A Financing win more than a rehab.

[Ben Magee]

Investment Info:

Single-family residence buy & hold investment in North Carolina.

Purchase price: $324,000

We made money on this purchase! We used 0 down financing with the NC State Employees Credit Union on a 5 year ARM loan product at 3.125% and negotiated for $4000 sellers credit. I was representing myself as the buyers agent. We lived in the home for about a year and moved away and rented out with a professional property manager.

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

A lot of competition and inflation in surrounding area, the location and the newness of the home (no reno) was a big plus.

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

MLS, had been sitting for 2 months because next to apartment complex.

How did you finance this deal?

NC SECU 100% financing 5 year ARM.

How did you add value to the deal?

Changed the locks, kitchen cabinet hardware, added nice used appliances (front load washer and dryer, fridge). Repaired the dishwasher with help of hiring a technician. fixed shower heads, fixed toilet seats. Weeded the exterior and did some simple lawn care.

What was the outcome?

Great home and not much complex renovation needed

Lessons learned? Challenges?

When there is a traffic jam of interest in some properties, can be good to find a property with a problem that suits you that is making it less competitive to other people. We started looking for homes that had been sitting for a reason we were okay with acting on. Sometime you can win more on financing side than rehab side.

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

I was the buyers agent.