract came in at 3.85. The owner was furious and tried to get out of the contract but couldn't. We put in about 650k and listed it for 5.99mil

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

My team is very good at Luxury Remodels, and I see a lot of other investors afraid of higher end properties. Mostly because of the barrier to entry is several million dollars.

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

A real estate agent connection. He was the listing agent and told us the owner was ready to play ball. So when the price dropped, we were ready to launch.

How did you finance this deal?

Hard Money and Private Investors.

How did you add value to the deal?

Total gut job and renovation. added a bathroom or two, glass loft with glass flooring, huge openings to the oceanfront and a lot more.

What was the outcome?

TBD on the sale, just listed it. But if all goes well, we should make 2million dollars.

Lessons learned? Challenges?

Biggest Challenge was dealing with the HOA. They hassled us every step of the way. Including restricting anything on the exterior.