We closed on the sale of The Sunglasses House today!
As you might recall, this house has been under contract since renovation began; my project manager (who is my brother) and his fiancee decided they wanted to buy the house, and spent the better part of the past three months customizing the house for their liking.
The deal from the beginning was that we’d sell the house for just $10K over our cost, so they had a fixed budget with which to do whatever renovations and remodeling they wanted to do. Their budget was about $68,500, and they used every penny. In the end, our profit was $10,013.12…we can use the extra $13 to buy them a house-warming present… 🙂
Anyway, here are all the relevant statistics and financial breakdown for this one…
The total holding time on this house was 114 days. We had hoped to close quickly after the 90 day FHA mark, but there were some snags with the loan, and it got pushed out a couple weeks.
Here are the key timeline milestones:
- Purchase Offer Date: 5/15/2009
- Purchase Closing Date: 6/24/2009
- Rehab Completion Date: 9/8/2009
- Sale Listing Date: 7/8/2009
- First Sale Contract Date: 7/8/2009
- Final Sale Contract Date: 7/8/2009
- Sale Closing Date: 10/16/2009
Like I mentioned, our goal was to make a $10K profit on this house. We pretty much nailed that number, which is great. While I feel a little bad making any profit off my brother/employee, I think everyone feels this was a great deal all-around. He got to devote about 2 months specifically towards customizing his house (we didn’t do much else during this time period for a number of reasons), he ultimately purchased the house about $15-20K below market value, and the company made a profit on the resale.
Here is the breakdown of financials for this project:
There will be a few more transactions around this house — insurance overpayment refund, final utility bills, etc — but I expect that we’ll be within $50 one way or the other of this final profit amount.
While it doesn’t really matter to us for this project, our ROI was about 22%, and annualized it worked out to about 72%.
Here are just some of the final statistics that I’ve been tracking for all my projects, and that summarize the success/failure of each project pretty well:
- From Offer to Purchase Time: 40 Days
- Rehab Time: 85 Days
- Selling Days on Market: 0 Days
- Selling Close Time: 100 Days
- Total Hold Time (Close to Close): 114 Days
- Total Profit: $10,013.12
- Return on Investment (ROI): 22.43%
- Annualized ROI: 71.82%