Creative Financing to Bring Home a Deal
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Fond Du Lac.
Purchase price: $170,000
Cash invested: $1,100
Used a construction loan and seller credit to have only ernest money & home inspection cost into this deal. When completed next summer this should be a nice BRRRR.
What made you interested in investing in this type of deal?
I was looking for a buy & hold property. Where I wanted to find property (close to where I live) the market is currently too hot and my numbers don't work for it. I traveled out 2 hours and found this community to invest in. It helps that I grew up in the area.
How did you find this deal and how did you negotiate it?
I found this deal on the MLS. Currently that is how I find all of my deals as I don't want to invest time into cold calls or post cards as I have a full-time job. MLS listings have motivated sellers.
How did you finance this deal?
A used a local community bank that I had built a relationship over the last eight years.
How did you add value to the deal?
Showing that we cared about our property and providing instant curb appeal. Being responsive to residents and doing a lite rehab on a vacant unit to increase rent by $80.
What was the outcome?
Currently the outcome is set for summer of 2021 when the full rehab is completed on the property.
Lessons learned? Challenges?
When not renewing a resident lease come with a plan on how you will fill that vacancy to reduce that time your unit is not making you money. I was okay with the one month vacancy as we were doing the rehab for that unit ourselves.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I worked with a rock star real estate agent/investor. Unfortunately he has since moved out of state and is not renewing his license come 2021.
