20 Unit Wholesale Deal Logan UT

[Jeremy Bourgeois]

Investment Info:

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

Purchase price: $2,800,000
Cash invested: $10,000
Sale price: $2,900,000

Got in touch with the sellers of a 20 unit apartment complex and Logan. After months of negotiating, we finally agreed on a price at $2.8 million. I then assigned and sold the contract for $2.9 million and made a $100,000 assignment fee.

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

Always wanted to learn more about multifamily deals

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

Cold calling, negotiated with the seller.

How did you finance this deal?

The buyer used a DSCR loan

How did you add value to the deal?

The seller actually paid less in fees to sell the property off-market. (6% of $2.8 million would be $168k) He also got a quick and easy sale, and the buyer locked in a solid discount on the deal as it had recently appraised at $3.75 million

What was the outcome?

Buyer got a good cash flowing portfolio, and the seller was able to liquidate this inherited asset.

Lessons learned? Challenges?

Large assignment fees are easier to negotiate on bigger ticket properties as the numbers generally are just bigger.