WEXL Properties LLC

[Jonathan Dornetto]

Investment Info:

Large multi-family (5+ units) hard money loan investment.

Purchase price: $655,000
Cash invested: $135,000

This property has 9 residences and one workshop that is rented. In three years I have added $200,000 in equity by making improvements to the property and raising
NOI.

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

I liked this deal because it was mostly rented and I could work on property improvements over time, I I’ll continue to make improvements as the opportunity arises, and tenants move out. After purchasing this property I got to work and had it full within a couple months and it has been full. Most of the past 3 years

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

I knew the building and the building owner.
I did my evaluation and ran it bast my lawyer and my banker. When they both agreed it was a good deal. I made an offer before the building went on the market. I had told the owner that if the building goes on the market I will pull my offer.

How did you finance this deal?

A 25 year mortgage

How did you add value to the deal?

I used gross rent multiplier, and CAP rate calculation. And took into consideration the potential for increase with minor improvements.

What was the outcome?

My NOI has significantly increased and my equity has significantly increased.

Lessons learned? Challenges?

I have learned so my due diligence when screening tenants. And to try to stay on the high end or the market rent. I do have some staff that work for my construction company that help manage the property. But dealing with tenants issues is my biggest challenge.