PROJECT 7: Park Avenue
Converted large dilapidated single family home to 3 unit apartment building for student housing.
This building had been vacant for over 10 years but the seller was emotionally involved because she grew up at the property. As a result, the seller was stuck on their asking price and wouldn’t budge. The problem was that her asking price was way too high for this dilapidated single family home.
We were able to dig into the reason why the owner was selling and what she wanted to use the money for. As a result we were able to create a win-win situation where the seller get her price and we got the terms we wanted. At closing the seller got the money she needed and she continues to receive a check each month. The deal worked for us, because we got the seller to take back a $75,000 note in 2nd position at 3% interest. Her willingness to subordinate her note allowed us to go out and obtain bank financing. In addition, we were able to convert the large single family building into 3 apartments which maximized rents and the value of the building.