Michael Borger Rehab Deal

 

Michael Borger Rehab Deal

Oahu Home Buyers, Inc. in San Diego, CA

I found this deal from a simple direct mailing campaign to vacant property owners. The property was owned by a mainland corporation as a company retreat but was no longer using it enough to justify maintaining it. After a couple months of negotiations, we agreed on a price upon which I gave it a brand new kitchen, flooring and other cosmetic upgrades. We quickly found a buyer and closed the sale for a great profit.

Rehab Details

Property City: Honolulu
Property State: HI
Purchase Price: $555,000
Repair Costs $49,800
Holding Costs: $105,985
Sale Price: $789,000

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Case Study

How did you find and structure the financing of this deal?

This deal came from a simple direct mail campaign to vacant property owners. Once the price was negotiated, I secured financing via a primary and junior private mortgage. Both lenders had lent on previous deals -- maintaining lender relationships is paramount to my business.


Provide a summary of the repairs and improvements you made to the property.

I rebuilt the kitchen anew -- counters, cabinets, appliances, lighting, etc. I also gave the home a new coat of swiss coffee paint, installed beautiful new laminate flooring throughout the unit and freshened up the bathrooms with new vanities and fixtures. I also tiled the kitchen and lanai floors for a finished renovation.


How did you find a buyer for the property if you sold it?

I listed the property on the MLS with my favorite broker on island who has sold many of my previous deals. We quickly went into escrow at asking price.


What are some of the major lessons learned that you would like to share with other students that they can learn from?

Stay on top of the contractor. I should have had this unit completed earlier, but my contractor started dragging his feet. As he had done good work for me beforehand, I gave him the benefit of the doubt, but it took my newly hired project manager to finally wrap this up. In the end, I still had a great deal but there was some money left on the table due to extra holding costs.


Shout Outs & Testimonials

As always, thank you to the FortuneBuilders organization for giving me the education, skills and confidence to buy, fix and sell real estate in Hawaii while living in San Diego. It's all about confidence, education and having proper systems in place.




Before & After Photos