Hard money to buy a rental with no money out of pocket

[Seth Ciminillo]

Investment Info:

Single-family residence hard money loan investment.

Purchase price: $53,000

Contributors:
Garrett Gatton

We secured a hard money loan to front the entire purchase of a newly remodeled single family home in a developing area. The goal is to refinance in 6 months to pull out all the money needed to pay back the hard money loan and interest with still using no money out of pocket.

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

After brainstorming and exploring our network, this became an option as a way to buy a rental with no money down.

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

This home was listed on the local MLS, but had not moved. After several price reductions we offered lower than the current list price and was able to negotiate a solid deal for a small newly remodeled single family home.

How did you finance this deal?

Deal was financed through a hard money lender that we developed a relationship with.

How did you add value to the deal?

Attempting to increase rent and secure a 1-year lease. Property is still being advertised for lease.