Buy & Hold Hard Money

[Kevin P.]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $239,000
Cash invested: $40,000

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

This was on the MLS for a while and I bought it from a bank. After a while the bank decided to replace the furnace and repair the backyard deck. I started with an offer of $220 but finally bid $239K.

How did you finance this deal?

10% down, balance at 9%

How did you add value to the deal?

New surfaces everywhere except the kitchen. Spent $17K doing almost everything myself because I was laid off from my job just before closing so I threw myself into it. I guess it was lucky I was using a hard money lender because it probably would not have closed with no job.

What was the outcome?

The tenant is interested in purchasing and I may give them the option since I've owned it for 2 years and I wouldn't have short term gains on it and I can avoid using any agents. I should be able to get around $370K now which will give me my investment back and plenty more. I didn't include the fees and interest that I paid but the profit is over $100K thanks to a forgiving market.

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

Shoutout to Domenick Acerra in Middletown working for REMax. I always use Dom for purchases. He is an investor as well and has vision when looking at prospective deals.