All Forum Posts by: Henish Pulickal

Investment Info:

Single-family residence fix & flip investment in Spring Valley.

Purchase price: $300,000
Cash invested: $80,500
Sale price: $445,000

2 story condo features: Brand new flooring, AC, counter tops, new cabinets, beautifulbacksplash, fireplace, newly remodeled kitchen & brand new stainless appliances. Laundry hookups are inside the unit. Large master.

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

It was direct to seller and the property was in bad condition. The uglier the better in our business!

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

We found this distressed seller, negotiated a short sale with his bank and the seller received $10k for relocation!

How did you finance this deal?

Credit line and private money

How did you add value to the deal?

Cosmetic remodel, new kitchen, baths, flooring paint, light fixtures, and exterior fence.

What was the outcome?

It sold and we made money!

Lessons learned? Challenges?

When I was in the process of purchasing the home I knew that the appraisal when I sold it would be an issue due to lack of comparable sales in the area. After receiving multiple offers, Ichose the buyers with the largest down payment, using conventional financing and seemed to have the most reasonable/seasoned realtor. Their offer came in at $450k. But their appraisal came in at $420k. The buyers wouldn't go past $425k. I canceled with them and got a new buyer that closed at $445k.

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

Brent Edwards, the buyer's broker, was great.

This depends on how you leverage your time. Do you have time to measure and order the right amount of material? What about ordering material that may or may not be in stock?  How confident are you that you could order the right plumbing or lighting fixtures that match the hardware you've got in the walls?   Are you concerned that delays in receiving materials could delay your contractors construction timeline?  Is it the best use of your time to find, order and deliver materials, or would you be more productive letting the pro do what he does, and you spend the time finding your next deal!?  

I even have my vacation rental property available for rent by the hour: 

https://www.peerspace.com/pages/listings/5dd57478e63a74000c46bc08

https://www.peerspace.com/pages/listings/5ce4d035fa938c000cb975ad

We moved into our showroom/office/event space in January 2019.  Because it was a blank space, we designed it so it suited our needs perfectly.  We have a 9 private offices, a conference room, a showroom kitchen, a break kitchen, a full bathroom with shower, a lofted area and a 1,000 SF of open/flex space.  I originally had it built that way so we can host larger training's, presentations, events and more.  When I heard about peerspace and liquidspace (like AirBnB for event space), I wanted to try posting our space on there.  Now 6+ months after our first event space renters, we have 3-4 renters each week, either for just the conference room or for the entire event space.  In addition to generating ~$3k/month, I also get great publicity for my companies.  Plus I like being able to offer my space as an affordable alternative to renting restaurant, hotel or other professionally managed event space.  I partner with an event manager to make sure people's events have enough tables, chairs, decorations and more.  He even can arrange catering, food trucks, a DJ, photobooth or anything else you can imagine.  

If you see our reviews from the listing link above, you can see that people love the space!  They use it for business events, birthday parties, bridal showers, wedding rehearsals, college test-prep classes and much more!  The best part is that most of our renters use our space when no one is in the office anyway!  This has been a great method to offset a majority of my office lease and I intend to continue this shared use indefinitely. 

Thanks Damian - these are the types of deals we prefer! 

Investment Info:

Single-family residence fix & flip investment in Santee.

Purchase price: $378,900
Cash invested: $143,000
Sale price: $595,000

Enjoy the views of Santee Lake from your backyard!! Another beautiful CalHomeCo Construction remodel. This home features brand new Flooring, carpet, brand new kitchen, all wood cabinets with soft close drawers and hinges, quartz countertops, new stainless steel appliances, new fully finished bathrooms, new interior and exterior paint, new central HVAC, new dual pane windows, new roof, new water heater and all new lighting throughout.

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

The seller couldn't afford the home and we were able to work with him to purchase the home as a win-win deal.

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

We found it on public records because the seller had an NOD filed against it. It was purchased as a short sale from the bank, we were able to release the sellers tax liens on the property and he received $5k for relocation.

How did you finance this deal?

Credit line and private investor money.

How did you add value to the deal?

We did a major remodel including significant roof and rafter repairs.

What was the outcome?

The property sold and we made money!

Lessons learned? Challenges?

This home didn't sell as quickly as we expected. I also thought it would sell for more than $600k based on the prime location overlooking a lake/park.

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

We did this in-house with agents on my team.

My mantra this year is to not confuse "busy" or "working hard" with "productive."  I time block to make sure I am being as productive as possible, not just busy.  Since I have a lot going on professionally, and three young kids at home, I'm always busy, but I'm not always being productive!