All Forum Posts by: Brian Edson

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $455,000
Cash invested: $152,000
Sale price: $725,000

Single Family Craftsman home located in burgeoning Highland Park, CA. Project consisted of a full gut renovation with the addition of one bathroom and 100 SF of covered porch with an attached deck. Original Windows and wood floors restored to maintain the character of the home accompanied by modern interior aesthetic.

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

Always had an interest in real estate. The real motivation was to make some additional cash on top of my 9-6 job to invest in multi-family units. The idea of forcing appreciation into a property through improvement was also intriguing. Taking something that is run down and neglected to create a beautiful new home for someone is also a bonus.

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

The deal was brought to me by a friend. I began searching for real estate deals and contacted who I knew in the industry to assist. He just so happened to land the listing two days prior to us meeting. He helped guide me through the first negotiation as it did go over budget but we believed in a solid ARV so our purchase price was still on the low side.

How did you finance this deal?

The deal was paid for in cash with the renovation being paid for in cash and a number of credit cards.

How did you add value to the deal?

We took what was a very fun down home and added a bathroom, modified the layout ever so slightly and added 123SF off the back of the house in the form a new balcony. The home was a craftsman and leaving the original windows and refinishing the original floors left a lot of charm.

What was the outcome?

Well the outcome was astonishing. The house itself was great but the response was unexpected. House sold for $40,000 over the asking price.

Lessons learned? Challenges?

Never trust your friends, always get a second opinion, and never do work without permits.

Investment Info:

Single-family residence fix & flip investment in Glassell.

Purchase price: $1,250,000
Cash invested: $287,000
Sale price: $1,925,000

Acquisition of off-market single family residence located in beautiful Mount Washington, CA. Objective: Inject value into the 3285 SF property through providing a more open layout for the kitchen, redesigning the master bedroom and updating all systems & finishes including rebuilding 2400 SF of outdoor deck.

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

Off-Market Opportunity of an extremely unique property located in storied Mount Washington across the street from the A rated school.

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

Off-market property was presented to me by my realtor who was contacted by the seller who had seen one of our projects and asked if we would be interested in purchasing their house.

How did you finance this deal?

80% was financed using a private money lender with the remainder being cash.

How did you add value to the deal?

An exterior and interior overhaul including a kitchen and bathroom remodel and a reconfigured Master Bedroom.

What was the outcome?

The outcome was another off market sale to a couple who's daughter attended the school across the street. Property sold for over ask and was closed quickly.

Lessons learned? Challenges?

All positives on this project. Logistically the house was a challenge due to it's hillside construction. That said love homes in terrific school zones.

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

Yes.

I'm in the east la area doing fix and flip currently (approximately 9-11 over the past 4 years) with some success. Recently finished two and am in escrow on another. Fix and flip has been working great but looking to diversify. 

Currently looking into the High Desert / Palm Springs areas for my next investment(s) for rental (short term) and buy and hold. 

Very interested in the metrics used to identify cities that have opportunity. Would love to find some out of state investments. 

You do not need a GC license. You can be an active developer pulling owner builder permits or hiring a GC to execute your vision. Ultimately you're job is to hire the pro's who know what they are doing to give you the end result. 

To do this more efficiently, you can organize/hire subcontractors to work on your behalf to do the work. Licensed folks for the big things like electrical, plumbing, roof are intelligent moves.

Converting to SFR is a greater value if looking to flip.

Sounds like you're going to be there for awhile so being richer on paper isn't necessarily helpful. What you can do is renovate both units and rent out one to subsidize the unit you are living in. Schools are fantastic so you'll have no issue finding a tenant. 

In the future you can then have the option to rent out your unit, should you choose to do so, and have a cash flowing income property without rent control. 

Agree on improving kitchens, baths, flooring and updating the "style" of the property. 

As for the guts, new plumbing, hvac, & windows are another way to inject some value. 

I work in the Pasadena area and we increase value of homes by essentially gutting them out and recreating/reimagining the flow of the house along with updating the dreary look which hasn't been improved upon for 20-30 years. 

All depends on your budget of course. 

Good Day BP! 

Turns out the contractors I've been using are so good, they are all booked. Right on time of me picking up a new property. Looking for contractor recommendations for full rehab in NELA area. Any help is appreciated! 

Thanks,

Brian

Hello All, 

My name is Brian and I'm new to Bigger Pockets. Have been listening to the podcasts for a few weeks, almost non-stop, and am finally venturing onto the forum. Recently quit my job to invest full time. Finished my first flip, which was a total nightmare, but its done. Made some money, mind you not as much as I would have liked, but took away a ton of lessons. 

Just started a new project this past Monday and have another home pending around the corner. 

Looking forward to learning from the community and connecting with those in the area to collaborate and gain knowledge from one another. 

Thank you and looking forward to the journey.