Buy & Hold Hard Money
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $239,000
Cash invested: $40,000
How did you find this deal and how did you negotiate it?
This was on the MLS for a while and I bought it from a bank. After a while the bank decided to replace the furnace and repair the backyard deck. I started with an offer of $220 but finally bid $239K.
How did you finance this deal?
10% down, balance at 9%
How did you add value to the deal?
New surfaces everywhere except the kitchen. Spent $17K doing almost everything myself because I was laid off from my job just before closing so I threw myself into it. I guess it was lucky I was using a hard money lender because it probably would not have closed with no job.
What was the outcome?
The tenant is interested in purchasing and I may give them the option since I've owned it for 2 years and I wouldn't have short term gains on it and I can avoid using any agents. I should be able to get around $370K now which will give me my investment back and plenty more. I didn't include the fees and interest that I paid but the profit is over $100K thanks to a forgiving market.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Shoutout to Domenick Acerra in Middletown working for REMax. I always use Dom for purchases. He is an investor as well and has vision when looking at prospective deals.