A quick note from the Sovereign Sage team regarding a recent opportunity…
I wanted to fill you in on a recent opportunity that we came across. During my usual daily scan of potential properties, I came across two multi-family properties, one a 80-unit and the other a 48-unit (128 units), in Jackson, MS. All things seemed to point in the right direction. We know good deals don’t last long so we made an offer and negotiated a letter of intent. Here’s some more details about the deal.
Asking price: $7,400,000
Contracted price: $6,500,000
Current Value: $7,600,000
Stabilized value (after value add plan): $10,000,000
The financials seemed to be in line with what we are looking for. So I decided to take a trip down there and scout out the area. What I found was rough at best. All the businesses around the property were boarded up and closed down (except one Autozone trying to stay open). There were no signs of economic life around the property. Many homes in the area were burned down or vacant (yes, you read that right, burned down houses all over). While we felt confident that we could turn the properties around and increase their value, unfortunately there was little we could do to re-vitalize the surrounding area. This part of town was too big of a risk – for that reason, we were out!
We continue to look for good opportunities for you to partner with us.
In the meantime, we’ll keep making wise decisions on your behalf.
Onward and upward.
Jay Kennedy
On behalf of the Sovereign Sage Team
www.sovsage.com
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