Sub-to purchase and sold with Owner Financing in Oklahoma

[Rob Terpilowski]

Investment Info:

Single-family residence other investment.

Purchase price: $56,000
Cash invested: $4,000

I purchased this property subject-to the existing mortgage. Property has water intrusion which has caused damage to the floor and mold issues. The plan was to sell to someone who wanted to do the work to fix it up. I sold this property with owner financing on a contract for deed, pricing the property at about what it would rent for.

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

We saw a good response in the area for people looking for properties to purchase with owner financing.

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

Found it through a wholesaler who had found it on FB Marketplace. It had also been listed on the MLS a couple of years, so we had to negotiate with the agent to cancel their contract since they didn't do anything to facilitate the transaction.

How did you finance this deal?

My own cash

How did you add value to the deal?

I provided the financing to the end buyer who's credit was not good enough to qualify for bank financing.

What was the outcome?

The deal just closed yesterday. There's a $9,000 down payment, and monthly cashflow of about $350/month which is the spread between the outgoing payment on the original mortgage, and the incoming payment on the contract for deed.

Lessons learned? Challenges?

A lot of people will scoff at property condition, price or financing terms.

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

No