Making the leap from a portfolio of single-family rentals to your very first multifamily asset is a huge milestone for any investor looking to build real scale. We recently had the pleasure of making this exact transition a reality for a client in Greenville, NC.

By leveraging our deep network of owners and buyers, we put together a true one-to-one, off-market transaction. The best part? Sweetwater Capital quarterbacked the entire deal from start to finish. We handled the investment sale for the seller and secured the acquisition financing for the buyer, keeping everything moving seamlessly under one roof.

The Deal at a Glance

• Location: Greenville, NC
• Property: Park Ridge
• Transaction: Acquisition Financing and Investment Sale
• Loan Term: 5 Years
• Amortization: Interest Only
• Leverage: 78% LTV

The Strategy: Unlocking the Right Capital

To get an off-market acquisition like this across the finish line, our buyer needed to unlock some serious equity. We helped them execute a strategic cash-out refinance on their existing single-family properties. This smart maneuver freed up the exact liquidity they needed to fund the Park Ridge purchase and confidently step into the multifamily space.

The Challenge: Selling the Story

Every deal has a hurdle. For this one, it was the buyer’s resume. Since they were brand new to the multifamily world, lenders naturally had a few reservations.

But we knew we had an incredibly strong borrower on our hands. We leaned heavily into our deep lender relationships to pitch their track record and mitigate those perceived risks. That advocacy paid off in a massive way. We unlocked full leverage options, securing an impressive 78% LTV for a first-time multifamily buyer. To top it off, we negotiated a 5-year term that is entirely interest-only, giving our client ultimate cash flow flexibility on their new asset.

Navigating the Bumps in the Road

As any investor knows, real estate deals rarely go off without a hitch. This transaction definitely had its share of unexpected delays that were completely outside the control of both the buyer and the seller.

However, because Sweetwater was managing both sides of the table, we could step in the second an issue popped up. Through prompt communication and some creative problem-solving, we kept the train on the tracks. We mitigated the risks, kept the momentum going, and most importantly, preserved the original contract price all the way to the closing table.