Loan amount
$696,500
Loan type
Purchase {Fix&Rent}
After Repair Value
$1,099,985 {PP:$690,000}
ARV
63% {ARV}
Property type
Multi-Family 1-4 Units
Borrower Details
Credit score
730
Deal experience
2 deals
This loan scenario was submitted by a Broker
No
Property Details
City
Mount Vernon
State
New York
Loan Details
Purchase price
$690,000
Down payment
$68,988
Cost of improvements
$75,000
Estimated property value after repairs
$1,099,985
Additional Loan Information
This project will consist of a roof replacement, minor sidewalk repair, gas/electrical upgrades and cosmetic touch-ups including painting, bathroom and kitchen renovations. I am currently in contract looking to close at the end of the month. It is a very good property value with a lot of current equity based on the purchase price, and massive in size and profit potential. I know this is a quick turnaround, but I have all of my documents ready to go and am always available!

My real estate experience started in 2008, when I was manager at Elite Property Management and handled the invoices, rent receipts and administrative tasks of six buildings in Manhattan (included more than 55 tenants). While I am a corporate finance attorney, I have also done two real estate closings and advised on several other real estate transactions at my prior firms on a pro bono basis.  I purchased my first investment property in February of 2021, which is a 4,000 square foot multifamily in NYC with five tenants (fully occupied), a driveway and a detached garage.  I cover everything relating to the property including listing the apartments, coordinating with tenants, collecting rent and handling any and all renovations/repairs.  I purchased the property as a true fixer-upper, and have completed renovations including painting, new roofs (building and garage), waterproofed siding, sheet rocking, plastering, new pipes, bathroom upgrades, flooring changes (including completely new floors), upgrading the electric panels, new appliances, countertop replacements, structural revisions to add an additional bedroom, new windows and an oil-to-gas conversion (which just was approved by the city, is taking place right now and includes complete removal of the radiators and steam pipes in the entire building and installing baseboard heating throughout and four new Weil McLain boilers in the basement). I have committed contractors for every type of job you can imagine, and truly feel like I built the entire property. It has been quite a journey and experience, especially with some of the negative inconveniences including having a couple Section 8 tenants who have damaged property and committed crimes on the premises, illegal holdover tenants from the previous owner who initially refused to leave and countless heating issues with the previous boiler.  But I am ecstatic to say that even though I had to invest more than $200,000 of my personal funds to have these repairs handled, the property is in phenomenal condition, I have new tenants moving in next month to replace the ones that weren’t great, and the market value has increased so much as a result of this work the city had to (unfortunately) largely increase the taxes.  I purchased the property for $810,000 and it appraised last year for $850,000, but I get cash offers repeatedly for more than $1.1 million from unsolicited buyers.  The property also now nets (after expenses) approximately $4,000 per month.

I also own my personal home, have equity there and as a result have experience with co-ops and doing a legal co-op closing.  For any future purchases I would be the handling attorney, and the contractors who have worked on my property in NYC are people I trust, repeatedly refer and work with, and would handle any and all future projects on a future potential purchase.
Status
Created
May 13, 2022 - 3:36pm

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