Distressed Bank Owned Portfolio

[Jim Carmichael]

Investment Info:

Small multi-family (2-4 units) other investment in Covington.

Purchase price: $4,800,000
Cash invested: $4,800,000
Sale price: $4,800,000

This was a package of Duplexes, single family and urban lots. 91 total properties, 123 units. Only 37% occupied, which over half needed to be evicted. The project was put on me to valuate, stabilize, manage and sell as quick as possible.

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

The upside of this deal was too much for the investor not to buy.

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

I am a problem solver and managing projects is a specialty of mine. The deal found me through my company.

How did you finance this deal?

This was a cash deal

How did you add value to the deal?

It was based on current income and value of properties.

What was the outcome?

I was able to deliver on what the banks demand in less than 70 days.

Lessons learned? Challenges?

Constant communication and transparency is the only way to get through a deal this complicated.

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

I was the broker on this deal. A local agent who specializes in wholesaling referred the buyers to me. Knowing the complexity of the deal he agreed it was better to let me handle it and collect a large commission at closing. And that he did 2% of that deal is a nice payday.