Small multi-family (2-4 units) other investment in Columbia.
Purchase price: $120,000
I was the Exclusive Buyers Agent in the transaction.
Units were separately metered for water/sewer which was a great plus discovered in DD.
The downstairs 2/1 unit was delivered vacant but this was the lowest price/ SF transaction around Olympia in the last 20 months which has great upside on rents and value with it's close proximity to USC and downtown.
What made you interested in investing in this type of deal?
If I wasn't busy I would have bought it myself, but was glad to get my client in at the right price!
How did you find this deal and how did you negotiate it?
Falling off and on the MLS, speaking with the listing agent and shopping it to a few buyers I knew looking for something similar in this area. We went in the sellers best and final and during DD was able to negotiate the price down plus 2% seller paid CC.
How did you finance this deal?
Buyer used conventional financing - 25% down.
How did you add value to the deal?
Sharing the numbers with an easy to understand setup to educate my clients, thorough due diligence support, negotiation of price and terms and keeping the deal alive through three delays from the lender over the holidays.
What was the outcome?
Lessons learned? Challenges?
Financing on 2-4 unit deals can be a pain but with the right team, setting the expectations and preparing for it can still be accomplished. I may look to work on more 5+ unit assets moving forward due to financing red tape but there's a lot of 2-4 unit inventory and the deals can be exciting.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My client worked with Joel Wall at Guaranteed Rate who got it done besides any set backs. I represented the buyer as the expert investment real estate agent. Without any bias I would recommend both myself and Joel.
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