Small multi-family (2-4 units) commercial investment investment.
Purchase price: $8,000
Cash invested: $241,000
Sale price: $309,000
Bought an old apartment structure, tore it down, built a 4 plex on the property. Sold the property for a 53k profit.
What made you interested in investing in this type of deal?
I am a developer who specializes in building apartments for investors and myself. This property fit that model
How did you find this deal and how did you negotiate it?
City condemnation property
How did you finance this deal?
Conventional commercial loan
fixed contract to be sold when completed
How did you add value to the deal?
My business built the entire project
What was the outcome?
Sale price of about 50k profit
Lessons learned? Challenges?
I learned to continue to look for these either vacant, cheap lots or condemnation list houses. We found another one and are starting in one month.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Jeff Mason in Washington, IN
First Federal Savings Bank
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