$300K profit Condo Flip!

Buyer adds $250k value to his home in less than a year. 

Most mortals buy a home and wait 10 years to gain $150k in equity. After 20 years they have $200k to $300k accrued in value. They pay down their home and sometimes even pay extra towards principal. This is what most Americans are doing, and let me tell you something, it is actually not a bad strategy compared to everyone else that chooses to never save, invest and put themselves in a position to improve their family’s life and future. This is not meant to be judgement at all, but it is meant to spark thought. We all have money dials and priorities. Some of us will choose to travel every time we have disposable income, some may choose to buy and accrue a massive amount of esoteric shoes, the latest styles and the most obscure Nike shoes out there that only underground hoopers or rappers will recognize. Some will choose to have 10 streaming subscriptions, Lyft and Uber everywhere and every distance of more than a mile, some of us will partake in taco crawls and enjoy every new restaurant where the average ceviche or “crudo” appetizer costs just as much as a week worth’s of groceries… you get the point… no shame in your or our game! What I am highlighting here is that we have priorities and for the people that can save up for their first or second home purchase while doing all of the above, more power to you. Now, if I pay attention to the comments I see from 80% of social media out there and the fact that inflation is at an all time high, home prices and interest rates are equally high, credit card debt is the same, and many people are living paycheck to paycheck, and let me not even start talking about the price of eggs (much less organic farm raised - triple Hawaiian tanned virgin chicken eggs… ), so this tells me that some people that claim to be in this second category can benefit from making a budget, making more income, and prioritizing a better future! There are ways to do this without losing your lifestyle and while enjoying life and the process! It just takes a little financial education, a little planning, a little finding off the right “tribe” or people that surround you and people to model and emulate, and a lot of discipline execution. Little by little you will reach small successes that will snowball into medium attained goals that will eventually become huge goals and accomplishments that will make you proud and will give you the confidence to achieve more. The first step is making a decision to do and be better- what ever better means to you. 

Which leads me into the highlight buyer and investor of the day! Below you will see photos of the process so far. This home is in Monterey Park. The buyer bought the home for $600k about 6 years ago. They put a fairly large down payment and now, after 6 years they have paid down the home to $400k. The home was worth about $800k before they embarked on this remodel and addition. The full construction costs will be $200k and the home will be pretty awesome! At the end they will have 4 bedrooms and 2 baths and the home will be almost 1,700 square feet. .