Trask Lofts Development in Oakland California

[Vincent Hayes]

Investment Info:

Large multi-family (5+ units) fix & flip investment in Oakland.

Purchase price: $450,000
Cash invested: $1,500,000

This project involved renovating an old commercial building in Oakland into five live/work condominiums. The units are being sold individually and are great for buy and hold investors as well as small business owners that want to work where they live.

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

This project was an opportunity to move into bigger fix and flip deals that required more than your standard renovation and resale strategy for a single family dwelling.

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

The project was an on market deal that came with permits and plans. After a few modifications, it morphed into the current project and has turned into a great opportunity.

How did you finance this deal?

This project was financed by local private equity investors and will net them at least a 25% cash on cash return.

How did you add value to the deal?

By making the appropriate modifications to the project to fit the neighborhood and buyers in the Oakland area, I was able to make the project appealing to investors and individuals alike. Adding smart home features and aesthetics to make the spaces trendy as well as very livable, they have been a hit with potential buyers at the open houses. See for yourself by visiting http://www.traskst.com.

Lessons learned? Challenges?

The big lessons learned were around handling general contractor relationships as well as the filings associated with condo developments. These elements of the deal proved to be difficult in terms of getting the deal done on budget and on time. Luckily the market has not shifted to cause a hit on the profit projections.