52 unit syndication in Fayetteville NC

[Alexander Felice]

Investment Info:

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

Purchase price: $3,200,000
Cash invested: $50,000

Contributors:
Rodrick Jackson

We found this off-market property while networking with other multifamily investors and loved it from the start. We worked it for MONTHS and had a pretty clean closing. We got Freddie Mac debt at 3.55% 10yr balloon, and 30yr amortization.

This is a reliable property in a market that I know very well, rents are currently below market and expense ratio is too high, so I expect to pay my investors their returns consistently.

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

Large multifamily apartments are a more efficient use of capital than single family. The bigger I go, the better the use of money gets. I started with single family homes (long distance BRRR) and now I'm happy to be doing these size of assets.

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

I was networking with BP legend Matt Faircloth at a property he was closing and a broker there had this off-market pocket deal that perfectly fit my buying criteria.

How did you finance this deal?

Syndication

2.25MM Freddie Mac debt
the rest was raised from equity partners

How did you add value to the deal?

The property is in good shape just mis-managed. We will increase rents and reduce expenses.