Picking up the million dollar scraps
Investment Info:
Large multi-family (5+ units) commercial investment investment in Seattle.
Purchase price: $557,000
Cash invested: $450,000
Multi family development, built 20 unit apartment on 5,000 sqft lot.
What made you interested in investing in this type of deal?
The property was zoned really well for multi family development.
How did you find this deal and how did you negotiate it?
The property had been sitting on the market for about a year. I negotiated the price lower, along with a year long closing so we could begin developing the lot.
How did you finance this deal?
Conventional fixed debt
How did you add value to the deal?
We built a 20 unit apartment building.
What was the outcome?
We now have a 5.85 million building that cost 3.65 million, zero dollars are still invested and we get 9,000 per month including principal pay down.
