SFH Portfolio Deal from Corporation

[Jonathan Small]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Valdosta.

Purchase price: $870,000
Cash invested: $170,000

We purchased this portfolio of single family homes from a corporation. All of the units had existing tenants

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

The seller connected us with a local bank that was ready to fund the deal with favorable terms. The homes were already rented. Seller provided inspection reports with the purchase.

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

We found this deal on marcusmillichap.com. We negotiated seller to pay some of the closing cost.

How did you finance this deal?

We use local bank that was introduced to us by the seller. We put down 20% that was funded from stock investments.

How did you add value to the deal?

We stabilized units. We increased rents as leases renewed. We collected tenant deposits. We renovated properties as units became vacant. We hired a professional management company.

What was the outcome?

This has been one of our best deals to date. This is a long term buy and hold investment.

Lessons learned? Challenges?

We learned the power of leveraging property. The bank has allowed us to put other property up as collateral which has lowered our out of pocket down payment on future deals. We found a great property manager from a referral on BP.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Mitch Davis, agent
Guardian Bank of Valdosta, lender
Jake Peterman of Mercer Hughes, property management
Trai Gay, Valdosta Home Inspection