Updated over 6 years ago on . Most recent reply
97% Buy Refinance Repeat (No rehab and already rented)
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $10
Cash invested: $85,500
Contributors:
Brian Yangyuen
Was put in touch with a seller who wanted to walk away from property but was behind on mortgage. The seller quit claimed us the property in exchange for paying off their mortgage after we calculated that a traditional purchase would have tanked the deal with too many costs to be able to use the BRR (no rehab and already rented) method. 97% of initial investment returned at refinance.
What made you interested in investing in this type of deal?
Able to use our scaling strategy, but shorter timeline than a typical brrrr.
How did you find this deal and how did you negotiate it?
Referred by the mutual property manager / real estate agent
How did you finance this deal?
Cash from previous Brrrr
How did you add value to the deal?
Equity built into the deal before we did anything. Right place and time by having the network and the resources to move on the opportunity.
What was the outcome?
$178 monthly cashflow after PITI & Management fees for $2,000 net cash invested.
Lessons learned? Challenges?
A lot about the quitclaim process, thanks to Brian for doing about ten hours of research and chasing down people experienced in the areas for us on very short notice.
Challenges included finding and consulting an attorney on short notice. Getting to the seller to sign documents (contract, power of attorney, & quitclaim deed)
Coming out of foreclosure, prinicipal balance was about $3500 short of the payoff amount and I had figured on principal plus $1,000 so that cost us our 100% Brr
Most Popular Reply
Congratulations on seizing this amazing opportunity for yourself!
Good Luck!