New construction 9-unit mixed use

[Jonah Richard]

Investment Info:

Large multi-family (5+ units) other investment.

Purchase price: $100,000
Cash invested: $900,000

New construction 9-unit underway: 7 apartments + 2 micro-retail spaces.

More details here:

https://brickandmortar.substack.com/p/project-spotlight-501-main

What made you interested in investing in this type of deal?

This was the next step up from the small multi renovations that I’ve done in the past. Also a great crash course in how to do small ground up development.

How did you find this deal and how did you negotiate it?

Purchased an old post office off market. Worked directly with seller on purchase price.

How did you finance this deal?

Owner financing for original purchase (90% LTV) while I planned for long term redevelopment. I then secured $250k equity investment, $80k in tax credits, and $670k in construction/perm debt to fund the project.

How did you add value to the deal?

Turning vacant single story commercial building into a three story mixed use.

What was the outcome?

Still in progress!