A typical property developer interested in doing a so-called ‘fix and flip’ usually focuses on doing a cosmetic rehab. Add a little paint, put in new carpets, install a few new appliances and call it a day. At Pinnacle, we take a very different approach. We look for properties to completely overhaul, often taking houses down to their foundations, starting from scratch, and sometimes adding square footage.
Our primary business model is typically to find properties that are non-loanable, meaning no lender would want to touch them because they are in such poor condition, purchasing them, and then determining for that specific market what’s going to add the most value. Sometimes we tear them down and build them back up on their existing footprint. Other times we look to add value by increasing the square footage or creating a better floor plan.
When Pinnacle is done with a rehab, the finished product is always one that is turn-key ready to move in. That project, which initially started as a non-financeable opportunity, becomes a beautiful and financeable home for somebody to buy. The finished product may look as though it has been there for many years, especially if we rebuild a house to its original specifications, but in every case, the properties we rehab are functionally new construction. We may use some of the original trim, finishes, or architectural elements, but all our homes are completely up to code with new wiring, new plumbing, new HVAC, and new baths and kitchens.
Building a new house from the ground up is always a lot easier, but at Pinnacle we choose not to do that. The reason we like to work with an existing structure is that the impact fees associated with ground up construction are enormous. Just to break ground, without doing any work at all on a new home project, can easily run $50,000 to $70,000 or more. Even if a property is blighted and uninhabitable, if it has existing services including water, sewer, and electrical, it can be a worthwhile rehab project for us.
If you have a property you’d like to sell, no matter what condition, and even if you owe more than it’s worth, Pinnacle will always look for a way to create a win-win situation for you the property owner/seller and for us. We may be able to help. Please call Pinnacle directly at (530) 313-3852 and let’s start a dialogue.