Residential Real Estate Assets / Foreclosure Property
Investment Info:
Single-family residence note investment investment.
Purchase price: $100,000
Cash invested: $25,000
We work with a Foreclosure Property Company Investor
What made you interested in investing in this type of deal?
I/We became interested in Foreclosure Property, cause we didn't have money to buy at a market rate, so we want to try to buy at the lowest market price, which is what Real Estate entrepreneurs do.
How did you find this deal and how did you negotiate it?
We work with a Foreclosure Company that sells to us Real Estate, at a discount.
How did you finance this deal?
We use Company CASH, or find an investor that wants to participate and JV with us, or we will put ourselves in a borrowing position to get the necessary funds for the transaction.
How did you add value to the deal?
We either take a interest in the property be getting it under contract, or we will purchase the property outright, or sell it as an wholesale assignment to a investor looking to make money on the transaction. We can also service the property with construction, management and putting the property on a HCV (Home Choice Voucher) or better know as Section 8, thru our relationships with the local County Housing Authorities.
What was the outcome?
Well the outcome is a great Investment, that returns cash, currently we are pursuing an additional strategy and that is creating Mortgage Notes from Housing Vouchers (HCV), and then to sell them to the Note Buying Investor or Institutional Investor, more on this in the near future.
Lessons learned? Challenges?
We need a strong Capital Investor/infusion, cause we could do this at a better profit margin, if we had the Capital, we have a strong demand for our investment product, there is a lot of Real Estate available and people that need the residential housing because of the influx of housing vouchers that are listed with the Local Housing Authority, these are guaranteed payments, and these houses can be sold to the voucher recipient, this is not widely known.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Currently, we are in discussions, with SIUCU, Southern Illinois University Credit Union, but we will have some hoops and hurdles to overcome.