PROJECT 7: Park Avenue

DESCRIPTION:

Converted large dilapidated single family home to 3 unit apartment building for student housing.

CHALLENGE:

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.

SOLUTION:

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.