3/1 SFR direct to Seller

[Travis Hill]

Investment Info:

Single-family residence buy & hold investment in Cleveland.

Purchase price: $53,000
Cash invested: $71,000

3/1, 1100 sq ft. We found this deal using mailers from Ballpoint Marketing. We used private money to purchase and fund the rehab. We refinanced this property six months later for seasoning. We secured a sub 5% loan, conventional, 30 year fixed.

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

This type of property is in my 'buy box.'

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

We used Ballpoint marketing postcard mailers to go direct to seller. I sent out 1085 postcards and the agent I worked with recieved a call from the owners. It was one of their rentals.

How did you finance this deal?

I used 100 percent private money. I had no money invested in the deal.

How did you add value to the deal?

We had a budget of $15,000 and ended up adding an additional $6,000.

What was the outcome?

This was a classic BRRRR. We were able to get all the PM out and put $1500 in our pocket after closing costs. It has positive cash flow

Lessons learned? Challenges?

The market is changing for sure. Supply chain issues and little nuances in the rehab caused us to go over budget. The loan process is also tightening.

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

GC-Done Right Home Solutions, Steve Stohlman, he is amazing and a great friend.
Progressive Urban Property Management, George Rofail and Amy Pierse, solid company to manage the property.
CMG Mortgage, I enjoyed working with this lender in the area.