All Forum Posts by: Sean Maloney

Investment Info:

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

Purchase price: $48,000

Side by side 2 unit. Creative finance deal with owner. In great condition on a corner lot.

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

Having it be creative finance and the owner being willing to meet my requests.

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

The deal came to me from my plumber. we were working on a project and he said....you seem to be doing well with all your rentals would you want another one. we had a deal talked up in a few min. and I went to look at the property ASAP. We did owner financing on a 15 year term and I negotiated a new roof done by my contractor tied into the financing. I also negotiated taking over the property about 90 days before closing. This allowed me to get good tenants in place and collect rents and deposits

How did you finance this deal?

Owner financing 15 year term. No money down and all my closing costs paid by tenants due to our agreement for me to manage and place tenants in to the property be fore closing.

How did you add value to the deal?

New roof, placing tenants, and just maintaining the property. It was in perfect condition to start.

What was the outcome?

Still own it. Has gone up in value and is in a better part of town. Planning on holding it and maybe doing a short term rental with it in the future if I have one of the long term tenants move out.

Lessons learned? Challenges?

Everyone and anyone could be your next deal even your plumber. I had the challenge of one of my original tenants dying in an odd situation. The situation was not at the property but it did cause some different challenges that needed to be dealt with for a few weeks.

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

Just my attorney to write up the deal and do the closing for me.

 I'm planning on being over around the East Cleveland area this Wednesday 11/8/23  if my schedule works out for this week, I can keep you posted. Something will work out at some point if we keep in touch.

I'm over in Erie PA and work the lakeshore area over to Cleveland with one of my other businesses a few times per month so I'd be up for networking and helping with property research or interested in buying some deals in these markets. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $15,000
Cash invested: $3,000

Single family home bought from an estate. A family friends grand parents house. Creative financing deal. Hadn't bought a new property in 5 years and this just popped up.

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

It was available. I also had a family in one of my other properties looking to have a single family place.

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

By letting people know I'm always in the market to buy properties. A family friend said her grandmas house was going to be sold. It was to settle an estate and we agreed for $15,000. $3,000 down and $1000 per month for 12 months.

How did you finance this deal?

Self funded, also from rents coming in and my parents as money investors to cover any thing extra if needed.

How did you add value to the deal?

Some basic remolding and putting in a long term tenant

What was the outcome?

Still own it. That family now is waiting for me to find them another place and I'll either lease option this place or keep renting it.

Lessons learned? Challenges?

Not the best area but good cash flow and was able to afford to do the deal with out any lenders getting involved.

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

No

Investment Info:

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

Purchase price: $36,000

1 of the 5 properties I got in 2007 - Erie PA - Sean Maloney

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

The numbers looked good and I was aggressively buying duplexes at the time.

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

The same relator that I bought my first property from a year before either brought it to me or I saw it listed and asked him to get things rolling . One way or another it was on the MLS at the time.

How did you finance this deal?

Same local bank but with a loan based on some equity in the property so no down payment was needed. The rate was high at 10% but the numbers worked and that is what was needed to get the deal done at the time.

How did you add value to the deal?

Lots of improvements and keeping it rented with long term tenants .

What was the outcome?

It's now paid off and has good cashflow. Looking to wrap it into another deal at some point to use its equity as the collateral for a binger deal.

Lessons learned? Challenges?

Not a good area for appreciation but good for cash flow. Should have refinanced at some point to get better returns.

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

Same local realtor as my first deal and same local bank that I would no longer recommend.

Investment Info:

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

Purchase price: $30,200

Up and down 2 unit. 1 of 3 two units I have with in the same block. Was part of the 2 property deal I mentioned in the last post.

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

In the same area I was already working in. It was part of a deal that the owner was going to help me get the bank to approve everything with little or no money down.

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

For sale by owner sign. located in same block I bought my first property.

How did you finance this deal?

Local bank with a commercial loan that included another property with it as a combo deal.

How did you add value to the deal?

At the writing of this 16 years of improvements.

What was the outcome?

Sill own it. Now free and clear as of right now.

Lessons learned? Challenges?

Some owners have other properties they may want to get rid of or combine with another deal. Keep an eye out in the same areas you are already working on, you know this neighborhood already so its convenient to have more properties together.

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

Local bank that I no longer would recommend

Investment Info:

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

Purchase price: $36,000

This property was one of the five I purchased during my 2007 starting streak.
This is an upstairs and downstairs two unit and it also includes a lot next to it with off street parking and a large yard.

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

Was growing my business and it was an opportunity to get 2 properties - 4 units from the same owner.

This location has become very nice over the past 15 years it is walking distance to downtown and the neighborhood has been redeveloped with several new houses and other construction projects improving the area.

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

For sale by owner - This deal was a for sale by owner in the same neighborhood that I bought my first property a few months earlier.
This owner actually had two properties for sale in the same neighborhood this one on East 3rd Street and one right around the corner on Parade Street within a block of each other.

How did you finance this deal?

Local bank - only paid closing costs
This property was on a 15-year note that was combined with the other property as a commercial loan and was paid off in 2022. I now own both these properties that were tied together originally free and clear.

How did you add value to the deal?

Lots of remolding and my other typical improvements like separate water so tenants pay all utilities.

I've done many improvements including replacing the back deck the front porch a new metal roof in 2022 and a complete remodel of the upstairs unit in 2021.

What was the outcome?

Paid off and part of my portfolio

Lessons learned? Challenges?

Working on several properties in the same neighborhood is convenient

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

Local bank that I would no longer recommend

Investment Info:

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

Purchase price: $48,000
Cash invested: $1,200

This was the first investment property I ever bought it's a two unit an upstairs and a Down located on the Lower East Side of Erie Pennsylvania I bought it with a first-time home buyer loan and at that time I did not need to be living in one of the units to get this style of loan it's on a 30-year term and I borrowed $1,200 from my parents to cover the down payment at the time.

I've up dated the unit several times over the past 17 years. I currently have both units rented at $700 per month tenants pay all utilities including water sewer and garbage so it brings in $1,400 a month my monthly payment including taxes and insurance is around $450. If you have any questions I'd be happy to give you any and all details.

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

Was just getting started and a 2 unit is the pretty basic way most think of to begin.

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

Was listed. back then it was a printed Homes book that would come out once per month for the MLS.

How did you finance this deal?

First time home buyers loan - local bank.

How did you add value to the deal?

Lots of fixing and management over the years.

What was the outcome?

Still own it.

Lessons learned? Challenges?

To many to list lol. Older building so pretty much everything you can think of.

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

The agent has been retired and the Bank used I still have the loan with but would not recommend working with them anymore. North West Bank out of Warren PA has not been as great to work with like they were the first 5 years when I started.