Off market deal I found at a investor meet-up!

[Mekkel Blanchard]

Investment Info:

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

Purchase price: $400,000
Cash invested: $80,000

5 Unit Residential property purchased off-market. Consists of (2) one bed units and (3) studio units. Business plan is to go in and update the units and list all of them to medical professionals/traveling professionals.

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

the price! Also I am familiar with the area because I have another property 2 minutes away. The town is also cleaning up and businesses are growing, therefore desire to live in this area is growing.

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

Off market pocket listing from another real estate agent I met at a real estate investor meet up.

How did you finance this deal?

Commercial financing with 20% down 6% Interest Rate

How did you add value to the deal?

Business plan: To do some light cosmetic updates and rent the entire building to traveling nurses/working professionals.

What was the outcome?

Just closed on the property and it cashflows on day one with the current rents. Business plan will increase the cash flow!

Lessons learned? Challenges?

Take your time when working directly with the seller. Figure out ways the seller can get a deal as well as my self as the buyer.

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

1st Commercial loan I ever did with a small local bank with pretty good terms. No pre-payment penalty with 20% down and 25 year term.