Nonprofit purchase of 12 units for seniors in low income

[Jacob Jennings]

Investment Info:

Large multi-family (5+ units) other investment in Palatka.

Purchase price: $350,000
Cash invested: $25,000

Our nonprofit purchased a small 12-door multifamily portfolio for seniors in low income housing at .60 on the dollar.

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

We would be able to use the equity in our organization to continue to help other communities.

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

Great new wholesaler who was open minded and willing to work hard.

How did you finance this deal?

100% seller financed except for wholesale fee and closing cost. We will refinance the property to give us over six figures in equity to run our nonprofit outside of donations or grants.

How did you add value to the deal?

We are stabilizing the deal by getting actual leases and helping the seniors improve their credit by helping them in various ways through the utilities.

What was the outcome?

We are holding the properties and cashing out the equity to acquire more homes and build our brand nationally.

Lessons learned? Challenges?

The closing was delayed four months, which was irritating, but worth it. The wholesaler was such a great negotiator that I would hire him anytime to do it for any of my deals.