Updated about 4 years ago on .
8th Investment Property - First Wholesale Purchase
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $36,000
Cash invested: $36,000
I bought this one cash through a wholesaler. Property is probably worth about $70,000. Bought for $36,000, so instant increase to overall net worth. My goal is to beautify the neighborhood, and control of assets is the most important thing at this point when it comes to investing, so I'm likely not going to sell this for a long time.
What made you interested in investing in this type of deal?
This market is a strange one and requires flexibility with regards to one's strategy. While my business model is primarily buying multi-unit properties between 2-4 units for the next 3 years, cash flow will work best at the moment, with so much instability in the job market, logistical chains, and more.
How did you find this deal and how did you negotiate it?
My friend Steven Leopold, who is also my property manager and a fellow real estate investor, directed me to Steven Howell, who was wholesaling the deal.
How did you finance this deal?
I had the cash on hand, and paid for it outright.
How did you add value to the deal?
As I stated earlier, the property is worth probably around $70,000, so it was an instant value add for me. But, in addition, I intend on constantly improving the property over time, and buying as many properties in its vicinity as possible in order to gentrify and beautify it as much as possible. I'm not doing this necessarily to make money--though that will happen--but to give people a more dignified place to live.
What was the outcome?
I now own the property outright, with a stable tenant on a 2-year lease.
Lessons learned? Challenges?
Flexibility is the key to success in a market like this.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Steven Howell - Great wholesaler in the Dayton area.
Steven Leopold - Great property manager and fellow investor in the Dayton area.
