15 unit Apartment building, Seller Financing Development
Investment Info:
Large multi-family (5+ units) commercial investment investment.
Purchase price: $600,000
Cash invested: $130,000
In November 2021, I purchased a single-story commercial building in a downtown area outside Provo Utah.This building will have 8 apartment units, 5 short-term rental units, and 2 office spaces. Three keys allowed me to own 50% of this building with $130,000 invested. (To give you some numbers we are all in at 2.1 million and it appraised just shy of $3.2 Million)
How did you finance this deal?
This was a seller-financed transaction, the terms allowed us to use the ground as collateral and I brought partners in after I got all of the city approvals, and they took over the future expenses for the seller financing note and the other costs like engineering. We leveraged the land and got a bank loan for $1.6 Million.
Lessons learned? Challenges?
Negotiate harder
