18 Unit (Owner Financed)

[Blake McWilliams]

Investment Info:

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

Purchase price: $900,000
Cash invested: $100,000

In an investing environment where intrest rates are high, creative financing can help maximize cash flow.

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

I was exploring the opportunity to capture equity from a property I purchased a few years prior (1031) while increasing cash flow to our portfolio.

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

This deal was actually on the MLS! I believe most investors passed over the property due to current intrest rates. However, I asked the sellers agent of the seller would entertain seller financing. The answer was a resounding yes! The negotiations were quite difficult to find the terms that worked for both parties. So much so the deal fell apart. After a few months the seller actually came back with an offer that worked great for all involved and we put the deal back together.

How did you finance this deal?

Seller Financing! 10% down, 30 year amortization, 6.2% rate, 3 year note, with an option for an additional 3 years.

How did you add value to the deal?

We currently are in the process if renovating multiple units in order to create middle to upper middle class units. This will increase cashflow and help hedge Capex.

What was the outcome?

An incredible addition to our portfolio that will help us generate wealth for years to come.