Closed ON 1st Deal With HM in NYC!

[Jorge P.]

Hello BP! 

So I have been meaning to post for quite some time but have been very busy getting the renovations going. I Finally have some time SO HERE it go's (Please be empathetic as it is my first post on BP)

Closed on The property on MAY 18TH, 2017.

The Deal: 

This was a distressed 2 Family house sitting on an oversized lot. The Short-sale process was VERY lengthy , It took 2 years to have it approved. YES! 2 Loooong years but I did not give up!  btw- Theres nothing "SHORT" about a short-sale! 

I was able to purchase the property with a HML who gave me 85% of the purchase price @ 10% with 2 points due at closing & 100% of the rehab funds. DM me to discuss HML terms if interested, ill be happy to share.

The Numbers: 

 Purchase price: $275,000 - I was paid a 6% RE commission as I hold a license :) 

 Renovation Loan: $120,000

Funds I Brough to closing: came out to about $85,000. 

 - 25% of Purchase price 

- HML Closing cost (Along with appraisals, attorney fees, etc)

- Purchase Closing Cost 

Exist Strategies: 

 Because I was able to secure the property at the price I did, multiple exist strategies were created. Before I even closed, I had another investor offer me $425,000 so he can renovate and flip. I declined the offer because of my "WHY" - the reason I got into real estate investing (become a developer/Buy & hold investor). I want the experience which I know will make me MILLIONS of dollars moving forward.  Okay so here are the strategies: 

Exit 1: Sell it to another investor  for $425k & have him do the work. Make $100k+ in less then 30 days after closing. Not bad 

Exit 2: Keep the house Renovate the home myself & sell for $680k-$700k+. Make around $320k+- (-) Closing cost...

Exit 3: Keep the house , Renovate it & executed the BRRR strategy (Cash-out Refinance 70-80%) & rent it out for $500-$900 in cashflow.

ooh.... Remember I said the property was seating on an oversized lot!? Well, I had a zoning analysis done & I am able to subdivided the lots &  build 2 more homes on the it! Yes! 2 more multifamily homes. I would have a total of 3 multifamily homes. 

Exit 4: Build the additional 2 homes (1,200sf) at about $200-$250psf  & keep or sell at about $680-$700k. If exercise this strategy  then this would bring my profits to a little under $1M. Not bad for a 1st flip huh?

Sooo, I'm currently renovating the existing homes on the lot and getting ready to sub-divide the lot.  Would love to hear which strategy would you go with & why?

I will post pictures of progress as things start to take shape :-)

Jorge P.