All Forum Posts by: James Cecere

I've been exploring the various sites, and made my first investment with Crowdstreet.  It wasn't a great experience.  There was an issue with my submission.  All of my documents were in order, but there was a problem with the wire instructions.  Simple, right? I tried to get information on the error, and to correct it so I could complete the investment. I sent in multiple inquiries via phone and email, but they were not answered. The issue was not resolved before the close of the deal, and it was due to the poor customer service by Crowdstreet.  Now maybe it's a singular issue, and I may try again with them, but I will say that it didn't leave me with a good impression.

I recently started an real estate investment LLC and I have a bunch of family/friends who want to invest with me.

Friends have already said they want to introduce me to others who might want to invest.

I'd like to create a fund for this, and would appreciate hearing any suggestions on the structure/approach.  

Thanks!  It's a great investment.  It's a bit more work than expected, but it's going to work in a great way long term.  

Hi Ryan - I purchased it back in 2005 and lived there for 5 years before renting it out.  It's definitely a high point of entry in this neighborhood and hard to get a good return.  In my case, iIt's been my primary residence on and off over the years.  I just turned it back into a rental, however.  The unit below me is about to come on the market, however.  It's a one bedroom.

Investment Info:

Large multi-family (5+ units) buy & hold investment in Philadelphia.

Purchase price: $795,000
Cash invested: $60,000

6 Unit building in an up and coming area; existing renters and cash flow-positive. Converting one unit to a short-term rental. Multiple repair issues as the building is old and was mismanaged. Already received an unsolicited offer for $1.2MM (cash). This location will continue to evolve, and increase in value. Cash flow will improve with enhancements to units and common area, as well as new s/t rental strategy for one of the units.

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

The location is amazing and it was at a discount versus comps (with good reason...it needed a lot of work). Long term hold focusing on monthly cash flow and asset appreciation.

How did you finance this deal?

Traditional business loan with 20% down; went 50/50 with a partner.

How did you add value to the deal?

Upgrading common areas and landscaping; new bathrooms in two units and repairs to roof and electric throughout.

What was the outcome?

We are at 100% rental occupancy, and the s/t rental will likely double the amount of monthly income in that one unit.

Lessons learned? Challenges?

The original purchase investigation did not reveal the extent of the poor electric, plumbing and roof. We've been repairing a lot of things around these core areas. Next time, a builder should look at something of this size and provide an analysis. Also, the sellers misrepresented the zoning (as did the realtor and title management firm). As a result, we are seeking a variance, which has taken time. Real estate company paying for this, acknowledging their issue.

Investment Info:

Large multi-family (5+ units) buy & hold investment in Philadelphia.

Purchase price: $795,000
Cash invested: $60,000

6 Unit building in an up and coming area; existing renters and cash flow-positive. Close to great shopping and transportation,. Converting one unit to a short-term rental. Multiple repair issues as the building is old and was mismanaged. Already received an unsolicited offer for $1.2MM (cash). This location will continue to evolve, and increase in value. Cash flow will improve with enhancements to units and common area, as well as new s/t rental strategy for one of the units.

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

This is all about the location and opportunity to develop the property further. The location is awesome - two major developments have brought more residents and new shopping (Target, Liquor Store, Starbucks, Grocery Store, etc). Another development is on the cusp of starting. Great restaurants and nightlight also within walking distance. Good renters live in the building, and it's easy to get new ones.

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

A real estate agent brought this to me. I brought in another investor for a 50/50 split.

How did you finance this deal?

Conventional business loan with 25% down.

How did you add value to the deal?

Upgraded common areas and each unit as they are vacated. Repaired entire roof and upgrading electric. Added landscaping to improve visual appeal.

What was the outcome?

We are at 100% occupancy, with one unit converting to a s/t rental. It's estimated we will double the income from that unit.

Lessons learned? Challenges?

When purchasing, the engineering report and other investigations did not reveal the extent of the poor quality that went into the plumbing, electric and other core areas. We've been dealing with a lot of repairs and upgrade, which hurt out profitability over the last two years. We are upgrading everything to ensure it's in code and high quality, to prevent future issues. The investment now will pay off in the l/t.

Investment Info:

Single-family residence buy & hold investment in Orlando.

Purchase price: $310,000
Cash invested: $20,000

This serves as a primary residence, but will eventually be converted into a rental or resale in the next year or so. Upgrades include new lighting and hardwood floors.

Investment Info:

Single-family residence buy & hold investment in Orlando.

Purchase price: $310,000
Cash invested: $20,000

This serves as a primary residence, but will eventually be converted into a rental or resale in the next year or so. Upgrades include new lighting and hardwood floors.

Investment Info:

Single-family residence buy & hold investment in Philadelphia.

Purchase price: $529,000
Cash invested: $100,000

High end condo in Rittenhouse Square section of Philadelphia. This 2-floor condo has 2 car parking, which is highly sought after in this very desirable location. It's a three floor walk-up in a 6-unit condo. It's a traditional row home, so it beautifully fits the historical spirit of Philadelphia. This is a long-term hold, which steadily increases in value and attracts quality renters.

Investment Info:

Single-family residence buy & hold investment in Orlando.

Purchase price: $310,000
Cash invested: $20,000

This serves as a primary residence, but will eventually be converted into a rental or resale in the next year or so. Upgrades include new lighting and hardwood floors.