Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

Terrance Breaks Down $80 Million Deal #sellerfinancing

20 Apr 2023 · 0 min

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Terrance's team bought an 80-unit apartment complex in Arvada, Colorado for $80 million using seller financing and a debt fund covering 77% of the purchase price. Local banks cap loans at $20-25 million, so they structured the deal with a debt fund instead, putting down $14-15 million in equity themselves.

Local banks kind of cap out at $20 to $25 million in debt, right? So we found this killer deal. We bought it from the original owner, 1974, in Arvada, Colorado, which is a nice little suburb. 3-bed, 2-bath, 2-bed, 2-bath, 2-bed, 1-bath, with a pool, amenities, the whole thing, right? And we bought it for like $225K a door. I mean, we killed the deal, right? And then we met this debt fund and they're like, we'll give you 77%, so you only have to bring $14, $15 million to own this $80 million asset. And I was like, great, you know, let's wave it in.