E St Vrain

[Colin Smith]

Investment Info:

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

Purchase price: $785,000
Cash invested: $900,000

This was a syndication with partners. The only parts of the property that will have remained untouched were exterior studs. Otherwise we replaced or did work to the fountain,.stucco, roof, electrical, plumbing, heating, walls, insulation, kitchens, bathrooms, flooring, utilities, windows, etc. No part of the property was left untouched. We our investment group plans to hold this for years to come benefiting from the cash flow and appreciation.

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

This property came off market with ability to force appreciation with a massive renovation.

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

We found this deal through a wholesaler who negotiated the price down to a reasonable purchase price.

How did you finance this deal?

This was a combination of syndication partners and originally a hard money loan that we eventually converted to a contraction loan. After construction was completed we converted this to long term financing.

How did you add value to the deal?

There was no part of the property left untouched. This property was a massive undertaking for its remodel.

What was the outcome?

We have permanent financing in place and look forward to years of rewards for it's undertaking.

Lessons learned? Challenges?

There were many challenges to navigate, especially being a commercial project which has higher standards of construction for the building department. We worked with engineers and architects to complete the design phase alone and combination of a General Contractor who pulled the permit for us, our subcontractors, and our in house renovation and maintenance team to complete the work.