We closed on Cliffwood in December of 2023, with 20 units in a great location in Sioux Falls, SD.

 This was a very interesting deal that we closed using a combination of Seller Financing and involved local Private Money investors for a majority of the down-payment. With a sale price of $2.3 Million, we were able to get a rate of only 4.19% on the primary note, the lowest we could do with the IRS AFR at the time. The Private Money investors make a solid fixed return on their capital, and will be have their capital returned within 36 months of the original close. They are secured with a Tenant in Common Second Position Mortgage against the property, after the Seller Finance Mortgage.

This deal was an awesome example of a Win-Win-Win:

• With interest included, the Seller will get a higher overall price for the property.

• The Private Money Partners make a great fixed-return on their capital, not dependent on the performance of the property.

• We got into the deal with less than 10% of our cash down, and will be able to refinance out our private money partners and the seller into a conventional note within 36-60 months.

Acquired in December of 2022, Palace View is our first commercial (5+) multifamily! With 15 Units, this was a big step up in our portfolio and an exciting process. The property was turnkey, and had been listed at $1.2 million for a few months. Despite the seller being in negotiations with another potential buyer, our real estate attorney was able to get us under contract by more than 11% under list price at $1,065,000, a price that would meet our underwriting. We primarily utilized proceeds from the sale of a previous property through a 1031 exchange to fund a 25% down commercial loan to realize tax-deferred reinvestment of capital.

Immediately after close we invested in some long-overdue mechanical capital expenses that residents instantly recognized and appreciated. The property is professionally managed by JL Properties of Sioux Falls.

Our long-term strategy is to hold this property for 8-12 years, market dependent, before reinvesting the equity into a larger project.

This property came to us off-market from the original sellers of our duplex. Having appreciated doing business with us, with a quick close and no drawn-out negotiations, they called offering the property for sale at what we immediately recognized as a great price at $250k. The property was built in the 1970s, all 2 bed, 1 bath units with a garage. All units were rented and all in fairly good upkeep.

We quickly secured financing, and after an inspection to ensure nothing was being overlooked, closed on the property.

The property was professionally managed by JL Properties of Sioux Falls for one year and one day, before selling for $425k in October of 2022.

The one that started it all!

This 1916 Duplex was purchased for $149k in September 2020, and was renting for a total of $1,350 per month. We completely remodeled both full baths, one kitchen, updated all flooring to quality LVP downstairs and new carpeting upstairs, new light fixtures, paint, and garage doors and openers. After all improvements, the property was able to rent for a total of  $1,750 a month with tenants paying all utilities. 

We sold the property in February of 2023 for $235k.