DESIGN POINT
RENOVATION ROCKSTAR
THE NUMBERS:
PURCHASE PRICE................................................................ TOTAL RENOVATION BUDGET............................................... TIMELINE............................................................... SALES PRICE......................................................................... ESTIMATED PROFIT................................................................. PROJECT NOTES: • The investors used a private lender for this deal, putting 10 percent down and paying 10 percent interest and two points on the back end. • Smith had to fire a contractor early in the process, which extended the duration of the project. Leniek “saved the day,” Smith said, “which led to our very good working relationship as well as a fruitful partnership.” • Smith recommended investors considering fix-and-flips in the New Orleans market should look for projects that will take no more than three or four months and that can be priced to sell within the first month on market while still yielding a good return. ~$150,000 ~$100,000 ALMOST ONE YEAR $330,000 $80,000 • Since its sale in late 2017, this property has gained roughly $16,000 in value according to Redfin. Mortgage points, also known as "discount points," are paid directly to the lender in exchange for a reduced interest rate. One mortgage point costs one percent of your mortgage amount.
Renovation Rockstar: NewOrleans Edition A TOP-TO-BOTTOM MAKEOVER IN THE BIG EASY.
Featured investors: Braden Smith and Chris Leniek
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Solutions, and Leniek, owner of St. Croix Construction, are both licensed realtors in addition to real estate investors. Smith noted that they both view the license as an advantage when putting their projects on market. “We price these homes right to get them sold within the first month on market,” he observed. In the case of this off-market property, however, the timeline was a little different than Smith had originally planned. “I
ew Orleans-area investors Braden Smith and Chris Leniek are not
got this property off-market from a local wholesaler, and we knew we were going to have to make big changes,” he recalled. The team added a bathroom, created a master suite, put in new wood floors throughout, repainted the exterior of the home and added a front porch, sidewalk, and sod. “We also redid the roof, the HVAC, the electrical and the plumbing,” Smith said. “It was pretty extensive, but most of our renovations are.”
afraid of much of anything in their unique real estate market, so taking on a two-bed- room/one-bath home in need of a near-to- tal remodel was pretty much par for the course. “We buy run-down properties, fix them up, then sell them,” Smith explained. “My business partner (Leniek) is a contrac- tor, so we’ll do just about anything.” Smith, owner of REvitalize Property
BATHROOM BEFORE
BATHROOM AFTER
Because the home’s original Spanish-style architecture is attractive to many buyers, Smith and Leniek remodeled and updated while keeping the historic attraction of the neighborhood in mind. “We used tile in the bathrooms with an old look and feel appropriate for the neighborhood and worked with the
old-school molding and trim already existing in the home to keep that historic look,” Smith said. During the rehab process, the investors opted to add a second bathroom with a style similar, but not identical to, the first.
BEFORE
BATHROOM AFTER
12 | think realty magazine :: may 2018
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