Purchased distressed property

[Lilly Shamam]

Investment Info:

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

Multi family purchased that needed extensive work & novice investors were frightened to touch. Removed tenants after long battle in court and now receiving market rent. Said property was in horrible shape needing new electrical, kitchens bathrooms, plumbing, sloped floors etc. In addition, the property was occupied by two tenants that were both not paying rents and destroyed the units. After 6+ months of court, both tenants were evicted, property was updated and is now receiving market rent.

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

I knew that Perth Amboy would always warrant rentals as the vacancy rate was low. The visual damage and headache tenants did not frighten me so I took the chance.

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

Im also a Real Estate agent that is constantly on the look out for potential deals for myself and my clients.

How did you finance this deal?

All cash

How did you add value to the deal?

Removed tenants that were causing a loss and updated the units so they can rent to their potential

What was the outcome?

A property that generates good income with minimal management.

Lessons learned? Challenges?

To keep pushing and continue being persistent and patient in the process. Real Estate is not for everybody as patience and thick skin is imperative when investing. Real Estate has cycles just like us humans, we must know how to move with the cycle and always think out of the box.

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

Yes, myself. I recommend using me as an agent due to my extensive knowledge of as is and as repaired values. Due to our ever changing markets its imperative you work with an agent that has knowledge and not just looking to close a deal. My number one priority is to assist buyers and sellers in maximizing their profits and securing future money makers. b