All Forum Posts by: Henish Pulickal

Hey Mario! We have a multifamily real estate event next Wednesday. It would be good for you to stop by and connect with other people in the real estate industry in San Diego: https://www.eventbrite.com/e/building-multifamily-real-estat...

Join us at CalHomeCo for a Speed Networking event on November 14th, from 5pm to 7pm! Connect with San Diego’s top real estate investors in a high-energy environment. This is your chance to make valuable connections, share ideas, and explore profitable opportunities.

Bring your business cards and get ready to mingle!

It wasn't on the MLS. Probate attorney is a friend who referred me to the listing agent. I was able to make a deal that made sense for the agent and client! It was in cash-only condition because of deferred maintenance.

Investment Info:

Single-family residence fix & flip investment in Ramona.

Purchase price: $415,000
Cash invested: $200,000
Sale price: $799,900

Home had serious deferred maintenance and the former owner passed away at the kitchen sink, causing a majority of the home to be flooded. I worked with a neighboring business, La Jolla Pools, who took care of the pool and the exterior of the home, and my construction company did the interior. All new everything: HVAC, roof, windows, all interior finishes and pool totally refinished. Home came out beautifully and the property sold immediately at my "ambitious for this neighborhood" list price.

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

Prior experience

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

Probate attorney referred me to the listing agent.

How did you finance this deal?

90% of purchase and 100% of rehab from hard money lender. Equity and holding costs from private investor paid at 12%.

How did you add value to the deal?

Updated everything.

What was the outcome?

Made over $80k net profit.

Lessons learned? Challenges?

Demand is a bit lower in more rural communities like Ramona, but the deal still made good money!

Check out this remodel we just completed and listed.  Pre-remodel pic when we purchased it below.  We put $200k in renovations into this home: 16602 Arena Dr, Ramona

I waive inspections frequently, but that's because I walk the property with my home inspector before getting into contract.  Between the two of us, we can find all the expensive issues.  

It will be almost 9 months total.  Plans/permits/rehab was about 7.5 months.  

I'll plug more details later, rough numbers: purchase $1.1m.  holding costs ~ $60k. selling costs ~ 6%.  Profit, roughly $300k or so.  Offer is pretty much list price. $1.9m 

Don't forget crime and vagrancy.  My friends live in Pac Heights across from Lafayette Park in a 2 bed unit with 2 parking spots, locked in at $2k/month (rent control) and they are moving after living there for 10+ years because they said there are criminals breaking into the building and they said, "have zero faith in the police helping them out."  

Put in the offer first.  If the seller won't work with your price, you don't have a deal. Worst case, you can wholesale it to a more experience flipper.  

In the meantime, you should interview some people that you have on a short list so when you do have a project, you'll have some people to call.