Large mix use multi family with office spaces

[Jasmine C.]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $925,000
Cash invested: $185,000

mutli family with office spaces.

What made you interested in investing in this type of deal?

I got it at a great price because the seller was running out of time for a 1031 exchange

How did you find this deal and how did you negotiate it?

realtor's network brought it to us off market from a property manager she knew. He was an experienced investor so he didn't want to be represented. there was a lot of back and forth but since we were working with his PM instead of a realtor his PM relayed most of his negotiations. he lost a lot of leverage because he was in DD for his new property that he needed the money from this deal for.

How did you finance this deal?

commercial loan product

How did you add value to the deal?

we had 80% occupancy when purchasing and used our PM to give incentives to fill the rest of the spaces.

What was the outcome?

great reliable cash flow with a low interest rate

Lessons learned? Challenges?

never let anyone know you are doing a 1031 exchange or that you have your next purchase lined up. he lost a lot of negotiation power. although he was an experienced investor his PM did not understand negotiating leverage. since he was too cheap to get representation or get on calls with us more often. His PM spilled the beans on everything without knowing he wasn't helping his client by over communicating

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

agents, lender, pm