Package of 9 single-family houses. Six of the houses are in KCMO and the other three are in KCK.
What made you interested in investing in this type of deal?
The deal fits my strategy of buying cash-flowing properties and building passive income.
How did you find this deal and how did you negotiate it?
Our property manager brought us the deal. The seller was an older investor who was looking to sell his properties and retire. She brought the deal to a few of her investors to see if there was any interest.
We were able to knock 6% off the original asking price because the seller was planning to use a realtor. We then agreed to pay our property manager a 3% finder’s fee. It was a win-win for everyone involved.
How did you finance this deal?
Me and my dad started an LLC and each brought half of the money needed for the deal.
What was the outcome?
The properties appraised for $587,000. All of them currently have tenants, and they are bringing in $6,500 in monthly rent. Market rent for these properties is between $7,600 and $8,000. We plan to make some minor improvements and raise rents to market rates over the next year or so.
Lessons learned? Challenges?
This was my first time using commercial financing. I called over 20 local banks looking for one to lend on this deal. Even though the cash flow is strong, none of the banks wanted to lend on the deal because a few of the properties were going to appraise for less than $50k.
In the end, we got a great loan, but it took a lot of persistence and using some relationships we had built on our previous deals.
Awesome deal! Congrats!
@Kyle Keller thanks Kyle. It was a long process but definitely worth it!
@Tesho Akindele , way to go, congrats!
Sounds like a great deal! Nice job
Love it! Can you share the financing terms you ended up securing with your local bank?
@Caleb Brown Thanks!
@Gabriel Johnson we ended up getting 20% down, 3.5% interest, 5 year ARM, 25 year amortization.
@Tesho Akindele Great work and great deal on the package. Keep it up!
@Tesho Akindele great job and deal - best wishes to you and your dad’s success!
Do you mind sharing what bank you are using in a private message with me?
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