All Forum Posts by: Jason Chen

Largest potential roi?  I don't think so. Royally pissing off 30-40 very deep pocket homeowners is only going to get these guys their *** handed to them. Besides, it's a total douche move to go about it the way they want to. Sure, it's clever to buy the property- but then get together with the homeowners, cut a deal to sell it to them, and earn a tidy profit without pissing everybody off. 

Thanks @Filipe Pereira.  Norwich is weird because buildings with great financials will sit on the market for a long-time.  It seems people are more interested in investing in the surrounding towns (Mystic, Pawcatuck, etc).  Norwich definitely needs a gentrification initiative (better elementary schools, more for kids and families to do, etc).  Hopefully the town realizes that and can act.

Thanks for the offer @Ryan A.!  I wonder about that old mill in Taftsville.  It seems like if that's a nice building commanding high rents, that could help the overall Taftsville area and not negatively impact the rents of the building I'm looking at (3BR ~$850).  Ultimately it's probably not an area I will invest in because it may be a little too up and coming for me.  My current building is in Norwichtown and I'm looking to expand my portfolio there.

@Jason Chen The building I'm looking at is a 5-unit for $145k.  The financials are terrific and the structure is sound.  There may need to be a lot of exterior work to make it nice though.

I have some clients looking to purchase a hotel in the state of Georgia . Anyone know of anything? In the $6M price point

Estimated rehab $13,000 .     Then in small print , if you do all the work , dont get permits and get half of the materials for free .

No worries, I'm afraid the picture I attached with the financials has a very low resolution.

The purchase price is $5,600,000 for 52 units, the loan amount is $3,700,000 secured at a 30-year term with a 30-year amortization period, interest rate is fixed and rate locked at 3.85% for 5 years.

The sponsor is raising a total of $2,500,000 in equity (they are also buying in ~15% of the equity), so the additional $600,000 raised are going in closing costs and fees (~300k) and budget for renovation (~300k).

Because of the favorable debt, the DSCR seems particularly good (I have been comparing this deal to other crowdfunded on the web and boy those are risky, some barely get to 1 with an interest only loan!), it never goes below 1.3 even from the very beginning (of course an end of the world situation could always happen and vacancy skyrocket, but realistically that's not likely to happen in Sacramento at this time).

I'm a fix and flip investor who is used to buying homes and fixing them up both inside and out. Not only making them as pretty as they can be but also as safe as can be. I'm having some mental hurdles that I am having a hard time getting over in switching to this strategy. I'm used to re-wiring homes to ensure that they are safe. But I hear of so many investors who buy homes at a good price and immediately turn around and put a tenant in. Can anyone speak to this?