Investment Info:
Single-family residence fix & flip investment.
Purchase price: $1,550,000
Cash invested: $1,650,000
Sale price: $4,350,000
This project started as a 1,793 sq. ft. single-family home that we completely tore down and rebuilt into a modern 4,441 sq. ft. residence. Located in a prime West Los Angeles neighborhood, the new home was designed with high-end finishes, open-concept living spaces, and contemporary architectural elements to maximize both functionality and aesthetic appeal.
Key Details:
Land Acquisition Cost: $1.55M
Construction Cost: $1.65M
Total Project Cost: $2M
Final Sale Price: $2.7M
Gross Profit: $700K
ROI: 26%
By strategically designing for both market demand and investor returns, we transformed this property into a high-value asset while maintaining the integrity of the surrounding community.
What made you interested in investing in this type of deal?
We specialize in ground-up construction and value-add redevelopment in high-demand neighborhoods. West Los Angeles is an area with limited inventory of newly built homes, yet strong demand for modern, move-in-ready properties. This made Corinth an attractive project with strong potential appreciation.
How did you find this deal and how did you negotiate it?
As a real estate agent and investor, I leverage my market knowledge to identify undervalued properties in desirable neighborhoods. This property was originally listed at $1.75M, but through market analysis and negotiation, we were able to secure it for $1.55M—a $200K reduction. Our ability to move quickly and present a compelling offer gave us the upper hand in negotiations.
How did you finance this deal?
To fund this project, we raised capital from individual investors and contributed our own funds to secure financing. This allowed us to:
✔ Obtain a loan to purchase the property at a favorable rate.
✔ Finance the construction costs without excessive debt.
✔ Ensure liquidity throughout the build process to handle unforeseen expenses.
By structuring the financing this way, we were able to minimize financial risk while maximizing investor returns.
What was the outcome?
Original List Price: $1.75M
Final Purchase Price: $1.55M (Negotiated $200K Discount)
Construction Cost: $1.65M
Total Project Cost: $2M
Final Sale Price: $2.7M
Gross Profit: $700K
Return on Investment (ROI): +25%
Lessons learned? Challenges?
Permitting Delays: While permits were pre-planned, minor city requirements extended the timeline.
Material Costs: Rising material costs required flexibility in budgeting and sourcing alternatives.
Buyer Expectations: High-end buyers expect flawless execution and premium finishes, requiring a keen focus on design details.
