80 Units Macon Georgia- Value Add

[Rosemarie Torla]

Investment Info:

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

Purchase price: $1,720,000
Cash invested: $600,000
Sale price: $3,250,000

80 unit property - syndicated deal

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

I attended a mentoring program with Urs Capital. My thoughts were that investing in single properties would take a long time to reach my goals. This fit my background in finance and investment management.

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

extensive research in the area, reaching out to numerous property managers, brokers and other investors from the networking group I belonged to

How did you finance this deal?

We got good terms from a hard money lender, 10% for 18 months. they also provided a line of credit that we drew down on to do repairs. Our original goal was to refinance in 18 months but we got an offer to sell and it was the right decision.

How did you add value to the deal?

all 80 units were renovated. one of our partners moved to Georgia to manage the project

What was the outcome?

The work took much longer to do than it should have and the workmanship was not good. see below

Lessons learned? Challenges?

Even though someone is your partner and you think they are vested in good results, it will really only matter if that person has their own money invested. our partner managing the renovations was working on other projects and mismanaged a lot of the renovation work.

we also had a very difficult time finding property managers in the area.