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GOLD! Envision - Real Estate Progress Thread

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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
 

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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
 

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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.
 
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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.
 
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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
 
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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
 

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Following! Please don’t stop updating.
 

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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

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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.
 

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