Completed La Mesa Flip

Hello All,

Here is the completed flip that was purchased in November

You can see the link to the original post here;

http://pfllc.blogspot.com/2011/10/new-flip-in-la-mesa.html

As you can see the property looks vastly different now then it did before. The original plan was to build a bedroom and bathroom onto the property in order to really increase the value and when the borrower was in the process of getting permits, he decided that it was more trouble than it was worth. Unfortunately, for the borrower, there was some wasted time while he was attempting to get permits for this property and was paying interest during that time.

http://sequ.com

Completed Casita

Now I have been using the word "casita" very liberally for this particular property. According to dictionary.com this is the formal definition; 

Casita - A small cude dwelling forming part of a shantytown inhabited by Mexican laborers in the southwestern U.S.

WOW was I incorrect for calling this thing a casita all this time!!!! 

This is a really attractive 570 square foot craftsman style house that is located in Normal Heights. This thing was very unattractive when I went to make the loan. It was in desperate need of repair, especially the foundation. 

Here you can see my previous post for this thing; 

http://pfllc.blogspot.com/2011/04/new-loan-in-normal-heights.html

The property is in escrow now and it looks great. This thing is really charming and will be a great purchase for the next people that plan to live in it. 

Take a look at the after pictures, the rehabers really did a great job fixing this property. 

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;

Flip in La Mesa

Unit 2

Front Unit 

Unit 3

Side of 1st unit

If you are a reader of my blog, you know that Priority First is involved in many aspects of real estate investment from hard money loans, to acquisition and now to flipping.  In this particular case, we are doing a joint venture with one of the flippers that I work with.

I found this great deal near the historic down town area of La Mesa.  This is a 3 unit property that I am in contract for at about $370,000. This is a really great deal due to the fact that this is 3 separate buildings that house one unit each. 

The main building is a Spanish Mediterranean two bedroom one bath. This unit was the original structure on the property, it was built in 1934. This unit will be the main part of the property as we will plan to sell this unit to someone that is planning to live in it. The reason that we are doing this is because the house is so charming and the neighborhood is a very nice residential neighborhood. 

The second building is a two bedroom one and a half bath. This unit was built after the construction of the main house, most likely in the mid 1940s. If you look at the picture of the second unit, you will notice that it looks like it has a 2nd story. Apparently the previous owner has put up some stairs outside of the property and had turned the attic area into a loft/additional rental. When the city came, they made the owner rip off the exterior stairs because they were not permitted. The room is still there but now has no access. Due to the fact that it's an existing part of the house, it becomes grandfathered in legally. What we will do is build a staircase inside the property and open up the loft above in order to give this an extra bedroom. When we are done, this unit will be a 3 bedroom 1.5 bath or we might just add another bathroom upstairs and make it a 3 bedroom 2.5 bath.

The third unit is in the back of the property and it is a one bedroom one bath. This is situated at the back of the lot. Normally this is not a great thing because the tenant will need to go through the whole lot to get out to the street but in this case, there is a alley way in the back of the property where the tenant can come in and out as he /she pleases. There is an additional bonus for this unit, attached to the unit there is a garage AND a car port. If the tenant has a couple cars or has some sort of desert toys, they can easily park them there.

As you can see by the pictures, this place has some serious deferred maintenance. We estimate that the property will need anywhere from $80,000 - $100,000 in work to restore it.

I think that once this place is done, we will be able to sell it for about $600,000. In the area there are two bedroom houses that are selling in the $400,000 range. If someone were to buy this property to live in, they would almost cover their whole mortgage with the rents from the units in the back.

The current rents are at $3,250, once we are done with the work the property should rent out for $4,700.

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.