The momentum builder, 0 to 100 real quick

[Matias Torres]

Investment Info:

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

Purchase price: $1,750,000

House hack/ Buy & Hold Rental property in the best possible location we could have asked for. A really great deal that was acquired through much trial and error.

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

Thinking a bit bigger than we were comfortable with combined with supportive people around us cheering us on. In the Southern California market, we knew we would need strength in numbers, and by numbers, I mean the number of doors.

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

We found this deal while shopping for another home, cold calling in Zillow. I inquired about a different property and happen to connect with a commercial broker that had a number of deals lined up, this was the one that fit our buy box the best. At first, it seemed hard to believe because of how well it fit what we were looking to buy, but in time all of the elements came together.

How did you finance this deal?

Jumbo VA 3.99% 30yr fixed rate. We hoped the loan process would be easier since it was our 2nd VA loan, but it turns out Jumbo VA is significantly different than regular VA, especially when you add a zero to the end of the loan amount.

How did you add value to the deal?

We plan on rehabbing the units to the best of our ability in the coming months as cash & vacancy allow.

What was the outcome?

The outcome is ongoing, we just got in, and we have everything left to learn.

Lessons learned? Challenges?

Analyze as many properties as possible and be crystal clear on what you are looking for.
Do not waste time pursuing properties that will not help you achieve your goals.
Do not set and forget your pre-approval letter, interest rates change often, and your affordability changes right along with the rates.
Jumbo loans are challenging. The underwriting process is thorough, simple but hard, taxiing but possible.
Trust but verify, and work harder than all the people helping you.

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

Spencer Thomas and his team on the lending side of the house were wonderful. Alec Kara commercial broker was kind and by default the MVP for bringing us the deal.