All Forum Posts by: Sebastien B.

IRR on property A is around 40% if everything keeps going smoothly.

We're hitting around 15% returns on a property I bought on Miami beach last year. An investor gave us 200k @ 5% interest only to park his money in the US for a share of the resale profits, so after paying him we're doing about $45k on 300k invested, and we're about to refinance out for $420k. Going to pay the investor $120k out of that and pocket the rest, which will bring down net cashflow to around $7000/year on $20k of remaining invested principal, so around 35% return on that?

I am actually working on a new deal for $2m that should net me around 15% irr after renovating and repositioning. also have the ability to turn it into a "hotel" and almost double that irr.

Foreign investor was a friend of a friend connection.

It took us 1 week to rent the back unit, and we rent the front unit on a monthly basis.

Clearing about $3k/month after everything. At my cost of $250k, its about a 14% return without any official mortgage usage. I'd like to refi the house in the coming months and get most of my equity out for the next project.

Bought it last year for $300k, needed $150k to renovate. I raised $200k from a foreign investor to pay for renovations and put some money back in my pocket. In exchange, the investor gets a fixed 5% Interest Only return until we sell, where he would receive a 40% share of the proceeds above $500k. Currently doing about $7,000/month in rent. Expenses are about $3,400/month, including the interest payment to my investor, a $400/month general maintenance reserve and a 2% capex replacement reserve based on the total renovated cost of the property.

http://tinyurl.com/mmkez6c

I know its not the kind of cap rates that a lot of you like, but it's pretty great compared to what else is in the miami market.

I am interested in downtown/midtown Detroit for larger multifamily/office buildings. Does anyone have some details on that side of the market? I am not really interested in buying houses, and figure that downtown is probably the first place any real "resurgence" would take place.

For example, if I compared downtown detroit to Manhattan, which areas would have the "madison/5th avenue" potential. Which would have the best Chelsea/Meatpacking/West Village potential?

True. The biggest issue is that I own a property across the street from it, and the last thing I want is a government housing complex that may bring down prices in an otherwise high appreciation area.

I just found out that the local housing authority just blew all the other bids out of the water (think $500k when offers and asking price was at $410). Now I have to figure out if its worth trying to beat that price.

Has anyone had experience with this? Is the local housing authority simply overpaying? I have checked the numbers, and it technically makes sense still, but buying at this price would require me to try and demolish the current structure or at least significantly add to the current structure in order to make a decent return...

The worst part was that I later found out that my orders did get hit, but because of the huge amount of order flow happening at that same time, the broker I was using was unable to fulfill the order until 2-3 mins after the price was hit. A couple order were hit and NEVER filled. By the time they could route the orders, the market had gapped up and I may as well have not even made those orders.

March 10th, 2009. Back in college, I was owned about $3k worth of puts in various financials and a few calls on a bear financials ETF (s&p was at 715 ish when I bought), which net me like $40k. There was no end to the pain in sight. I had to run to class, noticed the market was still tanking and left happy thinking by the time i got back (about an hour later) I could sell and buy something nice.

In class, my P/L reached somewhere around $60k and I was about 2% away from hitting my closing order on about half my position. The other half was still OTM and was pennies away from going ITM and thus giving me a double wammy in profits. I couldn't concentrate but I had to attend. A few minutes later I notice a HUGE spike up in everything and I panicked. Citi had posted profits, some congressman was talking about the uptick rule being reinstated. I went from a $60k gain to a loss of like $500.

Worst day of my life. I ended up pretty much flunking that semester.

This is why it's better to have a "controlling partner" who knows what he/she is talking about. Your partner shouldn't have the authority to authorize any lease without your signature/explicit consent, especially in a case where you explicitly stated otherwise regarding the tenant in question.