Closed on a 48 Unit Multifamily - First Syndication
Hey BP!
Just wanted to tell everyone about the first syndication I closed. Yesterday July 31st, I closed on a 48 unit multifamily in Columbus, OH.
Purchase Price: $1,115,000
Occupancy: 75%
Down Units: 6
Light Turns: 6
6 - 1 Beds, 34 - 2 Beds, 8 - 3 Bed
Getting $500 for 1's and 600 for 2's (with a $30 dollar water bill back) and $700 for 3's (with a $40 water bill back)
Renovation is going to start on Tuesday and I am excited for the project. It was an off market deal, and worked very closely with the seller to get the deal done. It was a long closing period for many reasons. Some hiccups along the way were, after contract was signed the seller did not send any diligence documents for 21 days. Seller required us use his title company (HUGE MISTAKE) and they were horrible, at the last minute the bank was so frustrated with them they changed the title company. The lender keep throwing last minute requirements at us and my insurance guy flaked out last minute. Thanks to BiggerPockets I was able to find an insurance guy really quick.
My financing on the property was 5.25%, 6 year term, 25 year amortization, and 75% LTV. I needed to raise about $580,000 for purchase price and renovation. I can say this was a fun process and I look forward to the 2 new projects I have under contract right now.
