Property consist of 8, 2 Bedroom, 1 Bathroom units situated in the Oceanview section of Norfolk Virginia. Seller reached out after a targeted direct mail campaign of Multi-Family units that fit our criteria in Norfolk and Surrounding Area's of Virginia Beach and Chesapeake. The Owner had purchased the property new in 1985 and held it, with little or no updates for 35 years, 6 of 8 units were occupied rents hadn't been raised in 10 years. We finalized the deal 1k under city assessment.

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

We target B&C class large multifamily properties and apply a BRRRR approach bringing them up to market and stabilizing the property before pulling out the initial investment and moving to the next.

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

We found the property through driving for dollars essentially, and reached out through direct mail as part of a larger direct mail campaign that was handled 100% in house. Negotiations were handled directly between us and the owner, our initial strike price was $500k, after touring the property owner disclosed he had another offer and his price in mind was $510k (High Anchor), we issued LOI at $465k. In response owner disclosed 2nd offer was 480k we countered at $481K.

How did you finance this deal?

Initially all cash as a negotiation tool, with financing after rehab as the goal

How did you add value to the deal?

All units will be rehabbed. We added Value to the negotiation by offering all cash, no repairs and a quick close.

What was the outcome?

Our offer of $481k was then bettered and they received a counter from the other party at $490k utilizing a line of credit. Owner notified us and at that point we issued an ultimatum and a contract, they had 24 hours to review, sign and except our offer of $481k or we would formally pull the offer. At hour 18 they returned the executed contract. We executed due diligence efficiently, ran into a few snags but worked them out quick, we then offered to close two weeks early for a $5k reduction.

Lessons learned? Challenges?

Money is not the only motivator, if you can relate to the owner and understand their motivation for selling you can make your offer more enticing without throwing money at it. In this instance we ultimately secured it $15k under the other offer on the table. Communication is key listen to what the other party is saying but also hear what they are telling you and use this during your negotiation. Have a solid team in place so when its time to move you can do so effectively and efficiently.

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

I have a real estate license however this was 100% off market. I work with two wonderful partners, we all have our area of expertise and area of responsibilities for deals in various stages, we hold each other accountable and we communicate DAILY. For closing attorney we used Alperin Law in VA beach, AshLee is the POC and they were amazing as always, they are top notch professionals and they have performed on 6 deals for me. For insurance Josh Dress at Goosehead is the best in the business.