How Could This Happen? Super Value Add Apt Investment Case

[KC Zhang]

I started learning apt investing recently... I was browsing Loopnet today and took a look at an listing in Indy, a 450+ apt complex purchased as a REO in 2010 for $3m, and refinanced in 20143 for $30m with Wells Fargo. According to the listing, current owner spend close to $4m for capital improvement after purchase. Is it too good to be true? If it's refinanced for $30, it translates to over $60k per door, which is extremely high for Indy market in my opinion. But any how, it's super deal for the current owner if they can sell it for $30m and pay off the loan.

Casey

Newbie Apt Investor

[Chris Soignier]

If it's on Loopnet, it's probably been passed over by many more sophisticated investors.