Springhill Road, Lafayette, California Rancher
We purchased the property for $925,000 and closed escrow January 24, 2013.
One of my contractors, who has worked with me on many projects, heard about this property, which was a short sale and back on the market. We jumped on it and tied it up as quickly as possible.
It was a four (4) bedroom home with three (3) bathrooms located on a lot of more than 30,000 square feet, in a highly sought after area of Lafayette, California.
This home, with gated access, had the potential of transforming into a spectacular residence. The house, having been built in the 1940’s, had some strange floor plan features.
It was compartmentalized, dark and gloomy. This was to be a large project, with a purchase price in excess of $900,000 and a construction budget of $375,000. We carefully considered all options before commencing with this rehabilitation of the existing structure. Knowing that I needed $925,000 for the purchase and another $375,000 in construction costs, I needed to determine how to make this happen.
My team and I drew out the floor plan as it then existed and we immediately began to calculate how to maximize the floor plan to transform a 1940’s home, which had some existing dysfunctional additions, which were not acceptable in today’s market. As we began to formulate the best floor plan, we determined our best options were to add a half a bathroom, open and expand the kitchen, increase the ceiling height in the main living area and added a grand entry, appropriate for an estate entryway. The existing property design included an attached one car garage and a detached two car garage. We transformed the attached one car garage into another bedroom. In doing so, this increased the square footage by 200 square feet.
This was a complete remodel from roofing to landscaping, to HVAC and included all new pool equipment for the existing in ground pool.
Purchase Price $925,000.00
Close of Escrow January 24, 2013
Construction Budget $375,000.00
Sales Price $1,845,000.00
Days on Market 9 with multiple offers
Close of Escrow January 30, 2014
First Loan Amount $647,500.00
Second Loan with a Private Lender $100,000
Third Loan – Construction Loan $510,000.00, which included construction
budget and debt service.
Buyer’s Funds Contributed $100,000.00
NET PROFIT (After interest carry and selling costs) $314,000.00