Closed on 12 Unit Multifamily in Mebane NC

[Ryan Daigle]

Investment Info:

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

This complex contains 12 units configured as a series of single-story brick duplexes and underwent extensive renovations in 2015. It's a C+ class property located on quiet cul-de-sac and has two off-street parking spaces per unit.

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

I really like the Mebane area. Situated within driving distance to the major NC metros of Greensboro and Durham, Mebane has experience exceptional growth over the last decade (in excess of five times the nation average) while still maintaining good rental affordability. Additionally, the units are in good condition and are under market by a significant margin.

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

This deal came off-market via a PM that knew it was already under contract, but the buyers were having trouble obtaining financing. When the original deal fell through I was able to offer w/ all cash and close within 30 days, thus avoiding the financing bottleneck.

How did you finance this deal?

Unlike past acquisitions, I did not open this deal to outside investment. I was able to use a private money lender long term loan w/ initial IO period to lock this up for my personal portfolio. I put in cash for reserves and expected rehab, but was able to finance the rest. Upon stabilization I will look into refinancing opportunities to extract 100% of my invested capital.

How did you add value to the deal?

The plan is to implement professional property management, clean up a small amount of deferred maintenance, and implement light rehabs on tenant turns to push rents up to market.

What was the outcome?

TBD

Lessons learned? Challenges?

Be patient! This deal took a lot of waiting for other parties to complete their process before I was able to get in front of the seller. Stay with the deal, stay active in your communications to express continued interest, and don't get discouraged.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Happy to recommend a property manager in the Triad/Triangle area of NC if anybody is looking.

[Huan Nguyen]

That looks like a really good deal! Just out of curiosity, what is the demographic in that area where this property is? I know Burlington/Graham are quite popular for households where one spouse works in the Triangle area and one works in the Triad, I'm guessing Mebane is similar? Although I think those families tend to have higher incomes and occupy the A/B+ type apartments?