28 units in Peoria, IL

[Brad Stegall]

Investment Info:

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

Purchase price: $1,275,000
Cash invested: $55,000

My first deal with a partner. We were able to buy a 24 unit apartment complex along with 2 duplexes.

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

I have a lot of duplexes and had been trying to get into multifamily.

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

I found the deal through networking with a mentor of mine. We used a real estate agent that we were both good friends with.

How did you finance this deal?

We got a bank loan and had a carry back from the owner.

How did you add value to the deal?

We had value when we purchased by negotiating a good price. We have since sold off one duplex to generate some cash. Now we are updating the units and raising rent.

What was the outcome?

We will take the cash from the sale of the first duplex and do another deal. As for the 24 unit and the other duplex....TBD :)

Lessons learned? Challenges?

I learned a lot by working with my business partner. He structured the deal in a way that I didn't know was possible.

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

Katie Kim was our real estate agent. Dean Heinzmann from Fortress Bank helped us with financing. Both great people!!