As usual--too long in between posts. I was busy this summer working on the cabin and trying to have fun with the family. I spent most of July in Big Bear working on the cabin. Its funny how things develop. Here is a quick synopsis.
In June I had a broker guy start putting out blind offers for me on some of these bank owned homes as it looks like the market is heating back up in San Diego--multiple offers over asking price. We got one in late June that I backed out of due to a lengthy repair process. Early July I got into another one from a different agent. This one is pretty good with about 50K in profit and 25 days of work. Just before I pulled the trigger I ran across the proverbial goose that laid golden eggs.
I met this guy who has many deep relationships with asset managers. He says that he can deliver very clean properties with 60-120K profit with almost no work in them. If this guy is legit---this could be huge. We will see. I am meeting him in 45 minutes to put 4 houses in escrow. I will be using my own money on these first ones--they have to be paid in all cash. If we can turn out 10 or so of these I will go back to my bridge fund friends and raise 5-8MM depending on how many properties this guy can provide. I really hope this guy can deliver what he says he can---we will find out this morning.
Dr. Horsepower: Those guys came back with some changes to the company and again want me to head it up. They have a lot of distribution in mexico and the net profit numbers look amazing. They also have an apparel deal in the works that could outshine the beverage piece. OK--looks good--whats the hold up? The snag is that they are undercapitalized and that puts them in a overhead/product squeeze. If I came on----my immediate attention would be fund raising while doing the buildout. Thats fine although, the growth could be so elastic that we could create too much demand out of the gate and not be able to perform on the delivery and service side. I still need to get my head around it.
Other than that----kids started school--sydney doesnt like her teacher but, Hudson loves it. Its sad to see them go off knowing that they will be in school for the rest of their lives. Cabin still has about 15 days of work left. Really looking forward to getting this done and doing some skiing.
