Duplex Buy & Hold w/t Creative Financing!
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $330,000
Cash invested: $50,000
Duplex buy and hold using saavy techniques.
What made you interested in investing in this type of deal?
This duplex was sent to me by my friend who knew I had experience with creative financing. He lives down the street from the property and already had a decent relationship with the seller.
How did you find this deal and how did you negotiate it?
The seller initially wanted worse terms than what was agreed upon, but I was able to make it a better deal. Not the best, but decent by uncovering what he truly wanted out of the property and why he was selling it as a saavy investor himself.
How did you finance this deal?
We purchased via an all inclusive trust deed and didn't have to go through a bank!
How did you add value to the deal?
My partner will manage the property and construction, while I acquired it and used my resources to facilitate closing and fund the downpayment.
What was the outcome?
Cash flow baby
Lessons learned? Challenges?
I funded the downpayment using my self-directed IRA. Since we created a new LLC at closing and were both 50/50 partners, I couldn't send the funds directly to the title company. So, I created a Subscription Agreement to "invest" in his company to wire the funds to him so he can send the funds directly to title.
