May 22, 2014

Springhill Family Room After

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.

PROPERTY HIGHLIGHTS:

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

Purchased with:

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

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Beau Eckstein is a seasoned real estate veteran with more than fifteen years of real estate sales, residential mortgage lending, construction financing and private money loans. Currently Beau is Managing Partner of SFR Ventures, Inc., which is the origination arm of a private money fund specializing in construction. Beau is also managing Service 1st Realty, which is a real estate brokerage firm in Walnut Creek, California. Beau is an active investor and likes to partner with architects and builders. He hosts an investor meet-up group and through his online marketing was found and casted for a new HGTV series “Flip It to Win It”, which is airing in March 2014. For more information, visit his website: www.beaueckstein.com.

About the author 

Beau Eckstein

Beau Eckstein is an experienced real estate investor and loan broker with over 20 years of experience in the industry.

He has sold real estate as a licensed agent, originated conventional mortgages, and arranged hundreds of millions of dollars’ worth of real estate transactions, from commercial financing to construction loans and bridge deals.

Currently, Beau is the Managing Director of PACE Equity, where he arranges financing for commercial development and renovation funding nationwide. Beau also originates HUD, SBA, and bridge loans, as well as other types of creative financing for many different situations.

Over the past 20 years in real estate, Beau has created a platform of financial partners to get all kinds of projects funded.

Recently, Beau re-located from the San Francisco Bay Area to Las Vegas, Nevada. He still does considerable business in Northern California, but, over the years, his reach and network has expanded nationwide.

Beau Eckstein can conduct business from anywhere and serve people all over the US.

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