Sanjiv Jain

8615 Germantown Ave, LP in Philadelphia, PA

This was a property adjacent to another property I own and had been on the market for many months. I called the owner and worked out a deal to by it 'as-is' and worked out a significant discount if I could close quickly & bought it as is.rnrnI immediately contacted my banker, whom I've had a relationship for many years. I asked him to get me a letter of my being credit worthy and that they would provide a purchase loan for me to buy this. He got it to me the next morning. I submitted the offer, along with the letter from the bank and gave the seller 6 hours to reply.rnrnHe showed it to his sister, we worked out some language in the offer and the closing date and it was executed the next day.rnrnI bought it with 80% financing from the bank & used private money for the closing costs as well as the 20% down.rnrnI then went to work finding a commercial tenant ended up having one of my tenants from another building consolidate their manufacturing (from another location (that I don't own) where they paid rent greater than my price) and retail from another store as my tenant into here.rnrnThe tenant did over $200,000 in rehab costs installing bathrooms, flooring, new HVAC, electric, lighting, drywall, painting, etc. I put in about $50,000 in repairs/upgrades.rnrnI just added a second mortgage from the same bank that has the first and was able to cash out $400,000.rnrnPurchase: $500,000 (9/2016) ($400,000 bank financing, rest Private Money)rnRehab with my funds: $ 50,000rnRehab with Tenant funds: $250,000rnNewly Appraised Value $1,000,000rnrnCash out at Refinance $400,000 12/2017 (paid back to Private Money person: $125,000) rnrnNet Money in pocket: $275,000 rnrnALSO Cash Flow with 10 year, true NNN single occupant tenant: rnMonthly Rent: $6,630 (with 2% per year increase)rnTotal for both mortgages: $4,447rnNet Positive Cash Flow: $2,183