Single-family residence note investment investment in Ferguson.
Purchase price: $27,000
Cash invested: $1
I used private money to buy a property, then sold it with owner finance to another end user and keep the spread.
What made you interested in investing in this type of deal?
Phenomenal way to cash flow without dealing with tenants.
How did you find this deal and how did you negotiate it?
How did you finance this deal?
How did you add value to the deal?
Created an opportunity for a buyer that was unable to secure a traditional loan.
What was the outcome?
Performing cash flowing note. Steady stream of income for an investor.
Congrats @Drew Poniewaz ! Any deeper insight into the spread you kept, and what you're making on the note?
Sure. I used private money to purchase the property $27,000, at 8% interest on a 5 year term. $2160 per year, which I pay monthly at $180.
I sold the house seller finance, for $45,000 with a $2000 down payment. And carried a $43,000 balance.
Borrowers monthly payment is around $650
Out of the $650,
Private lender gets $180
Loan servicing $35
That leaves $222 per month for me.
Not only do I have $0 in the deal but I got paid the $2000 down payment.
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