All Forum Posts by: Damien Melle

@Jorge Barboza Jr., our initial ROI was estimated at 12% CAP, but now because we are investing more cash and the design is not finalized we are in a bit unknown as construction cost are not yet estimated. We don't mind taking the risk since we plan on holding this property long term. We occupy and run the various companies, including the soon to be add restaurant. We are very much speculating on the neighborhood to help increase our values, but at the same time we do believe the occupying businesses will generate a decent cash flow if in a down market. Obviously if this was a flip or build to rent project we would simply look at the CAP for our financial decision, which I think would still be strong.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $550,000
Cash invested: $680,000

Single family home, 3 bedroom & 4 bathrooms overlooking the lake

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

Looking to add to our vacation rental portfolio.

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

MLS

How did you finance this deal?

All cash

How did you add value to the deal?

Current comps

What was the outcome?

A complete down to the studs renovation on all 3 floors. 2K sq feet of decking installed and full landscaped.

Lessons learned? Challenges?

Properties located on the mountain have several challenges when it comes to structural support and foundations. Conduct a soil study and rock to soil ratio before making plans to build.

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

Brokerage and construction handled in-house.

Investment Info:

Retail commercial investment investment.

Purchased as part of the 115 S Palm project.

Investment Info:

Retail commercial investment investment.

Purchased an old 1930's automotive dealership and manufacturing facility in the heart of Downtown Ontario, California. The building has been transformed into a new retail store, office space and restaurant space (phase 2 starting Q1, 2024).

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

As a developer, we are always looking for up and coming areas to invest.

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

Old fashion, driving around. This property was not listed on the MLS. The owner lived out of state and it had been vacant for more than 20 years.

How did you finance this deal?

Cash & owner carryback

How did you add value to the deal?

Per square foot, based on comps in the area. But, we also looked at the new use of the building to determine potential income after construction.

What was the outcome?

Completed phase 1 of the project, the building received an award from the City of Ontario. We are currently in plan submission for Phase 2.

Lessons learned? Challenges?

Old buildings have many unknowns. Interior demolition and retrofitting should be considered from the start.

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

We own and operate our own brokerage and construction company. All works was done in-house.

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