Large multi-family (5+ units) buy & hold investment in Jonesboro.
Purchase price: $865,000
Cash invested: $600,000
A 34-unit bank foreclosed portfolio of properties needing a lot of work
What made you interested in investing in this type of deal?
We do own other commercial multifamily in the area
How did you find this deal and how did you negotiate it?
had a good relationship with the broker who brought it to us early last year, then covid happened...
How did you finance this deal?
the bank understood our previous financing fell through due to Covid. We came to an agreement that they would finance the purchase no money down with the condition we put with them the money needed to do the renovations which we then raised as our first syndication
How did you add value to the deal?
Remodeling every single apartment
What was the outcome?
We'll be cash-out refinancing in a couple of months at a 2.4M dollar valuation. We'll return our investors' money, pay ourselves some cash out proceeds and continue to own and maintain a cash flowing property
Lessons learned? Challenges?
Older buildings do a full plumbing scope to look for rotted galvanized pipe.
Metal roofs are much cheaper nowadays and look awesome
Tenants that go for months rent free because the bank did not wanna charge them are the worst to evict
Prices of lumber skyrocketed due to Covid...
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Spencer Bateman from Jonesboro AR
Looks like an awesome deal @Julian Sanchez ! Congrats!
Thank you sir, it has been so far even though COvid
@Julian Sanchez wow, great numbers! Is this one apartment complex or a portfolio of properties?
I just closed on my first commercial multifamily deal last month (6-unit) so it’s great to see such a success story. Congrats!
@Julian Sanchez , way to go, congrats!
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