Closed on very first property!!!
Wow what a rush. Today my partner and I closed on our very first deal. Took me a few years to get to this deal but glad to have taken the leap of faith. I owe a lot of gratitude to my mentor @Brandon Hicks . He has helped me along the way since the very first time we connected here on BP. His guidance helped me to get over the fear of the unknown.
The deal... Older 6 plex unit. Asking price $150,000. Spent a bit of time going back and forth with the seller and the sellers agent to get a seller financed deal. After many back and forth attempts, the seller agreed to finance at $135k with $20k down and 5% interest. Being that the reason for wanting the seller finance option was because we had very little money we could put down, this didn't make sense for us at the moment so we moved on. A bit of time had passed and the property was still for sale. During our conversations, the realtor told me the seller was willing to take $120k cash. At this point we were around Thanksgiving time and while with some family members we were talking about what we were up to. Long story short we ended up taking a commercial mortgage out for $90k @ 4.99% over 20yrs. We borrowed $25k from a family member at 3.5% interest only. Ended up after credits back to us at closing my partner and only ended up having to use a little over $1000 of our own money. Property should net us around $700 a month in cashflow
I was like many out there, not willing to take the leap of faith. I don't know what the future has to hold for us, I'm just glad we took a chance. Already looking for the next deal.
