Second house Owner Builder with hard money loan

[John Giang]

Investment Info:

Single-family residence hard money loan investment in Victorville.

Purchase price: $50,000
Cash invested: $120,000
Sale price: $180,000

purchased 9000sqft lot, build a 3beds 2 baths 1632 sqft house, completed house with certificate of occupancy in 3 months from date of permit approval. Rented out for 1 yr and sold for $180k.

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

vacant buildable lot and good price. build home to sell in quick amount of time.

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

found this deal from a local R.E agent, cash and quick escrow.

How did you finance this deal?

Cash from hard money lender.

How did you add value to the deal?

built a beautiful new home on a vacant lot. the first new build home in the area at that time.

What was the outcome?

completed construction and got the certificate of occupancy in 3 months from date of permit approval. Market crashed in 2007 so had to hold the house and rented it for $1k month. Held the house for 1 1/2 year then sold.

Lessons learned? Challenges?

learned to build homes more efficiently with coordination of contractors and materials preparations. worked closely with city inspectors for approvals. Should have refi to get cash out and kept the house for and rented out until now following the BRRRR methods.