First Investment deal

[Michael Watterson]

Investment Info:

Single-family residence other investment.

Purchase price: $35,000
Cash invested: $7,000

I found this deal via a wholesaler. Negotiated the price from $60k to $35k and completed $44k in rehab using a private money loan for 100% of the PP and rehab costs. I was able to refinance the property and repay the private money loan with $0 out-of-pocket costs to me, initially. However, my GC and project manager made some mistakes that cost about $7k. In the end, the property will bring in $1k a month in rent, with a 75% COC ROI, not quite the infinite return I had hoped for.

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

Wanted to use my money more wisely to allow me to have more time with my family.

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

Off-market wholesale

How did you finance this deal?

Private money

How did you add value to the deal?

Full rehab of the interior of the property