Updated over 6 years ago on . Most recent reply
Owner Financing - $0 Down, No Payments for 6 Months
Investment Info:
Single-family residence buy & hold investment in Portland.
Purchase price: $150,000
Cash invested: $25,000
Trashy run down rental. We purchased with $0 down, no payments for 6 months at 3% interest and a balloon payment at 20 years. Owner financed. Had tenants in it before we needed to make payments
What made you interested in investing in this type of deal?
This property has the potential for a lot division. The location isn't ideal now, but in 20 years it will be prime!
How did you find this deal and how did you negotiate it?
This came from a letter we sent out. The guy was in town from California and wanted to make a deal happen. He told me what he thought it was worth ($150K) and I told him that it was a crappy home on the wrong side of the freeway and the only way it would be a good purchase was if I could sit on it for 20 years. He said he would entertain it. I pitched it at $0 down, no payments for 6 months, at 2% interest. He came back at 3% and we shook. We met on a Friday and had it signed in escrow by Thurs.
How did you finance this deal?
Owner financing
How did you add value to the deal?
Cheap quick remodel of the whole home.
What was the outcome?
Nicer place that we can sit on for a while. Got tenants in it. No vacancies.