Multi family Investing using network

[Julish Bhat]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Chicago.

Purchase price: $1,160,000
Cash invested: $290,000
Sale price: $1,160,000

Large multi family negotiated and bought off market using connections/network.

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

I was looking into best location to invest in chicago. I already had one 7 unit multi family in the area.

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

I found this deal on craigslist and negotiated with the seller. We met multiple times and finally one day in a bar we closed the deal

How did you finance this deal?

traditional bank financing

How did you add value to the deal?

We updated the units and also few rooms to make it better. Cleaned it. Added new carpets in the staircases

What was the outcome?

Right now this property is worth $1.5million. We also get monthly cash flow of $10,000

Lessons learned? Challenges?

Patience and also making a connection with buyer. Understanding his must haves and pinpoints helped secure this deal. Financing was a big challenges since it was lot of money for down payment. We had already purchased one more multi family 6 months earlier. We did it by using a home equity line of credit and also other creative financing techniques.

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

none