All Forum Posts by: Joshua Poitras

Investment Info:

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

Purchase price: $717,300
Cash invested: $196,080
Sale price: $806,500

RE Lesson : Adapt and Overcome. A planned buy and hold turned condo conversion. After filling out a permit wrong we triggered a city of Boston ordinance of having to require a sprinkler system put in. Rather than just correcting the permit, we decided to split the building into three separate condos. On paper numbers look good, but after paying contractor overages and extremely high hard money fees and payoffs. We about broke even. However, the lesson was invaluable.

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

It was the first ff-market deal we were offered. At this time South Boston was in full gentrification ad Eastie hadn't been touched yet. This property we got for 400K today needing a full gut job would of went for 900K today.

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

A fellow realtor offered me this deal. Price was too good and off-market, we went for it, as-is.

How did you finance this deal?

Herd Money Loan in Conjunction with a Private Investor who accessed his 401K for funds.

How did you add value to the deal?

Gut Rehab. I ran the contractors and project.

What was the outcome?

After all fees, finances, Hard money mortgage payments for an unanticipated long project, we pretty much broke even.

Lessons learned? Challenges?

Do not write "full gut job" on permit application. Write one repair at time. Also always get a refi loan estimate, we could have likely refinanced out of the hard money loan with a cheaper long term loan and held on to it as a buy and hold even though budget went way over.

Investment Info:

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

Purchase price: $717,300
Cash invested: $196,080
Sale price: $806,500

RE Lesson : Adapt and Overcome. A planned buy and hold turned condo conversion. After filling out a permit wrong we triggered a city of Boston ordinance of having to require a sprinkler system put in. Rather than just correcting the permit, we went ahead with the sprinkler system and decided to split the building into three separate condos. On paper numbers look good, but after paying contractor overages and extremely high hard money fees and payoffs. We about broke even. However, the lesson is invaluable and I still use the experience today.

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

It was the first ff-market deal we were offered. At this time South Boston was in full gentrification ad Eastie hadn't been touched yet. This property we got for 400K today needing a full gut job would of went for 900K today.

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

A fellow realtor offered me this deal. Price was too good and off-market, we went for it, as-is.

How did you finance this deal?

Herd Money Loan in Conjunction with a Private Investor who accessed his 401K for funds.

How did you add value to the deal?

Gut Rehab. I ran the contractors and project.

What was the outcome?

After all fees, finances, Hard money mortgage payments for an unanticipated long project, we pretty much broke even.

Lessons learned? Challenges?

Do not write "full gut job" on permit application. Write one repair at time. Also always get a refi loan estimate, we could have likely refinanced out of the hard money loan with a cheaper long term loan and held on to it as a buy and hold even though budget went way over.

@Colleen F. looks like it may have to be that way I do have one spot I may be able to put in a closet in the attic. Thanks for the heads up though. It would be natural gas. 

@Mary Smiththank you. :)

@Dan Milinazzo @Brandon Rush Thanks guys. That was awhile back though lol

@Colleen F. My hypothesis is that it will be more financially efficient because it will run off gas rather than electricity. 

@Seth Borman I actually paid less in heating costs with electric baseboard. I didn’t see a cut in electric costs at all. Therefore, I say I am not impressed. The whole point was efficiency
. I might as well just bought more electric baseboard. 

@Colleen F. I hear you. I do have small unfinished chases I can use, but no contractor that use 6in plus ducting wants the challenge. 
however, what has caught my eye is the small diameter duct high efficiency  hvac systems. Expensive I know but they seem awesome. I wish someone could tell us about their experience with them. One downside I hear about them is that they are loud but only for the time they fill the house with heat. I might be willing to put up with that. 

Investment Info:

Single-family residence fix & flip investment in Roslindale.

Purchase price: $280,000
Cash invested: $63,866
Sale price: $390,000

My First REO joint venture flip

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

I had paid money to learn the 70% rule from a very experienced investor and was eager to apply my teachings.

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

I found this deal by shopping on the MLS for REO property.

How did you finance this deal?

Hard Money Loan at 3, 13% and Private investor Joint venture agreement. 50/50 Profit.

How did you add value to the deal?

Manage the project, Represented as an agent, Do some of the work myself.

What was the outcome?

Fairly Successful.

Lessons learned? Challenges?

Must learn appropriate region construction costs.
Stop Work Orders
Make beneficial repairs and just tasteful ones.

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

myself, investor and lender.

Investment Info:

Single-family residence fix & flip investment in Roslindale.

Purchase price: $280,000
Cash invested: $63,866
Sale price: $390,000

1st REO Joint Venture Flip - This was actually my first flip which was mostly successful. I learned a lot of valuable lessons. The Lessons Learned.....Always confirm square footage, I learned to understand how to grandfather out of date construction, learned the importance between making profitable repairs and instead non-beneficial changes. Managing Snow Removal during construction. I Learned what a Stop work order was. should've of pulled city violation records at the city to negotiate concessions. I also about floor layering and how hard the layers are to remove. And finally, how not to run a saw after 7pm lol.

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

I had paid money to learn the 70% rule from a very experienced investor and was eager to apply my teachings.

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

I found this deal by shopping on the MLS for REO property.

How did you finance this deal?

Hard Money Loan at 3, 13% and Private investor Joint venture agreement. 50/50 Profit.

How did you add value to the deal?

Manage the project, Represented as an agent, Do some of the work myself.

What was the outcome?

Fairly Successful.

Lessons learned? Challenges?

Must learn appropriate region construction costs.
Stop Work Orders
Make beneficial repairs and just tasteful ones.

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

myself, investor and lender.

not seeing the savings on the mini splits. really not that impressed by them.