8 unit from the 1800's!

[Erica Osborn]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Portsmouth.

Hey all!
8 unit - large scale rehab.
Closed beginning of September 2019, 6 month rehab!
Lot's of hair on this one regarding a survey issue.

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

I like the area it's in, there is lot's of upside. There was a barrier of entry due to some difficult hoops to jump through to get the project closed. I have said for many years I think brick building redevelopment is something I really wanted to get into. This is my first commercial deal, my first partnership, and my first rehab of this size. Lot's of first here, which has made this very challenging and exciting.

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

I found it on the MLS, I am an agent and noticed it one day and decided to run numbers, thinking no way I could make it happen or that it would be worth it. It was :)

How did you finance this deal?

80-20 commercial rehab loan.
We had to do seller financing in order to close the purchase though, because the bank wouldn't lend until the survey issue was cleared up, and the survey issue wasn't getting cleared up until we owned it. It created some challenges we had to work around.

How did you add value to the deal?

I found the deal, analyzed the deal, worked with all the vendors to get them lined up, worked with the city to get through permitting, negotiated the deal as the buyer's agent, and am the boots on the ground for the redevelopment process.

What was the outcome?

Undetermined!

Lessons learned? Challenges?

Lots: I learned how to communicate with lots of different team members, architects, engineers, lawyers, surveyors, etc about some real difficult hurdles to overcome or at least difficult to me, because I have never come across them before. I learned to ask any question and make sure I get clarification on any item I am uncertain of. I am learning how to work with a partner in this deal, which has been an amazing experience thus far. There are many more lessons to learn here, I am sure!

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

Dan Grubb @ ABNB Federal Credit Union - Commercial Lender
Ben Titter @ Shaheen Law Firm - Real Estate Attorney