Skip to main content

27 Cats to a Million Dollar Complex - Invest in Value

Today I wanted to offer a play-by-play on just one of our investment clients:

2013: Purchased a 3 bed condo in South Coast Metro for $128,000. There were 27 cats that lived in this property, all without litter boxes, the smell from the nitrogen in the urine permeated everything, along the top of all the walls had 8 inches of mold, floors were all warped. Funny thing was, they had a $2,000 Viking stainless steel range stove, nearly brand new.
2013: Spend $23,000 to fix it up, including new everything. Little to no repair work for 7 years afterwards because we did it right to begin with. Instant equity as price was $175,000.
2013: Rented for $1,700
2014: Rent increase to $1,750
2015: Rent increase to $1,800
2016: Rent increase to $1,850
2017: Rent increase to $1,950
2018: New tenant, rented for $2,000
2019: New tenant, rent for $2,300
2020: SOLD during the Coronavirus for $360,000, under contract with the proceeds for most of the downpayment for a $1.367M 4plex purchase in La Habra, $7,100 in collected rent, no lates for April or May.

Total rent collected (approx) in 7 years (getting paid to wait): $155,400
Approx rental expenses in 7 years: $65,000
Original Purchase + Rehab: $151,000
Sales Price (net of fees): $338,600
New Money: $90,000
Borrowed money at a 4% interest rate
Monthly payment, including expenses: $5,400
Net cash flow: $1,700 per month
AND
Paying off mortgage at about $1,200 per month
NEW ROI of $34,800 per year PLUS a new depreciation base to shield income, about a $40,000 annual tax writeoff per year.

Versus doing nothing, at $19,200 per year with only about a $4,000 annual tax writeoff per year

We at the Results Real Estate Group believe that price becomes an issue only in the absence of value, while others worry about paying commissions and hire cut rate brokers, we aim to maximize investment returns through sound operations and placing our chips in the right place. Give us a call today to see how we can build your legacy.

#WeGetTheResults
#PreferredManager
#AskGene
#InvestInValue
#WeMakeMillionaires

Orange, CA-TRREG DRE#01843673-RP100 DRE#02059058-P:714-831-1800-E:info@theresultsrealestategroup.com-W:www.theresultsrealestategroup.com-Facebook - Twitter - Instagram - LinkedIn


Labels:
Location: Orange, CA, USA

Comments

Post a Comment

Popular posts from this blog

Real Estate Investments: Invest Up

I want to speak briefly to the masses today. Normally our audience is the Buyer and Seller, and yet it is easy enough for anyone to become both. It could even happen that you are a Buyer, Seller, and Investor at the same time! How can this be? Me, a normal person can be a Investor? Yes. Even more than that, as soon as you start your journey you start doing something greater than yourself, building generational wealth. Let's start at the very beginning, a very good place to start. This beginning looks like a house purchase. That would be because it is a house purchase. Assuming you are buying this house to rent out, you are now a Landlord and Investor. The first house is going to be the scariest, it gets easier from there. Let's assume you have rented out the house for a couple of years and you are looking to upgrade from a Single Family Residence to a Duplex. You would sell your Single Family Residence and 1031 the proceeds of the sale into the purchase of the duplex. Yo...
Post a Comment
Read more

The Fault in our iBuyers(iBrokers)

Today's topic will be about this developing trend of what are called "iBuyers", which are buyers that are more "convenient" to a seller, and who buy houses "as-is" with "all cash". In today's controversial environment of taking a position, this sounds all too familiar.  I would like to bullet point some of the problems of this iBuyer Trend: 1. iBuyers are really iBrokers The "buyers" really are intermediaries for larger venture capital companies, one of these companies, Opendoor, just closed on $300 million more to bring their total funding over $1 billion to buy single family homes for rent and for flip. It is estimated to spend more than $4 billion per year buying homes . Though the terms of the funding are not public, no one hands someone else $1 billion with no strings attached, they have their guidelines and what they can and can not do and are functionally no different than brokers.  2. Therefore, more i...
Post a Comment
Read more

How I Learned to Stop Worrying and Love the Coronavirus

Greetings, Today I wanted to simply jot down some thoughts I had about this novel coronavirus (COVID-19) that the news cycle seems to love to talk about: - Will real estate values be affected? The answer is the same as every real estate question, it depends. I believe luxury will be impacted, I think more modest dwellings will not, and for a very simple reason, there is not more inventory and people have to live somewhere. - Is this our 1987 moment? In 1987 we had Black Monday, the biggest one day stock market drop in history, afterwards, real estate prices went up in a straight line for 18 months. Just like any good investor, when there is a shock to the system, you have to recalibrate, you either go to safety (or even relative safety, like houses versus paper ownership in a company), or you go to what has been undervalued. I suspect there is a good chance this is our 1987 moment for real estate. The 80's are dead, long live the 80's. - The drop in stock price...
Post a Comment
Read more