21.38% IRR, after 5 long years (all during 2009-2014!)

After a note acquisition in September 2008 (the week before Lehman crashed – I will always remember that!), then a trustee’s sale in December 2008 (to get on the title)… the dust has settled… and it’s in the black!

What began as a note acquisition for a potential adult care development project in Seatac, Washington, then turned to a multi-family unit maybe… then after some kicking and screaming turned into a rehab of 8 SFR properties, the project came out in the positive with an overall 21.38% IRR after 5 long years.

Why is this notable?  Mostly due to the timing and events.  For a deal that started just before the crash that should have been worth around $2.2mil, worked it’s way through a variety of options, and still came out whole on the other side…, it’s something I’m satisfied with.  This project took a lot of repositioning (almost weekly at many points along the way), but was overall a success and great experience in the end.

While not the highest return I’ve achieved for projects, it was still a better investment than the majority of anything else that happened between 2009-2014.. and that is something to be proud of.


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