Ground up Multi family Residence in Reno
Investment Info:
Large multi-family (5+ units) other investment in Reno.
Cash invested: $175,000
This property is a ground up construction of a MFR in Reno. Land was acquired in May 2019. Construction start estimated June 2021.
What made you interested in investing in this type of deal?
My business partner and I attempted purchasing MFR's in Reno area, 8-14 units with 3 different buildings. We couldn't arrive at a deal that worked in any so we pursued building our own.
How did you find this deal and how did you negotiate it?
Land purchase was through a family trust. We met with a local lender that deals in loans this size. After underwriting us, they were acquired by another bank, and we lost our loan. Started over with another lender that is based out of state. We are through underwriting and in committee. I researched and met with a couple of architects and settled on the one I thought we could have a working friendship, and could see doing this over and over. He has been our best find.
How did you finance this deal?
Cash for land. Construction and permanent loan from one lender. Borrowing some cash from an investor after talking to several investors, for down to start construction
Lessons learned? Challenges?
Hahah..always! In early 2021 the city called and said squatters had trespassed through a fence, and into the lone remaining 100 sq ft block wall structure, and set up accounts with water and power. They were persistent but in the end the City and Law Enforcement helped us move them on.