48 unit Pittsburgh Portfolio

[Bud Evans]

Investment Info:

Other buy & hold investment in Pittsburgh.

Purchase price: $5,000,000
Cash invested: $400,000

48 unit portfolio consisting of SFH and MFR properties. Gap funding with OPM, expected to refinance and sell off a portion of the portfolio to cover the 2nd position lender.

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

Net cash flow is king!

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

I have a team in Pittsburgh who brings me leads, wholesales them to me, manages the rehab and then manages the properties in my portfolio.

How did you finance this deal?

Creative financing: $880k funded by a preferred shareholder, $400k from my partner and I.

How did you add value to the deal?

Rents were below market for several of the properties. Tenants were on month-to-month so we raised prices and replaced tenants as required.

What was the outcome?

Properties are in my portfolio.

Lessons learned? Challenges?

Whisper down the lane doesn't work. When raising private money - speak directly with each individual. There was massive amounts of confusion with the PML on the terms due to the communications with a 3rd party.