Sold our first syndicated building!

[Pancham G.]

Investment Info:

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

Purchase price: $2,000,000
Cash invested: $281,000
Sale price: $3,000,000

We sold last month our completely turned around multifamily building that we bought in 2017. This was our first syndicated deal but our second complete cycle!

We raised capital from family and friends.

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

We love multifamily real-estate and also love the Charlotte NC market.

We were fortunate to be able to raise the capital and get great returns for our investors. Also, we improved tenant quality quite a bit and made this a great place to live for tenants.

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

We found this deal off-market.

How did you finance this deal?

Syndicated our deal and got Freddie mac SBL loan.

How did you add value to the deal?

We did the following things to the property:
1) Fixed the structural issues on the few buildings. We estimated about 50K but spent 100K.
2) Renovated a bunch of units.
3) Built trenches around the buildings to get rid of the water issues in the crawl spaces.
4) Changed all the roofs.
5) Got the laundry in house.
6) Built a shed in the back for the supplies.

What was the outcome?

Outcome was great turnaround of the property.

Lessons learned? Challenges?

Always estimate on the higher side!