Updated over 3 years ago on .
Buy & Hold Hard Money
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $239,000
Cash invested: $40,000
SFR in Middletown NJ. Buy and Hold investment with about 4 months of renovations done by myself. This was purchased from the bank as an REO.
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.