Recent multifamily purchase

[Kristine Jefferson]

Investment Info:

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

Purchase price: $8,600,000
Cash invested: $2,500,000

152 Unit Apartment complex. Value Add acquisition. 5-7 year hold.

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

Great value add, cash flowing from day one, great area, class B/C.

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

This deal was brought to my partner through a broker relationship, truly off market, it was not presented to anyone else.

How did you finance this deal?

Fannie Mae Green loan

How did you add value to the deal?

We will be adding value through improvements in operation and repairs, increasing rent.

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

Yes, thank you Franklin Street (insurance), and Arbor (lending).

[Kristine Jefferson]

I'm not sure how to reply to each one individually and still have the answers posted here, so I'll go question by questions.  

@Allyssa McCleery: My partner is the one that makes and develops the connections.  We've closed a few large deals with a few brokers, and because of that, they know we can close so that has helped us get off market deals. 

@Alina Trigub: This was a syndication.  My partner and I are business partners (vs. deal by deal) and we have done 3 together, however he has been doing this longer than me.

@Theo Hicks: This was my partners second deal with this particular broker.  The first one got dragged over the finish line and he (the broker) was impressed we got it to closing, so on this one the broker just called my partner. 

@David Acosta: Honestly, the Fannie Mae Green program isn't a huge savings, at all.  We got just the water savings program before they now have to go with both water and energy.  We have a certain amount of time to implement the shower heads, aerators, and toilets.  I don't think we'll go through the hassle again as the juice is not worth the squeeze.