Buy And Hold With Great Owner Financing

[John Thedford]

Investment Info:

Single-family residence buy & hold investment in Cape Coral.

Purchase price: $210,000
Cash invested: $50,000

Single family 3/2/2 pool home in SW Cape Coral.

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

I was on the fence until I asked the owner if he would carry paper. He responded with 20 years, 4%. Terms sold me. I got the property under market, and prices are rising. I expect this to continue for the foreseeable future. The downside to the deal is the property is rented under market and I had to inherit the lease.

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

The sellers were referred to me by a title company. The sellers stated they wanted a solid buyer and I was that for them. It was approximately a week and a half from contract to closing.

How did you finance this deal?

I put down 50K and the owners carried the balance.

Lessons learned? Challenges?

Always look for alternatives to make a deal more attractive. You never know unless you ask.

[Steve Vaughan]

Well done, John! I haven't received a carry at 4% yet. Love a good SF story!