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The tough it needs all the look obviously but our next guest -- it's put a lot of money into it and it turn it into a let's refurbished it fully but everything new and then it.
Even this market he was able to flip it and summit with a big profit Bruce Bartlett is -- is now he has the luxury slip up.
So that's what you do this you buying -- the -- -- house in the best neighborhood.
Until edited to the best house in the best neighborhood that's your style correct.
-- that's what we try to -- I don't know there's always the best house in the best neighborhood because we operate in a few exclusive neighborhoods but.
That's -- what we try to do we get a house that's.
Not so bad that you got to -- it down but is -- not in a position where bank finances at all now we just showed our viewers the before and after all hmmm I think you're watching it -- Tell me what you bought -- place for.
What you sold it for law and how much money you have to put -- it to make a profit -- Well if -- I didn't see -- of the house myself but it was the property in studio city California we bought that at a trustee sale for 690000.
We put in approximately 50000 dollars and we sold it for about 889000.
Dollars so I'm trying to do the math rapidly here you made about a 14050000.
Oh well there are -- They're high transaction costs and real estate we are our net net return was never been about 1213%.
Which is generally what we target what was your time -- for about him -- that was a one year turnaround.
-- about six months that's also what we target target which in the industry major turning the money twice a year.
What are your favorite markets to go and pick these rundown houses.
Currently I like Rancho palace birdies causing the draw here in Los Angeles fragile -- birdies.
I those are -- two very good neighborhoods right now we also like Los believes.
The Hollywood Hills.
These are all areas that were presently operating it why do you think that the best profit availability.
Is in these -- -- -- but in good neighborhoods want why he picked -- particular market finish.
As a very good question mostly because there's so much competition at the lower end of the market.
So large private equity funds have come in to buy anything -- cash flows and in a rental market.
Also you have you know sort of your mom and Popper weekend warrior type investors were coming into the market.
As -- a lower price points the margins are far lower their view you know just for just a lot less people who can walk up to a house the second -- -- a check for a million dollars in cash.
Now okay I'm told that the worst mistake you can make.
Is two over improve.
So you put in a lot of money into a place that you make it.
By far and away the best house on the block -- the neighborhood you've over improved.
You that you met a classic mistake is that accurate.
Absolutely true absolutely true we are -- we are looking at return on investment on everything that we look at.
Now we're also very focused on on what the consumer wants but yeah if if we're putting in.
You know stuff that's that's far too expensive for the neighborhood then now we're not gonna get a return on investment -- because these are savvy consumers.
And they're not going to be willing -- to pay for that when they you know offers a number on the home -- Bruce that's our audience very savvy thing.
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