Creative Financing and Patience
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $675,000
Three multifamily properties in a great Columbia neighborhood.
What made you interested in investing in this type of deal?
The properties were very well maintained and in the same neighborhood as others I own. Sellers were a married couple who retired and this was a big piece of their retirement fund. I love the challenge of figuring out the sellers' motivations, fears, and working with them to figure out a solution that worked for both of us.
How did you find this deal and how did you negotiate it?
My neighbor approach me about buying all three and making their transition to retirement easier.
How did you finance this deal?
In the end, seller financing. 8-month term, interest only. I'll refinance in 6 months, and pay them off.
How did you add value to the deal?
Furnishing the units and marketing them via AirBnB.
What was the outcome?
It worked perfectly in the end. As soon as I had them listed, I received 3 bookings the same night. It's a no brainer for us. We'll refinance them in 6 months, and make the seller happy and whole.
Lessons learned? Challenges?
Patience, understand the sellers' needs and motivations, and creativity.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No.