Address: Barton Oaks Apartments. 107 Barton Street, Little Rock, AR
Number of Units: 54
Value Add Deal? Yes
Purchase Price: $2,824,000
Estimated monthly increase projected? $100/unit
Anticipated value after value add: $3,650,000
Estimated Cash on Cash Return: 9.7%
Estimated Internal Rate of Return: 14%
Rod’s education and the support of the other warriors I have worked with and met along the way have made this all possible.
Looking on line daily to find property to practice underwriting. Loop net listing. Found it underwrote it and it looked good.
Deal sponsor and GP team raised equity, private equity placement
First warrior I approached said deal was to thin. Third one finally sponsored. 12 initial offers. Went to best and final. We got that. During actual walk of property found a major retaining wall problem. Had to get a seller credit. Lender forced us to do a phase two inspection. They thought there was a repair station gas station and cleaners on the property. Only cleaners over 70 years ago. Then lender took away 2 years IO and 80% leverage they originally offered when we first started out. And a few other problems.
* These examples depicting income or earnings are NOT to be interpreted as common, typical, expected, or normal for an average student. Although we have numerous documented successful deals from our coaching students, we cannot track all of our students’ results, and therefore cannot provide a typical result. You should assume that the average person makes little to no money or could lose money as there is work and risk associated with investing in real estate. The students depicted have participated in Rod’s training and coaching. The participants shown are not paid for their stories.