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

Accelerated Real Estate Investor

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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