Multi family purchase using creative financing & past networking

2 Replies

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Chicago.

Purchase price: $870,000
Cash invested: $217,500

Bought this new building in Chicago from a seller. Negotiated for year long for price and finally agreed on $870k. Property apprised much higher $1.02k with rental income of $85k per year. I used one of my rental condos and HELOC to fund the downpayment of deal and got a check of $1500 at closing table so i didn't bring any cash of my own. Within 6 months i could refinance and payback my condo. After paying monthly loan payment i will still make $1400 cash flow at minimum after expenses

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

Relation with seller, Negotiated over a year

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

Well negotiated for a year but in between bought a different building but finally agreed upon price

How did you finance this deal?

HELOC and condo. Creative financing

How did you add value to the deal?

Well made $100k plus in 1 hr on closing table by building a strong relationship with seller

Lessons learned? Challenges?

Building relationships, trust and patience. Down payment securing was a challenge but was overcome

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

None

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