Seller-carry Multifamily in Tempe

[Michael Ratzken]

Investment Info:

Large multi-family (5+ units) private money loan investment.

Purchase price: $630,000
Cash invested: $240,000

This was my first multifamily fixer-upper, In the summer of 2019 and I had just helped a client purchase a duplex, I became friendly with the listing agent of that property and asked her if she had any others coming up and was told she had a 6 unit ( 3 duplex's) property in north Tempe just down the street from the duplex. I asked her what the seller was asking for it and she said " Make an Offer". We walked the property which was in fairly rough shape.

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

I gave them 3 different offers

Cash - $570k
Financing- $600k
Seller Carry- $630k

How did you finance this deal?

Seller Carry- 4.5% interest, 20 year note, 5% down

How did you add value to the deal?

Full renovation

What was the outcome?

They chose the seller carry option, they agreed to only 5% down and for 5 months after closing there would be no payment as I renovated the property.

The renovation costs were about 210k with a 30k down payment.

The Property is currently rented at $10k/ month with a monthly net profit at approx 5k