#2 Multi-Family and Apartment Investing Contributor
- Rental Property Investor
- St. Paul, MN
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Seller Financed a 120 unit apartment
#2 Multi-Family and Apartment Investing Contributor
- Rental Property Investor
- St. Paul, MN
We recently purchased a 120 unit value add apartment community and got the seller to finance. This was a distressed asset with 78% occupancy, needing over $500k in renovation. The option was to close with a bridge loan or to convince the seller to be the bank, saving us close to $350,000 in fees and interest.
This deal was an off-market deal that my company put under contract and convinced the seller to finance a construction type loan. We syndicated the down payment and remaining renovation budget as well to make this deal what I think will end up to be a really solid investment.
You can read more here: https://www.biggerpockets.com/blogs/10145/76815-se...
A few things that I took from this experience:
1. Don't give up - ever!
2. Stay persistant
3. Be creative
4. Ask! Then convince and repeat #1-4
Most Popular Reply
@Todd Dexheimer Congrats!
1) What's your Exit strategy on this asset? Short-term hold, long-term hold
2) Since this is a Seller Financed deal, What does your IRR number look like? Doesn't have to be exact, I'm just curious with this deal structure.
3) I see you're doing Interest only up to year 3, What's your debt structure plan going forward if you're holding past year 3?
4) The asset is 78% Occupied at acquisition, At what point are you projecting 95+% occupancy in your IRR?
5) Did you uncover why the previous owner was at 78% after 3 years and only at 50% of the rehab?
6) Is this asset a "C Class" staying "C" or are you taking a "C Class to B-Class?
7) What part of the US is this asset located in?