All Forum Posts by: Luca Mormina

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $81,000
Cash invested: $30,000

I acquired this property at an 11% cap rate, which provides strong immediate cash flow. My strategy is to hold it long-term, leveraging the steady rental income while benefiting from potential appreciation. I'll focus on maintaining the property and optimizing rent increases to ensure consistent returns over the years.

I added value to the property, property was bought at 65% ARV. I was able to realize a ton of forced equity and appreciation within the market since the purchase/rehab date.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $69,900
Cash invested: $10,000

Second investment property under the books, currently rehabbing the property and hope to get it to market in the next couple months.

Outside of the opportunity to build my knowledge base on how things flow from an investment standpoint, I am given the opportunity to do something in advance before my clients. These are the steps as an agent I take to be fully vertically integrated throughout the buying/listing process. Putting my skin in the GAME!

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

Passive income was one of the biggest reasons for my second acquisition, I am trying to build a nest egg for my future self.

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

Found this deal through listing services and negotiation process was more lenient than I wanted it to be. Solid cap. rate on the property and was eager to see the deal through (never be an emotional buyer, I didn't follow my logic).

How did you add value to the deal?

I bought the property 82% ARV, which is against my normal logic on a value-add strategy. I anticipate I will kick myself at a later date, but we are all young and ambitious only once. Going forward, I am definitely going to stick to my investing criteria with future acquisitions, but unfortunately I was being brash in my rush to find my next opportunity.

What was the outcome?

Solid cap. rate that hurdles the high watermark currently in place with financing rates, going to cashflow the property in due time. I factor my acquisitions on Adjusted NOI base, out of fear of one off capital draws needed to continue typical rental operations. Even with that, I still am able to maintain a solid adjusted rate of 9.8% in year one.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $69,900
Cash invested: $10,000

Second investment property under the books, currently rehabbing the property and hope to get it to market in the next couple months.

Outside of the opportunity to build my knowledge base on how things flow from an investment standpoint, I am given the opportunity to do something in advance before me clients. I want to be able to assist people from every standpoint within the home buying/living process. To be vertically integrated it takes discipline and practice with time under tension of actually doing what you are trying to sell.

Below you will see the pre-rehab property and hope to share the finished product soon!

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

Passive income was one of the biggest reasons for my second acquisition, I am trying to build a nest egg for my future self.

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

Found this deal through listing services and negotiation process was more lenient than I wanted it to be. Solid cap. rate on the property and was eager to see the deal through (never be an emotional buyer, I didn't follow my logic).

How did you add value to the deal?

I bought the property 82% ARV, which is against my normal logic on a value-add strategy. I anticipate I will kick myself at a later date, but we are all young and ambitious only once. Going forward, I am definitely going to stick to my investing criteria with future acquisitions, but unfortunately I was being brash in my rush to find my next opportunity.

What was the outcome?

Solid cap. rate that hurdles the high watermark currently in place with financing rates, going to cashflow the property in due time. I factor my acquisitions on Adjusted NOI base, out of fear of one off capital draws needed to continue typical rental operations. Even with that, I still am able to maintain a solid adjusted rate of 9.8% in year one.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $54,000
Cash invested: $12,000

My inaugural venture into real estate investing was a strategic buy-and-hold, and I'm proud to share that it's currently generating a steady cash flow. This was my first taste of what is possible being an investor within real estate and gave me prospective of what I could potentially scale to.

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

By strategically acquiring and managing properties, I aim to create a portfolio that generates consistent income streams, allowing for long-term financial security and freedom.

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

My first deal? Let's just say I dove in headfirst without all the know-how. But you know what they say, sometimes the best lessons come from jumping in and figuring it out along the way. I firmly believe in learning by doing, even if it means making a few mistakes along the road.

How did you finance this deal?

I secured financing for my first property through a conventional 30-year fixed-rate loan, securing a favorable interest rate for stable and predictable long-term payments.

How did you add value to the deal?

To assess the viability of this deal, I utilized comparable property sales (comps) and projected potential cash flow through a profit and loss analysis (P&L). This method allowed me to arrive at a favorable cash-on-cash return, ensuring a sound investment decision.

What was the outcome?

Having achieved a positive outcome with my first investment, I'm now eagerly preparing to close on my next investment property. Excited to continue building my portfolio!

Lessons learned? Challenges?

Patience pays off, but I've also realized that letting money be the sole reason for passing up a deal that makes long-term financial sense isn't wise. It's about finding that balance between patience and seizing the right opportunities.