12 units, Pure luck & A fantastic friend.

[Mike Oswald]

Investment Info:

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

Purchase price: $1,025,000
Cash invested: $2,400

I Found a 12 plex that was owner finance in downtown Anchorage. We had a maintenance contract there and I noticed it was up for sale, They had a small bill (under $200) that had not been paid. So I reached out and asked about the property and the owner offered to sell it to me and carry the note. I just needed a $100,000 for the down payment. I just happen to get in touch with an old friend. We had been talking about what was new and, I mentioned the deal I was working on.
A few weeks later he called me to hang out, We were talking, ate some cookies his wife made that I still think about... lol, and My deal came up again.... He asked me if I had found funding for it. I told him I was close, at least I thought I was.... Anyways, He ended up writing me a check for $110,000.00 and asked me to come up with the terms that worked for me in the next few days. I had no Idea he was doing Loans and was caught completely off guard. Now we are partners on a few other projects.

I got the owner carry for 5% and the second @ 5% 4 point on the back. 2 year balloon.

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

That I had the opportunity.

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

It was dropped in my lap. And I got in with no money out of pocket.

How did you finance this deal?

Owner Carry and A Second

How did you add value to the deal?

Remodeling the units adding W&Ds.

What was the outcome?

TBD, I am still working on this.

Lessons learned? Challenges?

Look at the inside of the property 1st.

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

Not on this deal.