How I Made $13k Closing On My 1st Investment Property!
Investment Info:
Small multi-family (2-4 units) buy & hold investment in St. Louis.
Purchase price: $120,000
I bought my first investment property in October 2019 where I live on one side and rent out the other side to cover my mortgage payment. Due to my unique lending situation, I left the closing table with a large check of over $13k instead of a traditional closing where I would have paid out thousands of dollars.
What made you interested in investing in this type of deal?
The book Set For Life by Scott Trench is the main reason I decided to invest in a duplex. The book details how house hacking is a great path to financial freedom. I am currently reading through it for a second time. Highly recommend!
How did you find this deal and how did you negotiate it?
We found this deal because the property was listed through another local investor who my agent (David Ounanian) was connected to. We were able to get the property for under list price and also negotiate closing cost credits and additional credits for repairs.
How did you finance this deal?
I financed this deal through a Private Lender. The day I was ready to make an offer, I found out from the bank that I actually did not qualify for the amount they had once thought. Luckily, I didn't let this news stop me. I was able to find a PRIVATE LENDER who I was connected to through my agent and boss, David Ounanian. Due to my unique lending situation, I actually left the closing table with a large check instead of a traditional closing where I would have paid out thousands of dollars.
Lessons learned? Challenges?
- Having the right connections is key.
- There is so much value in working with an investor-friendly agent who also invests in real estate themselves.
- There are always other options if you don't qualify for traditional financing.
- Don't let fear hold you back.
- Everything can be figured out if you try hard and have the right mindset.
- Don't let a long list of repairs scare you - make updates and repairs over time. Try to do them yourself first and if you can't, hire out.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, highly recommend my real estate agent and boss, David Ounanian. There is SO much value in working with an investor-friendly licensed real estate agent who is very well connected and has been through the process many times themselves. Now that I am licensed as well, we work together to help others invest in real estate!
