All Forum Posts by: Chance Covan

Exciting investment opportunity with Prime Equity NYC. Details on the project below. Find more information on this opportunity on InvestNext here. Reach out to me at 870-416-0208 or send me an inbox to set up a call.

Project: Wayne Project

Overview:

Our current offering is a 30,000 square foot retail strip in a prime location in Pompton Plains, NJ that is conveniently situated near national tenants such as Walmart, Target, Home Depot, as well as a variety of major car dealers.

This property was built in 1980, currently leased at 84% across the 6 tenants and has 70 parking spots. This strip sees over 50,000 cars daily which strategically positions this property for high visibility and will attract premier tenants post value add.

Strategy:

This is a value add project.

Right now the stores are leased at $13-$15/sq ft which is well below the market rate of $24/sq ft in the area.

We plan to add value by facelifting the facade of the property and we expect it will take around 18 months, during which we will start leasing the available spaces at market rent which will add substantial value to the property.

Once we reach 100% occupancy, we plan to refinance the property, (year 3) which will return around 70% of the equity to investors.

Exit after 5 years.

Key Highlights:

IRR: 18.5%

Cash on Cash: 67% or 13% annually

Min Investment: $50k

Target Hold: 5 years

Exciting investment opportunity with Prime Equity NYC. Details on the project below. Find more information on this opportunity on InvestNext here. Reach out to me at 870-416-0208 or send me an inbox to set up a call.

Project: Wayne Project

Overview:

Our current offering is a 30,000 square foot retail strip in a prime location in Pompton Plains, NJ that is conveniently situated near national tenants such as Walmart, Target, Home Depot, as well as a variety of major car dealers.

This property was built in 1980, currently leased at 84% across the 6 tenants and has 70 parking spots. This strip sees over 50,000 cars daily which strategically positions this property for high visibility and will attract premier tenants post value add.

Strategy:

This is a value add project.

Right now the stores are leased at $13-$15/sq ft which is well below the market rate of $24/sq ft in the area.

We plan to add value by facelifting the facade of the property and we expect it will take around 18 months, during which we will start leasing the available spaces at market rent which will add substantial value to the property.

Once we reach 100% occupancy, we plan to refinance the property, (year 3) which will return around 70% of the equity to investors.

Exit after 5 years.

Key Highlights:

IRR: 18%

Cash on Cash: 67% or 13% annually

Min Investment: $50k

Target Hold: 5 years

@James Wise Thanks for the response. What market should I be exploring?

 @Min Zhang Thank you for the response!

@Alecia Loveless Thank you for this response. I've considered buying a duplex and renting out one side. The issue I run into, based on what I can put down, is that I would most likely have to split the mortgage down the middle (I pay half/Tenant pays half) based on current rental rates and current mortgage rates (considering what I can put down). Does that scenario make sense? What would pros and cons be of splitting mortgage evenly?

New to BP but looking to get started in my journey to financial freedom. I wanted to create an open discussion for some experienced investors and understand what you would do in my situation. I currently have $40k and own no real estate. What would your strategy be for creating a portfolio of real estate properties?