Package BRRRR Deal - Part 1

[Ley Nezifort]

Investment Info:

Small multi-family (2-4 units) other investment.

Purchase price: $167,500

Contributors:
Markus Jackson

3 Units BRRRR Deal in South Philly! This is the first part of two off-market deals (6 units total) that my partner and I just closed on. The purchase was $167,500, the rehab is going to cost us around $200,000 and the ARV appraisal came in at $610,000. So all in all, we are expecting to refi out our entire investment and make a pretty nice monthly cash flow.

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

Big fan of the BRRRR strategy, so this deal presented us the perfect opportunity to BRRRR.

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

Off-Market deal that was brought to us from a wholesaler we've been building a relationship with. Initially, they wanted a pretty high amount (I believe $230,000), but we were to mutually agree on a price that works for both parties.

How did you finance this deal?

We used a combination of hard + private money to fund this deal. The hard money lender was able to finance the entire rehab amount in addition to most of the purchase. Our private money guy then funded the difference and the cash that was required from us to bring at the closing table, while we give a pretty substantial return on his money.

How did you add value to the deal?

It's currently a two-story shell that we're going to convert to a 3 story triplex with higher-end finishes given that's what the area supports. The building also came with zoning and building permits, which allows us to go in and start the renovation right after closing.

What was the outcome?

Pending