Defying the odds! Bought our 2nd Property!

[Steven Foster Wilson]

To the beginner investors out there like me:

September 7th: made a 90 day goal to buy 2 cash flowing properties

September 27th: Closed on a property that has a duplex, single family home, and a vacant lot

Things that would have held us back:

It was a cash offer only: the duplex and single family were on the same lot, and the single family was missing a furnace, that meant it was in disrepair, traditional lenders found it hard to lend on the property, despite its discounted rate. We offered full price to the sellers if they would accept a bank offer. They did! After searching 5 lenders we found a local bank who gave us a portfolio loan!

It was too competitive for an ammeter: The property came on the market for only a day and a half before being snatched off with a cash offer. My realtor told the sellers we would be very interested if anything did happen in the contract. 2 days later the property came back on the market. We made a bank offer within 4 hours, and had it in contract the next day!

Investment loans are too expensive: We interviewed 5 lenders. 4/5 of them either had 15 or 20 year loans, or they had rates above 5.25%. Both of those things are cash flow killers! However our 5th bank we interviewed "Heartland Bank" offered us 4.3% over 30 years.

No one will loan on a disrepair property: The duplex on the property was in decent condition. The single family home however had a list of things. The furnace and hotter tank was missing. There is a water leak in the shower above the kitchen., so all the ceiling drywall is removed to try to access the leak. What bank would lend off that? We found Heartland who gave us a portfolio loan, which apparently doesn't use typical lending standards.

So, after these, and many other odds that were against My wife and I getting this property, we finally closed on it. Why? Maybe its because we were determined, we constantly challenged the status-quo until we found the answers we were looking for. Though on the other hand maybe we were very lucky, that everything just happened to line up in our favor in the right timing.

I write this for the amateur investors like me out there. I am not a seasoned real estate investor. I am not the smartest tool in the shed. So if I am able to close on my second party with such fortune I know others out there can do the same if not much better! Be encouraged and stay persistent!