90 day challenge success!

[Jason Reuben]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Albuquerque.

Purchase price: $300,000
Cash invested: $69,000

A cash flowing 4 plex, and the result of taking the BP 90 day challenge.

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

I wanted a cash flowing property for my first investment. The size of the deal was manageable to me as my first deal.

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

This deal was on the MLS. My agent, Leslie Villareal, supported the sale. We made our game plan together, and she executed without flaw.

How did you finance this deal?

I used a combination of my own cash and a commercial loan to my business.

How did you add value to the deal?

The property was in pretty good shape. It needs a little maintenance, minor roof work, paint, flooring. The value is in putting new property management in place. It has been renting under market for years.

What was the outcome?

I closed the deal. I managed to negotiate keeping two units vacant, so that they can be cured immediately. I have a new property management team under contract, and a solid plan to complete the required work, and get the two vacant units rented at market rent.

Lessons learned? Challenges?

I have been lucky enough to have assembled a "rock star" team, and have needed all of them to keep the deal on the rails. My agent, PM, and lawyer have all had their part in advising me, communicating on my behalf, and providing services to my business. The biggest pain point was in the loan underwriting process. I will not mudsling, but I will say that I will be looking for a new lender. The title company was a great resource for lenders that close deals smoothly.

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

Leslie Villareal is my agent, and a BP member. I found her on BP because I was not getting the service I needed from my previous agent, and needed to find a new one. She was very approachable as a new investor. She provided the service I needed to succeed in closing my first deal, and completing the BP 90 day challenge. Additionally, the BP community at large and much of the content, education, tools and motivation I have had access to as a BP Pro made all the difference.