Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
I contracted to purchase an REO in December of 2010, skipping all the long and boring details, I finally just received word that the deal is accepted and I am now in escrow. I will not post any of the real numbers here until i close however, it looks like this:
$1,200,000 spread on one single family residence flip!!
Recently, I just closed a deal in Calabasas, CA where I had a net profit in excess of $200,000 where the sold price was $1,175,000. Project took 6 months from date of purchase to sold date.
Always looking to do better, 6 figure spreads are good, but 7 figure spreads are better!
I will keep you all posted on how this goes.
I hope this post can inspire those to think big and most importantly, take action in a big way.
Congrats Will! I have been hearing about the 7 digit deal for quite a while from various posts from you and others, but finally got to the right post. Hope the rehab goes well. Can't wait to see pictures and video footage.
Thats correct, just over 7200 sq. ft. on large lot which includes swimming pool, spa, deck, tennis court, enclosed gazebo and horse stall with turnout. Private gated driveway with 3 power gate entrances, privacy wall from street and this home will have all the trimmings once completed. It is a spanish mediteranean style home complete with the red tile roof and arched framed windows.
Congrats Will,
You and others on BP are really an inspiration for some of us that are just starting out. Can't wait to see the pictures and the numbers.
Reading your post tonight as really inspire me to set my next goal for a multi family unit.
Good luck
Tracey
OK, so first day of filming took place today on this large, 4 month rehab. 2-3 more will ocur, then editing and such for final video.
I will post a few still photos as a teaser . . .coming soon.
So, I am reading this post anticipating some pictures or something. Getting really excited as I go from page 1 to page 2 and then to page 3. Then nothing. Talk about a teaser!
Has the pictures/video been put up? Topic kinda of died, would love to see the results
I have not yet completed the video to post it yet. The first round of video was completed, second round comes soon, then the final round. After that, editing and then I can post it. Still in middle of rehab on this large project.
To keep all in the loop on this deal, it has become even better. I will disclose full details soon, but the skinny is that I was able to acquire the additional lots of the original whole parcel which has added tremendous value to the property and will result in an even higher spread than anticipated!
Showed the property to a fellow BP Member today. That was lots of fun!
I expect to have city approval next week and if I get it, we can start the next phase which is slapping up all the drywall and start closing this place up. Once we have that done, all the finish work can begin like painting, flooring, cabinetry, fixtures, etc.
Happy belated New Years. I'm fairly new here (lurker mode as I learn and learn) and love your posts. Very intrigued to see what has come from this. Keep up the good work!
Thank you Byron, I will certainly keep everyone in the loop.
On another note, great to see you jump in rather than just lerk. Let me remind you that while reading and lurking is great, engaging and actually asking questions will be most beneficial for you.
To keep all in the loop on this deal, it has become even better. I will disclose full details soon, but the skinny is that I was able to acquire the additional lots of the original whole parcel which has added tremendous value to the property and will result in an even higher spread than anticipated!
Now the details . . .
I originally locked this property up with the seller (bank REO) for a set price and they "represented" that they were selling the entire property which contained the "home site" house, tennis court, pool, spa, etc) and the "ranch site" which contained the other parcels with improvements consisting of guest house, horse stables, barn, horse arenas, bridge, river, etc.
As it turns out, this bank screwed up and when they did the loan, they only encumbered the "home site" and thus, when they foreclosed, only foreclosed on the "home site" and not the balance of the property. The result was that they could not sell me what they represented and still demanding I close. Of course i argued I was not getting all that was represented and they said that I could cancel the contract. Well, I was not letting them off that easy, plus I wanted this property, so off to a law suit we went. Well over a year later and tens of thousands in attorney's fees, we came to an agreement (outside of court) to sell the home site for a reduced price and so we closed.
Several months again, while I was in the rehab process, the attorney for the owners of the "ranch site" contacted me and asked if i was interested in the parcels. i said yes and after some serious negotiations, we came to terms and i closed on the "ranch site" Barnard Enterprises now owns the entire parcel and I have successfully put the property back together as it was originally. This has added a tremendous amount of value to the property and the end result will be more profits upon sale.
Currently, we are past the half way mark on the rehab and plan to have this on the market in April for a total of 9 months, then MLS, marketing time and escrow time. Should be gone by the summer and be in and out in just under a year.
Quick update on this project:
All exterior doors and windows now installed, interior doors hung, floors floated for leveling, drywall and skim coat complete.
I made a major modification to a load bearing wall to open up the kitchen to the great room and view of the pool. This required some extensive work, time, and costs, however, it really added a tremendous amount of value to the property.
We are on target for end of April MLS listing thus far.
Here are the numbers I am looking at to this point:
Acquisition, including land parcels: $1,120,000
Rehab: $600,000
All-In: $1,720,000 (49% All-in Deal which is a walk-off 3-2 count grand slam in game 7 of the World Series!)
Expected Minimum Sold Price is now: $3,500,000
Costs to Sell: $200,000 (rounded up)
Holding Costs: $225,000 (rounded up)
Expected Profit: $1,355,000 Minimum
Would love to find another deal like this sometime this year.
Wow, Will! Congratulations on the deal. You are truly an inspiration to those of us at an earlier stage of our endeavors. Thanks for sharing your time and info so freely.