All Forum Posts by: Joe Malerba

Thats awesome! what areas are you looking in, and what does your ideal buy look like? I come across some pretty fantastic stuff every day and I can't buy them all unfortunately haha

Investment Info:

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

Purchase price: $888,000
Cash invested: $500,000

We bought an old dilapidated 33 unit that had 8 sex offenders living in it, and 40% of the tenants were not paying or 9 months or more behind. All of the units needed to be redone, and the property needed a complete update. We spent the last three years redoing the units and changing some over to short term. We got rid of all of the problem tenants and with the updated property were able to attract a better quality tenant that takes better overall care of the property

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

We knew that the rents were way below market and by fixing it we would have a potential gold mine

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

We paid cash for the property as we bought it as is

How did you finance this deal?

we paid cash

How did you add value to the deal?

We remodeled one unit a month for the last three years and were able to increase the rents by 150% and the net cash flow by 500%

What was the outcome?

really fantastic property that is a much better fit for the local community

Lessons learned? Challenges?

Things take a little longer that you anticipate but patience and consistency make all the difference

Investment Info:

Other buy & hold investment.

Purchase price: $2,300,000

We own and operate a boutique hotel downtown niantic. We have just really loved spending the time and energy to rehab the inside and outside and increase the overall revenue

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

We loved the location, and the upside the owners were in their late 70s and hadn't updated the hotel in a few decades. So we felt that investing the time and energy into bringing the property up to a higher standard would increase the bottom line, and become a better part of a vibrant community

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

We found the deal on the mls, and sat down with the owners to find the perfect mix of owner financing, and quick payoff allowed us to get the deal at a fantastic price

How did you finance this deal?

We put 35% down and the owners agreed to finance the rest interest only with a payoff schedule of two years

How did you add value to the deal?

upgrading rooms, changing old tvs, fixtures windows and adding exterior space for geusts to enjoy themselves

What was the outcome?

we doubled the amount of bookings and income year one

Lessons learned? Challenges?

Hotels do require alot more hands on but being a part of the community makes a huge difference