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Updated almost 6 years ago on .

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Verlin Vink
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1
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RV park project and increase sales price with high CAP rate

Verlin Vink
Posted

Investment Info:

Large multi-family (5+ units) commercial investment investment in Casa Grande.

Purchase price: $950,000
Cash invested: $100,000
Sale price: $1,660,000

RV park with 90%+/- year round residents

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

Repositioning and value add project with low rents and seller financing

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

Mostly driving for dollars

How did you finance this deal?

Seller financing with $100,000 down 4% interest 5 year call

How did you add value to the deal?

Major clean up, enforcing residents to keep their areas clean, improved the on-site roads, added on-site storage, and added a convenience store and manger's quarters

What was the outcome?

40% increase of rents, existing note discount, and sales price 2 times the purchase price after discount

Lessons learned? Challenges?

Management intensive low income project

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

Yes on the resale. LOI within a couple of days after listing