Updated over 6 years ago on . Most recent reply
Time Square Fix and Hold
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $675,000
Cash invested: $15,000
Sale price: $750,000
Luxury finishes, partnered with my uncle.
What made you interested in investing in this type of deal?
Research
How did you find this deal and how did you negotiate it?
there was a lot of ways I was finding deals but this was the most unusual for me, it actually came through an actress I met during a photo-shoot. I told her my uncle likes entertainment and would like to invest in upcoming movies or series and for a while we met about that but it wasn't until I mentioned I am also actively looking for deals in NY that she proposed to help and help she did. Extremely fast in fact and find and close on the place in about 10 days. I made a sizable amount of profit.
How did you finance this deal?
Cash.
How did you add value to the deal?
Got contractors from the management agency who happen to be really cheap.
What was the outcome?
Buy and hold for short-term rentals in a prime area for tourists, Time Square, our client base consisted of upscale tourists, corporate clients, diplomats, the works.
Lessons learned? Challenges?
1. If it comes to investing in real estate in high price point cities, take the time go through the agent course and get a license so you can make more money.
2. Due diligence is the highlight of a transaction and when it done right, the closing happens naturally and it become very satisfying because you see the fruit of your labour.
3. Contractors can be tricky but with a good team, get recommendation from people that work with them a lot. Managenment companies are best in my opinion.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
That actress was the agent in this deal but I had done most of the work for every party involved including the attorney who was one of the best out there and thanked me for it. The agent (and actress) made a lot of money that could have been mine. It is now the sole reason why I am a real estate agent.
