Biggest Deal so far - 40 duplex units Lee's Summit MO

[Cliff Harrison]

After three months of pursuit, I finally closed this deal in Lee's Summit for 20 duplex buildings in a nice park-like community. Lee's Summit is a one of the nicer suburbs of Kansas City, MO with highly rated schools. The deal is my first 'investor group' MF purchase I have put together and gotten to close (came close a few months ago on an 80 unit complex but bailed after inspections). I am the LLC manager and the other investors are passive. As the manager and minor investor, I have 39% equity. The investor shares have IRR of 17.5% annualized forecasting a 10 year hold. In addition to my equity and corresponding share of future cash flows, I also took a 1% acquisition fee. The purchase price was a little under $2MM.

An unsolicited props to Michael Blank and his syndicated deal analyzer which saved time and helped tell the story to my investors - definitely worth the purchase price (to me).  Interested?  Just search for it.

Today began the tenant transition process to new property management.  I am excited but feel the responsibility of delivering (or over-delivering) returns to the investors who placed their trust.  Then I will be able to use this track record to attract more investors for larger deals in future. That was and is extra motivation to do my best.

Good luck on all of your deals!