New 42 Unit Acquisition!

[Michael Orlando]

Investment Info:

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

Purchase price: $2,220,000

Recently acquired a 42 unit, C+ property in a solid suburb of Cleveland! Deal was direct to seller, off-market and sourced by my partner and I. We were in conversation with the seller for nearly a year before we finally closed.. This deal was our second syndication and we ended up raising about $970,000 for the down payment, closing costs, and initial capex for renovations.

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

This deal was completely off market and actually came from a cold call I made! Negotiations were directly with seller based on what he thought comps were going for as well as analyzing the financials and proforma.

How did you finance this deal?

We used non-recourse financing through a mortgage broker we work with locally. They were able to get us 2 years I/O and a 3.375% rate with a 54321 PPP.

How did you add value to the deal?

Interior renovations, utility savings, organic rent bumps for under market units, and cable contract.

Lessons learned? Challenges?

On acquisitions, follow up and patience is huge! We spent so much time upfront just building a relationship with the seller which ultimately lead to him doing business with us.