Real Estate Deal Analysis & Advice

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Megan Haggerty
  • NYC/Upstate
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Value Add Upstate NY

Megan Haggerty
  • NYC/Upstate
Posted Aug 26 2019, 15:14

Investment Info:

buy & hold investment in Oneonta.

Purchase price: $1,000,000
Cash invested: $200,000

A 40 Unit Senior Retirement Modular Home Complex that we're expanding into 100+ units.

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

Mobile Home Parks/ Senior Retirement Communities/ Modular Housing Communities are an extremely attractive investment opportunity. Especially in a market where it's so hard to find a deal.

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

We found the deal through our sourcing team- They Negotiated by offering at a 12 cap-

How did you finance this deal?

Private Equity Investors + Bank Financing

How did you add value to the deal?

We're going to be expanding from 40 to a minimum of 119(We think potentially 160)

What was the outcome?

The expansion is not done yet! It's a longer term expansion plan

Lessons learned? Challenges?

Due Diligence Documents shed light on things that owners (intentionally or unintentionally) try to hide - we found out the rent for the lot was a whopping $70 lower than we initially thought. Which is a big deal considering that we're talking about $33,600 of missed income a year. When you have a property that only cash flows so much, that has an impact on your return!

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