As a first post, we thought it would be fitting to discuss a recently closed real estate transaction, with a value of $2,400,000 in Sioux Falls, South Dakota! Let's start from the beginning....
In February, Monarch Real Estate caught wind of a large group of residential investment properties that were being considered for sale in a desirable, East-Side Sioux Falls location. This group of properties was off-market, and we contacted the sellers directly in an attempt to earn their business for our Property Management group. These properties consisted of 7 duplexes, and 1 fourplex.
After a few weeks of discussion between Monarch Real Estate and the current Owners, a mutually agreed upon purchase price was locked-in for the purchase of all buildings. In considering the best ways to go about the purchase of this real-estate portfolio, Monarch Real Estate decided that with the appreciation of the Sioux Falls market, the favorable financing involved, and the flexibility of options down the road, we decided to finance each property as its own, which meant residential financing rather than commercial for the entire portfolio. This would allow for consistent liquidity, selling off property as desired based on market conditions and investment goals.
All in all, the negotiated purchase prices resulted in an average of a positive $50,000 difference between appraised value and the purchase price!
This deal created immense value, both in equity and cash-flow, and added an additional 18 units to Monarch Property Management's portfolio.
We look forward to continuing to offer investment deals located in Sioux Falls, South Dakota, and encourage anyone who may be interested in investing in real-estate, both residential and/or commercial, to reach out to Logan Koopman at Logan.Koopman@Monarch-Real-Estate.com to discuss goals and possibilities.
Monarch Real Estate
Sioux Falls, South Dakota
www.Monarch-Real-Estate.com