Always check if a property has any lending restrictions.

[Hayden Duer]

Investment Info:

Condo buy & hold investment.

Purchase price: $231,000
Cash invested: $72,000

I put down 30% on this deal because there was an owner in the condo complex that owned 60% of the condos and Fannie Mae and Freddie Mac would not lend due to that. So I had to get a special lender who would loan me the money for a 30 year fixed rate without backing the loan by the gov. This meant a bit higher of the interest rate.

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

I wanted to create cash flow and dip my feet into investing and this was a relatively cheap investment.

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

A RE agent sent me this deal. I offered $10K under asking and they sent a SMCO and I went up $1K to $231K.

How did you finance this deal?

I went through a mortgage broker and they found a lender who would lend me the money without the loan being backed by Fannie Mae and Freddie Mac.

How did you add value to the deal?

I felt the COC return day one wasn't incredible, but it worked for me because I found a cash flowing asset for cheap in the height of the market in 2021. So long term I am happy with the decision.

What was the outcome?

I am able to cash flow every month and the asset has been very low maintenance (Knock on wood).

Lessons learned? Challenges?

If you plan on conventional financing, whether in contract or after you close, make sure you check if there any potential restrictions that make the property hard to lend on. Also, never settle for the first lending option, always shop your rate and terms.

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

Yes, Amy Torres who works in the Phoenix areas is the best agent I have worked with. She is a go getter and will find you a deal and fight hard for you.