Investment Info:
Large multi-family (5+ units) buy & hold investment.
Purchase price: $1,000,000
Cash invested: $200,000
Purchased a 26 unit apartment building in Little Italy, (downtown Omaha), with the intent to reposition through exceptional management and increasing amenities offered to residents. Historic tax credits (state and federal) will be utilized to bring renovations to this building and retain/attract awesome tenants that appreciate the location, trails, bicycle facilities (onsite bicycle repair space). Reach out if you would like to discuss the area or project. Thanks for checking this out!
What made you interested in investing in this type of deal?
Growth of the area, ability to force appreciation, character and condition of the building.
How did you find this deal and how did you negotiate it?
I met a guy at a social gathering who introduced me to the owners in August of 2016. It took me three years of relationship building and sweat to get the owners to eventually sell the property.
How did you finance this deal?
Conventional financing through a local lender plus a seller carry back. I am a NE Broker and was able to roll my commission into 20% ownership of the property and am acting as local property/asset manager.
How did you add value to the deal?
Bringing rents to market, addressing deferred maintenance, increasing value for residents through addition of amenities, and general improvement of the property.
What was the outcome?
To be determined, we are two months into ownership and have more vacancy than when we started but trending in the right direction!
Lessons learned? Challenges?
Diligence in terms of inspections prior to purchase is key. Shop for the financing terms that we want versus what lenders would provide; there is a hungry lender out there waiting to meet you! We financed a capital improvement budget with the purchase that is making renovations go smoother and more efficiently. When getting an appraisal ask for a current and future (ARV) value. Leverage that ARV with the lender to finance a capital improvement budget - "Finance Right."
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, I would be glad to make introductions to our lender who has been fantastic. Please reach out. I was the real estate broker in this deal and I would be glad to discuss additional opportunities in the Omaha area.
