Time for an update on my potential multi-unit investment.
The short version: I don't think it's gonna happen.
The longer version: The buyers have not raised enough money to be able to buy the place. They were looking to get a mezzanine loan for about $500,000 and the lender they had lined up decided not to make the loan. They are looking for a new loan or additional investors to provide the additional capital.
Escrow was supposed to close at the end of February, but the sellers agreed to extend it. The seller is willing to work with us, but I imagine there is going to be a limit to their patience.
If the deal doesn't happen, the buyers will look for other investments that might be available for slightly less. The investor's funds are currently in an escrow account earning interest. Should this deal fall through, we can get our funds back or elect to take part in any other opportunity that might be found.
Tuesday, March 11, 2008
Update On Multi-Unit #1
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1 comment:
A year from now you will be relieved that this deal did not go through. Increasing interest rates and worsening rental and sale market conditions will blow that ridiculous mid-5 percent cap rate out of the water. Look at Houston again when you can buy on double digit OAR's.
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