Achieve Investment Group Acquires First MultiFamily !

[James Kandasamy]

Hi BPers,

Achieve investment Group would like to announce about their first Multifamily Acquisition in San Antonio, TX. This is a value add 45 units apartment in South San Antonio. This acquisition marks the transition of Achieve Investment Group's investment strategy from Single Family Homes to Multifamily. The Apartment is a beautiful C Class asset with great upside potential. We captured almost 50% of equity as the appraisal came in 200K more than the purchase price. Here are the numbers.

Purchase price: $1.57 Million (34.8K per door)

Rehab: 155K.

Proforma: 12% Cash on Cash Return.

The Value add component is comes from expense reduction and rent increase. The proforma rent increase is merely $40 per door. Current expenses are at 62% of gross income. We plan to bring it down to more realistic 50-55% of gross income. It was managed professionally by one of the biggest property management company.  That shows that great deals are not only presented by mom and pop operation but also by property management company.

This kind of deal is not available on market. This deal was found using our direct marketing strategy. We have to go through 25 off market deals to get this one deal.  

Achieve Investment Group lead generation strategy has always been to look for off market deals where profit potential is the highest. We think its important to do that as the Multifamily market is at peak stage with many investors buying properties at ridiculous prices.  

Only the Great Deals !

[James Kandasamy]

@Rick Pozos@Tim Shin Great Questions ! There are tonnes of details that i can share if people ask for more details.  The 50% equity capture is derived from total downpayment being ~420K. With 200K above Purchase property for "As Is" appraisal which equates to ~50% built in equity on day 1. we are more focused on cash flow anyway but the equity capture shows that the deal is a great deal compare to the market deals.

The deal was funded with syndication, That simple means, that we raised money from private investors to put the 20% downpayment. The remaining 80% (Yes, 80% due to the much higher appraisal) loan was financed with a local bank. The investors consist of accredited and sophisticated investors. Their fund consist of cash and IRA accounts. Our contribution was 25% of the downpayment.

We used an attorney to use Reg D filing with SEC which requires us to file Private placement memorandum to raise money.

The strategy with this investment is to refinance 50% -100%within 12-18 months and let it cash flow.

@Brian Adams@Ben Leybovich