All Forum Posts by: John Bonhomme

 Thank you sir!

Hey Will,

Thank you for your question. I was extremely hesitant to buy commercial units during the time of COVID. They haven't been cash cows per say. We only charge 80% of what an apartment would cost. I do this because I rather have the unit filled and creating income versus laying vacant and not making money. I want to promote small business and keep the community running. Thanks again for following. Stay safe and God Bless. 

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $91,500
Cash invested: $112,000

Finally Finished Reno on this 3 Family
Perfect BRRR property
Should ARV in the 300's
Currently in the process of Refi and being rented
Will take a break from construction for a while. Very difficult with full time job and COVID material delay's etc.

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

I saw there was opportunity to renovate this in an appreciating market for below market cost

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

MLS. Bought it as a package deal and let go of the rest of the package because it wouldn't be financially smart.

How did you finance this deal?

Profits from sale

How did you add value to the deal?

Did a lot of work myself. Experience with renovating in this neighborhood.

What was the outcome?

So far so good.

Lessons learned? Challenges?

COVID was extremely difficult during this entire reno.
Material Delays, Utility company backup delays. Weather. Etc.

Investment Info:

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

Purchase price: $175,000
Cash invested: $50,312

6 Apartments
3 Store fronts
Fully Rented and Property Managed
First Partnership deal

Hey I own 10 rental properties and use Zillow to advertise and screen. Zillow does background and credit score checks. I use Stessa to keep track of my current Cash Flow. Good luck. 

Congrats on the inheritance.

I'd diversify as much as possible. 1031 exchange some of your lower performance commercial. Reinvest those profits into large multifamily Class B complexes. 

Maybe throw some profits into REITs/money markets. Use this money as your reserves so you never have that same feeling in your stomach as you had during the worst of the pandemic. 

Good Luck! 

John

Hey,

Great buy. What were your finances in current state versus pro forma finances when renovation is done?

Thanks, 

John

Investment Info:

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

Purchase price: $290,000
Cash invested: $79,787

My largest purchase and toughest deal so far. Had this one under contract since Pre CoVid in February 2020 and finally closed in late September of 2020. Property seemed to be mis managed by owner and had an awesome property manager who is also a real estate investor. Seemed to be a home run deal that could potentially net me 2k+ a month after all expenses including Cap X and Mortgage.

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

Potential for big positive cash flow. Has the potential to be a grand slam deal. Time will tell. This brings me up to 67 Units! on my way to 100! Have two more under contract currently. I will hold at 100 units and begin to use Thach's strategy and pay down debt.

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

Loop Net, contacted agent

How did you finance this deal?

Local Mortgage Broker

How did you add value to the deal?

Gave Property Manager more ability to navigate

What was the outcome?

to be determined

Lessons learned? Challenges?

By far the longest deal I've ever had. Had this under contract pre, during, post COVID. Thought this deal wasn't going to close. Thought about backing out and killing the deal several times. Was constantly pushed back. Had a 98 email thread with everyone involved trying to get this thing to close. Had to drive 14 hours on day of closing to get proper documents to all parties. Incredibly difficult deal.

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

Taylor Bennet
Joe Priora
Kristin Lee Yaw

Investment Info:

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

Purchase price: $290,000
Cash invested: $79,787

My largest purchase and toughest deal so far. Had this one under contract since Pre CoVid in February 2020 and finally closed in late September of 2020. Property seemed to be mis managed by owner and had an awesome property manager who is also a real estate investor. Seemed to be a home run deal that could potentially net me 2k+ a month after all expenses including Cap X and Mortgage. Has the potential to be a grand slam deal. Time will tell. This brings me up to 67 Units! on my way to 100! Have two more under contract currently. I will hold at 100 units and begin to use Thach's strategy and pay down debt.

Hope everyone is staying healthy and safe.

God Bless

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

Potential for big positive cash flow

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

Loop Net, contacted agent

How did you finance this deal?

Local Mortgage Broker

How did you add value to the deal?

Gave Property Manager more ability to navigate

What was the outcome?

to be determined

Lessons learned? Challenges?

By far the longest deal I've ever had. Had this under contract pre, during, post COVID. Thought this deal wasn't going to close. Thought about backing out and killing the deal several times. Was constantly pushed back. Had a 98 email thread with everyone involved trying to get this thing to close. Had to drive 14 hours on day of closing to get proper documents to all parties. Incredibly difficult deal.

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

Taylor Bennet
Joe Priora
Kristin Lee Yaw