We paid a 400k assignment fee on our first apartment deal in 2018

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So this was an interesting deal.  Wholesaler posts an apartment deal for 1 million in our fb group.  The location was a small town 25 miles south of San Antonio in the town of Lytle Texas.  The apartments sit on 7.5 acres right next to HEB plus.  4 of the acres are vacant and touch the parking lot of HEB.  The apartments are 26 units, gross rents are 14k per month, but they have 0 records or deposit history.

Seeing the location, I drive down immediately.  By the time I arrived there the price had grown to 1.2 million. Apartments were very clean.  They needed pavement and some TLC, but were very clean.  The rental comps in the area told me we should get $900 per month per door.  We could also add 2 more units by converting an office and small cottage on the property.  We could potentially add 10k per month for less that 100k spent.

I wrote the wholesaler a $7500 check in her personal name on the spot.  

Now, at this point we owned 5 or 6 mobile home parks. We understood forced appreciation. But we didn't know if we had a lender that would loan us the money, but we had 400k to put down.

So the wholesaler talked the seller into owner financing us the complex. We put 400k down. 275k went to the seller. They carried a 525k note at 5.5% for fifteen years. The wholsaler received 125k and a note for 275k at 10% interest only for one year.

Fast forward to now, we are on a 900k bridge loan, we have a 1.726 million appraisal, and are about to borrow 1.1 million against the apartments.  We separated the land out when we got the bridge loan and have a 200k line of credit against it, but will most likely sell it for 300k for a quick sell.

All in all, we will have BRRRR'd into our first apartment complex using creative financing, and put 200k in our pocket in the process.


 


  
   

That's fantastic! I've seen numerous people posting "deals" in Facebook groups but the vast majority are junk or just people sharing brokers' email blast OMs.

Congratulations on your deal!

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