13 - Unit Bristol RI

[Ryan Corcoran]

Investment Info:

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

Purchase price: $1,592,000
Cash invested: $5,000

13-unit downtown Bristol RI.

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

I buy 5+ unit multi-family investments.

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

The deal was found through networking, I have been connecting with many agents, and one of them brought me this specific deal "off-market". The seller was not even contemplating selling it until I reached out to him via a direct-mail letter. The agent did not earn commission on the deal as it was off-market and the seller and I handled the transaction. I paid the agent a commission fee anyway as he did not need to tell me about the specific owner, knowing he would not make any $.

How did you finance this deal?

Financed using bridge loan 90% LTV, with 100% of the construction covered by the bank, will refi into 30 year term loan in 12 months from purchase after stabilized. The 10% required at closing, was raised from a partner whom owns 50% of the deal. I paid for appraisal and inspection...

How did you add value to the deal?

All the units need TLC and updates throughout which will bring in excellent tenants and demanding rents. The property is less than 0.75 from waterfront on a beautiful st.

What was the outcome?

We will refi and the value will be $2.2M per the as complete appraisal already completed. My partners get back 50% of their initial investment. We split the asset 50/50.

Lessons learned? Challenges?

Immediately evicting tenants, Bridge loan interests rates are fairly high.

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

Mike Lima - Attorney