Equidy provided the hard money loan for an ambitious but ultimately successful fix and flip in San Francisco.
The duplex condo conversion returned a very handsome increase in value of $1,850,000.
Here’s how the project played out.
The Challenge
An experienced flipper bought a quaint but ageing duplex in the very desirable Potrero district of San Francisco in February 2022 for $1,450,000.
The property had been in the same family for three decades and was ideally located in a beautiful sloped street near 280 Freeways, 3rd Street light rail and just minutes from China Town, Candlestick Park, local shops and restaurants.
The upstairs unit featured two bedrooms and one bathroom while the downstairs unit had only one bedroom and bathroom but included a spacious unfinished basement that screamed potential!
There were numerous other renovations taking place in the area and the opportunity was too good to overlook.
Our client took out an initial loan of $1,195,000 which allowed them to purchase the property but they required a second loan to undertake the renovations.
The Result
Equidy provided them with a second deed of trust amounting to a $600,000 loan, based on the client’s protective equity in the property of $900,000 and its After Repair Value (ARV) of $2,695,000.
The property was completely refitted down to the studs, completing a stunning transformation which included a brand new roof, siding, white oak engineered hardwood floors, electrical, plumbing, heating, ventilation and air conditioning.
An extra 780 square feet of living space was added as the property morphed into a spacious, luxury home over three levels with a showpiece rooftop entertainment deck and attached garage.
Critically, it also included two self-contained units offering the owner the flexibility to use it as private accomodation for family, friends or utilise as rental income.
The Bay Area is a challenging market for flippers, largely because of skyrocketing prices and the vast amounts of red tape involved in the redevelopment process.
However, Equidy stuck by its client over an exhaustive rebuild lasting more than two years, helping to deliver an outstanding result with a resale price of $3,300,000.
How can we help you?
Download our free ebook, The Flippers Guide to Funding Your Property Empire, to learn about funding strategies for your property dreams.
You can also book a free, no obligation strategy call with one of our experts to talk about the finance options available for your project.
