Two Bridges in Deal for 116 More Units

6 Replies

Today, Two Bridges Asset Management LLC signed a deal to purchase another 116 units in Spartanburg, South Carolina -- a beautiful B property. Together with the 54-unit deal we're working on now, we'll close 170 units between now and the end of January.

Our goal for the year was 300 units.  With a little grace time, we'll hit 404!

Congratulations, Jonathan.  That is a great accomplishment!

Hi Jonathan,

Congrats on your deal.  Great to see another person from the 5 boros here on BP.  Would you mind giving details on the deal (costs, and potential cash flow)? Hey, hopefully one day I can get to your mountain top.

where in spartanburg? That's my neck of the woods.

@Justin Meier I'd prefer not to identify the property until we close, but stay in touch and I will let you know. :)

@Donald Joshua  Even down south, cash-flowing deals are seeing some cap rate compression, but we were still about to buy this deal on a pro forma 7.5% cap rate.  Now comes the equity raise stage . . .

@Douglas Dowell  Thanks, Doug!

Jonathan,

Let me be devil's advocate .

I am new to MF but i was taught that buying on a pro forma and even at 7.5% cap rate is not a good deal. However i may be wrong and a "good deal" can mean differently based on each investor investment criteria.

I was taught to buy on actual market value as pro forma is predicting the future.

Do you think you're buying in a rush to meet your goals by landing an OK yield play deals ?

James

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here