65% return after 19 month hold. 43.58% IRR.

[David Lilley]

Investment Info:

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

Purchase price: $1,780,000
Cash invested: $450,000
Sale price: $2,600,000

Contributors:
Dane Ohlen

Sold after 19 months. 65% net return to investors. 43.58% IRR.

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

The huge value add potential. This asset had all original interiors and rents were on average $250 below market for similar age renovated comps.

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

CBRE Phoenix website.

How did you finance this deal?

7.5% interest only bridge loan. 2 year term, 80% LTC.

How did you add value to the deal?

Interior renovations

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

I would highly recommend my partners at Reap Capital and a huge thanks to CBRE in Phoenix for keeping us updated on local market conditions and for securing a full-priced offer.