No money down deal, kind of...
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $165,000
Cash invested: $35,000
Great 1990s 2 level home. 4 bed 2 full bath home in a great area of Fargo. It mostly needed cosmetic repairs and a new central air unit. Rehab took 3 months and got a great tenant and potential buyer living in the property.
Ffinanced by the seller, but I put my own funds into renovating it. So I am into it for 35k, and get ~300 cashflow monthly. So essentially getting a 10% Cash on cash ROI until I sell where I will realize a modest profit. The seller was amazing and great to work with!
What made you interested in investing in this type of deal?
Creative financing and got to help the seller, who was a super nice guy!
How did you find this deal and how did you negotiate it?
This was a referal from a friend and I didn't really negotiate, I approached it with the intention to purely help the seller, in what ever form that looked like. I helped them understand clearly, all their options, even the ones that didn't involve me.
How did you finance this deal?
Seller financed full purchase price, I funded rehab. 1 year balloon payment
How did you add value to the deal?
By completing renovations and placing a great tenant and potential buyer.
What was the outcome?
Still rented and waiting for this summer where they decide if they want to buy or if I sell on the open market.
Lessons learned? Challenges?
I learned a lot about meeting the wants/needs/expectations of the seller and presenting viable solutions in a clear and concise way.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No
