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Hat tip to reader Just Some Guy for sending in this article:

http://www.utsandiego.com/news/2014/May/03/american-coastal-real-estate-investor-homes/?#article-copy

With home values recovering from the Great Recession and the fix-and-flip market drying up, what’s a real-estate investor to do?

In Southern California, American Coastal Properties is going for the high end.

Instead of focusing on buying bank-owned homes from auction, fixing them and selling them for a gain, the five-partner group formed in 2012 buys older homes in affluent areas like La Jolla, Del Mar and Solana Beach, guts them, adds square footage and hopes to sell them for a gain. It’s a risky business that can reap hundreds of thousands of dollars in rewards, but also can bring unwelcome surprises that take a chunk out of any profit.

“This business is not for the faint of heart,” said Anthony Nanula, the group’s San Diego manager.  Last month, American Coastal sold a home at 1330 Eighth Ave. in downtown that was built in 1920. The Irvine-based group bought the property for $720,000, restored it and closed a deal for about $1.825 million, a sale price they consider a success.

American Coastal Properties has about 12 projects in San Diego County and 30 in Southern California. Those add to the 50 homes already revamped and sold. The group also recently secured $50 million from Colony Capital and the Pritzker/Vlock Family Office to buy and redevelop single-family properties throughout coastal Southern California. That continues a big change from what founding partner Nick Sinatra originally did in 2009: buy homes at auction to fix and flip in the Inland Empire.

Read full story here:

http://www.utsandiego.com/news/2014/May/03/american-coastal-real-estate-investor-homes/?#article-copy

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