12plex in Lincoln, NE

[Jared Sveen]

Investment Info:

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

Purchase price: $792,500
Cash invested: $65,000

Newly acquired 12plex in great area near Union College in Lincoln NE. Under rented and needs some updating but should be stabilized in 6 months and producing a solid cash flow monthly.

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

I've been looking to get into larger multi-family properties for the past 18 months and finally found something off market that was worth pulling the trigger on. Long term play with some forced appreciation and increasing rents along the way.

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

Cold called a bunch of apartment owners in the area and negotiated about a 58k off of asking amount based on a few units that need rehab and how under rented the units are currently.

How did you finance this deal?

Bank financing.

How did you add value to the deal?

Update of 2 units and increase rents on all units as they are extremely low.

What was the outcome?

Still a work in progress but coming along nicely so far.

Lessons learned? Challenges?

Make sure to follow a checklist when going through all due diligence items and try to get the seller to be accountable for getting the deal closed. Didn't end up getting leases until a week before close after asking about getting them for 2 months. Didn't cause any issues but would've preferred having them sooner to get more prepared for the transition.

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

West Gate Bank in Lincoln NE. I would highly recommend them on the residential and commercial side. They have helped me grow my business exponentially over the past few years.

[Thuy An]

Thank you, Jared, for sharing the information!