Updated 3 days ago on .
Dont trust other's analysis, especially if their profits are in play!
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $120,000
Cash invested: $20,000
SFR numbers weren't great; however, it prompted a deep dive into real estate analysis to help others avoid my mistake! We became experts on DSCr and analysis because we trusted our lender, and we shouldn't have. They led us into a bad deal because they focused on their profits and commission. We vowed that day always to put client success over profits! A value we hold as true today as we did then!
Home is currently rented by a long term tenant
What made you interested in investing in this type of deal?
Financial security. Instead, it almost ruined us.
How did you find this deal and how did you negotiate it?
Wholesaler. We didn't negotiate because our lender told us it was a solid deal, and we didn't know better at the time.
How did you finance this deal?
Hard money, then DSCR. and a cash injection at closing...
How did you add value to the deal?
Rehab was small, mostly cosmetic.
What was the outcome?
This one deal led us to start our lending business and create our DSCR/Private Money training course! Free to those who go through, if we can successfully fund a deal within 6 months!
Lessons learned? Challenges?
Never trust someone else's analysis. Always do your own numbers. We even teach you how to check our work! If you have to use a calculator to determine a number, we have failed you! If you don't know the HUD line for line before closing, we have failed you!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I cannot recommend the lender who helped me with this deal. Nor will I name them. But I can not recommend them. Their "advice" cost us almost $40,000 out of pocket to close the DSCR.