First private but investment property spokane wa.

[Cynthia Mccoy]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $150,000
Cash invested: $8,000

This was my first home I lived in for 7 years before getting in real-estate investing. This would be one of my subleased property.

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

This was my first deal through a private sale.

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

I lived in the house for 7 years funny thing I tried to buy the house from this guy for 3 years before he finally said ok it's yours. Staying persistent is what helped me alot. This was how I got my foot in the door too real estate investing.

How did you finance this deal?

This was done through private money had me at a 12% for the first year. That was way high ,and it wasn't even covering my principle. Only interest at this time of 1500 a month to be exact. I said no way I started to feel like my money was going down the drain every month. So end up refinancing after the first year @ a 4 % rate.

How did you add value to the deal?

I added value by staying persistent taking a hit on this property for a year to get my foot in the door to a broader spectrum of this business.

What was the outcome?

Great the house is now bring me about 800 a month in cash flow after mortgage and fees on my sublease.

Lessons learned? Challenges?

Lessons learned dealing with private money could mean higher rates. But at the end of the day look at where I am on my third property so the income helped my by my other homes.

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

No this house was through a private deal I knew the guy. Sometimes it's who you know.