Episode Details

Whitney Elkins-Hutten of PassiveInvesting.com interviews Nick Stageberg of Black Swan Real Estate, a dynamic real estate private equity firm, as they dive deep into the fascinating world of distressed multifamily acquisition. Stageberg unpacks the complex purchase of Rainbow Plaza Apartments, a 105-unit "Franken building" in Anoka, Minnesota. He reveals the strategy his firm used to navigate buying this distressed asset from a nonprofit, including the shocking detail of doubling the Net Operating Income (NOI) on the day of closing. The discussion goes tactical as they detail the highly unusual, but highly favorable, financing stack: assuming a low-rate Freddie Mac loan alongside a "Soft Pay Loan" from Mercy Housing with optional debt service. Discover how Black Swan structures their deals with the Secure Freedom Fund to deliver a secure 10% fixed rate of return to investors, proving that a mission-driven approach to affordable housing can be a powerful engine for profit.