Distressed Asset Purchase in Italy
Investment Info:
Single-family residence other investment.
Purchase price: $220,000
Cash invested: $25,000
2500 sf full-floor apartment had been on the market for 3 years when we discovered it.
How did you find this deal and how did you negotiate it?
Worked with a local real estate agent. Needed to hire an attorney, translator, and engineer to negotiate terms and perform due diligence on the property.
How did you finance this deal?
Acquired an ARV loan in Italy for 50% of the ARV. Only needed 20% down to close on the property, but all renovations will be paid for out of pocket.
Lessons learned? Challenges?
You can't plan for everything that will present a challenge. Some fees will be a little more, some will be a little less. Once I had money at risk, I found that it is more important to be committed to seeing the project through, rather than bailing out because an unforeseen obstacle presented itself.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
The attorney we used is fluent in both English and Italian and has offices in both the US and Italy. We used a mortgage broker in Florence who was recommended by our attorney. He was also fluent in English and Italian and was able to get us a non-resident loan.