Updated over 6 years ago on . Most recent reply
Development Project Completed in Sherman Oaks, CA
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $850,000
Cash invested: $550,000
Sale price: $1,749,000
Original home was 1215 SF with a detached 2 car garage in the rear. We demolished all but a few feet of the home and left a portion of the existing foundation, then designed and built a new 2,504 SF modern home with an attached 2 car garage. We lost quite a bit of time in delays from weather (which we rarely get here) along with city delays and utility company delays, so the timeline was a failure but the deal was profitable in the 6 figures.
What made you interested in investing in this type of deal?
This is what I do best.
How did you find this deal and how did you negotiate it?
MLS deal, fell out of escrow with another buyer and I jumped in. Also represented ourselves on the purchase and half on the back end as agents.
How did you finance this deal?
100% private money from my private investor network built over the last 15 years.
How did you add value to the deal?
Built a new construction contemporary home which stood out from all the others in the neighborhood. There are many other developments in this neighborhood and we used finishes and designs used in much larger and more expensive homes.
What was the outcome?
Made 6 figures but the time frame was killed from delays so the total profit was about half of what was expected. All in all, we added value to the neighborhood, made money, and added to our branding.
Lessons learned? Challenges?
Challenges are always delays from outside sources which are often out of our control.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, myself . . . .
