Zero cash out of pocket - into 5 new doors

[Matthew Morrow]

Investment Info:

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

Purchase price: $500,000

5 unit mixed use building, including restaurant. All units fully occupied at purchase, and under market rents- with new lease terms already negotiated. Zero $ of our own money in the deal thru creative financing, seller assist, and managing the property / partnering with colleagues in exchange for equal equity in holding company.

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

Off market response to some of our marketing materials.

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

Direct marketing to the seller. Negotiated in person

How did you finance this deal?

Convention / commercial loan via Buisness partners

How did you add value to the deal?

Under rented units- all lease’s renegotiated with current tenants to step up to market rents over 6-12 mo

What was the outcome?

In progress - owner has 20 more units to sell over the next 12 mo and will be doing so with us.

Lessons learned? Challenges?

Some tenants not citizens. First for us.