Triplex for the Win!

[Will Fraser]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $185,000
Cash invested: $30,000

My partners and I took this one down. The property was already rented and the tenants were solid. Once we inspected the property we were able to bring a safety hazard to the owners attention and negotiated a stipend for solving that issue.

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

I know the area well and love small multi-families there. When I saw it come available I felt like the price and terms were justified so we took the deal.

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

It was on the MLS and I ran my quick numbers and offered list price, subject to inspections.

How did you finance this deal?

My partners (we 3) and I used 15% cash and an 85% LVT commercial loan with the amazing local bank we do a bit of business with.

How did you add value to the deal?

We'll be repaving the driveway and adding additional parking area, alleviating one of the pain-points for the tenants.

What was the outcome?

3 more units added to the portfolio, providing solid returns for all involved!

Lessons learned? Challenges?

Legal Lending Limit -- banks are legally capped at what they can lend to an individual or single entity. I'm still digging into this to learn the big-picture limitations but its going to be something that requires some new learning.

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

Absolutely! Wes, jason, and Josh at Valor Bank in Edmond are like ninjas in this space. They are the fantastic partners that I love working with in real estate!