Updated almost 6 years ago on . Most recent reply
A-Traditional Wholesale in South Jersey!
Investment Info:
Small multi-family (2-4 units) wholesale investment in Woodlynne.
Sale price: $140,000
Contributors:
Drew Side
The Deal: This was a small mix-use property that was converted into a small residential Triplex. It had below market rents but it was located in a good section of Woodlynne NJ so it had upside potential. The building was bringing in $2,250 in rent roll but it had the potential to drive $2,700 in rents if it was brought to market rate. There was some cosmetic work (Under $7,000) that needed to be done but this was mainly a play to drive rents up over time.
What made you interested in investing in this type of deal?
What Made It Interesting: This was a-traditional wholesale which was accomplished through relationships. This property was listed on the MLS and hit the profile of one of my investor friends perfectly - we just needed to get the deal to him. The brokerage who had the listing has worked with my partner and I a lot so they trusted us and knew we could close on the deal. Instead of getting the house under contract and assigning. We put the house under contract, then we did an addendum for changing
How did you finance this deal?
The Financials: The cashflow on the property ends up being $759 a month when it was purchased with a traditional LLC mortgage. We were able to get a $6000 finder's fee for helping aid with the transaction and connect with my friend, the buyer.
