$42K profit from a BiggerPockets introduction

[Jon Klaus]

Shout out to Bryan Hancock who turned me on to Centarl East Austin in early 2011 and introduced me to another investor/builder working there a few months later.

I partnered with the guy Bryan introduced me to on an extreme rehab, which was essentially a new build. We bought a sorry excuse for a house in a gentrifying neighborhood east of downtown. My vote was to tear it down, but my partner and the bulder wanted to salvage it so we could work with grandfathered setbacks and a somewhat less demanding permitting process.

We raised the 600 SF house 2 feet, and added 900SF of new space. We finished with a "better than new" 1500SF 3/2, that we sold for $100K gross profit. My net was $42K.

This year I am working with Bryan on some other projects in the same neighborhood, as well as will other partners with and without Bryan.

In a future post, i'll talk about marketing for wholesale buys in Austin, which is another BP partnering success story.

[Bryan Hancock]

Thanks for the shout-out Jon. Hopefully we'll have some more successful projects to report on soon too.

I also wanted to point out that Jon's number above was UNLEVERAGED since there was no bank money involved. Current deals are going to do about 4-5X that AROI number given our financing structure.

There are currently 21 banks and many other private financiers that want to loan us money on these projects and we're bringing on a third builder to manage the growth. All of this is quite ironic since people in another thread claim that Austin sucks as a place to invest. How ridiculous!