Got my foot into the NWA market!

[Simcha Davidman]

Investment Info:

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

Purchase price: $1,365,000
Cash invested: $390,000

Purchased 4 adjacent quadplexes for a full value-add. New roofs and exterior paint, and we're going to heavily renovate the interiors on turns for 20% rent premiums. Really looking forward to this project!

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

I want to get into the Northwest Arkansas market because it's so fundamentally strong.

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

A local property management contact brought it to my attention. He carried my offers to the seller's agent and we went back and forth a few times.

How did you finance this deal?

Midsize bank with plenty of local presence. They put up 80% of the equity + a construction line for $160k.

How did you add value to the deal?

We're redoing the outside to make the property pop and the inside to make people love it!

What was the outcome?

In progress. We've completed the roofs so far.

Lessons learned? Challenges?

If you want something, go for it. So far, that's it.

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

Still too early to tell :)