Accelerated Real Estate Investor
Business
238: 170 Valley Case Study — Raising $7.5M in 90 Minutes!
2021-11-19
In today’s episode, I peel back the curtain on a 170-unit deal that I just got under contract, with an expected valuation of $14M.
Listen in as I breakdown the deal, including how I secured it off-market, the $1.1M CapEx plan, and how I was able to raise $7.5M in only 90 minutes!
The best part is, we only needed $2.5M to fund this property, so now our next two deals are fully funded as well.
Quick Overview
- Purchase price: $9M
- 170 Units
- Price per door: $52,900
- $1.1M CapEx budget
- Unit Turns: $877K
- 56% of the units needs a full turn ($7,500/unit)
- 20% of the units needed a ½ turn ($3,000/unit)
- 24% of the units are make ready ($1,500/unit) - Exterior
- $25,000 for roofs
- $20,000 for driveway sealing & striping
- $37,800 to paint (13 common spaces @ $3k/space)
- $50,000 for exteriors, yard, fencing, dog park and pavilion
- $90,000 buffer - $270,000 acquisition fee (3%)
- $300,000 in soft costs (closing, legal, title, survey, appraisal,
- pre-paids)
- All-in for $10.6M
- Rents are 20% under market value. Plan to improve units and increase from $700 to $880 over a 3 year period
- $300,000 of tax-free refi proceeds
- Expecting $900,000 a year of net operating income and 6.1 cap rate
- Expected Cash flow: $240,000/year
- Investors get 10% preferred return + 1% equity in perpetuity
- $14M+ valuation.
Want the Full Show Notes?
To get access to the full show notes, including audio, transcripts, and links to all the resources mentioned, visit https://acceleratedinvestorpodcast.com/238
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