All Forum Posts by: Beau Webb

@Ryan Daigle, @Lee Ripma, and @Reggie Ramsey thank you!

@Jeremy Wirths the seller was generally slow to respond and move. As we talked more, she became more and more responsive but initially our exchanges included some very long breaks in between replies, with me often having to reach back out. I never felt like the deal was not pursuing, even when it was taking longer than I hoped. And to be fair a lot of things took a while on my end as it was my first time doing them (drafting contracts, working with title companies, etc) Will be much faster on the next go around hopefully!

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Fayetteville.

Purchase price: $105,500
Cash invested: $300

Fourplex in Fayetteville, NC. Found cold calling multi-family owners and caught this seller at the right time. Negotiations lasted months. Fully occupied and minor repairs needed. Seller agreed to finance the entire purchase for 30 years, at 1.75% interest. She also included 50k on top of the purchase price at the same terms for repairs/reserves/future projects, which I walked away with at closing. Only possible with trust, communication, and creativity...and a VERY flexible seller of course!

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

Small multifamily, with low money down is always appealing. I was originally looking for my next house-hack.

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

Cold calling. Phone conversations over the course of a couple months. Met seller in person and negotiated seller financing.

How did you finance this deal?

100% seller-financed

How did you add value to the deal?

Using seller-financed repair loan to make necessary upgrades to property. Slowly raising rent to market value.

What was the outcome?

A cash-flowing 4-unit with no money down, stable tenants, and 50k of reserves already built in

Lessons learned? Challenges?

Creativity is key. You never know unless you ask. Educating and gaining trust of owners will elicit the greatest returns.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Fayetteville.

Purchase price: $105,500
Cash invested: $300

This is what we refer to as the "Unicorn Quad". Let me tell you why. I found this property cold calling owners in search of 2-4 unit rentals. This owner was originally very short with me, and skeptical that I was just another investor wasting her time. Eventually, she realized that she was talking to real people, who were serious about making an offer that would benefit all parties. As luck would have it, the owner lives in the GREAT STATE OF TEXAS...so when I was visiting over Christmas, I decided to drive a couple hours to meet her and discuss the property. We are finding that when you prove that you are worthy of TRUST, and position yourself to PROVIDE VALUE to others or offer solutions to their problems, some of the sweetest deals are out there just waiting for the right, honest go-getter to find a creative way to MAKE THE DANG THING HAPPEN. Eventually, we agreed on a great purchase price that made sure we all got what we needed. The best part is that the seller was willing to finance 100% of the deal for 30 years at a very low interest rate (1.75%). She did not want the hassle of managing the property, but believed that we could run it well and trusted us to pay her on time for the next 360 months. To make things even sweeter, she also agreed to wrap a sizable "loan" of $50k for future repairs and reserves (or other projects) into the purchase of the property, financed at the same interest rate for 30 years, brining the total loan amount to $155,500. We still believe it will cash-flow around $400-500/month. It's in one of the nicest areas of Fayetteville, is now fully occupied with great tenants, and one street away from one of our other properties. This was our first experience with an off-market deal, our first time drafting the contracts on our own, and our time first working without agents and dealing with closing attorneys directly.

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

Small multifamily, with low money down is always appealing. I was originally looking for my next house-hack.

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

Cold calling. Phone conversations over the course of a couple month. Met seller in person and negotiated seller financing.

How did you finance this deal?

100% seller-financed

How did you add value to the deal?

Using seller-financed repair loan to make necessary upgrades to property. Slowly raising rent to market value.

What was the outcome?

A cash-flowing 4-unit with no money down, stable tenants, and 50k of reserves already built in

Lessons learned? Challenges?

Creativity is key. You never know unless you ask. Educating and gaining trust of owners will elicit the greatest returns.

@Daniel Kidd I'm a new investor in Fayetteville (just fixed up and and house hacking my first duplex) and am interested in getting involved in any and all things real estate! Would you please add me to the distro for local meetups?

Thanks!