Houston Apartment #2 update
February 6th, 2008 by KenricOn the heels of yesterday’s Houston Apartment #1 update is the Houston Apartment #2 update. Shaun did a great job at summarizing the investment on his blog. I won’t go into as much detail as he did but since this is a moving target these numbers will change daily.
Houston Apartment #2
This apartment building is a 324 unit complex located in Houston that was built in 1977. The owners completed a $2.9 million renovation five years ago. We plan to spend $100,000 capital improvements.
The purchase price is $12.4 million. Unlike Houston Apartment #1, investors plan to receive cashflow from day one.
Financing
The initial plan was to obtain an 80% loan of about $10,300,000 and raise $2.75 million for the downpayment. The current interest rate is hovering at 5.5%. However, we are falling short of our downpayment target and have been seeking an 85% loan instead of the 80%.
Even with that additional 5% from the lender, we are still in need of $600,000. We have asked the seller for an extension to raise the additional capital. Raising $2.75 million in capital in $50,000 chunks is pretty difficult but we are getting there.
Posted in Apartments | 4 Comments »
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I’ve been wanting to invest in multi-units too but never found a deal. You say $50K? That’s within my budget, how can I learn more about this investment oppt.? Is there a private offering memorandom? Thanks.
By Edwin on Feb 6, 2008
There is a private offering memorandum for this. You can email me to learn more about it. You will have to sign a declaration of interest before you can get the POM.
By Kenric on Feb 6, 2008
We nee3d an update on these appartment deals. so interesting. I am dying to join your ranks… :)
By Cynthia on Apr 22, 2008
Thanks for keeping us updated with the status of your investment deals. Did you close?
By PAshortie on May 6, 2008