Closed 63-Unit Deal

[Nick Brown]

Investment Info:

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

Purchase price: $3,800,000
Cash invested: $1,200,000

63 Unit Multifamily

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

I'm always looking for value-add multi-family opportunities; and I've loved the Charleston area since being stationed there in the Coast Guard.

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

This deal took persistence--8 months in fact. My partners manage the building across the street. We got to know the other manager and she connected us with the Seller. We went back and forth on price for weeks before landing on 3.8.

How did you finance this deal?

75% traditional financing; raised $1.2M from private investors. Currently paying private investors 10% preferred return and gave them 20% of the equity.

How did you add value to the deal?

We are adding approximately $1.8M worth of value through flooring, painting, and cabinet and countertop updates. Additionally, the rents are severely below market and we plan to raise those over the course of the next 18 months.