Closed Vendome at $1,060,000
My broker is calling this the best deal in the history of Los Angeles real estate, but he likes to make grand statements. The seller of 228 S. Vendome bought this property one year ago, using an FHA-backed loan ($30k down payment) for $636,000. After spending about $50,000 in renovations and evicting the last remaining tenant, he was able to up the rent roll to $87,000 per year. We listed the property at $997,000 and got five offers over asking.
For his first-ever property, the seller invested approximately $80,000 cash and ended up quadrupling his money in one year.
Now, please don’t think these deals are everywhere, because they’re not. That said, something about my synergy with this client makes us work very well together. He responds lightning-fast to texts, emails, phone calls and Docusigns, remains open to various neighborhoods, asks the right questions, and isn’t greedy. He’s in escrow to buy another property right now in a 1031 exchange that might just clear him another $350,000 in profit if we play our cards right.
On the buying side, the buyers of 228 S. Vendome are getting a rare 6% cash return and 8% overall return after putting 40% down and investing another $40,000 in improvements.
Representing both the buying and selling side made the transaction incredibly smooth, as both the buyer and seller ended up extremely happy and even met after the sale to exchange keys with smiles on their faces. A job well done all around.