4-Family Out of State Investment

[Frank DeMuro]

Investment Info:

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

Purchase price: $195,000
Cash invested: $44,000

4-family home in Clarksville, AR. Found online then called a property management company my family has done business with in the past, now they manage the property for us and I couldn't be happier.

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

We wanted to invest in real estate and not have to worry about managing the property and tenants. My grandfather has been doing this strategy for years successfully and is ultimately the reason we invested where we did.

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

Found the deal through Realtor.com brought the deal to the property management company, they were a huge help in negotiating and closing the deal.

How did you finance this deal?

Self-financed a commercial loan through Simmons Bank.

Lessons learned? Challenges?

We learned that you don't have to only buy property local, and that to truly make real estate a passive business the use of property managers going forward is going to be a staple in our strategy. The challenge was making the jump to buy a property we've never seen before which we realized was more of an emotional based reaction, instead we treated it as a business transaction.

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

Lauren Koch of Simmons Bank, Jim Stanley of Coldwell Banker.