First Seller Financed deal

[Philip Hernandez]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $90,000
Cash invested: $5,000

Seller financed deal of an essentially turnkey property. Cashflow is very modest, but seller agreed to $5,000 down, had a great experience purchasing via seller financing. 30 year rate with a 2 year balloon. Current comps in the area are around 100-120 k plan on holding this and refinancing out the seller in 18 months

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

I've never done a seller financed deal, the amount the seller wanted as down payment was very low

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

Purchased it from my mentor

How did you finance this deal?

Cash, Seller financing

How did you add value to the deal?

Turnkey property

What was the outcome?

Rented at $950 a month. Cash flowing, no issues with property/maintenance

Lessons learned? Challenges?

I should have negotiated terms more. It's a 2 year term, and something more likely 4 years would have been much more conservative

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

Just escrow agents, and me and the seller @sammylyon