Notes on Flipping a 15 unit complex in the Bay Area, CA

[Rob Chiang]

Investment Info:

Large multi-family (5+ units) fix & flip investment.

Purchase price: $5,750,000
Cash invested: $225,000
Sale price: $7,250,000

15 Unit complex, flipped in 12 months with 7 partners. Redid the facade and bumped the rents by 30% on average. Complex was purchased by a billionaire all cash, 7 day close.

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

After managing these types of garden style apt. properties for years, I always wanted to get on to the ownership side.

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

It was an off market deal that required no contingencies and a quick close.

How did you finance this deal?

Traditional boutique bank financing.

How did you add value to the deal?

Redid the facade, parking surface, remodeled interiors. Repainted the whole exterior. New Landscaping. New canopies.

What was the outcome?

It was a nice profit for the group.

Lessons learned? Challenges?

It's OK to buy a building that is up against a freeway wall. (the freeway sign is visible from the property driveway!) As long as the numbers make sense, there are buyers for the deal.

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

Yes and we still work with all of them today. RE investing is a long term marathon.