Small multi-family (2-4 units) buy & hold investment.
Purchase price: $115,000
Cash invested: $150,000
It is about a 3 family unit bought as short sale from Bank but with confident with Seller.
What made you interested in investing in this type of deal?
I had a success with one 4 family Unit and that inspired me to buy this 3 family unit to scale up my investment.
How did you find this deal and how did you negotiate it?
Again, this one was a sale by owner advt and also a short sale. The seller had just hired a real estate agent and he was asking me to go through her. She was not replying and Bank wouldn't talk to me directly without the seller's approval. So i called the seller , called him at my home and showed him proof of funds and that i am a family man. I also told him that being a licensed agent, i will take care of all paper work for him that the bank needs. His property was heading for a foreclosure.
How did you finance this deal?
I bought all Cash since i could negotiate better price with Selling Bank since this was a short sale.
How did you add value to the deal?
By offering Cash. By offering all Paper work for Bank. By calling and following up with Bank. By keeping Seller under control so he doesn't sale to someone else.
What was the outcome?
I could able to buy the property at a good price.
Lessons learned? Challenges?
Existing Tenants were the problem. Had to remove all the 3 tenants and spend about 30-35 K to fix the property and then rent them to good tenants with screening.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No. i myself a Real Estate Agent.
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