Hello,
Seasoned professional investor in the Augusta GA area. Recently acquired a 20 unit apartment Complex, fully vacant. Incredible in-place long term seller finance terms (awesome!). The deal was 24 units, and one of the buildings burned down the other night (no one hurt). I was about to sell the property instead of keeping it, until the insurance company gave me an estimate of what I would get for cash value on the building. I purchased all 24 units (6 buildings) for $200K ($20K down, 7%, 30 year am, 5 year balloon, 475K left on note). Since acquiring for such a good price, I was going to exit my position and sell to some colleagues of mine that focus on apartments locally.
Since the fire, they have left the deal and I am now going to keep it. I am looking to raise about $400K to renovate all 20 units and lease up. I could self fund over the next 12 months, but would bleed my cash flow. I don't want to take to a bank and give away my great first position financing, but I know I will most likely have to. My attorney hinted at a syndication type deal (sell 15-49% equity stake and raise the money). Exit strategy would be to lease up an keep for investment/cash flow, etc, or lease up and season and sell to larger investor (fund, etc). $1.2M sale would make a cap rate around 10% with estimated rents and total investment. Any suggestions on what to do to raise the $300-$400K to renovate the entire project without giving up my 1st position financing in place and without giving up equity? Also, I am located in one of the fastest growing medium markets in the country, Augusta GA. Thanks in advance.
Trey Nixon
www.nixonhouses.com
