San Fran - Fix & Hold House

1 Reply

Investment Info:

Single-family residence buy & hold investment in San Francisco.

Purchase price: $1,100,000
Cash invested: $220,000

Fix and Hold type of investment. Property has an easy expansion possibility in the garage, which will add 1000$ per sq/ft in value to the house. I bought it because of this value add, the rental income was to low for it to make sense.

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

1) The garage was big enough to add another room w/ bathroom.
2) The house had not been updated since it was built. An easy facelift would increase value, as confirmed by a few fix&flippers.

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

1) Having a real estate agent that was a good listener and one who stayed calm while I was in a hurry.
2) Negotiating and Buying the day before Thanksgiving - there was no competition and I negotiated 20K off the price.

How did you finance this deal?

At first, we tried to use a broker and he failed us! One week before my time was up to finance the deal, I had to find a hard cash lender that quickly gave me a bridge loan. Then I took my time and found a very good bank with very good terms and interest rate.

How did you add value to the deal?

Closing it quickly

Lessons learned? Challenges?

Always apply to multiple banks immediately!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Real Estate agent - Ryan... message me and I will dig out his contact.

@Ankit Patel First of all, sorry that you had an unpleasant experience with a mortgage broker who may have taken on a scnenario he wasn't very versed in. Very cool to hear your strategy with the holiday timing though!  

What kind of rates and terms were you able to secure with the "hard cash lender"?

Who did you end up refinancing out of that note with and what were those terms like?

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