Group Home Investment

[Shawn Henley]

Investment Info:

Small multi-family (2-4 units) commercial investment investment.

Purchase price: $325,000
Cash invested: $325,000

Property is leased as a group home for the rehabilitation of individuals seeking treatment for drug and alcohol addiction

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

It was a need for my other business.

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

My company found the property on craigslist as a lease. After leasing the property for 6 months we asked the seller if she would be interested in selling to us, which she was. W

How did you finance this deal?

Cash

How did you add value to the deal?

New roof, landscaping, paint, carpet, finding special use tenants

What was the outcome?

Positive cashflow right away and has continued through present.

Lessons learned? Challenges?

I wish we had paid less cash and financed with conventional financing so we could have used that capital for other investments.

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

John OHara with A Better Way Realty

[Michael Rodriguez]

@Shawn Henley

Hi Shawn, I’m thinking of buying a 5bed home for a group home investment in metro Denver.

How’s it working for you thus far? Any concerns?

[Jake Rhodes]

Hi @Shawn Henley - We stumbled on a 7 bedroom group home (Wholesale Deal) in Indiana.  Do you still have this property?  I don't know anything about the group homes but the cash flow could be good and we are considering keeping it.  Would you be open to a chat?