All Topics / Overseas Deals / Our Awsome USA Deal – 27% Net Yield

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of MTRMTR
    Participant
    @marisa
    Join Date: 2004
    Post Count: 663
    August 29, 2017 - 11:11 am

    Hi Guys

    We have been spending the last 12 months in USA, buying up in Atlanta and Boston.

    Our criteria is cash flow from day 1 and growth.

    Here is a deal we purchased.

    Here are the Numbers. Tenants been in place since 2004.

    Purchase Price : $805,000 + 5% Buyers Premium + closing cost = $860k

    Net Rent: $238,000

    Net yield: 27%

    Property Type : Commercial office + warehouse in Techonology Park

    Tenant profile : Long Term Bio Medical company

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010
    August 29, 2017 - 1:22 pm

    Nice Marissa – what is the remaining lease term on the property? Is it a single tenancy or multi?

    I’d assume bio-medical would have pretty extensive fitouts/planning permit requirements so should be a stickier than average tenant for lease renewals?

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of MTRMTR
    Participant
    @marisa
    Join Date: 2004
    Post Count: 663
    August 29, 2017 - 4:42 pm

    Hi Corey

    Just signing up on another 5 years.
    Tenant spending $100,000 to upgrade equipment
    Its a sweet deal as a recent certified valuation came in at $1.3M. Multi National company had low reserve on this, offloading

    There is also another option to flip, take profits off the table. However, very hard to find something with this cashflow.

    MTR

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010
    August 29, 2017 - 6:22 pm

    Good work – ticks all the boxes. Was the multi a REIT or something along those lines? I similarly had a client get a steal of a deal from a ASX200 company which was offloading assets in bulk a few years ago – amazing what slips through the cracks.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Rooky
    Participant
    @rooky
    Join Date: 2009
    Post Count: 1
    August 30, 2017 - 12:55 am

    Excellent Marissa – in which city it was – Boston or Atlanta ?

    Profile photo of MTRMTR
    Participant
    @marisa
    Join Date: 2004
    Post Count: 663
    August 30, 2017 - 9:43 am

    This one was in Atlanta, blue chip commercial precinct.

    Thanks Rooky.

    We recently purchased an historical sandstone building in Boston, but the strategy with this one is condo conversion (31), still with architect. The ground floor and basement will be commercial.

    This will be a hold as cash flow will be strong and Boston market is very hot we want to capture ongoing growth.

    We had several clients put funds into this one.

    Also purchased this one at auction. Auctions can be brilliant way to source deals, but still comes down in part to luck, who is bidding and reserve.

    Marisa:)

    Profile photo of Ricky JohnsonRicky Johnson
    Participant
    @fixedandsold
    Join Date: 2019
    Post Count: 9
    February 2, 2019 - 1:25 am

    How did your Boston project work out?

    Ricky Johnson
    Phone Me

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