My First Investment Under Contract

[Blake H.]

Investment Info:

Single-family residence buy & hold investment in Jacksonville.

Purchase price: $250,000
Cash invested: $25,000

Contributors:
Tyler Lauderdale

My first investment property under contract! Loving the experience im getting and excited to provide a quality home with quality management for a family in jacksonville. Can't wait to do it again!

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

I was interested in multiple types of deals but this was the first offer that was accepted.

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

I searched through the MLS each time my agent sent my updated listings. I was looking in specific zip codes at 4/2 properties with more than 1500 sqft. This really narrowed my focus enough to make searching an efficient process. I worked through an agent and discussed different offers until coming to the offer at 250k

How did you finance this deal?

Through a lender. Working on financing this as a 2nd home, 10% down.

How did you add value to the deal?

This home is rent ready so i won't have to add value. Although because there was so much competition I offered higher than listing price, knowing that with the appraisal contingency and the fact that the house should appraise lower than offer price, I could negotiate down a bit.

Lessons learned? Challenges?

I had offered lower than price on all my prior offers on other homes. Because the market is extremely competitive and I'm not a cash buyer currently, this strategy wasn't going to work for me. I am a rookie and learned how the appraisal contingency can be utilized strategically and that you're not absolutely locked in to your offer price

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

Joshua Pruitt ExP Realty. Great agent who has waited multiple houses for me before we got this one under contract. He's never not responded to phone call/email, and is an investor himself. He's been willing to help a rookie investor like myself, answering questions, and advocating for me to make safe decisions.