Seller Financed Deal

[Ciaran Willis]

Investment Info:

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

Purchase price: $125,000
Cash invested: $25,000

Purchased a duplex through a Seller Financing deal that after some light TLC is rented for $1800 and profits $500 per month.

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

Struggled to access traditional financing and therefore had to resort to creative measures as I was hungry to get my first deal on the board.

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

Found this deal through a mutual acquaintance who knew the owner was having trouble with tenants and wanted to get the property off his hands.

How did you finance this deal?

Due to the nature of the situation we were able to negotiate a low down-payment and low interest rate as the owner just wanted rid of the property. We presented a solution to him by being able to provide him with a reliable income each month instead of him having to chase his tenants for their rent.

How did you add value to the deal?

We had to evict the non-paying tenant and undertake a remodel of their unit before re-listing it for rent.
The upper unit was in good condition but we just sorted some small issues out and in turn, raised the rent a small amount.

What was the outcome?

We were able to get the deal at a great price point through providing value to the owner and in turn the property.

Lessons learned? Challenges?

A lot of long hours spent attempting to evict the non-paying tenant who did a lot of damage to the downstairs unit. However, the effort was worthwhile in the end.