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First Edition of The Asset Advantage!
Under Contract: 16 Units in Cleburne, TX
The Asset Advantage
Who We Are
Caleb Hancock | Luke Walters
As the duo behind CHLW Partners, we bring a unique blend of engineering expertise, Midwestern roots, and a lifelong friendship to our real estate endeavors. Our bond goes way back, rooted in our shared upbringing and a mutual passion for real estate.
Our engineering backgrounds give us a meticulous eye for detail and a knack for problem-solving, qualities that have proven invaluable in the realm of real estate investment. Growing up in the Midwest instilled in us a strong work ethic and a commitment to integrity that guides every decision we make.
Our enduring friendship serves as the foundation of CHLW Partners, allowing us to seamlessly combine our skills and vision. With a focus on suburban value-add multifamily properties, we're not just in it for the returns; we're dedicated to creating lasting value and vibrant communities.
While we're currently based in the bustling Dallas-Fort Worth metroplex, our ambitions know no bounds. We're eager to expand CHLW Partners into new markets across the nation. The future is bright as we continue to innovate, build our network, and acquire properties.
Under Contract: 16 Units in Cleburne, TX
How We Found It
We located this property off-market through a cold call. The owner, an elderly individual, had grown tired of managing it solo, presenting us with the ideal mom-and-pop scenario. Within the same week of reaching out, we arranged to meet the owner at the property to walk the exterior. Although initially hesitant to sell, there was a glimmer of interest. He was hesitant because he had recently sold off several other properties and was dreading a huge tax bill. Over the course of four months, we diligently nurtured our relationship with him. Finally, our persistence paid off as we secured the property under contract, negotiating $150k below the asking price and securing 80% of the purchase price in seller financing. This was a win-win situation as we got favorable terms (5.5% interest rate over a 30 year amortization), and the seller is able to defer a large amount of taxes.
Business Plan
Our business strategy is straightforward. The previous owner had recently put on a new roof, replaced the siding, and had taken measures to ensure the interiors were well maintained. However, they had not been updated since construction 40 years ago. Recognizing that the current rents were below market value and tenants were on month-to-month leases, we saw an opportunity to raise rents by as much as 40%, from $900 to $1250. To achieve this rental growth, our plan includes moderate updates to the interiors and improving curb appeal with the addition of signage and repaving the parking lot (Stay tuned for more detailed updates on renovations as we go!).
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Disclaimer: Nothing in this communication shall be construed as an offer for investment in CHLW Partners, LLC (the “Company”). Solicitations for investments by the Company will only be made through a Published Investment Opportunity in the Company's investor portal provided by the Company to potential investors for such purpose.