Just wanted to share my most recent triumph! My partner and I just closed the following deal
2x 4-unit buildings and a duplex
Purchase price: $320,000
Down Payment: $20,000
Full Market Value: $560k (Only one unit needs work and that's just carpet)
Term: 15 years Owner financed
Gross Rents: $6,990/m
Net Income: $47,600
I got this lead while preperaring an eviction on one of my inherited tenants. I was chatting with our city constable and asked if she could call me if any landlords came in expressing the desire to get out of the industry. Fast forward two weeks later, my phone rings and it's the constable who tips me off to this beauty. I worked out an owner financing deal with $20k down, and finally closed yesterday!
My job for the next week is to meet and train all of the existing tenants to work within our system. I'm also going to be raising rents to as close to market as they can stomach. Some were getting pretty sweet deals.
3 apartments went empty during that time, but the owner was kind enough to leave them vacant so we could fill them with properly vetted tenants. I've already filled one, and have a promising lead on another.
I have two pieces of advise from this experience.
1.) When negotiating a deal, show the owner ON PAPER, how much $ they'll make by being the bank. The only reason I was able to work out this ridiculous price was because I stressed how he'd make it up in interest over the term of the loan. He wasn't digging the deal at all until I mapped that out for him.
2.) NETWORK with everyone you come in contact with and let them know you want to buy houses. I turned a bad event (my eviction meeting) into a MASSIVELY awesome event just by uttering one phrase at the end of our conversation. Then take care of the person that fed you that lead. I'm going to be paying her a $500 referral and a really nice bottle of wine. One hand washes the other.
As always, Thank you BP community for all of the awesome information, and keeping me motivated through the long haul. This forum and the podcasts are rocket fuel for the motivation to keep pounding the pavement.
Awesome job! Great work and being transparent is so important. It is very likely that the owner knows more investors!
Congrats on grabbing 10 units at once for a great price and even better with owner financing!
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