Investment Info:

Single-family residence buy & hold investment.

Purchase price: $42,023

Cash invested: $500

A business partner and I purchased this property, subject to the existing financing, for no money down. We did pay some closing costs to get the paperwork done & in order to get the deed into our LLC and I think we paid a referral fee to the person who brought us the lead.

What made you interested in investing in this type of deal?

We could get into it for little to no money down.

How did you find this deal and how did you negotiate it?

This was a referral lead that a wholesaler brought to us.

How did you finance this deal?

We took over the existing mortgage payments and renogiated the the note with the private lender.

How did you add value to the deal?

We offered to resale it owner finance.

What was the outcome?

After we bought the property we were able to sell it, as is, on a contract for deed to a very grateful buyer for $48,000 with $6,000 down and they made payments to us at $600/mth (PITI). The interest rate we charged them was 6.03% and their term was about 10 years.

Lessons learned? Challenges?

The first buyer defaulted after about 18 months. From there we sold the property again, as is, to another very grateful buyer on a contract for deed; this time for $52,500 with $5,000 down and they made payments to us at $700/mth (PITI).