Loma Vista Rehab Deal
One of our marketing activity is combing thru FSBO (For Sale By Owner) sites. Our office found this deal on Craigslist.com. 7400 Sq Ft lot, 2 bed, 1 bath, 837 sq ft house in the neighborhood of average size house of 1800 sq ft. We decided to expand it to 2300 sq ft, 4 bed, 3 bath, new two car garage house. Total duration from close to close was about 11.5 months.
Please check out Loma Progress History Page: Loma – Progress History
Rehab Details
| Property City: | Los Gatos |
| Property State: | CA |
| Purchase Price: | $800,000 |
| Rehab + Other | $365,000 |
| Money Cost: | $90,000 |
| Sale Price: | $1,344,000 |
| Gross Profit: $89,000 | |
Project Details
Financing Details
As most of our projects are done, we fund part (70%) of the purchase with Hard Money. Remainder of the purchase and the cost of rehab is covered by our internal cash and out private investors. Our private investors lend against promissory note for a very good return.
Rehab Details
We put all high end finishes and sizzle features. Hardwood Floors, travertine tiles, motion sensor lights & faucets, dimmers, remote operated fireplace, under cabinet lights, decorative lights on driveway, air conditioner, the list goes on… The house features Master Suite with frame-less glass stall shower and Jacuzzi, a guest suite with frame-less glass shower. One of the bedrooms is also suitable for home-office. It has separate living, dining and family rooms with plenty of room for picnics/parties outside. It has in-wall wiring for surround sound and internet. High end kitchen, with granite counter top, Kitchen Aid appliances, island, built-in water purifier.
Finding the Buyer
As part of sale marketing, we had banners and yard sign through out the duration of the project on the property. Advertised on craigslist and finally put on the MLS. The house was very nicely staged. It had couple of good offer in the beginning but they did not work out. After a few back-and-forth with few potential clients, finally THE buyer came with an ALL CASH, No-Contingencies, 5-days close offer and they did close. This buyer is potential buyer for future projects as well as potential lenders.
Retrospections and lessons learned
1. We should have though about leaving more yard space – either by keeping the home size little lesser, moving the garage closer, or going up to second level.
2. Some times it is better to not be greedy and take the best offer at hand than to wait for better offers – this one took longer to sell than anticipated but we had offer on hand that we could have moved ahead with. Ultimately we sold for less and paid interest for 2 additional months.
Shout Outs & Testimonials
Thanks to Team Apace, our Hard Money and Private lenders, local FB investors. They all have been a great part of the success of this project.
Before & After Photos
