All Forum Posts by: MIlton Monzon

Quote from @Robin Simon:

Nice work so far - always good to "overestimate" the rehab with all the stuff that could cause delays/go wrong out of anybody's control.

 Yes Sir I agree completely.  

Quote from @Nate Herndon:

Looks like you would have a great return in any scenario. Bummer to hear that you weren’t able to capitalize on the 90-day cash out but that’s how some deals go. I’ve got a lot of clients who are knocking out 6-8 week rehabs and taking advantage of 75% LTARV, so the opportunity is definitely there. 

How are your market rents looking?

Thanks for your comment and reaching out.  Majority of my portfolio from flips to BRRRRs have been in East CT and its been great for me so far.  The only trouble tenants i have had have been my inherited ones.  Majority of wholesalers on this end tend to provide a lot of those.  Other than that rental market is strong and properties are a little older but we budget expecting that so our numbers average on the 1.5-2% rule often.  Have to be very conservative but when we buy we buy good.  Mostly stay to 2-4 units because as long as i have 50% rented then all expenses will be covered.

What about your market?   

Investment Info:

Small multi-family (2-4 units) hard money loan investment.

Purchase price: $196,080
Cash invested: $39,216

220k to 196k. Not a big drop but big enough to meet the expected 70% ARV criteria needed for hard money. ARV expected based on appraiser was 290k. Currently I remodeled one unit and all mechanicals too. Last repair made is the deck but city is making it hard with permitting. What should have been a 3 month cash out refi is now looking like a 6-9 month. Either way exit strategy is cash out refi at 75%, Refi at 80% (no cash out), or sell and net approx 70-100k (but hate capital gains).

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

Pulled a HELOC on a property of mine and had the funds to invest. Either buy a business truck to write off on taxes or more rentals to write off.

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

Seller posted a desire to sell on Facebook. A couple of months later I reached back out and he had no bites. So we ran numbers together and used inspection and appraisal reports as tools to negotiate.

How did you finance this deal?

RCN capital. Deal number 7! HML.

How did you add value to the deal?

Bought at non updated cost and improved/rehabbed.

What was the outcome?

Still in progress. This is for new investors to join me on this journey and see the outcome. Update to follow in 6-12 months.

Lessons learned? Challenges?

New city/town permit process is a headache and stricter rules and regulations.

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

RCN capital Christine Naidoo amazing! Other then that it was just me and the seller 1 on 1 and being open.

Investment Info:

Small multi-family (2-4 units) hard money loan investment.

Purchase price: $196,080
Cash invested: $39,216

Expanded our CT reach. Seller needed more room to breathe so I negotiated and got him to 196k from 220k. Not a big drop but big enough to meet the expected 70% ARV criteria needed for hard money. ARV expected based on appraiser was 290k. Currently remodeled one unit and all mechanicals are updated. Last repair made is the deck but city is making it hard with permitting. What should have been a 3 month cash out refi is now looking like a 6-9 month. Luckily HML is 12 months. Either way exit strategy is cash out refi at 75%, Refi at 80% (no cash out), or sell and net approx 70-100k (but hate capital gains). Will update when that decision comes around.

Investment Info:

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

Purchase price: $272,000
Cash invested: $112,362

Off Market 4 plex. Got with a partner. I found the deal, he supplied down payment and closing cost, I supplied rehab cost and managing the contractors. 112,362 of cash invested includes 20% downpayment. With all repairs made new value of home is 350k+. This asset will help offset my gains from the recent flip and provide extra cashflow.

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

Partnership and tax write offs.

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

Off Market with another wholesaler whom i had worked with.

How did you finance this deal?

RCN Capital 30 yr fixed loan. 20% down.

How did you add value to the deal?

Remodel of all units, brand new roofs, new tenants screenings.

What was the outcome?

Strong 4 plex with great units in downtown New London.

Lessons learned? Challenges?

Wish i had negotiated the price more with the wholesaler and gone lower. Rehab amount was more than expected and even though all that is now equity in the deal it leaves me with money stuck in the deal rather than money i can continue to use elsewhere and invest. Either gone lower in price or walked away. Still a good deal with at least 10% COC ROI.

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

Brenda Engel agent from New London Ct and RCN Capital for a fixed 30 yr loan.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $117,500
Cash invested: $95,000
Sale price: $330,000

Off Market Single Family. Due to how the market was going we were very conservative with the numbers. I prefer to hold rehabs but wanted to test the flipping game and teamed up with two contractors. It was a hoarder house and had to negotiate with wholesaler to bring the value down. We expected 275k conservatively and 300k max. Amazed when 330k was offered second day on market in April 2023.

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

Wanted more capital and test out a partnership with my contractors. Goal was to have enough capital made to pay off any debt I had to finish the year.

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

Off Market Wholesaler who I had done a deal with. He wanted 155k initially and we got him down to 317,500. Numbers were to tight for us with a 275k ARV and 90k rehab at 155k. Plus there was Solar panel drama involved, property was near commercial buildings, oil heat. Alot of minor headaches that could have piled up at a tighter price.

How did you finance this deal?

RCN Capital my preferred hard money lender and between myself and my two contractors we split the downpayment in 3.

How did you add value to the deal?

Tiled bathrooms, Major kitchen reno, LVP flooring everywhere else, and curb appeal.

What was the outcome?

Finished project in 6 months and made over 117k in profit split 60/40. Now had to get creative to write off 30% in taxes.

Lessons learned? Challenges?

Winter holidays slow the process down. Commuting for my contractors was a headache and unexpected expenses. Original budget was 68k and that was approved by the lender. The remaining 37k was out of pocket. Really happy i got all that back.

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

Brenda Engel from New London CT and RCN capital for hard money lender.

Investment Info:

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

Purchase price: $108,000
Cash invested: $23,000

Originally listed at 193k. Negotiated to 108k. Appraisal report showed "as is" value to be 155k! So off the bat 47k of equity with two tenants who were paying on time 875 and 1500 a month. Leases expire in July and market rents will be 1350 and 1700 bringing in 500$ more of cashflow totaling 1000$ a month with a rate of 8%. Out of the 6 homes with listings longer than 90 days two negotiated with me and this one made it happen. Worst thing that could have happened is the seller saying NO.

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

Wanted to scale and finish the year strong after pulling equity from a recent BRRRR.

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

MLS while looking for listings longer than 30 days. Offered a quick close and only an inspection contingency.

How did you finance this deal?

RCN capital HML.

How did you add value to the deal?

Lowering asking price to a price that would me my 12% ROI.

What was the outcome?

12% ROI and existing equity!

Lessons learned? Challenges?

Always take advantage of the inspection window to conduct all needed inspection and use them for negotiation.

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

Brenda Engel my go to in SE CT.

Investment Info:

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

Purchase price: $108,000
Cash invested: $23,000

Originally listed at 193k. I waited until it dropped. It eventually came down to 180k. So I reached out offering 135k while showing that I can close in less than 25 days. Used findings from the inspection to negotiate and we were a week from closing. Agreed on 108k. Appraisal report showed "as is" value to be 155k! So off the bat 47k of equity with two tenants who were paying on time 875 and 1500 a month. Leases expire in July and market rents will be 1350 and 1700 bringing in 500$ more of cashflow totaling 1000$ a month with a rate of 8%. Out of the 6 homes with listings longer than 90 days two negotiated with me and this one made it happen. Worst thing that could have happened is the seller saying NO.

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

Wanted to scale and finish the year strong after pulling equity from a recent BRRRR.

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

MLS while looking for listings longer than 30 days. Offered a quick close and only an inspection contingency.

How did you finance this deal?

RCN capital HML.

How did you add value to the deal?

Lowering asking price to a price that would me my 12% ROI.

What was the outcome?

12% ROI and existing equity!

Lessons learned? Challenges?

Always take advantage of the inspection window to conduct all needed inspection and use them for negotiation.

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

Brenda Engel my go to in SE CT.

Investment Info:

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

Purchase price: $100,000
Cash invested: $90,000

Distressed triplex purchased through a wholesaler. Tons of work needed and inherited tenants taking advantage of their landlord. Many months behind rent with no intention to pay. Bought as my first BRRRR and got to apply everything BP has taught me so far. When bought it brought in 500$ a month. Now brings in 3400$ and after all expenses and refinancing at 7.5 rate cash flows 1000$ a month.

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

Bigger Pockets and generational wealth. Wanted to take the leap and try out a BRRRR.

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

From a wholesaler on fb REI group for CT area. Offered to purchase instead of creative financing. At the time using a hard money lender was a better option to fix and rent faster.

How did you finance this deal?

Hard Money Lender RCN Capital. At the time it was 10% down.

How did you add value to the deal?

Brand new mechanicals, Roofs, cleaned the siding, new vynl fence, LVP in all the units, pain, appliances, bathroom, and kitchen upgrades. Home was a mess. Trash piled up everywhere, not maintained for many years, and we used a rehab loan and stuck to our budget as best as possible.

What was the outcome?

Originally only needed 80k of work into it but contractor that scammed me on a previous deal was also leading this one and ran off with 10k from here so that hurt. Expected 220k ARV and it came back at 255k ARV. Refied at 75% and recovered all that money and now have a strong triplex with happy tenants that meet all the criteria needed for my rentals.

Lessons learned? Challenges?

Hmmm same as last. Was very strict on my contractors bids, interviews, and who I trusted. Biggest thing I did learn was not to cheat my own rules and maintain a strict budget and criteria for deposits, payments, and verifying work is completed by contractors.

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

Yes Brenda Engel amazing from New London area. She was my boots on the ground while I was traveling with the military. She’s an amazing agent and very helpful at recording videos and taking pictures for me.

Also used RCN Capital. This was deal 2 with them out of 6 that we have done now.

Quote from @Gaetano Ciambriello:

@MIlton Monzon - awesome work, I think New London is on the come-up!

@Gaetano Ciambriello  oh I agree I love SE CT. Def have found great tenants too.