Bought a 9-Unit for $5,000 Out-Of-Pocket!

[Account Closed]

Investment Info:

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

Purchase price: $275,000
Cash invested: $5,000

Final Purchase Price: 275k + an expected 40k Reno + 15k Closing Costs = 330k NEEDED

Funding: I have OK credit, little time, and even less cash to my name, so, I had to find the absolute best "wedge deal" out there where a lender couldn't say no. In the meantime, I developed a great relationship with a hard money lender who really trusts me. He could tell I had done my HW and put in the time, and even more importantly I'm HUNGRY. He agreed to lend 70% of the ARV. I knew that hard money, combined w/the BRRRR strategy was the way I had to go. All of this was pretty uncertain until I received all the inspections and told the hard money lender I planned on closing in 5 days. I put him in contact with the refi lender I planned to use, who confirmed the numbers, and the rest was history.

I needed about 315k (PP 275+ Rehab 40k) but ended up having to borrow 330K because of 15k in closing costs.

He charged 3 points at closing (9,750 which is tied into the loan) and 10% interest only (of the 275k amount/$2708 per/mo) paid per month which is paid in arrears, so... the first payment isn't due until April 1, 2020, meaning I get about a month in cashflow w/out any debt service. The remaining 5k consisted of survey, title insurance and settlement fee.