Flipper · New York City, NY · Member since 2015 · 20 posts · 5 votes
Seeking an additional $300K in Equity for the acquisition of a 25 unit, 29,000 sf multifamily property in northeast Baltimore at a cost of $2,325,000. The property was recently rezoned to R-9 that allows for up to 164,000 sf of development rights. We have already raised $400K in Equity and have secured Debt financing at 4.75% through Freddie Mac. We are paying an 8% Pref and the property will generate a 10% Cash on Cash Return in Year 1 and 15% in Year 2. We have a three year exit strategy that will involve refinancing for the development of the full building rights. The area is in a heavily Orthodox Jewish neighborhood with strong housing demand.
Flipper · New York City, NY · Member since 2015 · 20 posts · 5 votes
8y
Hi Ned: The property is currently 91% occupied and we have a very good price from a local contractor to convert the three commercial units to residential; the contractor may put up his costs as an Equity contribution. More importantly, the property was rezoned to R-9 allowing for 164,000 sf of development rights. We are showing a 10% Cash on Cash Return in Year 1 and 15% in Year 2. We will be paying an 8% Pref to all Investors and will be paying out additional net revenues on a Quarterly Basis. We have a three year exit strategy to either sell the property with approved plans for the development or to proceed with the development and to buy out any initial investors who want out at that time. Please send me your email address and I will send you our Financials.
Flipper · New York City, NY · Member since 2015 · 20 posts · 5 votes
8y
Hi Ned: If you don't mind, I am going to have my local Baltimore Partner, Rubin Rakovsky, reach out to you. Rubin is a member of the GP team for this deal, he is both a CPA and Licensed Sales Agent and he created the ProForma so he understands the financials of the deal quite well.