Incredible development deal in Highland Park, CA (Highland Park, CA) $50000 5bd 8000ft2

“You’ve worked hard for your money, now let your money work hard for you!”

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PROFITABILITY OF PROJECT:

If you refer to the Profit Analysis page attached you will be able to follow along with this below breakdown as well.

Purchase Price: $875,000
Other Buying Costs: $8,000 (altogether about $1600 per house)
Cost of Acquisition: $883,000

Cost to build: $1,679,805 ($335,961 per house with contingencies, planning, permits, materials, labor and everything… see budget)

Sales Price: $4,750,000 ($950,000 per house)

RE Commissions: $237,500 ($47,500 per hours at 5% RE Commission)
Taxes for 24 months: $21,875 ($4800 per house)
Utilities for 24 months: $4800 ($960 per house)
Insurance for 24 months: $11,000 ($2320 per house)
Other resale fees: $78,000 ($15,600 per house)
Cost to hold & sell: $353,175

NET PROFIT: $1,834,020


INVESTMENT OVERVIEW:

This is the deal in Highland Park that will be highly lucrative for all parties, especially our capital partner, which we hope will be you. We have a property under contract that is an RD2 property, which under the SLO (Small Lot Ordinance) will allow us to build 1 SFR per 2000 SF of lot on the premises. The lot is almost 11,000SF, so this will allow us to take this current SFR, split the lots into 5 APNs and build 5 houses. While in escrow, we will form a new Single Purpose Entity, an LLC, which will have complete control of this one project. The budget plus other information is attached and the address is below. This is going to be a massively profitable endeavor. Let me break it down better for you.

We are seeking a $300,000 investment into this current project of ours which will be used for the acquisition and to begin the planning process. We will raise this capital all at once or in $50,000 increments. Once we have plans approved we will get everything approved for the construction phase. This will be a joint venture deal where the $300,000 investment you put in will entitle you to 10% of the profit sharing. Any amount less than $300,000 will reduce the percentage of ownership in the deal, but would still be the same rate of return on your money. Currently, this deal is projected to profit $1,834,000 which would yield you $183,400 if we hit our projections. This would be a 61.1% ROI.


OVERVIEW OF THE PROJECT:

Under the SLO we will put together a proposed plot of how this property will be transformed from 1 SFR to 5 SFRs. The benefit of the SLO is that we create 5 separate fee simple lots with their own APNs. Unlike condo or townhouses the people do not own the land, the association does. There will not be an association with this property and the home owners will own their own property to do what they want with it. This is a huge benefit and will be very sought after.

According to our calculations, we will be able to build 5 homes on this plot = where each home will have its own 2000 SF lot. We will build approximately 1800 SF, 2 -story properties with roof top decks. Each site will be tiered, meaning the home in front will be lower than the home behind it, as we go up the common driveway on the right side of the property. This will give each home canyon views from the rooftop deck. On the roof top deck we will have a BBQ pit along with a hot tub.

The properties will be immaculate, but also cost effective. We have meticulously poured over the budgets and we feel conservatively that we can build each ~1800SF home for $335,000 each, which includes over $40,000 in contingency money (please see background) as well as grading, planning, permits and foundational work. The budgets are all-inclusive and common budget items are broken up between each house where applicable.

The resale value of each property is projected to be at $950,000. There is an entire CMA showing that this is a very conservative figure. These could easily sell for north of $1,000,000 each, especially that they will be brand new with lots of wow factors that will bring a top price. Not to mention, as this area continues to grow and transform the values are heading in only one direction.

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