Mount Vernon Drive Success: Strategic Renovation Yields Strong Profits!

[Julie Muse]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $195,000
Cash invested: $27,200
Sale price: $259,000

Contributors:
Peter Vekselman

Partner Driven, alongside our partner Seth Choate, acquired a property on Mount Vernon Dr #D in Modesto, CA, for $195,000 on 4/29/2022. We invested $27,200 in renovations, modernizing the home and enhancing its appeal. This strategic upgrade led to a successful sale for $259,000 on 9/30/2022. Our efficient project management and timely market actions resulted in a strong return on investment.

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

Partner Driven was drawn to the Mount Vernon Dr property due to its prime location in Modesto, CA, and the potential for significant value addition through targeted renovations. The property's condition allowed for strategic upgrades that would enhance its market appeal. This opportunity aligned perfectly with our investment strategy of acquiring homes with untapped potential, enabling us to achieve a solid return on investment through smart renovations and quick resale.

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

Our partner, Seth Choate, identified the Mount Vernon Dr property through his extensive local market connections in Modesto, CA. Recognizing the property's potential, we acted quickly to negotiate a favorable purchase price of $195,000. By leveraging our combined experience and Seth's market insights, we were able to secure the deal at a price that allowed room for renovations and a profitable resale, ensuring a successful investment.

How did you finance this deal?

Partner Driven financed the Mount Vernon Dr deal by utilizing internal funds, enabling a smooth and efficient purchase process. This approach allowed us to acquire the property for $195,000 without delays, ensuring we could promptly begin renovations. By directly funding the project, we maintained full control over the timeline and budget, which was crucial in executing the renovation plan and achieving a profitable resale within the expected timeframe.

How did you add value to the deal?

Partner Driven added value to the Mount Vernon Dr deal by investing $27,200 in targeted renovations. These upgrades modernized the property, enhanced its curb appeal, and addressed key areas that potential buyers prioritize. Our improvements included updating the interior finishes, improving the landscaping, and ensuring the home was move-in ready. This strategic investment significantly increased the property's market value, leading to a successful sale at $259,000.

What was the outcome?

The outcome of the Mount Vernon Dr deal was a profitable success. Partner Driven, working with Seth Choate, purchased the property for $195,000, invested $27,200 in renovations, and sold it for $259,000 on 9/30/2022. The strategic upgrades and effective market timing resulted in a strong return on investment, demonstrating our ability to execute a value-add strategy and achieve excellent results for our partners.

Lessons learned? Challenges?

A key lesson from the Mount Vernon Dr deal was the importance of budgeting accurately for renovations. While the project was profitable, managing unexpected costs required careful oversight. The challenge was balancing the renovation budget with market expectations to ensure a strong return. This experience reinforced the need for detailed planning and flexibility in project management to adapt to any unforeseen issues while still achieving profitability.