Flipping for large profits

[Gary Massari]

Investment Info:

Single-family residence fix & flip investment in Berkeley.

Purchase price: $895,000
Cash invested: $150,000
Sale price: $1,495,000

Complete renovation including art studio, pergola and beautifully landscape. Signature appointments include Island Kitchen, with Cafe appliances, and spa master shower, open airy plan plan, large master suite with French doors to patio and pergola. Sold $95,000 over list. Investors made 27% return on their money over 4 months.

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

I can see the vision of the finished product just walking through the home. I worked with builders and developers for over 20 years building and partnering with them to build luxury spec homes.

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

MLS and negotiated the deal by working with the sellers agents asking for the sellers motivations and desires.

How did you finance this deal?

I work with hedge fund lenders and private money investors and help them to make better than market returns, this allows me to keep my investor pool.

How did you add value to the deal?

Converting a family game room into a large master suite with a large master closet. Renovating the bathrooms, and kitchen and opening up the floor plan. I listed all the sizzle items on my brochure and cards through out home

What was the outcome?

A fast sale, going over list price

Lessons learned? Challenges?

Very difficult to work with best friend who over stated his qualifications as a builder, I had to fire him and replace him with professional experienced and skilled carpenter. Lesson: qualified contractor will always pay off at the end.

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

Yes I interviewed over 100 agents to find the right agent to list with even though I was a licensed broker. She negotiated the contract up $150,000 to sell the property $95,000 over list. She was in the top five in her office, and no I will not give out her name.

[Michael Haas]

@Gary Massari nice flip! Firing a contractor is kind of a right-of-passage for Real Estate Investors haha. Right up there with buying a hoarder house or breaking a pipe after flooring goes in :).