All Forum Posts by: Ian Brown

Investment Info:

Large multi-family (5+ units) fix & flip investment.

Purchase price: $120,000
Cash invested: $5,000
Sale price: $269,000

Medium Density 1.5± acre site with potentially 5 existing rental units (4 concrete block structures + 1 mobile home) with excess land for additional development.

Property was purchased to either rehab/redevelop/or sell.

Zoning allowed up to 28± residential units.

Property was quickly sold with seller-financing to local investor and seller-financing will mitigate short-term capital gains.

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

The deal had flexibility - could BRRRR the deal, or redevelop with up to 28 unit MFR, or rehab and add more units, etc...

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

Wholesaler

How did you finance this deal?

Cash

How did you add value to the deal?

Clean up the grounds, pay for all DD docs (Survey/Title/Environmental/Soils/Geotech/Etc) and professionalized the marketing/exposure

What was the outcome?

Quick sale to local investor

Lessons learned? Challenges?

Trust your gut.

Multiple exits are always a plus and I would have been happy to hold it or partner with a developer/builder if sale hadn't been so readily available.

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

Brokered on my own behalf

Investment Info:

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

Purchase price: $900,000
Cash invested: $100,000
Sale price: $1,620,000

28 Unit Value-Add C-Class Apartment in Jacksonville FL.

Property was purchased as buy & hold, but market conditions improved rapidly and sale followed shortly thereafter.

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

Off market at a great price/door in an area that was starting to see meaningful rent growth

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

Off market through a broker friend/colleague. He was trying to bundle/package it with another (stabilized) apartment down the street, but we opted to purchase only the value-add 28 unit

How did you finance this deal?

Local credit union 80/20 LTV

How did you add value to the deal?

Unit turns/Paint/Pressure Wash/Branding/HUD & Section 8 Tenants/14 Evictions and cured most of the loss to lease.

What was the outcome?

Great outcome w/ 3.5x on equity in 17 mos

Lessons learned? Challenges?

Always buy value-add deals w/ clear path to "flip" your cashflows/NOI for refi or sale

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

Brokered on my own behalf

Investment Info:

Other commercial investment investment.

Purchase price: $200,000
Cash invested: $10,000
Sale price: $675,000

Vacant 5 Story Historic Blg in Downtown Jacksonville FL. Property was purchased with title issues that had to be resolved via quiet title litigation after closing. Property was purchased, boarded up, title matters resolved, then sold to local developer for apartment and retail/restaurant use.

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

Price and title challenge that I knew could be resolved post-closing

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

Wholesaler

How did you finance this deal?

Cash w/ partner

How did you add value to the deal?

Quiet title litigation (took approx 18 mos)

What was the outcome?

Sale to local developer for adaptive reuse - office to apartment w/ restaurant/retail

Lessons learned? Challenges?

Hold was longer than anticipated and I lessons were learned working with a new partner

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

Represented myself as buyer's broker

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Neptune Beach.

Purchase price: $430,000
Cash invested: $150,000

Furnished Duplex Rental 2 blks from ocean in Neptune Bch FL

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

Very rare scenario - duplex (bank owned) hit auction in Nep Bch 2 blks from ocean

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

Auction was advertised

How did you finance this deal?

Lending One Fix & Flip Loan 90/10 LTV

How did you add value to the deal?

Complete reno of both units, new siding, new roof, rebuilt garage, landscape, furnishings

What was the outcome?

Property value over $1M and in high demand as furnished rental (30 day+ medium term)

Lessons learned? Challenges?

It took longer than anticipated to close the fix & flip loan. When buying this I should've had back up financing or hard $ option.

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

Represented myself as buyer's broker

Investment Info:

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

Purchase price: $900,000
Cash invested: $300,000

83 Unit Apartment Purchased as Birchwood Apts then Renovated & Rebranded as Camellia Cottages

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

Excellent margins, value-add opportunity, with clear path to repositioning

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

Off market deal direct to seller

How did you finance this deal?

SWGB (local bank) 80/20 LTV

How did you add value to the deal?

30% rental rate growth from existing loss to lease and forced appreciation thru 5-6k/unit renovation (currently 60-65% units complete) + exterior paint/signage/landscape/branding/name

What was the outcome?

SBL non-recourse refinance summer 2021 (long term hold)

Lessons learned? Challenges?

Did almost all reno out of cashflow and personal funds, should've borrowed more initially and been more aggressive with reno timeline. If we did it again, would probably purchase w/ bridge loan, reno all units w/in 12-18 mos, then refi.

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

My partner and I are brokers, so we represented ourselves