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Off Market Deal in Meriden, Connecticut - Opportunity for $ 75 Gross Profit and Improvement
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Off Market Deal in Meriden, Connecticut - Opportunity for $ 75 Gross Profit and Improvement
Hello friends,
As you have probably noticed, the number of good deals is small and must be found in tweezers.
The current deal is a duplex in a developing city in Meriden, Connecticut.
In the e-mail and on the website we describe the advantages of investment, the advantages of the region and the possibilities of profit.Many of you turn to me every day to ask if there are any new deals that should be entered.
As you have seen, since sending the last deal in April which was really a great deal below the market price it has been over two months, and there have been no deals that I believe are good.
To my delight, after many searches, I found a deal that I think is very good.The link to the transaction on the Forum's site site includes regional analysis, videos and pictures:
https://properties.www.forumnadlanusa.com/property/עסקת-off-market-בעיר-meriden-בקונטיקט/
Nature of the transaction:Purchase a duplex of 2 units for $ 102. (This price will only be allowed for quick decisions in the coming days as we do not have a contract for the property).
The first floor is currently leased at 700 USD, and the second floor at 650 USD. Total 1350 USD Rentals.
(15.8 percentage of gross yield)
Total cost for a renovated property with wholesale fees, closing fees, attorney, amount reserved for eviction of tenants if necessary, insurance, title, inspection and our accompaniment throughout the process until purchase - $ 138,500
Estimated rent after renovation - $ 2150 per month - ie 18.6 percent gross!
The value of the property after the renovation according to Compasses - about 215 thousand dollars. (See comparative assets below)
A gross profit opportunity of about 75 a thousand dollars in the clip!
Also the deal is great for long term holding - the potential for improvement of the property is that on the first floor only cosmetic renovation is needed, and on the second floor we will build two more rooms that will significantly increase income - which will bring us a net return of about 12 percent.
Want to ask questions? Complete the form on the website:
https://properties.www.forumnadlanusa.com/property/עסקת-off-market-בעיר-meriden-בקונטיקט/
Location: Meriden, which has undergone accelerated development in recent years
The big advantage of the city is its location - about a year ago a new train station opened there that leads directly to Manhattan in about two hours!It also opened a new central park (like a small central park) that received rave reviews (you can see the Google reviews in the photo) - many festivals are held in the park, and next to it the municipality has turned buildings with housing for the needy into modern condo apartments with pool, gyms, guard, etc. Of a high standard
Meriden Green's new park
As you can see, the new railway station is part of the improvement of the entire area and is adjacent to Meriden Green Park and the new condo buildings in the area
The city site tells about the new park and its activities
Meriden is considered a leader in aerospace engineering and includes companies in this industry who work with the US Army and live in, among others, aviation engineers and blue collar workers working in these companies.
Below is a list of the leading 30 airlines that are located in MeridenMeriden is only a 22-minute drive from Hartford - the capital of Connecticut, which is also the insurance capital of the United States with 17 Fortune 500 companies with a combined value of hundreds of billions and providing employment to area residents.
Learn more about the benefits of investing in Connecticut.
http://info.www.forumnadlanusa.com/multiHartford and Manhattan can be reached directly by train from the new station in Meriden.
More photos on the site
The opening of the new station makes Meridan accessible to the surrounding major cities - the new station began operating in June 2018 - watch the TV announcement of the new station
The great advantage of Meriden over many other cities in Connecticut is its excellent location on the transportation axis which makes it possible to get from there to Manhattan in a short time - in less than two hours:
Famous tourist site in Meriden - Castle Craig
CMA Comparative Report (Compasses):
15 Silver street
Almost identical property offered without renovation at 174,900 USD
2. 19 Silver Street
A property with the same area that was sold last April for $ 195,500 when not renovated. 2 minutes' drive from the propertyThe property is located in a school that ranks second in all of Meridan - from the publication of the property:
Do not miss your chance to live in the Pulaski school district. Pulaski is currently the 2nd highest rated elementary school in Meriden.The time we can advance in the transaction is limited - the price at which the property will go up for sale again in the free market in ten days by a broker is 109 without the renovation, closing fees, etc. - you can see the sales history below
Property's sales history:
The price includes full accompaniment until the property is owned by you and is under management company (if you are interested, we can also take care of you to open a company etc. at a reduced cost)
Business plan options:
Today the property has two tenants who pay 650 dollars each to 2 bedroom apartmentOption one: Leave the asset as it is as a yielding asset
Option Two: You can raise the rent to the market price of $ 900 for existing tenants, or decide to evict the tenants
(In principle it is better to leave a tenant who pays than to spend it to renovate his apartment in 7500 dollars and therefore it is better to see if you can get with tenants to build in terms of their low monthly rent)
Third option: renovate the property and keep it as a profitable property or sell it at a profit (flip)
Evaluation of expenses according to business plan 3 number which includes renovation:
$102,000
Cash purchase includes wholesale and accompaniment fee
$2,000
Estimated closing costs - lawyer, title insurance, inspection, etc.
$1,500
Reserved amount in case of evacuation of tenants
$33,000
Estimated renovation cost includes renovation assistance
$138,500
Total
Information about the property from the municipality:Property:
Property Chart:
Calculation of existing and proforma expenses:
You can see that the area is considered a hot spot for investment! With an average price per US $ 167,100. The region has risen by 5 percent in the last year
You can also get by in this area without a car - everything is close and there is a Manhattan train station!According to the Realtor website, the property value should rise by 13 percent over the next year:
Also according to the site, the value of this property is lower in 35.64 the percentage of similar assets!
The property is approximately 10 only a minute's walk to the Manhattan train (about 2 hours' drive from Manhattan):
Tour of the 1 property:
https://www.youtube.com/watch?v=Qkeo8JlUoRE&feature=youtu.be
Tour of the 2 property:
https://www.youtube.com/watch?v=rDLlvj_pLeA&feature=youtu.be
Tour of the 3 property:
https://www.youtube.com/watch?v=EDQOwxwgT10&feature=youtu.be
Tour of the 4 property:
https://www.youtube.com/watch?v=_FL1NDxqVBM&feature=youtu.be
Tour of the 5 property:
https://www.youtube.com/watch?v=o-jYIVyvwmQ&feature=youtu.be
Pictures from the property:
First Floor - Bathroom:
https://gyazo.com/49344612523d887959ac542d8c8e5769
https://gyazo.com/409beb6f3b5c3077a7f88c54ce53f742
Second Floor - First Bedroom:
https://gyazo.com/0d1464dc785b595736e5b48297b3bd55
Second Floor - Second Bedroom:
https://gyazo.com/8000330e593d87f8542f06361d445d6d
CMA - Comparative Index for Rentals (Boxes):
1.
Two Bed - $ 1100
2/
Four Bed - $ 1350
3.
Two Bed - $ 975
4.
Two Bed - $ 1400
5.
Two Beds - $ 1200
Remember I live an hour and a half drive from the property which is a huge advantage - I can be present at all tests, be physically with the lawyer to go through the documents and sign, work directly with the management company, get several quotes instead with construction companies for example if need to replace roof and do the The tour is physically in the building with them - something that is impossible for investors living in Israel.
Investment horizon:
The investment is suitable for anyone who can invest a sum that is not his last money and with a horizon of two years ahead for those who are looking to hold the property or sell a split after six months.
If you have no experience in real estate and you do not understand that property with tenants is a full-time job and not really passive income, and that it is sometimes necessary to deal with eviction of tenants, repairing the property, sometimes going to court, etc. Although I will be the one to work with the various factors to take care of anyway, we invest in the building together - and I will definitely prefer people with experience so that we can make important decisions together and succeed together. Definitely prefer road partners who understand what real estate is and will not ask to leave after a year or two.Exit from investment:
If you are required to exit the investment, you will need to find an alternative investor who will enter your place and that is acceptable to members of the investment group. If there are attorney fees and other costs of transferring the name to the new investor, these are expenses that you will need to finance yourself.What the United States Real Estate Forum headed by Lior Lustig provides for the deal:
(Some of the parameters are relevant only when the forum is part of the joint management of the transaction even after closing)
1. Comprehensive market analysis of all market assets and finding the best deals2. Options for financing future transactions on American financing terms with Lior's personal commitment to the bank to repay the loan - If the loan is not repaid, the bank sees Lior as a primary creditor and can seize his assets and because of this Lior is committed to a solid and secure transaction.
3. Negotiations on the price of the deal
4. A struggle with the municipality to reduce the taxes on the property
5. Establishing a new company and working with the lawyer, brokers and management companies to verify the transaction data - tenant payments, eviction of tenants, status of properties, planning status, adjustment between the payment of taxes and the reports presented.
6. Physical inspection of the building before sending an inspector - Lior Lustig lives an hour and a half drive from Connecticut and will provide video of the place during the tour and during the inspection
7. Inventions on site at the time of ordering an inspector, appraiser, contractors, management companies, etc.
8. Work regularly with the management companies and cross-reference the number of suppliers in each repair, for example when replacing a roof, bring in several suppliers and cross-reference various proposals for repair. Also working with our independent asset management software that will allow us not to be dependent on a particular management company. The software enables direct communication with the tenants, tracking of income and expenses, etc. - Lior will manage the software on an ongoing basis with the tenants and contractors in parallel with the management company.
9. Constant work on streamlining and optimizing expenses - due to extensive future activity of purchasing a large number of buildings, we can request a reduction in the cost of management and repairs, reuse of materials purchased in additional apartments, etc.
10. Work on increasing the value of the properties - for example in multi-family properties - improving the property to increase the rent and thus increase its value for refinancing or sale, performing various activities in the properties to increase income from them such as billboards, renting warehouses, washing machines and drinks, renting common spaces in the property. . Thinking outside the box as explained in Lior Lustig's lecture on the multifamily world.
11. Working with the American Accountant to produce tax returns for investors - K1.
12. Management of the bank accounts of the assets on an ongoing basis - investors will be given full transparency to the bank accounts to see the incoming and outgoing expenses.
If you are interested in more details, please send a return e-mail to this e-mail by clicking on the blue button at the bottom - but it is better that you post your questions in the Connecticut Transactions Forum, which is part of the "investment arena" on the forum's website:
https://www.forumnadlanusa.com/groups/connecticut/forum/topic/Register to the site with your Facebook account, click on the Connecticut forum, ask to join and we will approve it. The forum is intended for transactions relevant to Connecticut.
The "investment arena" on the site is a new and experimental format, so if you encounter any problems, do not hesitate to contact me.
You are also welcome to arrange a conversation with me for further information or consultation in this link.Investors who first transfer the seriousness fees will enter the deal.
The exact address of the property will be given after signing a confidentiality document and transferring the seriousness fees.
By the way - if you know an investor who is interested in joining multi-family transactions in Connecticut, you are welcome to send him / her the landing page:
https://info.www.forumnadlanusa.com/multiAppears 🙂
Lior Lustig
Director and Founder of the United States Real Estate ForumSeventeen companies worth billions of dollars in the Fortune Index are five hundred
Why investing in a multi-family is the best investment - basic concepts
Is in the seventh and most respectable place in terms of economic strength and post-state jobs like California, New York, Texas, Illinois, New Jersey and Washington
Second place after Las Vegas in casino tourism that means a lot of jobs
Analysis of the real estate market in Connecticut - why exactly there, and the benefits of the multi-family
Maximizing the passive income of multi-component investment and the methods we work with
These are your tenants in the Yale University area - students at the hockey stadium
Formation of a small and select group of investors
So who are we looking for:
Investors who have already done real estate in the US - we want you to understand that this is a real estate investment with all the risks involved - a tenant can leave or need to vacate, we may need to repair a roof, replace appliances, stay with an empty apartment until a tenant enters - we do not Want to be in a situation where you invest your money and after two months ask for it back because you did not understand why you entered.You are welcome to contact us to discuss whether such an investment is suitable for you.
We are here to direct you to an investment that suits you.A dedicated discussion group for investments in Connecticut on the forum website:https://www.forumnadlanusa.com/groups/connecticut/forum/topic/
About UsThe company has a local team that includes real estate agents, property managers, renovation companies and bankers.
The real estate operation is led by Lior Lustig, an experienced real estate investor who has been active in the field in Israel and the US since 2007, but his love story with real estate begins as a child when he collected articles on the field and researched and studied the subject in depth. . For Lior, real estate is much more than blocks and concrete or wooden structures, but an integral part of life.
Lior currently runs the Facebook group "Real Estate Forum in the United States" which has thousands of members and lives in New York.
In the Israeli market, Lior has been involved in the establishment of purchasing groups, TMA 38 projects, income-producing properties, land, etc.
On the professional side, Lior is a technology and management man with an American master's degree in business administration and information systems, and is also a graduate of numerous real estate courses. Lior has three academic degrees with honors.
In Israel, he managed many large technology projects for the Ministry of Defense and various start-up companies for about ten years, and moved to Manhattan in 2010 following a startup he founded in the field of e-commerce and real estate.
In addition to managing the startup, he served as a broker and mortgage advisor specializing in New York City - Queens and Brooklyn in order to deepen his knowledge of the American real estate world from within and find off-market transactions.
Lior is always looking for a way to improve the real estate transactions in which he is involved with the help of his technological knowledge. Lior has experience in seeing and analyzing a real estate transaction from all directions, and examining an investment for him is a comprehensive and accurate work process that is examined in several aspects, regional, local and computational.In the American market, Lior began as an investor and entrepreneur in the field of single family, and after understanding the limitations of the field in terms of financing and return options and the benefits of being a US resident, he began investing in larger multi-family deals of 6 to 30 housing units. After receiving inquiries from the forum members he runs and other investors who understood the American financing benefits that Lior can receive (interest rates and attractive terms), and the potential high return and future improvement in investments that Lior is involved in without sacrificing the quality of the investment area - Lior chooses investment areas in the United States.
In his day-to-day work, Lior is the director of information systems for two large companies in the United States, and lives in Long Island with his family. Lior makes real estate investments in parallel with his work. Since Lior does not depend on these transactions for a living, and does not have to produce transactions on a regular basis to make a living, Lior makes sure to enter only excellent transactions after conducting a comprehensive market research that Lior explained in the attached lecture on multi-family, even if it is several months between transactions. Lior's approach says that it is better to give up a deal that has doubts, than to enter into a deal that turns out to be problematic, and thanks to this approach Lior is proud that all the real estate transactions he has initiated so far have been successful to very successful in terms of value, yield, etc. In which a financial loss. A great many of the deals involved creative thinking “outside the box” to maximize the profits of the deal, but also a great deal of fieldwork and analysis.
As part of the service, Lior provides American locating, analyzing and financing services for transactions - conditions that only an American with excellent credit can accept. Lior enters as a partner in all transactions while investing his personal money and therefore he is one hundred percent committed to the success of the transaction, what is also the financing of the transaction that Lior brings is his personal responsibility to the bank so Lior enters only super solid and safe investments and usually small groups of limited investors. A receiving investor is significant of the total investment. The investor profile that Lior works with is experienced investors who do not have their first transaction in the US, and who want to move on to the next stage of joint ownership in small multi-family transactions but cannot do it alone in terms of knowledge and financing.
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