3rd Triplex - Hard Money Buy n Hold While Deployed

[Anthony Torri]

Investment Info:

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

Purchase price: $205,000
Cash invested: $53,137

Purchased this triplex w/ 3 car garage while deployed in Iraq using a 20% down hard money 30 year fixed rate loan. An agent represented me and the deal was on the MLS.

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

I felt experienced enough to take on a house that needed improvements, but not a gut job, and this was that. Also, it cash flowed day 1, which is always a goal.

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

On MLS. Used finding from the home inspection report to negotiate a couple thousand in my favor.

How did you finance this deal?

Hard money lender's buy and hold loan product. Only needed to put 20% down and got a 30 year fixed rate mortgage at 5.6% interest with a prepayment penalty for the first 3 years. At the time, I was mad that the rate was so high and now I am grateful.

How did you add value to the deal?

Updated the units and increased the rents to reflect the current market rate.

What was the outcome?

Positive cash flow.

Lessons learned? Challenges?

Invested while deployed was tough. The lender kept demanding things, communication was poor, they would allow someone with power of attorney to sign for me, and more. All these issues came up and I still managed to close. Rarely do closing go smooth. Just keep asking for help and do what you have to to close.