In June 2012, Fund 3 and Pathfinder purchased a 40 unit property in the Bixby area of Long Beach. The asset was in distress as a REO, and the bank sold the property for $4,125,000 cash after entertaining 23 other offers. Even though we were not the highest offer, our local reputation of being able to close quickly, as well as having strong broker support, secured the deal. The venture spent $600,000 in CAPEX and implemented aggressive rental increases during the construction period. We were able to sell the property in August 2014 for $6,625,000 representing a 40% gain over a 2 year hold period.