Kemper Ambassador LLC ; 186 apartment units located in Shaker Heights, Ohio.

[Oliver Scott-Tomlin]

Investment Info:

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

Purchase price: $3,561,613
Cash invested: $50,000

Projected to exit in 7-10 years with the following returns:
5-9% Cash on Cash Return in the first five years
Refi in Year 5. Projected to return 100% of the investor capital
Years Six to Ten: Infinite return - Your invested capital has been returned
~15-17% Internal Rate of Return
~2.2x Equity Multiple

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

The location and the amazing team that put it together

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

I met Wildoak Capital at a Meetup event.

How did you finance this deal?

Bank money. I got a 20 year ARM loan with a fixed interest rate for the first 7 years. The deal is set to refinance in year 5 and return all initial capital. Loan has no early payback penalty. I will need to carry monthly payments in the loan for the first 18 months, thereafter the cash flow should return a 2x what is required to payback the loan.

How did you add value to the deal?

The property was acquired at significantly below replacement cost, at only $52,016 per unit. Capital will be used in upgrading the property, modernize the rental experience and take advantage of the fantastic location in the heart of Shaker Heights.

We will perform major capital improvements to the asset, significantly increase its value, manage long-term cash flow, refinance, and eventually sell for a profit. The anticipated hold period of the property is 7-10 years

Lessons learned? Challenges?

There are still deals out there that can be done on bank money. Get a solid team and let the experience of others carry you while you learn