We introduced the eFund model as a means to combat the housing affordability crisis in America, and introduced our first eFund acquisition, “La Vista”. The La Vista home is located in the high-demand Los Angeles housing market, yet, due to its condition, the home’s price was deeply discounted. Once renovated, we believe the La Vista home will be a prime homeownership opportunity in the third-densest neighborhood of Los Angeles, offering millennials and other first time home-buyers the chance to purchase a home at a more affordable cost.
Performing a gut renovation on the La Vista home is no easy task, but our calculations lead us to believe that the final product will be well worth the time and heavy renovations.
The La Vista Makeover
Over the course of a year, we anticipate that the La Vista home will be receiving a long list of major updates, from a new roof to sewer pipe repair beneath property, and much more in between. The 697-square-foot home was purchased at $404,625 following our value investing strategy, which dictates that we buy assets for less than their estimated replacement cost. The home renovation is anticipated to take twelve months to complete and cost $142,655. Once completed, the target sale price is $715,000. If achieved, this price point would offer homebuyers a competitive price in an expensive market, and earn eFund investors a healthy profit margin.
Our goal in this home renovation is to preserve the home’s early 1900’s charm while adding modern amenities to make it more comfortable. The house is receiving new wiring and plumbing throughout and updates to structural features including the roof, house supports, and sewer pipes. The rotten flooring will be stripped away and replaced with new baseboards as well as practical yet beautiful laminate flooring.
The crew is breaking down the wall separating the living room from the kitchen to create a light and open floor plan with clear sight lines throughout the home. The kitchen is expected to then receive all-new appliances, bright countertops, as well as new cabinets and a sink. The countertop and cabinetry underneath is being extended to add more useful space in the kitchen for cooking and gathering. The bar-height countertop also creates space to pull up a seat and spend time in the heart of the home.
The bathroom is planned to receive a bevy of brand new amenities, including beautiful faucets, a sink, updated shower, toilet, vanity and mirror. The walls are scheduled to be redone with classic subway tiling and the vintage bath is being salvaged with a deep cleaning and reglazing.
Throughout the home, our team is adding fresh paint as well as new molding and trim, giving the home a fresh yet classic look for a new homeowner.
The interior of the home isn’t the only area being renovated. Both the front and back yards of the property are expected to get makeovers as well, with a new front door to match the rebuilt front porch overlooking a new front yard of lush grass.
The backyard is scheduled to receive a new granite walkway and native California plants that will beautify the space for years to come. To complete the updated look, the entire home is also slated to be updated with new siding and fencing.
Check out the full illustrative transformation video here:
Becoming a Homeowner through the Homebuyer Investor Program
The eFund offers the potential for investors to benefit from their investment both as an investor and as a homebuyer in high-demand urban areas. Through the Homebuyer Investor Program, homes developed under the eFunds are expected to be offered exclusively to eFund investors before becoming available to the general public.
This potential exclusive “first look” purchasing power is expected to eliminate marketing and selling costs, potentially resulting in better yields for investors and a lower selling price for the investor turned homebuyer. By offering homes through the Homebuyer Investor Program, we anticipate the ability to sell homes for up to $30,000 less than traditional sellers.
Investing in the eFund
You can invest in the La Vista home and other for-sale assets through the Los Angeles eFund and the Washington DC eFund. Fundrise’s tech-enabled direct-to-investor model removes unnecessary middlemen and operates more cost-effectively offering the potential to both lower home prices for prospective homebuyers and earn higher yields for investors. Learn more about how to become an eFund investor and potential future homebuyer with an investment as low as $1,000.