EZ purchase, EZ Reno, EZ Sale - MORE LIKE THIS PLEASE

[Drew Chance]

Investment Info:

Single-family residence fix & flip investment in San Diego.

Purchase price: $595,000
Cash invested: $193,000
Sale price: $810,000

3/2 1575 sqft single-level home, backing a canyon in desirable neighborhood in Clairemont area of San Diego. The home was purchased from a local wholesaler with a private money loan. The renovation consisted of just about everything cosmetic: roof, windows, flooring, kitchen, bathrooms, doors. We lucked out with a new HVAC system and new water heater installed just before purchase. The electrical was upgraded in recent years as well. The remodel was 45 days, and the home sold in 2 days on MLS, and escrow was 21 days, putting our total days held around 77. It was a quick one and we would love to do more in this super hot submarket of an already very hot San Diego real estate market.

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

We love Central San Diego as our preferred area of investing: its close to our home, we know the values, we have tons of team member vendors to make our renovation and sale easy, and its extremely desirable. Hard part is finding the deal, but the rest is easy.

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

This deal came from a wholesaler. There was no negotiation possible. Multiple buyers wanted the home, we purchased on their terms and were happy with them.

How did you finance this deal?

We purchased the home with a combination of a hard money, and then JV between my company and an investor partner I use for a lot of my deals to fund the purchase.

How did you add value to the deal?

Remodeled the existing home with a new everything: Roof, windows, Kitchen, bathrooms, flooring, painting, landscaping, and more.

What was the outcome?

Very successful, easy transaction from start to finish. The asset was held 77 days, and the return was solid. We were pleased with this transaction.

Lessons learned? Challenges?

We can always improve on our construction. About a week was wasted on the front end waiting on a few materials. We used a couple Generals because our normal GC was busy, and that caused some budget waste in hind sight. But we were able to keep the project moving along, so that may have been for the best (carrying costs eat you up). We accepted the 1st offer, with 3 back ups in hand within 48 hours of listing, over asking price. I wonder what a full week or market exposure could have brought?

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

I am an investor and a broker, but yes we cooperating with another agent that sold the home. Our private money (hard money lender) did the loan for the purchase. We have a team in place for our purchases. Please DM me with questions. Happy to help.