Large multi-family (5+ units) commercial investment investment in Las Vegas.
Purchase price: $2,700,000
Cash invested: $50,000
Sale price: $3,541,000
36 unit Multifamily, Class C, 1963
What made you interested in investing in this type of deal?
Class C, Value Add, mismanaged and rents below market.
YOY rent growth in Las Vegas is usually between 2.9%-3.4%
How did you find this deal and how did you negotiate it?
We have partners in Las Vegas with boots on the ground and they owned one property a few blocks from this one. Partners negotiated this off-market with the owner.
How did you finance this deal?
Did a syndication with limited partners (investors) for the down money and renovation funds and for the debt we did a Bridge loan for the rehab and sold at the 15 month because so many unsolicited offers kept coming our way.
How did you add value to the deal?
Renovated 21 of the 36 units which increased rents to market and forced appreciation.
What was the outcome?
We stayed 100% full and at the sale had a 15.65% return.
Lessons learned? Challenges?
Storm took one roof and an apartment fire - had to deal with insurance during the middle of the sale but it wasn't really a problem.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Our partners dealt with most of those.
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