All Forum Posts by: Jay Velastegui

@Rich O'Neill

Definitely appreciate this post. Do you hop into Jersey at all?

Looking for a solid partnership on a potential fix and flip in Central Jersey.  If you are interested in partnering on a future deal and have some experience with wholesaling, working with contractors, and/or assessing deals for profitability, contact me at your earliest convenience.

Is this property still available?

I'm currently analyzing a vacant lot in a highly developed city near NYC. The potential deal was brought to my attention by a couple of investors who like myself have zero experience with this. 

The lot is 25x100 and we received a quote from a builder at $85/sq ft. The plans for the building have already been approved by the city. The current owner has decided not to go forward with the build and is looking to unload it and focus on some other areas he's developing in the same city. 

What are other things I should be considering other than comps and making sure I get the lot at the right price? Also any tried and true metrics for determining a good deal with vacant lots would be very useful. 

Thanks!

@Andy Mink 

I couldn't agree more with your strategy however there are other considerations I have to keep in mind, mainly my children staying in good school systems. 

Purchasing a 3 or 4 unit property will most likely put me into neighborhoods I'd rather not live in, even if for just a year. 

Fortunately, my wife and I are in a position where we should still be able to save up enough cash in a year to put down a down payment for our second property. 

There are of course no guarantees and you bring up great points about losing big in the scenario where we have a vacant unit for several months and leveraging my risks by having more units. 

Sound advice sir - really appreciate the feedback!

@Ron Averill 

I spoke with the head of the community development department on several occasions to make sure I wasn't wasting my time with this property. 

Here's the last email I received from them earlier this week:

I'm not saying it has to be a difficult process but this just sounded way to simplified on my first read. I'm assuming once the inspection is done by the Community Development Dept they'll let me know exactly what needs to happen to make sure the property meets all the building codes. 

How would you read into this from your vantage point?

Hey BP Family,

So I'm a newbie investor from NJ....

I know many posts start like this and I always walk away amazed by the amount of time and attention individuals still put into giving their thoughtful advice - so thanks in advance. 

Back to my question, my wife and I have determined that the Buy and Hold method will be our strategy toward our ultimate retirement goals. We're currently looking to buy a 2 or 3 Family or find a Single Family and use FHA's 203k to renovate into a Multi. In either case we will Owner Occupy the property.

We just viewed a Single Family/ Mother-Daughter a few days ago and will go to revisit it this weekend with a general contractor to get some estimates before putting an offer. 

Here's the main bullet point to note - the property is listed as a Single Family however after doing my due diligence and contacting the township I found that it was converted into a Two Family in 1965. The township agreed to zone it as a Two Family because it's somehow grandfathered in due to its previous status. 

The current homeowner was illegally renting out the upstairs unit which is fitted as a one bedroom apartment and is why he listed it as a "mother-daughter."

What should I be looking for when I go to revisit the property this weekend? What questions should I be asking or what further due diligence should I be doing before determining whether or not this is a property worth investing?

Your feedback and expertise in this matter are greatly appreciated and my apologies for the long winded post.

All the best!  

Allen,

I really like the layout of these presentations. Simple, clean, professional, and informative. I found some other great resources online through rocketlawyer.com but I won't need that service until the lender is ready to make this partnership official.

Again Allen, thank you! These PP presenations will be a big help in giving me a format to mimic.

-Jay

Hi Allen,

Really appreciate the feedback.

It's funny you mention laying out a financial package because I literally had a dinner with the potential lender that night and he asked if I could put 2-3 packages together on paper.

In regard to those financial statements you mentioned. Any idea where I could find those on BP? I searched through the "resources" page but had no luck. Those would be great to use as templates.

Thanks again and all the best on your current and future investments.

-Jay

I recently made a connection with an individual who's interested in partnering with me strictly as a private lender. This individual has access to a large sum of capital and can fund my deals as I begin building my portfolio (mainly buy-and-hold).

Looking for some feedback from investors that work under a similar setup. Again, this individual is very intrigued by the business model but he's still on the fence about the whole thing.

What's a smart way to approach this and structure financing so that he can see that it's a Win-Win situation?