New Flip in La Mesa

Here is a new project that is about to receive funding. The rehabber is buying this house as a short sale. He is utilizing leverage from me in the form of a hard money loan.

This property is currently a 2 bedroom 1 bath house. The rehabber is planning to add a master suit and bedroom to this house. Making it about 1,300 square feet when it's done.

The purchase price is about $175,000 and I am doing thew hard money loan at about 80% of the purchase price or $140,000. The rehab is should cost approximately $50,000 and will take about 4 months. I estimate that this property should sell for about $330,000 when it's done.

There is one thing that I really like about this property that does not show on paper but I'm sure will show on the MLS when the property goes for sale. This particular property is zoned for 3 units. I like these types of value adds because it give the perspective buyer an opportunity to make money on the back end. When someone buys this house, they will know that in the future they will be bale to do more with this property. These days no one know what is going on with their retirement plans or pensions, properties like this give the buyer an alternate source of future income.

Take a look at these picture of the before;

Completed Flip in Encanto

Hello all,

I have not had the time to make updates to this blog lately but I have come to realize that the San Diego Hard Money Blog has viewers that are anxious for some San Diego hard Money Deals that have funded.

My last post was about a property in Encanto where the purchase price was $155,000 on the acquisition of a 3 bedroom 2 bathroom house. This house is on the market for $250,000 now.

Well here are some pictures of the completed project:

New Flip in Encanto

Here are the before pictures of a new loan that we gave a hard money loan on in Encanto.

The purchase price was $155,000. The flippers have an estimated $40,000 in repair costs for this property. We did a hard money loan for $125,000 on this property. When the property is completed it should be worth about $220,000.  This is a great price point because it's the low end and the low end sells fast.

The comparable rents on a property like this 3 bedroom 2 bath house should be about $1,500 a month in the area. If I need to take this house back, I will be making $1,500 on my investment of $125,000. After taxes and insurance I will be $1,370 positive every month, this is a $13% cash on cash return.

This hard money loan is paying the investor 10%

Take a look at the pictures;

Another Completed flip in Lincoln Park

This property was purchased on March 11th 2011 for $165,000. the flipper put $55,000 down payment on the purchase and we financed $110,000. The property is now finished and is in contract for over the asking price of $265,000. The flipper was able to finish the work in 2-3 weeks and had the property staged and on the market.

Another Finished Flip

Here is a flip that was done in 2 months. This property is in the Talmadge area, it is in the very end of a culdesac on the side of a cliff that looks over a valley.

The property was purchased 2 months ago for $360,000 and is now for sale for $549,000. The flippers spent under $50,000 to do the entire flip.

Completed Flip in Lincoln Park

Here is a flip that was done here in San Diego (Lincoln Park)

The borrower purchased the property in the end of march for $140,000. We lent him $100,000 to purchase the house and he put $40,000 down payment and did all of the work for his own money. This loan has funded and I am picking up a check at the title company on Monday.

This filler was able to buy this property, rehab it and sell it for $230,000 in only two months... AMAZING!!

This loan was paying 11% to the investor. What I like about these flip deals is that the investor gets their money back fast. What other investment can you make and annual return of 11% on where you have the ability to pull out after a few months?

Here are some before and after pics;

New Loan in Normal Heights

I have a new property in Normal Heights that needs a loan. 


Purchase Price : $171,000
Loan Amount: $141,000
LTV: 82% of purchase price 
Term: 6 months (this loan will most likely pay off in 3 months)
San Diego - Normal HeightsInterest Only Payments
We are paying the investor 11% interest on this loan.


Normal Heights is a trendy up and coming neighborhood in San Diego. This area used to be on the rough side but it has really become the place to be in the last few years. This property is a single cottage home 2 bedroom / 1 bath. 


The properties, when fixed up, go for around $250,000 - $280,000. The rent on on a unit like this is about $1,350 - $1,450 a month depending on the condition.


If we were to take this property back form the owners (at $141,000) we would have about $1,353 positive cash flow if we were to rent it out. This is an 11.5% return on your money. 


I think this is a great deal that the people buying this property are getting. If I could get this thing into contract at $141,000, it would be a no brainer. 


Alexander (Sasha) Favelukis
Priority First PF, LLC
858-205-2449

More Pictures of the Property in La Mesa

Here are some more pictures of the property in La Mesa. I can't wait to see what these guys do with it.