Development of duplexes & fourplexes
Investment Info:
Small multi-family (2-4 units) commercial investment investment.
Purchase price: $1,000,000
Build & Hold Multi-Family/ I built out the development in order to keep a building
What made you interested in investing in this type of deal?
I like newer construction because there is less hassle with mistakes others have made. I like multi-family as it spreads out the risk of vacancies
How did you find this deal and how did you negotiate it?
I found land at a good price and got development approval and construction approval. Then I raised the funds needed to build the project and keep one building.
How did you finance this deal?
Private funding and banks
How did you add value to the deal?
Building the project
What was the outcome?
I got paid to build the other buildings and was able to keep one with a small loan
Lessons learned? Challenges?
It is hard to raise money until prices are set... it is hard to set prices 2 years before construction is complete. The challenge is finding the right partners.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I have had my RE License and I have also worked with several agents
