Flippers in Los Angeles - Make 100% Return

[Jim Nelson]

Concept: Assemble a collection of single family fixers in the Studio City area and hold them for two to three years, then fix and flip.

A portfolio of 10 SFR Homes in Studio City Area costing 6.4 million - being held to fix and flip in two years. Portfolio generates 14,000 net per month and 2.9 million in profit at the end of the hold. Got 100,000? Come join us!! make 100% on your money in two years...

The Sober living market in the Studio City Valley Village area is going through a transformation from a cottage to a professional industry. There is an opportunity to go into the business with some of the established providers of Sober Care Services and provide a critically needed social service for the community while making a windfall profit.
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The key to this strategy is holding the properties at a positive cash flow while the market rises. The holding mechanism is to set the properties up as Sober living houses. The economics work very nicely with the houses covering all expenses, taxes and mortgage costs. Assuming a portfolio of 10 houses with a starting value of 6,000,000 a 20% market increase and a 10% rehab cost, there is a chance of making 70 to 90% IRR on an equity investment of 1,500,000 in two years.

Summary - Sober Living Network                

Purchase 10 Single Family Homes      $5,885,695
Startup Construction Costs                                    
Sitework (Landscaping, Patios, etc.)    $30,000
Exterior Repairs and Improvements    $50,000
Interior Repairs and Improvements  $100,000
Furniture, Fixtures and Equipment    $77,045
Hard Construction Subtotal  $257,045

TOTAL Starting Cost $6,142,740

  Rehab Prior to Sale                                               
Sitework (Landscaping, Patios, etc.)   $100,000
Exterior Repairs and Improvements   $147,701
Interior Repairs and Improvements   $400,000
Furniture, Fixtures and Equipment   $345,980
Hard Construction Subtotal   $993,681

Indirect and Soft Costs                                           
Entitlements, Design and Permits    $52,299
Developer's Fee and Overheads  $359,436
Interest   $999,897
Soft Cost Subtotal $1,411,632

Total Project Costs $8,548,053

Debt   $6,059,634 71%

Equity $2,488,419 29%

Sources of Equity                

Investors   $1,099,667 80%

Developer    $179,718 20%

Cash Flow $1,209,034        

   
Project Profit                                                       

Sales Proceeds $9,779,914

Sales Profit $1,231,861 
Net Income during Holding Period $1,542,365 
Total Project Profit $2,774,226 

        
 Division of Profit                       

Investors   $2,219,381

Developer    $554,845

Send your interest to [e-mail] and we will forward a copy of the business plan.