All Forum Posts by: Remi Oguntoye

Hey Team,
Happy Monday--I hope everyone is doing great! 
I have a property in Town of Poughkeepsie (NW of College Hill Park) that I am considering making an offer on. The property is 3/1 and about 1,350 SF. Class B neighborhood. Property is down to the studs, with no wiring or plumbing. The property has a new roof and solid foundation. I haven't yet don't a full remodel to this extent, so I'd like to know what you folks are using as a rule of thumb for this level of renovation. I am waffling between $45 and $65 PSF.

Any feedback/commentary is appreciated!

Remi

@Michael Morin. I remember the place you're in-- I was there about a year ago. I found several Facebook by searching for real estate investment and the city name I am interested in. There is a Hudson Valley Real Estate Investment, Westchester Real estate investor, and Orange County real estate investor group that you should be able to find easily with a search. Once you join, others will get recommended to you. 
I have spent thousands of dollars on our wholesaling business as well. And it hasn't been all that fun every week seeing money go out without some coming in. However, with a few tweaks and a shift in mindset, focus on the right actions and being consistent is leading to traction. As we move through the pandemic and the market continues to shift, we will see a lot of activity in the coming year. Be prepared to seize any opportunity that meets your criteria. 

Some tips: MAKE OFFERS whenever you see something that might be a good fit for you. You don't have to buy a property just because you made an offer on it! You have time to analyze it during the due dilligence period. But you absolutely will not get the experience if you don't make the offer, get it accepted and do the tasks necessary to convert the property to cash or cash flow.

I actually have a contract property in Port Jervis that I am trying to dispose of... If you'd be open to putting a couple bandit signs in the neighborhood for cash buyers, that would be a huge help. I am not local, so I cannot do it myself.

@Gina Medrano Congrats for getting into the real estate game! How has the progress on your building been coming? 

As a few of the others said, there is a lot of information here on the site and on the BP podcast. I also recommend YouTube, Instagram, Facebook groups, local REIAs, etc. 

What niche within real estate are you most interested in pursuing? My advice is to find a few informal mentors (listen to their podcasts, follow their YouTube channels) and learn more about the niche to see if it actually speaks to you. Network with others on social media who are putting out valuable content. Analyze deals that fit with your investment strategy. It seems I won't have to tell you this, but take action! That's the only way you truly learn. Absent action, it's all theory. Real life is not a text book, so you need to get some reps. 

All the best,

Remi

@Michael Morin Hope you're doing great. I echo a lot of the advice given by others. The Hudson Valley is HOT overall, but each town/city is different. I started my wholesaling business in February 2020. We cold call homeowners throughout the region. I also have a 2 family in Poughkeepsie that I just finished the renovation on. I have a couple others under contract and coming close to contract in Kingston, Newburgh, Middletown and Port Jervis. I am still learning each market, but I am happy to share what I have learned so far if you have any specific questions.

I have found the best results by being consistent and learning what a deal looks like. So, my recommendation to you is to define your investment criteria. Network your butt off. Facebook groups, IG, local REIAs (there are a lot who have hosted meetups virtually throughout the pandemic) are a great source of info and connections. Tell everyone what you're doing. 

Don't be afraid to take massive imperfect action. You will make mistakes, but you cannot learn without taking action. Make sure the first deal you do is one you can stand to lose some money on, and chalk it up to "tuition."

Give me a shout,

Remi

Investment Info:

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

Purchase price: $170,000
Cash invested: $70,000

I got this property under contract in December 2019. Initially my partner and I thought we would be able to quickly renovate the 2-family and convert it to a 3-plex and recoupe our investment. After a lengthy eviction process and the outbreak of covid. I closed on 7/1/2020 in the laundry room of my apartment in NYC. Renovated the entire property long distance from Maryland. Timeline and original budget were no where near actual. But I am grateful for the experience gained. Ready to do it again!

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

Multifamily properties have higher cash flow and are shielded from vacancy risk slightly. I chose Poughkeepsie because I lived in New York City, and I could not afford to invest there.

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

MLS deal using realtor from Zillow

How did you finance this deal?

Personal liquidity and private money for the downpayment. Hard-money for the financing

How did you add value to the deal?

I thought I would be able to convert the attic to a 1BR apartment, but that turned out to be cost-prohibitive.

Lessons learned? Challenges?

Your first deal will take longer and cost more than you expect.
No need to pay for architect if no structural changes occurring.
It's very expensive and difficult to convert from 2-family to 3-family.
Have a bulletproof contract with any contractors.
Using hard money for first deal may be more challenging and involved than you think.
Evictions can take a LONG time.
Your first deal will be an emotional rollercoaster.
Remodeling a property remotely is challenging.

Hi Folks,

I hope everyone is doing great today! I have a large single family property in Port Jervis, NY in escrow. I am looking for a general contractor able to oversee a full remodel on a 2600 SF single family residence, and I have several questions! This property was once a 2-family, so I am curious as to how difficult it would be to convert back to a 2-family. Does anyone have an idea of the zoning department's appetite for this type of conversion? Has anyone done this before? Does anyone have referrals for contractors they've used in the area? Thanks in advance for any feedback!

Best, 

Remi

@Ray J.Hope you're doing great. I am curious to hear your updates. How has your investment journey progressed over the past 11 months?

@David Martinez I sent you a friend request. I am considering investing in Port Jervis as well, and I would love to connect.

Hi @Amanda Culleton I hope you're great! I am also interested in PJ, and I'd love to connect. I want to know if you ended up ever moving into the Port Jervis market. I will send you a friend request.

@Jonathan Martinez I am curious to know more about your rental in PJ. What area of the city is it located? I will send you a friend request to connect and discuss it further.

Hello Bigger Pockets!

Interesting situation: We called a gentleman (mortgage holder) on a property he previously owned. Mortgage holder sold the property to another person (Owner) on terms, and that individual stopped paying rent about 4 years ago. Previously, the mortgage holder was able to collect rents from the tenants, and the fact that the Owner stopped paying didn’t matter. However, 9 months ago, the tenants stopped paying rent, and they will be vacating the property shortly. I’m considering purchasing the mortgage from mortgage holder (at a discount). With the renovation and the discounted mortgage balance, I would be over a 2% rule even though I don't technically own the property. I would initiate the foreclosure process, and I understand that will take time and money, but I believe I would be cash flowing the whole time.

I want to confirm what I have been told: that I can renovate the property and collect rents as the mortgage holder while pursuing foreclosure. To make it more interesting, we’re not exactly sure where the Owner is, as he’s gone ghost this year. The discount on the note makes this a nice purchase, if there is no way for the Owner to come back and pay the note and retain ownership of the property.

For reference: Property is located in Upstate New York.

Does anyone have experience in a similar situation or any advice to share? 

All the best,

Remi