48 unit syndication in El Paso, TX

[Duc Ong]

Investment Info:

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

Purchase price: $1,656,000

Contributors:
Vince Gethings

This was a 48 unit deal in El Paso. We raised $650K in a syndication to close the deal. We brought up the occupancy from 75% to 90% within 6 months of ownership.

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

We target value add opportunities in the 50-100 unit range, and this fit our criteria.

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

It was listed on Loopnet. We had this property under contract during COVID, and was able to secure almost $90K in seller credits due to the uncertainty of collections.

How did you finance this deal?

Community bank

How did you add value to the deal?

Unit turns, rebranding, new monument sign, reseal parking lot, exterior repairs, pet fees, RUBS, new cable contract, convert office into 2 units.

Lessons learned? Challenges?

Insurance takes a lot longer than expected to bind, so get started early! Also, it's good to have multiple lenders ready, in case one renegotiates, which is exactly what happened to us.

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

Zach Karam at Jaxon Texas Property Management