Updated over 6 years ago on . Most recent reply
Multi family purchase using creative financing & past networking
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Chicago.
Purchase price: $870,000
Cash invested: $217,500
Bought this new building in Chicago from a seller. Negotiated for year long for price and finally agreed on $870k. Property apprised much higher $1.02k with rental income of $85k per year. I used one of my rental condos and HELOC to fund the downpayment of deal and got a check of $1500 at closing table so i didn't bring any cash of my own. Within 6 months i could refinance and payback my condo. After paying monthly loan payment i will still make $1400 cash flow at minimum after expenses
What made you interested in investing in this type of deal?
Relation with seller, Negotiated over a year
How did you find this deal and how did you negotiate it?
Well negotiated for a year but in between bought a different building but finally agreed upon price
How did you finance this deal?
HELOC and condo. Creative financing
How did you add value to the deal?
Well made $100k plus in 1 hr on closing table by building a strong relationship with seller
Lessons learned? Challenges?
Building relationships, trust and patience. Down payment securing was a challenge but was overcome
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
None
