Michigan Hard Money Deal - Close

800

3 deals

Michigan

We want to take an old city building right in the heart of downtown Wyandotte, MI and bring it back to life. The building has been sitting vacant for 10 years, and is currently owned by the city. We are younger real estate investors with a lot of drive. We currently own two rental homes that we've renovated in the Detroit area and are looking for our next big opportunity. With this renovation we'd intend to build multiple 2nd story apartments, create a store front out front, and private offices as well. Wyandotte is an up and coming area, and currently has multiple other downtown rehab projects going on. This building has a lot of history and has good bones, but definitely needs some repairs to get it back in shape. We'd intend to do as much of that work as possible ourselves, and have multiple connections in the area for HVAC, Plumbing, construction to do things more cost effectively. Due to this we are confident we could get this building back and running again for less than a traditional developer with our sweat equity and local connections. It would be a big project, but one that when complete could create stable income opportunity. We'd intend for this to be a stepping stone into more projects in the future! As for financing, we'd be looking for a hard money loan for approximately $750K, that we'd ideally pay back in 3-years after we can refinance and cash out the building through traditional lending means. Purchase price $100K. Currently have $75-100K to put towards the project. Renovation budget $650K. 2 year timeline. ARV $1.75M. Not yet in contract. Plan to hold. Based off the space and the tentative plans we'd have to section it off, I estimated $7,200 per month in residential apartment leasing for the 2nd floor, and anywhere from $8-12,000 per month of commercial on the first story.