All Forum Posts by: Taylor Johnson

We currently have a 3 unit building under agreement on Warwick St right by Northeastern University in Boston MA. 
We will be doing a full gut rehab and then we will keep the building as rentals.                                                          We are looking to raise $310,000 in return for a 40% stake in the building.
In terms of capital structure, we will be financing 75% of the acquisition and 100% of the construction through Wellesley Bank, which has already given us a favorable terms sheet. 

If this project is of interest to you please email me at [email protected] and I can share our underwriting and package detailing the opportunity.

Looking for private financing on a buy and hold project that we currently have under agreement. It is a three unit building located on 20 Corona Street. For this building, we are looking to raise $140K for a 35% equity position.

Here are the details of the building:

1. Building specs: each unit is 4 bed/1 bath with about ~1,400 sq feet of livable space (4,200 livable total). There is also off street tandem parking that can fit about 3 cars.

2. Building condition:

Unit 1: Condition of unit 1 is actually more or less rental ready, with just a few very minor upgrades needed to get a tenant in there. It is currently owner occupied and will be vacant.

Unit 2/3: These units will also be delivered vacant, and are in similar condition but need a bit more attention. They will both need cosmetic work, including putting in new kitchens, baths, flooring, carpentry improvements etc. They are both laid out well for rents, so it's really just a matter of getting the cosmetics on there.

Building systems/exterior: We will need to do some deck work to stabilize a couple of the exterior decks. We also plan to upgrade plumbing (put new furnaces in) as well as upgrade the electrical.

Strategy

The strategy on this is pretty clear cut. The building will be delivered vacant, so we plan on jumping into the work right after closing for units 2 and 3. Since we are not doing any major renovations (i.e no re-framing/breaking down walls), these renovations should not take very long (~3 months). We then stabilize the building with leased tenants at 2400/2500 per unit rent. We believe the work should total to about $150K.

Numbers and Returns

In terms of ARV for the building, we believe an upgraded building such as this with 4/1 units with parking will be worth conservatively about $940K, with some comps showing even more. If you are considering an equity position, with a 35% stake you can achieve an IRR of over 16% over a 3 year hold. Comps and our numbers can be sent via email if you are interested in this project.

Synergy

We bought 6 units earlier this summer very close by in Dorchester. We had a very similar situation and strategy there, and with the acquisition of this building, we will be looking to streamline into our management system.

Capital Raise

The $140K would be the entire equity capital we are looking to raise. For our debt, we will be looking to use the same structure as we received from our lender on our 6 unit deal in Dorchester earlier this summer, which was 80% LTV, I/O first year, 5.5% fixed rate for the first 5 years.

Please reach out to me directly if you have any questions or would like to discuss further. [email protected] 617-820-8964

We currently have a 6 unit building UAG for $1.3MM that we are looking to close on towards the end of July. The address of the building is 196-198 Main Street in Everett. We are looking to raise $385K for up to a 60% equity stake in the project, with a minimum investment of $50K.

Here is an overview of the area, the building, our strategy, and the financials:

Area: This is one of the best parts of Everett. We are about ~1.1 miles away from the new Casino being built and the potential footbridge to Assembly Square and Somerville, ~1.3 miles away from the Gateway Shopping Center which has retailers like Costco and Target, and ~0.6 miles from the popular Nightshift Brewery.

This is the part of Everett that is also starting to see the rise of luxury condos, as evidenced by recent sales on School Street (0.4 miles away) and Floyd Street (0.7 miles away).

The building itself is also conveniently located right next to a bus stop that goes to close-by a few T-stations.

Building: The dimensions of the building are the following:

Gross Building Sq footage: 10,348 sq feet

Gross Livable Sq footage: 7,554 sq feet

Lot Size: 5,410 sq feet

All units in the building are large 2 bedroom units (average of about ~1200 sq feet per unit). We walked the entire building and it was surprisingly well maintained and in good condition. Only very light cosmetics will be needed to get the units ready to go (we estimate about 5K per unit).

In terms of systems, all utilities are split. The furnaces are about ~20 years old and the tanks are about ~2-3 years old. The basement was clean with no water, and there was no dipping or other evidence of issues with the foundation. Over-all the building is solid. 

Strategy: From an underwriting perspective, we are looking at this as a 3-year "flip". As soon as we acquire ownership, we will start the eviction process and get the tenants out asap (its very unlikely any of the current tenants would be able to afford the market rate rent of about ~1,850 per month). Once tenants move out, we plan on doing minor "fluff and buff" to the units, which will include some new appliances, re-sanding of floors, and some paint. In our underwriting we have this process taking a year, but in reality we can stabilize the building quicker than that.

Once we stabilized the building, the goal will be to operate it efficiently and build out reserves (that's why I have a capex budget in our cashflow analysis that comes after the NOI). At year 3, we project to exit the project by selling it as a 6 unit building.

We own a few units in Everett so we already have maintenance systems and local handymen/contractors etc that we can shift over to manage this building, and the other partner on this deal, Willie Mandrell (owns the Mandrell Company, founder of Boston Wealth Builders, and owns multiple rental buildings) will also assist in the smooth maintenance of the units.

Financials: Please see the attached financials to this deal. As you can see from the numbers, in year 1 (current operations) we will be stabilizing the building. We talked to our commercial lender and we were told we could do an I/O loan, which will help us with carrying costs while stabilizing.

In year 2, our loan will switch to principle+interest, and we should have solid cash-flow after all expenses (including capex reserve budget).

From the investors perspective, you will likely care most about your IRR. As you can see from columns H-J, at 60% stake, the equity investor should be getting about ~15.6% IRR over the course of the three years. To derive this IRR we used all the conservative assumptions (for cap rate and annual appreciation rate etc). Clearly the return is mainly driven by the built-up equity, which is why this is really a "long-term flip".

We see this as a great opportunity to get into an expanding market at a very reasonable price.

Please let us know if you have any additional questions. 

[email protected]

[email protected]

Everett Financials Excel

Thank you Brian, we should be all set with this one, but I will definitely keep them in mind in the future! 

Background on the property:

This is a 3 unit brownstone, row-end building that is in the South End/Lower Roxbury. It's a small building (1,900 sq feet livable) that will need to be gut-rehabbed. The building is right next to Ruggles T Stop and Northeastern, right of Tremont Street. That area in particular is experiencing a lot of revitalization. In addition to Northeastern University expanding every year, Roxbury Community College recently announced and began a major overhaul of its campus. Also, the famous Slades Bar and Grill (once owned by Bill Russell), was acquired by a real estate developer and celebrity promoter this summer. All this goes to show that this area is changing as we speak.

Our Plan:

Our plan right now is to buy the property using a commercial loan with a supplemental construction loan, gut rehab the place, and keep the property as high-end 2-bedroom rental units. For the refinance, we are looking to refi out of our initial loan at 80% ARV once the units are complete and rented.

Condo Comps:

For condo comps, we used a radius of 0.28 miles and looked up to 24 months back. *Note that I specifically excluded all comps that were past (i.e closer to the south end) Northhampton Street; once you start getting to Mass Ave values are judged differently.

Please reach out via email for a more detailed analysis and comps package.

Overall Numbers:

Based on the numbers in our pro forma, what we are expecting is once we stabilize the building and get market-rate tenants in there, we will be cash flowing about $200 per unit per month. Though this is not an eye-popping number, most of the return will be driven through our refinance/built equity. Based on our more conservative comps and building ARV, we will be able to cash-out ~$250K in the refinance, which is almost the entire amount we are looking to raise. If looking at the project as a whole, we are projecting about a ~18% IRR overall.

Our Proposition:

To get into this project, we are looking to raise about ~$270K as the down-payment for the initial commercial loan. Though we are happy to hear your thoughts on structure (assuming you are interested), we are thinking the private investor could either join in as an equity or debt investor. In the latter scenario, one scenario we had mapped was a 15% interest-only loan that would be paid off within 2-3 years, with the option of converting into an equity stake if we, as the operators, cannot pay the full sum back by the time (as additional protection to your investment). 

Please call or email Taylor at (617) 820-8964 , [email protected] for more information. 

***RARE OPPORTUNITY*** Attention Investors & Developers! 5 Adjacent properties for sale! Just steps away from the South Bay Shopping Center and the 700,000+sqft South Bay Expansion Project that is already well underway! These properties are the last package available for purchase right in the middle of everything that North Dorchester, South Boston, and Andrew Square has to offer! This package of real estate (2,4,4R,6 FIELDS COURT & 5 BAKER COURT 02125) is surrounded by new development. Don't miss out on this incredible opportunity to get one of the last remaining development projects in one of Bostons hottest neighborhoods for years to come! Easy access to public transportation, the red line, I93, shopping center and Mall, brand New AMC Theatre, and the amazing hospitals and universities that make Boston an international hub. Being Marketed and sold as one package, As Is. Asking $5,990,000.

 For More Information Contact Taylor Johnson at (617) 820-8964 or [email protected]

@Caryn Benoit I have some condo conversions coming up for sale this spring/summer and as an agent I work with many investors and developers. I would be happy to connect and see how we can help each other out. Send me an inbox if you want to connect!

@David Barnett I work with many different investors and developers and I have my own personal investments as well. I would be happy to discuss different avenues of investing in this extremely competitive market. Feel free to inbox me and I am happy to help.  

Hi David, 

Welcome to BP! if you are interested in expanding your portfolio in the Boston area feel free to reach out. I would be happy to help in anyway I can. 

Hi @Jared Smith, I have helped some first time investors in the Boston area crack into this competitive market and would be happy to connect with you and tell you more. Feel free to reach out anytime, and check out Boston Wealth Builders. BP is obviously awesome and keep checking out everything here too.