Real Estate Opportunities
Residential Rehab (Fix & Flip)
The popularity of fix and flip shows has pulled many unqualified actors into this space. While significant profits can be realized in this activity, it is becoming increasingly difficult to find distressed assets (houses) and willing sellers to sell at a wholesale price. To find these hidden gems requires research, due diligence, financial analysis and negotiating skills. Sierra Investors has the required knowledge, experience and proven strategies to uncover these hidden gems for quick profits. Investors are actually lenders in a first trust deed secured position and provide the capital for acquisition and rehab costs up to 75% of ARV (After Repair Value) with no more than a 6 month holding period. Investment capital must be held in a separate bank account and available immediately upon request for deposit to the project LLC account. Sierra Investors is the managing member of the project LLC and will provide all management services for the venture for a fee and net profits.
Ugly House - South Sacramento
Ugly House - Auburn
Investor ROI - 1%/Month*
*Based upon invested capital, secured by first trust deed
Land Acquisition and Entitlement
Land acquisition is both an art and a science. For a landowner to develop a property requires an understanding of the path of growth, the highest and best use and the property constraints to development including governmental laws, rules, planning procedures, title issues, general plans, specific plans, zoning, environmental considerations and more. The process can be daunting and time consuming. However, at each stage of the entitlement process i.e. tentative map, final map, improvement plans and finished lots, value is added. Market timing is also a critical factor. Sierra Investors can be relied up by land developers and builders to identify developable parcels as a broker, Sketchup architectural designer and partner.
Project Development (Homebuilding)
Placer County and the Sierra Nevada foothills will see continued population growth due to the desirable location, outdoor amenities and wonderful lifestyle. Home values increasing as the inventory of new and existing homes is low and demand high, much of that being migration from the Bay Area. There is pent up need and demand for more housing of all types and many specific plans are nearing development stage in South Placer Country. Sierra Investors is ready, willing and able to assist homebuilders in identifying suitable land parcels for multi-family or subdivision projects and provide preliminary design layouts and architectural 3D models for product design exploration. An extensive Sketchup portfolio of house designs is available for builder review.
Investor ROI = 50% of Increased Value*
*Based upon investor funding all land and entitlement costs
Investor ROI = 8% + 25% of Net Profits*
*Based upon 25% equity, 75% debt, net profits at sale
Project opportunities may arise for repurposing and reuse of underutilized land and underperforming real estate properties. One possibility for this would be rezoning to meet market demand. An example would be the conversion of retail centers into other uses. In some jurisdictions such as Sacramento County which automatically allows conversion of retail commercial land to high density residential projects. This investment approach requires having a creative visions combined with economic feasibility skills and understanding of market dynamics and value added principles.
Investor ROI =Cashflow + 75% of appreciation*
*Sierra Investors to receive 5% broker fee + 25% of appreciation
Here are two original business and real estate product concept designs.