Major Reposition in the South

[Fernanda Hamlin]

Investment Info:

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

Purchase price: $1,833,000

48 Unit garden style asset 1976 Vintage

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

The value add opportunity, the price, the location in my partner's backyard.

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

It came from a broker we built a relationship with. We didn't have to do any negotiations as the seller accepted our first offer.

How did you finance this deal?

This was a syndication where we raised $575k and obtained a bridge loan for the purchase and rehab.

How did you add value to the deal?

We are doing a total reposition bringing 48 newly renovated units back online into a market that has limited supply.

What was the outcome?

The property is still under construction.

Lessons learned? Challenges?

Build your team in your market FIRST. This deal fell into our laps just as we were beginning to build out our market team.
Be very careful when selecting your contractors and property managers. There are some BAD ones out there.
Stay away from "owner's reps"....long story.