Serving Austin Texas & Surrounding Areas
Three Pillars Realty Austin Texas

 A LEGIT 175 PERCENT CASH ON CASH RETURN

While the property transformation is profound, the formula is quite simple. It just requires a shift in mindset.

MEET THE CLIENTS:

Peter was introduced to us by our friend Wayne, a Realtor in the Pacific Northwest. Peter lives in Seattle. Wayne is a Broker in the same area. And as a fellow Value-Driven Approach Investment Advisor, Wayne knows full-well that managing the details of a significant make-ready, long distance, is exactly the type of project we excel at executing.

THE SITUATION:

The property in question was a family asset, in Northwest Austin. A former rental. An absentee owner. A great area and a solid house, albeit one that hadn’t been updated since Back to the Future was in movie theaters. On top of the lack of updating, the house had been noticeably neglected in recent years. It was, to put it kindly, “ripe with deferred maintenance.” 

With that being said, where traditional Realtors see challenge, we see opportunity. Our approach has proven, time and again, that Property Transformation is where MAXIMUM PROFIT is hidden. 

The bigger the challenge, the bigger the profit potential. 

As is often the case, we invested three weeks meeting with inspectors, vendors and trades. Running through our checklists. Noting Limiting Factors, Value-Adds and calculating the final Opportunity Zone.

Rather than settling for what IS, our duty to every client is to determine what COULD BE, should they they decide to extract maximum value from the property.

With that mindset, our decisions are filtered through three fundamental checkpoints: Thorough Analysis, Safety of Principal and Satisfactory Return. The project must hit on all three objectives before we can confidently recommend the client move forward. 

The Game of List It or Flip It is all about putting the PROFIT POWER back into the hands of the (Investor) Client. And with our diagnosis complete, the question we posed was, “How much extra profit would you like to extract?”

THE OPTIONS:

Option #1 —We Could "List It" 
 We could sell the house As-Is. Make a few minor repairs but 
no major updates or renovations. In this scenario, we could virtually guarantee a cash offer from an Investor, at a fair price, and close the sale within 2–3 weeks. 

This would allow the family to divest the asset and move on. In some circumstances, timing is more important than Max Profit. That being said, as Elite Investors, we always advocate for Maximum Client Return and undoubtedly, the “List It” option would leave some money on the table.

Option #2 — We Could "Flip It"
We could enlist our Value-Driven Approach Execution Team to renovate (Flip) the property. This would require we address all of the deferred maintenance. It would require we hack through the overgrown landscaping. Power wash the exterior. Replace the roof. Repair the deck. Repaint both the interior and exterior. Replace the blue carpet. Install new light fixtures. Service the HVAC and make a bevy of miscellaneous repairs. 

The total Scope of Work (renovation cost) was close to $40,000. Once complete though, we had the potential to extract an extra $60–70,000 in PROFITS. A very healthy return on investment. 

THE DECISION (AND RESULTS):

With that in mind, Peter and his family had a decision to make. Ultimately, they choose to have us “Flip” the house on their behalf. And for the next 8 weeks, we worked side-by-side with our hand-selected Execution Team, to milk every last ounce of profit from the property. 

When the dust settled, we generate five offers. Three of them cash. With the luxury of options to choose from, the owner selected the offer that provided the best combination of net profit and downside protection.

Speaking of profit … By choosing to “Flip” the property rather than “List It” or force an “As-Is” sale, we were able to increase the final sale price by a total of $130,000. In doing so, the additional “net to seller” was $70,000. 

When you start throwing around numbers of that stature, it is important to scale down and put things into perspective. 

Based on the investment the owner made into flipping the house, we were able to generate a 175.44% cash on cash return. Read that again …

One Hundred and Seventy Five Percent Return on Investment.

Think, for a minute, about how long it would take to make a 175% cash return using a traditional investment vehicle: savings account, CD, mutual fund or speculative stock purchase.

And keep in mind, we achieved this inside of a three month window. That means that if we were to calculate the annualized return, it comes out to 700%! 

While returns in excess of 100% are not uncommon, the Elite Investor knows that long term wealth building comes not by way of swinging for the fences but by focusing on hitting single after single. 

Small wins, consistently, compounded over time. 

That being said, when you execute the fundamentals, with precision, “home run” possibility is always on the table. It is the type of opportunity that opens up for anyone who is willing to play the Game of List It or Flip It. 

While the property transformation itself is often profound, the formula itself is not complicated. 

It just requires a slight shift in mindset. 

Like we tell clients all the time, you don’t have to know how to be a real estate investor — that is where we come into play. You just have to be willing to think like one.

ARE YOU READY TO MAXIMIZE YOUR PROFIT?

 Request a Complete Property Diagnosis So We Can Help You Determine the Best Prescription To Increase Your ROI.

Are You . . .
Looking to Sell?

At Three Pillars Realty, we offer options depending upon what you value most in the transaction.  

EXPLORE YOUR OPTIONS:

Option #1: Maximize Speed
Option #2: Maximize ROI

CLIENT TESTIMONIALS
Helping Sellers On The Move
"Ryan listed my property on the MLS on a Wednesday morning. By noon the next day, my dilemma was deciding which over-asking price offer I was going to accept. That was a fun problem. I know I’ll never have to stress about real estate in Austin, Texas because Ryan France is on the mound!"
Lauren Neil-Jeffrey
HOME SELLER
"Ryan was the perfect Realtor for us. His advice on staging our vacant house was the most important reason it sold quickly. The sale of our home was a pretty complicated process. Ryan’s patience, honesty and straight-forward attitude were key in seeing this complex processes through."
Ankur Jain
HOME SELLER
"Once my house sold (above asking), I got a call from Ryan asking if I had a favorite charity for which he could make a donation to commemorate the sale. I was slightly taken aback ... then I realized that I shouldn’t be surprised at all. Not only is Ryan a good Realtor, he’s an even better human being."
Dale Blandin
HOME SELLER
"Ryan displayed complete professionalism and was always prepared. His skill at marketing was superb! The house was under contract within a week of listing! He knew where to focus efforts for the best results and he is very detail-oriented. I highly recommend him."
Luke Childress
HOME SELLER
"Ryan and his team were very helpful in making my condo stand out and sell quickly. He was proactive & effective in his communications. I always knew what to expect and where we were in the process. Ryan is the consummate
professional. You will be in good hands."
Laura Tomlinson
HOME SELLER
"Ryan had our house under contract in less than 48 hours, with 6 offers. Many of the Realtors commented on how the house was “staged and priced perfectly” thanks to Ryan’s advice. Ryan was extremely easy to communicate with and made the process of selling of our house as easy as possible."
Shelly Weathers
HOME SELLER
HELPFUL LINKS
BROKER CONTACT INFO
TEXAS REAL ESTATE BROKER #9004679
  •  512-773-3493
  •  Ryan@RyanFrance.com
COPYRIGHT ©2022  ALL RIGHTS RESERVED - THREE PILLARS REALTY  
COPYRIGHT ©2022  
ALL RIGHTS RESERVED - THREE PILLARS REALTY  
 EQUAL HOUSING OPPORTUNITY
  EQUAL HOUSING OPPORTUNITY