Investment Info:
Single-family residence fix & flip investment in Carmel By The Sea.
Purchase price: $1,100,000
Cash invested: $1,600,000
Sale price: $3,750,000
Purchased a beach cottage, used as vacation rental during permitting process, then tore down and built a new house. Long project but the team killed it and created a great product for our buyers. We also got a new design/build client from the buyers in back up position that are now hiring us to acquire a lot and build them a house.
For full pics....
https://www.zillow.com/homedetails/0-Lopez-2nd-Ne-Corner-Ave-Carmel-CA-93921/2084029551_zpid/?view=public
What made you interested in investing in this type of deal?
We know the market and have a team in place to create this type of product.
How did you find this deal and how did you negotiate it?
It was on MLS and wasn't selling, a broker called us and we made a offer.
How did you finance this deal?
We negotiated seller financing, which was later replaced by a construction loan from a local bank.
How did you add value to the deal?
See Pictures :) We also negotiated an easement with the neighbor to widen the driveway which was previously a very tight driveway that was very challenging to back in and out of.
What was the outcome?
Profit, a new client, and lots of experience.
Lessons learned? Challenges?
Building on a 30% grade, NIMBY neighbors hiring attorneys to oppose the new build at multiple city hearings, negotiating easements to get driveway access, etc.
