All Forum Posts by: Hayden Duer

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $1,340,000
Cash invested: $615,000

10-Unit Townhome Community Syndication

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

Multifamily has always been in my sights and I do not regret getting started!

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

A broker sent me the deal and we were able to agree to a price with seller financing and lock the deal up early enough and negotiated terms and renovation credits from there.

How did you finance this deal?

Debt: Seller Finance
Equity: Raised capital from friends and family

How did you add value to the deal?

Renovating 4 units and upgrading exterior

What was the outcome?

The rents have begun to drive the market and are seeing some quality cashflow.

Lessons learned? Challenges?

Make sure you have leverage in negotiating your deals. Once you have lost your leverage, you become vulnerable which can make or break a deal.

Investment Info:

Condo buy & hold investment.

Purchase price: $231,000
Cash invested: $72,000

I put down 30% on this deal because there was an owner in the condo complex that owned 60% of the condos and Fannie Mae and Freddie Mac would not lend due to that. So I had to get a special lender who would loan me the money for a 30 year fixed rate without backing the loan by the gov. This meant a bit higher of the interest rate.

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

I wanted to create cash flow and dip my feet into investing and this was a relatively cheap investment.

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

A RE agent sent me this deal. I offered $10K under asking and they sent a SMCO and I went up $1K to $231K.

How did you finance this deal?

I went through a mortgage broker and they found a lender who would lend me the money without the loan being backed by Fannie Mae and Freddie Mac.

How did you add value to the deal?

I felt the COC return day one wasn't incredible, but it worked for me because I found a cash flowing asset for cheap in the height of the market in 2021. So long term I am happy with the decision.

What was the outcome?

I am able to cash flow every month and the asset has been very low maintenance (Knock on wood).

Lessons learned? Challenges?

If you plan on conventional financing, whether in contract or after you close, make sure you check if there any potential restrictions that make the property hard to lend on. Also, never settle for the first lending option, always shop your rate and terms.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, Amy Torres who works in the Phoenix areas is the best agent I have worked with. She is a go getter and will find you a deal and fight hard for you.

Investment Info:

Townhouse buy & hold investment in Temecula.

Purchase price: $275,000
Cash invested: $107,000

This is my first buy and hold investment. I plan to make this a house hack where the renters after all expenses will be paying me $250 on top of my expenses.

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

I have always wanted to get into Real Estate investing and I felt like it was time. I was shown this property and went for it.

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

A family member is a Real Estate Agent and a realtor in his office brought it to him. We checked out the property, they were going to put carpet in the house and sell it for $300k-$310k and I offered $265k before carpet, they came back at $280k and we settled at $275k.

How did you finance this deal?

I put $100k down and got a conventional 30 year fixed loan.

Lessons learned? Challenges?

Never rush during a deal, always make sure you understand everything that goes into the deal. Push a little harder in negotiations and find a trusted team, do not use vendors or team members who do not align with your style of business. Also, finding the right team is VERY important, it takes time. I still haven't found my team moving forward, but I have started to find my criteria for who I want on my team and it has really helped.