Owner financed a 11 plex, rolled commission into the deal as part of the down

[Jerry Lymburner]

Investment Info:

Large multi-family (5+ units) note investment investment.

Purchase price: $900,000
Cash invested: $225,000

11 plex that was a bit dated but in good location.

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

I was looking for investors to purchase, a couple passed on it. I saw tremendous upside and partnered with my better half and another investor (Now our partner!) with cash and has been better than expected.

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

With a mailer!

How did you finance this deal?

Owner finance with a balloon

How did you add value to the deal?

We immediately redid windows to make the non-egress windows egress with new. Leases that were M2M, were brought to market rent and charged a utility charge-back fee.

Plans to remodel units as they become available, include enclosing a 1 bedroom with a deck and converting it to a 3-bedroom unit. New siding on building as well.

What was the outcome?

Brought rents up several thousand a month in a short amount of time.

Lessons learned? Challenges?

So good so far. Goverment paid leases are hard to get out of when tenants have assistance.

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

Me!