All Forum Posts by: Paul Wilcox

Investment Info:

Large multi-family (5+ units) commercial investment investment in Garden City.

Purchase price: $3,900,000

112-units, 2-bed, 1.5 bath units

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

value-add, long-time self-managed "mom & pop" seller, rents way below market, right outside Savannah, GA

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

9 month brutal negotiation that almost fell thru twice. Persistence and determination closed this deal.

How did you finance this deal?

Freddie Mac, 10-yr, 12 mo I/O, 75% LTV

How did you add value to the deal?

addressing deferred maintenance, rebranding, increasing security, upgrading curb appeal and interiors

What was the outcome?

just took ownership

Yes @Erica Osborn, that's the deal.  We have a great team including Anthony.  Phil and Darren are quite the duo in that market and I'm honored to be a partner.  Phil is actually living in the complex right now to oversee everything on a daily basis.

Conservative underwriting and excess capital reserves puts us in a comfortable position to execute the business plan despite the current situation.  We have the option for two 1-year extensions on our bridge loan and have purchased a cap on the floating rate.  The lead sponsor on this deal, Phil Capron, is established in this area already and knows the market well.

Investment Info:

Large multi-family (5+ units) commercial investment investment in Chesapeake.

Purchase price: $9,250,000

104-unit multifamily, mix of 1, 2, & 3 bed, completing 60 unit renovations over next 3 years

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

I'm on a mission to achieve financial freedom and nothing beats multifamily.

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

My mentor Phil Capron, through the Michael Blank mentorship program, found and negotiated this deal. Phil is an established investor in this market. He brought a few of his students in on his deal to gain experience and help close it.

How did you finance this deal?

Bridge loan, 3 yrs I/O, 80% LTC, 100% Cap Ex, Floating Rate Libor + 295 bps

How did you add value to the deal?

Raised capital, assisted in all aspects of investor relations, created a pitch deck

This is my first experience posting on Bigger Pockets and I thank everyone in advance that takes their valuable time to provide some advice.  I hope to return the favor some day.

I know someone that is buying a small commercial investment property because it appears to be a good deal, but does not have a plan yet and no experience.  The property needs a lot of work.....exterior siding, landscaping, roof, complete interior gut.  Because the renovation and design needs to fit the needs of an unknown commercial tenant, my question is which rehab projects, if any, are done prior to finding a tenant for the building and which are done after?  I can't imagine going too far without knowing the needs of your future tenant.  My thought at this point is to take care of the basic things that any tenant would need like the exterior issues, get the demo done for a cleaned-out space, then try to find a tenant and fit-out the interior to suit that tenant's specific needs.  Can someone confirm this thought process?