John Paul Keene
Coto De Caza, CA (USA)
Role(s):
VP/SVP/Dept Head
WJK Development
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Startup
Location:
Irvine
Industry:
Real Estate
Year Founded:
2015
Number Employees:
1-10 people
Business Stage:
Growth (profitable)
Entity Type:
"S" Corporation
Description:
We work in Spec Development. This is essentially taking declining homes in wealthy neighborhoods and building new ones in their place. This is very lucrative if two factors are in place: The home is small, and the lot that it is on is big. If we can buy a property that has a 1,000 square foot home on it but the lot is 6,000 square feet, then we can build a much bigger house in it's place and make a significant profit.
Here's a quick break down of a recent deal: We bought a property for $827,400. Our total costs for the build were $760,760. We sold the new house for $2,050,000. That means we made $461,840 profit on the deal, woohoo! All of that profit was split evenly with our investors, ourselves, our partners', and our partners' investors. We want to develop an investor base that is solid enough that we can fund our deals entirely within our firm so that we can split the profits 50/50 between our firm and our investors.