The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

GOLD! Envision - Real Estate Progress Thread

Remove ads while supporting the Unscripted philosophy...become an INSIDER.

Envision

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
May 5, 2014
780
4,855
1,135
26
Little update. Got all my units rented and cash flowing right now.

Currently have $3325 coming in on the triplex with about a $2400 payment, and $300 in utilities. I need to pay the HELOC off as that digs in another $300 but Im not too worried about it. I think the overall value of the property is huge and I think if I can build onto the back it will be worth ~$800-850k and id be into it for ~500.

Right now just storing up my cash as I think we're going to see a real estate downturn in the next 6-12 months. Not from actual institutions but from people who were overleveraged or have lost their business/jobs. I might actually use this moment to buy my own personal house now too depending on what deals come on the market.

My company got hit when the panic started and our revenue dropped pretty significantly, we've recovered by nearly half and im pivoting into a market that is currently exploding so we should be able to catch a bit of that wave and grow out of this whole situation.

Crazy times. Stay healthy
 

Don't like ads? Remove them while supporting the forum. Subscribe.

Envision

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
May 5, 2014
780
4,855
1,135
26
Found another house I’m in the process of closing on. It’s a 3/2 for 230k all in which is a good price in this city it’s a block away from my other house. 50k under market because it’s from a contract someone else couldn’t close on.

I think im going to move into it because it’s so close to my warehouse. It’s also got a pretty cool backyard I attached some pics
 

Attachments

  • 721FF615-7077-4607-87AD-B7B751B03F38.jpeg
    721FF615-7077-4607-87AD-B7B751B03F38.jpeg
    237.7 KB · Views: 66
  • D54D1D2D-EDCC-4F51-9527-DA49CF76604C.jpeg
    D54D1D2D-EDCC-4F51-9527-DA49CF76604C.jpeg
    373.3 KB · Views: 64
  • 9C4AF30D-D16F-4415-8D5E-06805881AF98.jpeg
    9C4AF30D-D16F-4415-8D5E-06805881AF98.jpeg
    285.3 KB · Views: 64

Envision

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
May 5, 2014
780
4,855
1,135
26
So Im closing on the house above on Monday which im excited to be moving closer to work, friends etc.

And Im working through a couple huge projects.

1. A $5.5 Million redevelopment. We'd acquire the building in an opportunity zone, redevelop it to storage, refinance it, and hold for atleast 10 years. I should hear back today if our offer was accepted. I'll liquidate some of my existing portfolio if this project is a go to obtain a larger equity stake.

2. A 20-30k sq ft warehouse. Where I live warehouse space is on the market for under a week. Amazon is finalizing their million square foot project a couple miles away from me and the market is crazy. Im working with a few people through a lease to own. Essentially, the idea is the company would build to my spec and I'd lease from them for 2-3 years and at the end of the term Id have the option to buy at market price or continue leasing.

With SBA financing I am wanting to acquire as. much space as possible and merge my ecom company and real estate business. I estimate by the end of this year we will need 10k sq feet and should double again next year.
 

Envision

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
May 5, 2014
780
4,855
1,135
26
Update:

DEVELOPMENT 1
We're going under contract on the $5.5 Million redevelopment. We got it at $4.5 million and will probably need to put in 2-3 million on the renovation/redevelopment.

There's a 90 day due diligence period and 15 day closing period so still lots of room for this to fall through. I found the property and i'll run the entire redevelopment and in return I get equity and I will put in more cash to get a larger stake of the project in total. The returns on these types of projects are insane.

At about 80% occupancy the value of this project will be around $20 million and that level of occupancy takes generally about 1 year. After 2-3 years, we refinance with the bank and get a 100% return of our invested funds. After that there's generally quarterly distributions and obviously owning X percent of a $20 million dollar asset is significant - not to mention the tax benefits and the opportunity zone.

WAREHOUSE DEVELOPMENT

Met with the largest land owner in my city - private equity fund and talked to them about what I want to do. We found a lot thats just about an acre and half that they're willing to sell. They generally dont ever sell and only lease but this lot they dont really care.

I can fit a 20k sq ft warehouse and have 4 tenants with myself having 7k sq ft. It's in the opportunity zone and right now we're working through building plans and mock ups to see if we can make this piece of land work.

Will probably need to raise private money to acquire the land and I have a local bank that I can work with for the build out.

** If you're legit and interested in investing private money secured by this land and build out pm me. I am focused on providing around an 8% return on 500k on a 1-2 year hold (details will be ironed out as plans get more clear) **

ADU DEVELOPMENT

Hired an architect to outline plans for my backyard garage +unit on my triplex. I should be into this for around $100-120k total but the return is going to be awesome - on a unit like this I should make somewhere around 18-24k/year

Ill add photos on this soon

-----------

I think within the next 2 years I can hit $10M in real estate value with about 50% equity if these deals and projects pan out as I intend they will. That's my goal and then start working on building out infrastructure for more storage, warehouse, and multifamily.

Im also interested in getting into mobile home parks and car washes.
 

Envision

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
May 5, 2014
780
4,855
1,135
26
Development Update:

Aligning structural engineers, demo subs, roofing, and hvac to all start walking through as part of our due diligence.

Here's the building - 100,000 sq ft

33936
 

Envision

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
May 5, 2014
780
4,855
1,135
26
Amazing project. How would you put it in commerce? Single storage units or a big facility as a whole?
It’ll end up being around 700-800 units of climate controlled or outdoor covered parking units. Demo the entire shell and Infill it
 

Envision

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
May 5, 2014
780
4,855
1,135
26
We're going under contract today - my birthday! Im excited for this one if all goes smoothly I will transfer my parents retirement accounts into this project and this should actually retire them both of the cash flow - which has been a goal of mine since I started building businesses and investing in real estate.

We have 90 days of due diligence (this project could die here if things dont pencil)
15 days of closing
Then another 120-200 days of construction (probably more)
I expect another 200 days to reach 80% occupancy
and another 90-180 days until refinance.

At a rough estimate, this project will be worth $20M upon completion/fill up and triple that amount in 10 years considering rent increases and appreciation.

This is one of those deals/projects that changes the trajectory of your life entirely.

Ill keep updating as we go with pics and hopefully DD goes smoothly.
 

Bobby_91

New Contributor
Read Millionaire Fastlane
I've Read UNSCRIPTED
Jun 4, 2018
6
3
19
We're going under contract today - my birthday! Im excited for this one if all goes smoothly I will transfer my parents retirement accounts into this project and this should actually retire them both of the cash flow - which has been a goal of mine since I started building businesses and investing in real estate.

We have 90 days of due diligence (this project could die here if things dont pencil)
15 days of closing
Then another 120-200 days of construction (probably more)
I expect another 200 days to reach 80% occupancy
and another 90-180 days until refinance.

At a rough estimate, this project will be worth $20M upon completion/fill up and triple that amount in 10 years considering rent increases and appreciation.

This is one of those deals/projects that changes the trajectory of your life entirely.

Ill keep updating as we go with pics and hopefully DD goes smoothly.

Congratulations on your Birthday! Hope everything is going smooth with the deal.
 

Envision

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
May 5, 2014
780
4,855
1,135
26
Update:

The building is coming along, currently 100k sq ft of rentable storage over 800 units. We are on track with the details and things are looking good so far. Ill be liquidating a pretty big chunk of my real estate holdings into this property which i think is perfect timing as I see all residential getting too over priced. Historically self storage is recession resistant which is a great hedge for the current economic environment.
34798

Ive found two more buildings similar to this one that we are now working on as well.

The remodel on my SFH should be done within 3-4 weeks. Its going to be pretty badass with all the little upgrades and things. All in should be into it for 270 and itll appraise at around 350k.

-----

On the ecom side of things. We've more or less doubled our revenue and tripled our profits in under 4 month. Ive hired 3 new full timers, expanded warehouse space by 3k sq ft, put an offer in on 22k sq ft warehouse, onboarded an enterprise level backend software, and things continue to get better. With the amount of infrastructure, money, and time put into this company I believe we can hit 8 figures in the next two years.

With the company I acquired last year we surpassed last years revenue last month. Should double the whole company with 0 product releases [YTD Rev. ~325k]. The mold for this company is going to complete next week and I expect once new products start to release we will break 7 figures next year.

I have a new brand idea Im going to take investment for. This is an idea i've been formulating for awhile and its consumable so I believe there is alot of upside but the upfront investment is going to be in the 6 figure range to gain traction. More to come on this, I might start a progress thread on this brand if it comes to fruition.
 

Envision

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
May 5, 2014
780
4,855
1,135
26
Update,

Looks like this project is going to go through. We've estimated our costs, dialed in everything and will continue to do so but we're confident that this is a home run deal. It's been an enormous amount of work (more than I originally thought) and I think it will continue to be until it is finished.

My target is to own roughly 20-25% of the project. In order to do so I cash out refinanced my real estate portfolio and am going to be selling the duplex I have been living in because my tax burden is extremely low and in 3 years Ive accumulated 300k in equity (insane I know). This should bring me roughly 4-500k of cash to invest into this project. Doing all these things while finishing my remodel, running my companies, and doing this project has definitely tested my work capacity.

The interesting thing about projects like this is from the value add to the building ($7m) build out actually creates a ($20m) facility because the valuation is based off of cap rates and rents rather than land and building value. From this, the bank allows you to cash out refinance once the asset is stabilized.

This means, the funds I invest, upon stabilization will be refinanced and given back to me in 3 years tax free. My stake of ownership of the property (equity) stays and so does the annual cash flow. You can see how this compounds wealth at an enormous rate. Its also what Ive done with all my small properties to get to this point.

$400k invested
Year 1: no return
Year 2: no return
Year 3: 500k tax free refinanced back to me
Year 4: 60k passive income/year and increasing each year due to rent increase.

I think this is a super important lesson if you are learning from this thread. Create leverage through real estate and then work with banks to free up the equity and keep going. This will essentially create the foundation I have been seeking for in my real estate business to go to the next level.

In other news, I offered on another 23k sq ft warehouse and was beat out by a cash offer but I think we can stay where we are for now and this enables me to allocate more cash to this project.
 

Envision

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
May 5, 2014
780
4,855
1,135
26
So many moving parts now.

1. Selling my duplex for double what I bought it for (huge win) $270k>550k in 3 years.
2. Cash out Refinancing my entire real estate portfolio (got approval from my business bank, all appraisals ordered - tons of perks to this)
3. Moved into my new house (2 weeks out from finishing construction)
4. Closing on the conversion property 12/15
5. Moving all my parents retirement funds to essentially retire them both with this deal.
 
Last edited:

Envision

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
May 5, 2014
780
4,855
1,135
26
Sold one of my duplexes. Numbers on it pretty nuts.

Purchased July 2017
Price: $270k
Down Payment: $15k
Rehab: $20k
Lived in property rent free for 3 years

Sold Nov 2020
Price: $560k
Net After Taxes/Fees: $250k
 

Sponsored Offers

  • Sticky
MARKETPLACE Fox Web School "Legend" Group Coaching Program 2020
I'm on the fence with joining. I've been job searching for about 2 months and I can't get hired...
  • Sticky
MARKETPLACE Lex DeVille's - Advanced Freelance Udemy Courses!
If you read the last message then you know I'm removing my courses from Udemy next month. You...
  • Sticky
MARKETPLACE Grow Your Business With a Book (An Unorthodox Marketing Strategy That Built One of the Largest...
PS. what do you think about the idea of setting up live Busking experiences on Air BNB? I could...
  • Sticky
FEATURED! Introducing... WEALTH EXPO$ED, A Short Story By MJ DeMarco
Hi Mj, I just bought it. And reading it. I think is a great idea to write using the stories to...
  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
Just got off the phone with @LightHouse. Having just a 45 minute conversation with him has...
  • Sticky
MARKETPLACE Kill Bigger Incubator
@Kak Thanks for the reply. Whats interesting is that I have an idea that's been cooking which...



Forum Sponsor

sponsor

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom