Off Market Deal in Meriden, Connecticut - Opportunity for $ 75 Gross Profit and Improvement

Posted by Lior Lustig on June 19 at 10:30

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 the last transaction in April, which was really an excellent transaction 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 essence of the transaction: the acquisition of duplex units of 2 at a price lower than the market price of 102 a thousand dollars. (This price will only be possible for the next few days because we do not have a contract on 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.

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 picture) - 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 Meriden Meriden 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/multi Hartford and Manhattan can be reached directly by train from the new station in Meriden. Related image Image result for meriden new train station The opening of the new station makes Meridan accessible to the surrounding major cities - the new station began operating in June 2018 - Watch the television announcement about 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

https://www.zillow.com/homes/for_sale/57935238_zpid/2-_baths/41.533302,-72.799439,41.529069,-72.807164_rect/16_zm/0_mmm/1_rs/1_fr/ 2. 19 Silver Street Property with the same area sold last April on 195,500 dollars When it is not renovated. 2 minutes away from property https://www.zillow.com/homes/for_sale/58916883_zpid/2-_baths/41.533302,-72.799439,41.529069,-72.807164_rect/16_zm/0_mmm/1_rs/1_fr/

The 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 apartment

Option one: Leaving the property as it is as a rental property
second option: The rent can be raised to the market price of 900 dollars to the existing tenants, or decide to evacuate 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 whether tenants can be reached in terms of their low monthly rent)
Option Three: Renovate the property and keep it as a rental 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 https://www.zillow.com/homes/for_sale/pmf,pf_pt/57935977_zpid/41.537092,-72.795014,41.528627,-72.810463_rect/15_zm/1_fr/ 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 of 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 an amount that is not his last money and with a horizon of two years forward for those who are looking to hold the property or sell a division 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 parameters are relevant only when the forum is part of the partner management of the transaction even after closing) 1. Comprehensive market analysis of all market assets and finding the best deals 2. Future financing options under American financing terms with Lior's personal commitment to repay the loan - if And 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. Negotiating the price of the transaction 4. Fighting with the municipality to lower property taxes 5. Establishing a new company and working with the lawyer, brokers and management companies to verify the transaction data - tenant payments, tenant eviction, property status, planning status, matching taxes and reports Displayed. 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 from the place during the tour and during the inspection 7. Inventions at the time of ordering an inspector, appraiser, contractors, management companies, etc. 8. Working regularly with management companies Suppliers in each repair, for example when replacing a roof Bringing in a number of suppliers and cross-referencing various offers 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 raising 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 for tenants for events, etc. . 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.<wbr /> com / groups / connecticut / forum / topic /

Register for the site with your Facebook account, click on the Connecticut forum, ask to join and we will confirm it for you. 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 at 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.forumnadlanusa.<wbr /> com / multi

Appears 🙂

Lior Lustig is the director and founder of the United States Real Estate Forum

Hagai Benabu Benabu replied 4 years, 9 months ago Members 2 · 1 Reply

1 Reply

Hagai Benabu Benabu

Member
July 3 at 11:35

Hi Lior, If the asset is still relevant, I would like to talk to you 0547997328 Haggai

Connecticut

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