Real Estate Deal #3 – 1919 W. Magnolia, SA TX 78201
An incredible return on investment
Ed Garza purchased 1919 W. Magnolia in his own name in October 2006, for $114,220.40.
This 1,532 square foot 3-bedroom 2-bath house was built in 1927.
The tax assessed value of 1919 W. Magnolia declined steadily from $188,720 in 2008 to $130,370 in 2013.
The Zillow value of 1919 W. Magnolia fluctuated in a range between $120K and $200K over the past 6 years, 2006 to 2013.
An Amazing Flip!
The Zillow Value of 1919 W. Magnolia at the time of purchase was $159K in October 2006. Garza took out a loan at that time for $85,880 from San Antonio Federal Credit Union.
Just 7 months later, in May 2007, he sold the property to an individual for $250,040!
How good is Garza? Very good.
Garza bought it for $114,220, or 39% lower than the Zillow valuation, and 65% lower than the Bexar County 2008 value.
Garza sold it for $250,040, or 57% higher than Zillow indicated, and 32% higher than Bexar County 2008 assessed value.
All in just 7 months, for a 119% increase in price. It more than doubled.
No wonder he got the real estate bug after that flip.
Is there anything wrong here?
The only two nearby comparable houses for sale, on the 2100 block of Magnolia, as of this writing, are both listed for less than $200,000.
Of the 26 properties that share the same city block as 1919 W. Magnolia, none have a Zillow value above $157,000, or roughly $100,000 less than what Garza flipped this for in 2007. The average Zillow value of the 26 houses is $123,153.
Was it just frothy real estate times? Maybe. In late 2006 to early 2007, this kind of price action is possible, so this may be nothing more than what it seems: A good buy and a good sale.
But how does he acquire the property for $114,220 just 7 months earlier?
In the end I can’t find anything circumstantially fishy – like a massive fire or a financially distressed buyer – about the 1919 W. Magnolia transaction, other than the amazing price appreciation in 7 months.
The transaction may help explain why Ed Garza got the idea that real estate should be his focus.
Like many of us in the school district, I want his focus at SAISD on the kids’ education, not the real estate contracts.
Please see other related posts:
And please see upcoming posts:
Further information on Ed Garza’s LLCs
Is there something odd about Zane Garway Consulting Group LLC’s business dealings?
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