Dealing with unexpected delays with approvals

[Thomas Murray]

Investment Info:

Large multi-family (5+ units) fix & flip investment in Dorchester.

Purchase price: $1,500,000
Cash invested: $600,000

Large residential with private driveway, garage parking, close ro buses, highway. Srilll undwe rehab.

What made you interested in investing in this type of deal?

I wasn't ! Manny the Rehab GC said I was approached by a person with this deal. Manny and I often drive 4 dollars and this came up.

How did you find this deal and how did you negotiate it?

Since it's a straight rehab b deal for a seller we didn't have to negotiate the price, I just had to back the rehab costs.

How did you add value to the deal?

A total, total gut job including redoing the electricity and heat. The City of Boston took months to approve the changes, the approvals take a while due too the huge volume in this market. So Manny and us we have to carry those carrying
costs. The project now at basic rehab stage floors and walls

What was the outcome?

We have another residence on the property with a non-conforming change fro single to 3 unit. City of Boston

Lessons learned? Challenges?

Followup, follow up, checking with licencing, communication with different vendors due to delays, evicting squatters, and ordering more dumpsters on a very tight budget . Due to length of project return on investment much longer and created a cash shortage for me.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

2 of my mentors, partners from MA and members of the local Boston REIA groups Manny Perez of DNM, my partner and also R E agent, and Nick Aalrud of Completedealfllwsystem who hosts the local REIA Black Diamonds Real Estate Investors.
2 books and 2 Audio books by Grant Cardone hae kept me on course and focused, and continually challenge me to question the status quo. I work full time in the medical field, was director of the 2nd largest Army Medical hematology Lab in Europe. These field imbue com