27 unit Off-market deal Gardner MA

[Ryan Corcoran]

Investment Info:

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

Purchase price: $1,670,000

27 unit Gardner MA off-market deal from direct mail marketing.

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

Large multi-family deal sourced from direct mail marketing. Upside in great location in an up and coming city where rent is increasing, property values increasing due to gentrifying location.

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

I run direct mail marketing to source deals outside of the MLS. I had sent a letter, roughly 8 months later the seller reached out to me stating he was ready to sell as he was aging and felt it was time to off set the buildings. Negotiation was simply multiple conversations, we offered a price and he accepted the first offer.

How did you finance this deal?

Financed using commercial loan with private capital from investors.

How did you add value to the deal?

Adding value by cosmetic rehab and increasing property income.

What was the outcome?

outcome - initial purchase price of 1.67M, as complete appraisal came in at 3.2M. Essentially purchasing 3 buildings (27 units) 50% less than the appraised value came in at. I will retain 10% of the deal which will bring in roughly 110k/yearly in total, so a little over 10k per year, $0 invested.

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

Yun Rhee - Keller Williams
Matt Swierk - Keller Williams
Michael Marchetti - Partner