January 11, 2014 Investor Update
405 Threshing Court, Jacksonville, NC 28540
We would like to update you on a new project we are working on with our business partners, Ellis Construction, in North Carolina. We purchased this Jacksonville property for $23K and the renovations are expected to cost $12K. The ARV for this property is $58K. Lou Ellis estimates that the rehab will take approximately one month to complete, with the sale of the home occurring roughly 2 months after that, for a total hold time of 3 months. The property, located at 405 Threshing Court, Jacksonville, NC 28540, is a 3 bedroom, 2 bathroom manufactured home with 1674 SF of living space. It has a large fireplace in the living room and a huge fenced-in backyard. The house is in good condition and needs minimal repairs including interior paint and renovations to the master bathroom.
546 Galena Street, El Cajon, CA 92109 Single Family Home Project
We are writing to update the final outcome of our San Diego remodel, Galena. This was a 1,862 sq. ft. single family home with 4 bedrooms and 3 bathrooms. The house needed extensive repairs and the homeowner had agreed to deed the property to us in exchange for remodeling the kitchen in the home he was moving into. This project went over its budgeted time and repair costs and EAC bottom line was a loss of 23K as a result of communication issues with our contractor. However, after the property was sold for close to our original ARV, we paid all of our gap investors all of their principle and interest - as we guarantee on all our projects. In the case of any unforeseen problems, we cover investors with our own funds. The purchase costs, selling costs, and holding costs were all close to expectations, and our ARV was exactly what we predicted it would be. This experience has taught us to be much more selective with our contractors.
You can use this link to view the original post: https://www.biggerpockets.com/blogs/3966/blog_posts/28328-june-17-2013-el-cajon-ca-project
Kevin Yoo, M.D.
858-449-9847
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