Get ready for our groundbreaking fix and flip project in North Hollywood! We acquired a hidden gem off-market at a record-breaking deal. A full ground up development ensured with sleek designs, open layouts, and premium finishes, we're redefining luxury living. This extraordinary transformation and a new standard of living fetched us a record breaking price for SFR in North Hollywood! #RealEstate #PropertyDevelopment

What made you interested in investing in this type of deal?

We were eager to dive headfirst into real estate investing, and fate brought us this incredible opportunity. Always on the lookout for creative investment avenues, we couldn't resist this perfect first project, especially with the added advantage of owner financing $100k at 0% interest.

How did you find this deal and how did you negotiate it?

We discovered this off-market gem through direct advertising, utilizing a combination of our own handwritten mailers, postcards, and door hangers. Fearlessly negotiating the deal, we secured it at a bargain. We knew that hesitation could have cost us this incredible opportunity and inevitably make the deal unsuitable. Oh, and by the way, if you're into handwritten mailers, check out Penletters.com (shameless plug).

How did you finance this deal?

To make this project a reality, we strategically utilized a combination of cash, hard money, and owner financing. By skillfully structuring and capitalizing on the circumstances presented to us, we ensured the smooth execution of our plans.

Owner Finance: $100k @ 0%
Hard Money: $469k AQ + 550k Rehab @ 8.5% + ~2% origination
Cash ~$250k (savings)

How did you add value to the deal?

From the ground up, we constructed a remarkable dwelling boasting four bedrooms, four bathrooms, with three of them being luxurious ensuites. The open floor plan invites seamless flow throughout the space, while outside, a stunning pool and a BBQ area await, perfect for endless entertainment and relaxation.

What was the outcome?

Our first deal proved to be a resounding success, resulting in a profit of approximately $400k. However, the true value lies in the invaluable lessons we gained throughout the process. We're thrilled with the financial outcome, but even more grateful for the knowledge and experience we acquired along the way.

Lessons learned? Challenges?

Embarking on this venture taught us countless lessons and presented its fair share of challenges. We quickly discovered the importance of getting our hands dirty and embracing the unexpected. It's crucial to be prepared for when things go awry because, inevitably, they will. Embracing these truths allows us to navigate any hurdles that come our way with confidence and resilience.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

One invaluable lesson we learned is to withhold recommendations until we have gained ample experience with individuals or companies. However, where we do have ample experience is our real estate agent, we confidently recommend Sarrah Gallegos from the Chernov Team. Their expertise and professionalism especially in the valley have proven to be exceptional, making them a staple in the market.