Small multi-family (2-4 units) buy & hold investment.
Purchase price: $380,000
Cash invested: $5,000
After an NOS, bankruptcy, ( by seller) and 2 years of negociations, we closed on this 2 unit purchase in San Diego. I know we dont do that many deals, but when we do, we hit home runs. Not too many times that we can BRRRR in San Diego. I love this purchase.
What made you interested in investing in this type of deal?
$250,000 in equity upside after repairs...
How did you find this deal and how did you negotiate it?
Realtor relationship that I had forged over 2 years of trust in closing mortgages for him. Made him look good.
How did you finance this deal?
private money. Not hard money, private money
How did you add value to the deal?
buy it, take care of seller financially and emotionally. fix it up and got property manager to provide advice on the rehab.
What was the outcome?
so far in the middle of rehab, but we are looking good at getting tennants and finshing rehab a few weeks late, but in budget.
Lessons learned? Challenges?
COMMUNICATION is key with all parties. One of my private investors did not get proper communication from ME. This cause some stress, however her trust in my ability, ( due to past experience with me, ) created an oversight on her part. Meaning, that forging the relationship for the future by my seed planting was greater than the communication mistake.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, me..... not kidding, I've been playing cashflow 101 for over 10 years and using creative financing tactics and contracts and negociations for the game.... training for deals like this using a game is awesome! But having Tony Ambre with WFG title help me out with title issues, refi binders, ( yes refi title binders is a trade secret). Russell Walker is a great realtor to have in your back pocket.
Congrats! Good work! Where in SD is this property?
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