Here is the attractive deal in WG


#1

The above is tear down, rebuild, short distance to Tamien, Diridon and Google Complex.

Compare here


#2

1455 looks livable. It might be better to bank the land. Hold on for the ride!

What’s the lot/project cost in this neighborhood?


#3

1455 is in good location, elem good school, 4 weeks open house, tough competition will be there, mostly from builders and cash offers. The home is set to go beyond 1.4M easily. If someone gets it below, it is a deal.


#4

If we assume:

  • 1.4M acquisition cost
  • 0.5M cost (2500 sqft rebuild + addition)
  • 0.4M misc costs
  • 2.5M exit

That looks about right, very little profit! Good for end user who loves projects, but just getting by for investors. The vast majority of projects look similar to this, but it’s been this way for awhile now.

Let’s ask @wuqijun, do the acquisition and exit numbers look good for you? There’s a lot of other nuance, but do the numbers speak to you?


#5

2.3M input should assume at least 10% profit which is 230k. So if assume 2.7M exit then the project would make sense.


#6

I think private money would lend if the LTV is low enough so that the investor carries 98% of the risk.

1478 is considerably wider than 1455.


#7

I visited 1478 and the lot is big. If we have 3000 sqft (instead of 2500), 2.7M is easy sale price with current competitive environment.

But, sellers always have some set price in their mind. The LP is too low to get multiple offers and at least we can expect two counter offers possible (one written and another verbal).


#8

What you can expect from a flip: $300k spread for more than $1.5M investment. Very slim margin and not much room for error.


#9

Only 6 weeks from acquisition to back on the market.


#10

Yes, they worked quickly… :slight_smile:


#11

The nearest home that on hot sale is

The price of 1455 Hervey ln can be derived by the final price of 853 Jansen. There is a discount for 1455 Hervey as it does not look move in level.