Los Naranjos Hill Club, Marbella Spain

[John Goldbranson]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $850,000
Cash invested: $950,000
Sale price: $2,395,000

Complete gut and renovation of a single family home located in the gated Los Naranjos Hill Club community in Marbella, Spain. House is solid brick and all top of the line materials used as well as custom furniture and cabinetry built for the house.

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

I knew other friends that had done similar deals in Marbella and I know contractors in the area.

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

Found the deal using local agents after they knew what our needs and wants were.

How did you finance this deal?

All cash deal.

How did you add value to the deal?

Complete renovation.

What was the outcome?

Ended up making less than I wanted, new regulations made the application process 8 months longer than expected and weren't able to add more size to the property due to these new regulations.

Lessons learned? Challenges?

Spend a little bit less on properties of this size, or build new construction where there is more room for profit and also builders have longer warranties that buyers in this price range usually want.