OFF Market BRRR with almost no money down

[Matthew Matulis]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $105,500
Cash invested: $5,000

BRRRR, with little to no money down.

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

Through marketing efforts I found a motivated seller looking to cash out.

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

Found this deal through a direct mailer and used my agent to negotiate

How did you finance this deal?

Hard Money to finance the down payment and value add for 6 months, and then Cash Out refinanced into a conventional loan

How did you add value to the deal?

Painted, new flooring, and added a couple of piers to the foundation.

What was the outcome?

Purchase Price $105,500 + $25,000 in the renovation. Appraised for 179K and pulled out 75% which was 134K. We took that and paid off the Hard Money plus interest and fees from the refinance to only be in the deal for under $5K in.

Now I have a cash-flowing property for under $5,000 invested.

Lessons learned? Challenges?

Conventional loans require you own the property for 6 months before refinancing. I was ill-advised and thought I could do it earlier, and that delay cost me a little more in holding cost and a worse interest rate on the conventional loan

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

Michael Matulis in Columbia SC