Comments on: Investor Alley

By: Greg Angilly

Greg Angilly — Tue, 31 Jul 2007 13:26:45 +0000

After 89 days it goes contingent — let’s see if it stays in contract. All i need to do now is prove that the buyer was moved to purchase this property after reading the Front Steps and Investor Alley — show me my finders fee!

By: Boomtime

Boomtime — Tue, 31 Jul 2007 04:49:37 +0000

Sacramento now in contract.

By: Greg Angilly

Greg Angilly — Sat, 28 Jul 2007 15:43:04 +0000

I like it crew — I’m from Jersey — so you can’t just toss the gauntlet out there and not expect me to go get it!

We’ll revisit Investor Alley on Tuesday afternoon.

By: kenny

kenny — Fri, 27 Jul 2007 22:16:00 +0000

Greg, that Clay street property is 1M in and 1M out, even by your own example. Follow me — It sold for north of 4. It requires a million, or more, to really shine. You’ll likely carry it for a year. Plan for cost overruns. (They always happen, because that’s how subcontractors operate.) Capital gains taxes, property taxes. Realtors. Staging. Marketing. Certainly you could sell it for 7. How is that not 1M in and 1M out ? I’m talking net, not gross.

I believe in stuff like that, tho, IF and only IF the neighborhood is A+. I think people are making mistakes in Noe Valley right now, along those lines. People are spending BIG for A- or B+ blocks in Noe these days. It better be pretty spectacular if it’s going to command $3M in Noe Valley. Looking at the location, and the lots, I think there’s some uninformed speculation happening all over Noe.

But back to the Clay example. Don’t get me wrong. A 100 % return on one’s investment inside of a year? That is awesome, any which way you look at it. But 200 or 300 percent? Again, yes please! Sign me up.

The gauntlet has been thrown!

By: Greg Angilly

Greg Angilly — Fri, 27 Jul 2007 15:01:16 +0000

Alright fellas — I’ll take the challenge — give me until Tuesday afternoon when i’ve completed the Broker’s Tour and I’ll find ya a 1M in to get 3M out. I’m extremely familiar with the complete fixer on Clay St as I had clients make an incredible offer and they didn’t even get a counter. That house sold for just north of 4M – my clients had planned to put somewhere between 1 and 1.5M into the property. Upon completion your looking at upwards of 4500sqft on one of the premier blocks in Presidio Ht’s. It’s not absurb to think they could have purchased for 3.5 and get out at 7M. With a 1.5M renovation they clear 2M.

Again thanks for checking out the post and getting involved – I’ll target some additional properties this weekend and Tuesday and will continue to track the one’s I post.

[Editor's note: Greg, which one on Clay, so I can link to it for all the others?]

By: Boomtime

Boomtime — Fri, 27 Jul 2007 01:55:46 +0000

Yes, sign me up for the 1 mil to make 3 mil! I’ll just get some investors together! In fact, if you’re serious, perhaps we should team up?

Takes money to make money, that is for sure!

By: kenny

kenny — Thu, 26 Jul 2007 21:11:54 +0000

1M to make 3M — in residential ? I’m all ears. Not to be snide. I just don’t think that exists. 1M to gross 2M and net about 1M — sure. That’s how, say, a big ole fixer on Clay street will project out. But 1M to make 3M — you’re building condos on an undeveloped piece of land somewhere (not SF) with that equation.

By: Greg Angilly

Greg Angilly — Thu, 26 Jul 2007 19:06:16 +0000

Boomtime — GREAT point- I tend to look at investment potential in a property as if I was the one purchasing the property — and I see 50-100K as a NICE chunk of money which would help me keep my family of 4 in San Francisco. I will make it a point to pick a variety of properties next week — some that can be “flipped” with 25K to make 100K — and some that need 1M in renovation to make 3M when flipped.

By: Boomtime

Boomtime — Thu, 26 Jul 2007 02:26:20 +0000

The issue is, how much is trying to make 100K worth to you? It all depends on your income. If you make under 200K…. making 50-100K and paying long term tax of 15% is a very good proposition. If you make 500K and above, 50-100K doesn’t seem that attractive at all, especially to buy and live b/c you are probably living in a $1.5mil+ place already.

Everything is all relative, and it’s human nature to get accustomed to things really quickly. The more you make, the more you need to make to bother.

By: Greg Angilly

Greg Angilly — Wed, 25 Jul 2007 23:18:26 +0000

You are dead on — Glen Park has the benefit of the BART – Noe has the overhead MUNI line. I spent 2 years riding the # 19 bus in Potrero Hill — it’s an experience to say the least.

18th St has some great restaurants which are drawing people from all over the city — but you need to drive. The upside – tons of parking in Potrero Hill to along with all that sunny weather — and there’s a good chance you can enjoy a concert in Pac Bell by just opening your window or standing on your roof.