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.
Flipper/Rehabber · Orange, CA · Member since 2012 · 68 posts · 63 votes
12y
@ if you needed a true appraisal I would love to help, I have some ideas that might help you move this beautiful property. I spent some time reviewing that market and I've done appraisals over there in Agoura Hills, in fact I appraised a monster on Kanan 2 years ago, it was a Bank Owned property, I think it was 8,000 SF on 4 acres or something crazy. Let me know if there's anything I can help with
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
12y
Some listing changes will take place soon, we had an open house today and will again tomorrow. I received great feedback from some agents and made some contacts for potential buyers for my other properties. I also had some serious action for buyers for the lots below which I have listed separately as an option.
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
12y
I haven't been on this thread for a really long time. What a great job you did! I can't believe the change. WOW! to the staging costs, you could have bought a lot of furnishings for that much money, but it looks great. Congratulations. Try not to stress, the period of time coming into the holidays, then the holidays always mess things up. People will be in the mood to get out and start buying anytime, so hang in there!
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
12y
Thanks Karen. Actually, all the furnishings in this home are valued at over $200k so I could not have come close to buying it all, but you are correct in that the staging costs are high, but appropriate for this size home and the term.
On another note, since splitting the listing into two, one for the house and one for the lots/ranch, I have had a lot of interest, already have a written offer on the lots portion, with more to come, and have an interested buyer for the whole thing. Keeping my fingers crossed this is all locked up by month's end.
Investor · Mission Viejo, CA · Member since 2012 · 627 posts · 204 votes
12y
Developing or selling those lower lots seems like a very good idea. We are doing inspections for investors who are buying multi-lot properties in southern CA to demolish the junk there now and build small subdivisions of new single family houses. We are also doing inspections of older commercial properties being demolished to make way for new apartment or condominium complexes. We just sent a report today on an apartment complex on the water in La Jolla which another developer client bought and will demolish to build 18 water-view condominium units. We even have a client who is turning older mid and high rise office buildings into apartments.
What demographic buyer are you targeting with the staged furniture? While I collect and restore radios mainly from the 1930s, I'd be positively impressed by furniture which is much more modern. Just a thought, not a criticism, as you may have extensive research on the wants of potential buyers.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
12y
The home is of Spanish Mediterranean style and as such, the interior was decorated and staged accordingly. Each and every visitor has complimented the stager and the work, so I believe the goal was accomplished.
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
12y
First awesome job Will ! As you know I know very little about rehabbing and SFR.
My realm is the commercial arena.
A few observations I have. Looking at the video for 4 million asking price some features looked nice and others I was underwhelmed by.
I don't know if you are contributing more value to the equestrian part of the land , the views, or the house itself.
The trim packages I saw for the ceilings looked be very basic for that asking price level. I would have expected trey or coffered ceilings or medallions etc. to make it look less basic. I thought the hallways could have been made wider as they looked small walking down towards the rooms.
What about matching the driveway to the roof top or some kind of texture on the drive way? That sun seems really bright versus a texture that could have been used. The outside of the house just really seems bright to me With outside texture and driveway the same.
"With the exception of never saying never, I never pay 6% as an investor with volume. In this case, I am paying my typical 5%, 2.5% per side. Great question @Bryce Y."
I can see this on the listing side by why not go 3 or 3.5% on the buyer side and advertise the heck out of it?? I would factor that in to my rehab costs. The selling broker isn't getting the same benefit as the listing broker over and over. For them this might be a one off sale and they need to make it count.
It's like a commercial firm taking a portfolio of 100 million in listings and offering a lower commission to the brokerage. Great but the buyer broker should still get market rates because they do not have that benefit.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
12y
Thanks for the observations Joel. While the video and photos are great, they still do not do the property justice compared to walking it live. As to the hallway, I agree, it is more narrow than I would like it, you should have seen it before I made the ceiling height changes and solar tubes for natural light! I didn't build or design the layout, I had to work with what was there. Some things I could correct and make better, others, if could only do so much with.
As to the driveway, if you are suggesting that it be finished in a red to match the red tile roofs, I don't believe that would go over to well here. It may not be noticeable in the photos, but if did add stamped concrete with special coloring in many parts of the hard scape. With my new price drop, I think I should have this in escrow soon.
San Antonio, TX · Member since 2014 · 7 posts · 3 votes
12y
Wow! What a great read! Very inspiring for future REIs like myself. @Will Barnard I noticed your nearing the 6 month mark of listing the house. Do you have any alternate exit strategies once the house passes your allotted days-on-market period?
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
12y
I'm just short of 5 months not quite 6 yet, however, my only exit strategy is to exit so either time, price, or a combination of the two will get it done.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
12y
So I finally have some great news on the sales side of this equation which equals the payday. After some verbal negotiations with a strong buyer who loves the property, we have agreed to price and terms and will open escrow Monday morning! I can not divulge details at this point until it closes however, I am very confident in the buyers ability to perform and their desire to close this transaction in a more than timely manner.
Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
12y
Will,
I have been ready for my 9-digit success, but it hasn't happened yet. Mega Millions is up to $400M now. I hope the Fortune Buddha will smile on me and my family this coming Tuesday.
As much I want to say congrats, nothing is guaranteed in real estate until the money is in the bank. Hope to hear great news from you in about 21 - 60 days.
@Will Barnard - without disclosing details, did you get to escrow?
Yes, I am in escrow, about 3 weeks away from closing. All buyer inspections completed, appraisals completed, and all request for repairs completed. Just waiting for closing date now. Staging furniture comes out next week and some of it will be used in other project down the street.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
12y
So it is official as of yesterday, my long project is finally over and it has officially recorded on the sale! Time for a vacation!!! (I wish, still have several others to complete first, then the long vacation).
I expected a minimum of $3.5M for the exit and was able to close out at $3.35M but did keep one of the buildable lots which is worth at least $100k, possibly $150k, so after I either sell that or spec build on it, I will have obtained at or close to my target.
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
12y
@Will Barnard HALLELUJAH!! I know that was one of those that turned into a lot more work than you first thought. But as they say, what doesn't kill you makes you stronger. Seems like lots would go for more than that there. Congratulations!
[quote=Michael Campbell]Will, let's get together for coffee! ;) I'd love to pick your brain.[/quote]I don't do Coffee, but am up for a beer or three! Get in touch with me. I am in the SFV most of this week and next. mainly Sylmar, Sherman Oaks, and Agoura so hit me up.
Nathan Emmert - You got that right, a long story. I will tell it soon, have some loose ends to wrap up first.
Jake Kucheck - Of course! I welcome the opportunity for you. Should be 4 months or so for completion. I will let you know. By the way, get busy on Investor Experts, you are not using it for its potential!
I love this, so many people say they don't do beer but will do coffee, love the opposite!
Camarillo, CA · Member since 2013 · 217 posts · 86 votes
12y
@Will Barnard Congratulations!!!! If I understand "I will have obtained at or close to my target." properly and also if my math is correct, you're saying that your net was somewhere near $900k (or above if your target was higher than 1,000k.) While you may not have netted the seven digits at COE you cannot understand how in awe many of us are at your accomplishment. You taught a LOT of people so very much with this forum thread. This is a huge inspiration to newbies and those filled with self doubt. IT CAN BE DONE. Thank you for investing the considerable time and effort to share this experience!!! I hope you do it again!!!!!
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
12y
Bill,
what I was referring to was my target sale price that I will have hit or come close to hitting. With the sale of the additional lot I am holding, I will likely hit it exactly at the total $3.5M. With a purchase of the home at $815k and additional lots at $300k, plus the rehab at around $800k, I was all-in for $1.915M and with a sales price of $3.35M plus additional lot worth at least $100k, I am well over the 7 digit figure to cover resale costs and interest on loans to come to the 7 digit success story.
It did take 9 months longer than I planned so my cash on cash went down from what I originally planned, but the end result did get me to my target income goal.
I have several other ongoing threads regarding other multi million dollar estates and one hits the MLS tomorrow morning. Another is 2/3 complete on rehab and I will be finally posting some photos on that one too, so yes, I will be doing this again and again for you all to see and read.
Real Estate Agent · Orlando, FL · Member since 2013 · 270 posts · 40 votes
12y
@Will Barnard I know i late to the party, but huge congratulations on finally getting this one sign, sealed and delivered. If you don't mind me asking how was your financing structured on a project like this?
@Will Barnard I know i late to the party, but huge congratulations on finally getting this one sign, sealed and delivered. If you don't mind me asking how was your financing structured on a project like this?
Good question Cesar. I funded the acquisition with private money from my network in a first trust deed position, funded the acquisition of the additional lots with private financing in a first trust deed, and a healthy portion of the rehab was also funded by my private money investors, some of which included in the first trust deed position and others in the second position. Seeing a pattern here? You should, private money (true private money and not hard money being called private money) is one of the most important aspects to a full time operation like mine and those looking to fund multiple deals or even their first should go after this option.