Our first purchase in 1996

[Stefani Nachatilo]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $40,000
Cash invested: $6,000

Purchased 2 duplexes (4 units total) 6K cash pulled from credit card - 20K from Hard Money Lender (12%) and Owner Finance for 10 years balance. At the time of purchase only 2 units rented. 2 Units needing major rehab. Credit cards and sweat equity funded rehab. Once all 4 units up and running - cash flow in 1996 was about $200/month. 2022 update - 2 units converted to single family. 3 units total - Monthly cash flow 2022 is $2,000 average.

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

We were trying to find a way to have income without working for someone else. Carlton Sheets course bought and studied.

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

Newspaper ad and negotiated on the phone and in person.

How did you finance this deal?

credit card advance - hard money lender and owner finance

How did you add value to the deal?

Offered more in a down payment than asking for originally.

What was the outcome?

Still own almost 20 years later. Property has tripled (or more) in value.

Lessons learned? Challenges?

Stick with it. The scope of repairs needed for this rehab could have been overwhelming. We just did one thing at a time and moved to the next.

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

Kruger Investment Company was our hard money lender. We did MANY MANY deals with them.