All Forum Posts by: Ugochukwu Opara

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $10,000
Cash invested: $90,000
Sale price: $185,000

This was a super damaged property that we had the privilege of bringing back to life

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

It was a deal brought to me via my network.

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

It was a deal brought to me via my network.
One of the lenders that I deal with has a partnership with the city and this was one of the properties that was so badly damaged that they didn't want to deal with it. My team has built a reputation for running into builds that others run out off so they gave us a rang and we sign for the deal.

How did you finance this deal?

Hard Money financed

How did you add value to the deal?

Full gut rehab.

What was the outcome?

Happy home owner

Lessons learned? Challenges?

move faster and get the gas company out as soon as possible since they take for ever if they need to dig the street up and get your gas line back on. This property had been empty for so long that they gas company turn of the gas at the street so it was one of the longest processes I ever had to get it turned back on.

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

I'm a licensed realtor and I have a construction management company so I would recommend my team for both of those matters.

👋🏿 

Realtor and Buy & Hold Investor.

I am also a licensed GC.

Let’s connect. 🕺🏿💃🏿🙌🏿

hey if the 25% is an issue then I would 

1) find a ugly property and borrow via hard money to buy and fix up the property (preferably a 2-4 unit). Once fully rented you can cash out refinance and move on to the next project. This way has been great for me as I have been recycling the same 25k to add over 11 doors and counting.


2) Rent a space close to downtown or the airport in your area. Make sure they allow for Airbnb. Spend 5-10k to make the apartment a themed apartment as they tend to do much better than a regular Airbnb. 

Cheers

Investment Info:

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

Purchase price: $60,000
Cash invested: $26,000

Single conversion to duplex (1+1)
This one wasn't too bad, partial gut.
We had to add an addition in the back that consumed the entire backyard.
This was actually a plus since the conversion would not allow access to the backyard.

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

Zoning allowed for more units than the current owner had in place.

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

MLS

How did you finance this deal?

Hard Money
15% down
100% of renovations
no payments until renovations are done.

How did you add value to the deal?

Gut rehab and conversation from 1 family dwelling to 2 family dwelling.

What was the outcome?

Rent for this, leveraging the blessings of PHA
Unit 1 (1 Bedroom) - $935
Unit 2 (1 Bedroom) - $935
Gross Monthly Rent - $1870

Loan (Mortgage, Taxes, insurance, ETC) - $850/m
Savings for Rainy Day - $200
Operations - $50
Water - $50

Net Cashflow - $720/m or $8640/year
Cash on Cash - 33%

Lessons learned? Challenges?

One way street made it difficult at times to not piss off the neighbors when dropping off materials.
The constant fear that someone was going to break in.

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

Agent (myself) - Ugochukwu U. Opara
Lender - JumpStart (Philadephia Only ... for now)
Title - Quick Abstract (Black Owned!)

Investment Info:

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

Purchase price: $60,000
Cash invested: $26,000

Single conversion to duplex (1+1)
This one wasn't too bad, partial gut.
We had to add an addition in the back that consumed the entire backyard.
This was actually a plus since the conversion would not allow access to the backyard.

Rent for this, leveraging the blessings of PHA
Unit 1 (1 Bedroom) - $935
Unit 2 (1 Bedroom) - $935
Gross Monthly Rent - $1870

Loan (Mortgage, Taxes, insurance, ETC) - $850/m
Savings for Rainy Day - $200
Operations - $50
Water - $50

Net Cashflow - $720/m or $8640/year
Cash on Cash - 33%

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

Zoning allowed for more units than the current owner had in place.

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

MLS

How did you finance this deal?

Hard Money
15% down
100% of renovations
no payments until renovations are done.

How did you add value to the deal?

Gut rehab and conversation from 1 family dwelling to 2 family dwelling.

What was the outcome?

33% cash on cash

Lessons learned? Challenges?

One way street made it difficult at times to not piss off the neighbors when dropping off materials.
The constant fear that someone was going to break in.

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

Agent (myself) - Ugochukwu U. Opara
Lender - JumpStart (Philadephia Only ... for now)
Title - Quick Abstract (Black Owned!)

Hey @Bhanu Kuna and @Rich O'Neill,

The tax abatement is being converted in so a scaling program. 

so 10 years still but with taxes going up 10% per year.

VS taxes staying low for 10 years and then ballooning on year 11.

So not as attractive but also not a massive deterrent. We will see how this will impact things in the near future. 
 

Investment Info:

Small multi-family (3 units) buy & hold investment in Philadelphia.

Purchase price: $45,000
Cash invested: $25,000 Down Payment Leveraging a Hard money loan for purchase and rehab. 

Zoned for multi-family but the seller was using the property as a single-family.
This will be a conversion for a single-family into a 3 family dwelling.
Super excited for this one as the value add will be massive.
This project should be done in 3-4 months.

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

The lot is massive and I was able to get a great deal on the purchase.

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

MLS

How did you finance this deal?

This deal was financed with a hard money loan that required 15% down on the total loan amount with 2 points and a $1500 commitment fee.

How did you add value to the deal?

Adding value by converting this from a single-family dwelling into a 3 Family dwelling by right.

What was the outcome?

The project is still in process but the outcome should be a nice amount of equity with a huge chunk of net cashflow.

Lessons learned? Challenges?

The biggest take away is that there are tons of opportunities that sometimes are sitting right underneath our noses! This property was listed in the market for 105 days and could have been a good deal at even $10,000 above the asking price. Stay thirsty my friends!

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

I am a licensed realtor and I recommend myself. :-)
I've been an investor-friendly realtor since 2014 so I have 6 years of doing this.
AND I am also an investor myself.

@Mary W. What's up girl! Philly & BTS in the building! Glad you were able to take something from my presentation. The conversions have been a great addition to help with building my portfolio and I'm happy that you are implementing the same. To Your Success!

Hey @Stanley Gordon,

Philly in the building! Feel free to send me any good deals that you and your partner come across. I am down for that all day. I do want to let you know, there are numerous meetups in and around the Philly area just like @Mary W. and @Sheryl Sitman mentioned. Tons! Between Facebook and meetup.com I have enough events to have 2 a day on a weekly basis. 

However, feel free to start your own if that is your goal. I just feel that your statement needed to be tweaked as Philly does NOT have a scarcity of real estate meet up groups.

Cheers

Fascinating topic and I think this is super smart! @Robert Hernandez If you are still nervous then just get a home warranty after your install that way you are covered should something fo wrong. @Mark Fries you are a smart man.