LPO in a submarket of Oklahoma City

[Will Fraser]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $195,000
Cash invested: $41,000

Contributors:
Alejandro Siguere, Hugo Urbina

This home is part of a new strategy we're using. It was purchased and offered as a lease-purchase option for a tenant and it has been decent so far.

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

Working with a person who wanted to buy a home and just couldn't get the financing in order illuminated the need of alternative strategies. They were agreeable to the numbers that made a deal work for the company, so then we just needed to find a home that would work as acceptable collateral.

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

Straight off the MLS.

How did you finance this deal?

Bank loan.

How did you add value to the deal?

The value on this one was in the deal structure. The home is new construction MOL.

What was the outcome?

Not surprisingly the tenant has struggled to make payments, even though they have plenty of income. Turns out you CAN change your stars, but it's easier to be an ostrich.

Lessons learned? Challenges?

MOST people don't change for the better in any significant way. So, when someone in the mainstream of life tells you they are going to change in a significant way, kindly ignore that and assume they will continue to do exactly what they've been doing for the past 5-10 years.

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

Valor Bank in Edmond was once again a valued partner, Jay Stern with Pillar To Post was a trustworthy inspector, and Craftsman Property Management has been beloved (as we own it, ha!)