Investment Info:

Single-family residence buy & hold investment in Indianapolis.

Purchase price: $27,000
Cash invested: $11,910

Purchased using cash from Simple Wholesaling in Indianapolis
PMI Midwest property manager who referred me to a great rehab crew
Funded it with a combination of 401k cash-out, Infinite Banking life insurance loan, and Fund&Grow business credit.
Cash-out refi with Huntington Bank

What made you interested in investing in this type of deal?

Honestly you have to start somewhere. Clayton Morris always talked about 3 bed / 1 bath 1000 sq ft so that is what I started looking for. I needed the cash price to be reasonable because I knew I didn't have a lot of cash. I had no idea how I was going to fund the rehab. Based on conversations from other investors - the area seemed to be a good appreciating area.

How did you find this deal and how did you negotiate it?

I got hooked up with AS MANY wholesalers as I could find in Indianapolis. They were super awesome to work with. Their website was like going shopping on Amazon. I picked one out which fit my criteria (location, price, property configuration) and pitched a price to the contact. He gave me his lowest and we called it a deal.

How did you finance this deal?

Not easily or the best... To get started I cashed out my 401k from a previous employer. This gave me enough cash to make the initial purchase. I then went to work to try and figure out how to finance the rehab.

I did a 1035 exchange on an existing whole life insurance policy over to an "Infinite Banking Concept" practioner and then took a loan from it.

I also got setup with Fund&Grow to utilize business credit cards with 0% interest for up to 18 months.

How did you add value to the deal?

Yes - Purchase for $27K and rehabbed it for $40K

What was the outcome?

The rehab turned out great! Beautiful little property ready for rent.

Lessons learned? Challenges?

Have your funding for rehab lined up before you purchase. Even in a "BRRRR" you don't want to sit on that property without rehab.
David Green does a great job explaining how to work with contractors. I didn't do any of that. So the rehab was more expensive than what I planned on and it went longer than I expected. Listen to David Green...

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Huntington Bank did my cash-out refi. 75% LTV @ 5% interest is a STEAL. I would encourage you to look into them.