Flipping luxury estates at eight-figure prices is a whole different ballgame than flipping “ordinary” suburban homes. High maintenance buyers demand bespoke finishes and name-brand designers, and the bigger and more complicated the house, the more potential for hidden costs. And with a vastly smaller buyer pool, bad timing and bad luck can easily break the bank.
Still, the profit potential in a bull market is big. At least one couple that appears to have flipped out successfully are Jim and Andrea Gordon — he’s a private equity exec and the founder of Chicago-based Edgewater Funds. Back in 2020, the Gordons bought a designer-done mansion in L.A.’s posh Brentwood Park neighborhood that they’ve sold after just 10 months for $14.1 million, a $2.1 million profit on paper. (Of course, that profit margin dips once realtor commissions, taxes, other closing costs and any renovations are included.)
The deal went down off-market, so it’s not clear what changes the Gordons made. But at the time of their purchase, the nearly 9,000-square-foot mansion was all-new and move-in ready. Built on speculation by prolific local developer AMG Capital, the home’s spendy new owner is Amy Greenspun Arenson, an occasional documentary producer and granddaughter of onetime arms smuggler-turned-Las Vegas newspaper magnate and prominent real estate developer Hank Greenspun.
Arenson recently sold off her strikingly contemporary mansion in Las Vegas, and she’ll enjoy those cooler L.A. summers from the leafy Brentwood neighborhood of town. Some of her nearest neighbors are Bruce Willis, The Grove owner Rick Caruso, former L.A. mayor Richard Riordan and Perry Ellis fashion heiress Tyler Ellis.