I would say that part of the advantage I have is that my brother is in real estate full-time running a property management company, so we get opportunities on a lot of off market deals. The 16 units did go to the market, but that was the first deal we had bought on market since our very first townhome.
We also were able to find a private money lender who allows us to close most smaller deals all cash, and then we can refinance with more traditional bank debt once we have done the renovations and increased rents. This last deal was done with traditional bank debt, but we were able to use some other assets that weren’t tied up to get an additional construction loan for the renovations. It didn’t hurt that my brother I just paid them back on a larger multifamily deal that he had done.
We are also in a smaller market that has a much lower price point, but a better rent to price point ratio, so these individual units aren’t $300,000 or anything.
We also were able to find a private money lender who allows us to close most smaller deals all cash, and then we can refinance with more traditional bank debt once we have done the renovations and increased rents. This last deal was done with traditional bank debt, but we were able to use some other assets that weren’t tied up to get an additional construction loan for the renovations. It didn’t hurt that my brother I just paid them back on a larger multifamily deal that he had done.
We are also in a smaller market that has a much lower price point, but a better rent to price point ratio, so these individual units aren’t $300,000 or anything.
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