Achieve Investment Group Closed on 174 Units in San Antonio !!

[James Kandasamy]

BPers, 

Yahoo !!  We are happy to announce that Achieve Investment Group has recently completed acquisition of 174 Units Value Add Multifamily Apartment in San Antonio. The property was bought way below market value using our approach of sourcing deals direct from sellers. This is a group of 3 adjacent properties that will be re-branded. The strategy is to buy at 7% cap rate and make it to a 12-13% cap rate in 3-5 years. Currently the property is rented below market value with 63% expense ratio. We are projecting to spend 8-9K per door to rehab the interior and exterior of the property, change the demographic to increase the rents to market, reduce expenses to achieve our investment goals. The property was bought by syndicating capital from sophisticated and accredited investors using SEC rule 506d. Financing of the property was done using loan assumption so that it can be refinance to do a cash out refinance within 2-3 years. Now lets roll the questions !!

[Jeff Greenberg]

Congrats on the deal.

My guess is that your deal was done with a 506b not a 506d

Rule 506(d) and “Disqualified Persons”

The new 506(c) rule arrived with a companion 506(d) rule, which prohibits “felons and other ‘bad actors’” from conducting Regulation D private placement offerings that rely on any Rule 506 (i.e., 506(b) and 506(c)) exemptions, where a disqualifying event occurs following the effective date of 506(d).