Updated over 2 years ago on .
Zero out of personal pocket to purchase a lake front home!
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $740,000
Using strictly investor contributions, we've purchased a lake front home on Lake Norman, NC. The current plan is to rehab (in progress - 2/12/23) and use as a STR property. Cash-out REFI upon rehab and substantial bookings to purchase more.
What made you interested in investing in this type of deal?
Love the are and the research data shows high potential for cash flow.
How did you find this deal and how did you negotiate it?
Cold called realtors in the area. I negotiated by waiving a home inspection and made an offer 130k below asking. Home was on the market for 6 months. Needs mostly cosmetics and some amenity based upgrades.
How did you finance this deal?
Non-QM Loan at 9.25%
How did you add value to the deal?
50K Reno, personally doing the Reno.
What was the outcome?
Home appraised for 150k above contracted price before closing. Total ARV is 250k above purchase price. Total projected value upon 1 year of revenue to be 360K above purchase price.
Lessons learned? Challenges?
I should’ve had someone do the Reno for me with a team and managed the Reno.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My wholesale mortgage broker was great at pulling the financing together. It was a unique situation and I believe he was the reason this deal happened. Happy to refer upon request, (he’s not on here).
