How I Purchase my first Multi Family property.

[Chris Salerno]

Happy Thursday BP, I wanted to write my first Blog on BP about my first Multi-Family Deal. I am located in Charlotte NC. I have a back round in residential real estate. I feel my back round in residential real estate helps me communicate better with the brokers. I was touring a 91 unit here in Charlotte that checked all the boxes. During my tour, I noticed a property adjacent to the property that I was touring. I asked the broker if that property was available. He stated its a different owner but I will check. Come to find out the owners are local to Charlotte and wanted to sell. YES! That property was a 44 units complex, all two bedrooms two bathrooms. That means I could have 135 units. I submitted an LOI for the 91 units. I started my underwriting process on the 44 units. The broker gives me a call a couple of days later and says I am in best and final. It's me and another group. I was excited. I had submitted my final LOI and had a call set up with the owners. I finished the call and felt very confident I got it. A couple of days pass and the broker calls me and tells me the owners really likes me but feels I needed to have a stronger track record. I lost the deal in the best and final round. I never gave up! I call the broker back in a week and ask him if the 44 units were still available. He says yes, My criteria for acquiring multi-family is 100+ units. This 44 unit was a deal I just couldn't pass up. I knew the market extremely well from my history of selling residential real estate. I submitted an LOI, We had a final call with the seller. I made sure that my KP/sponsor was on this call. I did not want to lose this deal. They accepted We then started negotiating the PSA. I hate to do this but I will be finishing this whole story next week. Thursday, July 8th. Looking forward to building stronger relationships with everyone!

[Yonah Weiss]

Great first post about your deal @Chris Salerno. I would love to hear more about your process. Did you feel that having your KP/sponsor was a key factor in getting that deal? I'm also curious what role they played. Co-signing loan? Bringing capital? What else?