238: 170 Valley Case Study — Raising $7.5M in 90 Minutes!

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By Accelerated Real Estate Investor Podcast and Josh Cantwell. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

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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Connect with Josh Cantwell

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375 episodes