All Forum Posts by: Sebastian Libonatti

@Bethany Turon

Hi Bethany, I’m still in Hampton beach with the kids so unfortunately I won’t make it today but really hoping to meet you and other investors very soon. The south Portland meet up was great! Have a good evening.

Seb

@Michel Bamani

I’m glad you found someone! My contact wasn’t able up until now to find anyone. Sorry about that. Good luck with your investment.

@Michel Bamani

Hi Michel, where in Maine so I can try to help you? Thanks

Investment Info:

Single-family residence buy & hold investment in Portland.

Purchase price: $567,000
Cash invested: $120,000

New construction, not our ideal investment but needed to act to avoid more opportunity cost loses by holding too much equity at the time. One of the first houses bought in highly sought Falmouth development, prices have significantly increased since we signed off on it. As passive investment as it gets. Cash flow shown here is the forecasted one as of 2022. First tenants were given a discount to rent during construction. Post-construction rent will allow for close to 10% CoC.

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

Just needed to offload equity quicky, one of first buyers on a new development so we were able to capture some equity quickly. Learning experience in dealing with contractors, tenants, etc.
Now looking to either sell it in 2022 once the whole site is completed and houses worth much more or hold until we find better opportunity.

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

MLS

How did you finance this deal?

20% equity, conventional loan

How did you add value to the deal?

No value added other than negotiating construction cost for basement to increase squarefootage, bathroom, rooms to add more value. First of 10 buyers on a large site also helped build equity, city now slowing down construction. Best school around so lots of demand for rentals but almost no supply.

What was the outcome?

Found tenants during the construction, retirees, low to no management to do. Easy income.

Lessons learned? Challenges?

Big one! Don't bother being hands on to save $5-10k, find a way to distance yourself. Too many frustrations with extremely bad contractor that was dealing with another job and too many projects.
The issue with the deal is only "I could have made better ROI elsewhere if I had more experience or better network", but still getting to 10% CoC very soon and appreciation in this area is going to be at least 4-5%/year on the conservative side. Now looking for much larger deals.

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

Tyson Wilkins Way Point Brokers (amazing guy, knows everybody, very large rental company, resourceful, etc, etc)

Investment Info:

Single-family residence buy & hold investment in Portland.

Purchase price: $567,000
Cash invested: $120,000

New construction, not our ideal investment but needed to act to avoid more opportunity cost loses by holding too much equity at the time. One of the first houses bought in highly sought Falmouth development, prices have significantly increased since we signed off on it (October 2020). As passive investment as it gets. Cash flow shown here is the forecasted one as of 2022. First tenants were given a discount to rent during construction. Post-construction rent will allow for close to 10% CoC and 0 work since it's brand new.

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

Just needed to offload equity quicky, one of first buyers on a new development so we were able to capture some equity quickly. Learning experience in dealing with contractors, tenants, etc.
Now looking to either sell it in 2022 once the whole site is completed and houses worth much more or hold until we find better opportunity.

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

MLS

How did you finance this deal?

20% equity, conventional loan

How did you add value to the deal?

No value added other than negotiating construction cost for basement to increase squarefootage, bathroom, rooms to add more value. First of 10 buyers on a large site also helped build equity, city now slowing down construction. Best school around so lots of demand for rentals but almost no supply.

What was the outcome?

Found tenants during the construction, retirees, low to no management to do. Easy income.

Lessons learned? Challenges?

Big one! Don't bother being hands on to save $5-10k, find a way to distance yourself. Too many frustrations with extremely bad contractor that was dealing with another job and too many projects.
The issue with the deal is only "I could have made better ROI elsewhere if I had more experience or better network", but still getting to 10% CoC very soon and appreciation in this area is going to be at least 4-5%/year on the conservative side. Now looking for much larger deals.

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

Tyson Wilkins Way Point Brokers (amazing guy, knows everybody, very large rental company, resourceful, etc, etc)

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Portland.

Purchase price: $535,000
Cash invested: $135,000

First two unit, bought it off market. We are now renovating the first floor (cosmetic, adding washer/dryer, etc) and expect to increase rent easily by 400$/month. Then we are renovating end of august the second unit which is a 3Br (large ones) + 2B. Expecting to increase monthly cash flow to $1300/month to reach our 10% CoC goal. Will refinance shortly after to get our rehab $ back. And looking for more in the area!

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

First experience into multifamily, potential to achieve 10% CoC quickly- and more.

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

off market deal through a broker. Negotiated electrical work to be done as part of final price as well as other smaller issues.

How did you finance this deal?

Conventional loans which is what I want to avoid in the future. I'd like to have not more than 10-15% equity instead of 20-25%.

How did you add value to the deal?

I'm in the process of rehabbing both units for $30-35k, new tenants soon, adding washer/dryer, painting all, rehabbing kitchen, bahtrooms, fixtures, carpet/wood floors conversion, etc.
Biggest value driver post new tenants and rehab is the possibility to add another unit as an ADU and increase cash flow significantly. Zoning and lot size should allow for it, working on it!

What was the outcome?

We'll see very soon, rental market very strong and we should achieve easily our 10$ CoC goal and refinance to get our rehab cost back, hopefully more but don't want to be overly optimistic.

Lessons learned? Challenges?

Better roof inspection next time, find contractor to get an estimate (still don't know if needs some work or not in the short term).

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

Tyson Wilkins from Way Point Brokers

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Portland.

Purchase price: $535,000
Cash invested: $135,000

First two unit, bought it off market from an exhausted landlord who didn't want to spend more time dealing with tenants (he was renting by the room so obvisouly tough!). We are now renovating the first floor (cosmetic, adding washer/dryer, etc) and expect to increase rent easily by 400$/month. Then we are renovating end of august the second unit which is a 3Br (large ones) + 2B. Expecting to increase monthly cash flow to $1300/month to reach our 10% CoC goal. Will refinance shortly after to get our rehab $ back. And looking for more in the area!

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

First experience into multifamily, potential to achieve 10% CoC quickly- and more.

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

off market deal through a broker. Negotiated electrical work to be done as part of final price as well as other smaller issues.

How did you finance this deal?

Conventional loans which is what I want to avoid in the future. I'd like to have not more than 10-15% equity instead of 20-25%.

How did you add value to the deal?

I'm in the process of rehabbing both units for $30-35k, new tenants soon, adding washer/dryer, painting all, rehabbing kitchen, bahtrooms, fixtures, carpet/wood floors conversion, etc.
Biggest value driver post new tenants and rehab is the possibility to add another unit as an ADU and increase cash flow significantly. Zoning and lot size should allow for it, working on it!

What was the outcome?

We'll see very soon, rental market very strong and we should achieve easily our 10$ CoC goal and refinance to get our rehab cost back, hopefully more but don't want to be overly optimistic.

Lessons learned? Challenges?

Better roof inspection next time, find contractor to get an estimate (still don't know if needs some work or not in the short term).

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

Tyson Wilkins from Way Point Brokers

Hi everyone, very new to BP, thanks for the invitation and count me in! Live in Falmouth Maine and investing in the area.