Game changer! Quit your day job…

[Christopher Philbrick]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $850,000
Cash invested: $40,000

Short term rental, very hands on for 3 months out of the year, but also completely shut down for 6 months annually.

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

I love people, I love the location, I love to share. This is not “passive income”, owning a resort is work, but it is also like living a vacation.

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

Craigslist- I typically look at 100’s of deals before buying one. Negotiations directly with the owner, who was looking to improve his quality of life and trusted me to maintain his vision for the property.

How did you finance this deal?

Seller financed - used cash in the business for most of the down payment. (*Pro-tip)

How did you add value to the deal?

Too many way to list here, but the main way was to leverage the pre-existing customer base and add inventory.

What was the outcome?

Beat former owner’s best year gross #’s by 30%, while slashing expenses and making major improvements to the property.

Lessons learned? Challenges?

Staffing is tough, have more children while you are young.

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

I always try to work directly with the seller and a good real estate attorney. When pulling off creative deals, it is tough to work with agents only worried about their commission. If you are trying to put very little money down- stay away from the MLS.

[January Johnson]

Quote from @Christopher Philbrick:

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $850,000
Cash invested: $40,000

Short term rental, very hands on for 3 months out of the year, but also completely shut down for 6 months annually.

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

I love people, I love the location, I love to share. This is not “passive income”, owning a resort is work, but it is also like living a vacation.

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

Craigslist- I typically look at 100’s of deals before buying one. Negotiations directly with the owner, who was looking to improve his quality of life and trusted me to maintain his vision for the property.

How did you finance this deal?

Seller financed - used cash in the business for most of the down payment. (*Pro-tip)

How did you add value to the deal?

Too many way to list here, but the main way was to leverage the pre-existing customer base and add inventory.

What was the outcome?

Beat former owner’s best year gross #’s by 30%, while slashing expenses and making major improvements to the property.

Lessons learned? Challenges?

Staffing is tough, have more children while you are young.

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

I always try to work directly with the seller and a good real estate attorney. When pulling off creative deals, it is tough to work with agents only worried about their commission. If you are trying to put very little money down- stay away from the MLS.

As an agent specializing in investor clients, I don't agree with, nor do I appreciate the "agents only worried about their commission" comment.  Are there those agents?  Yes.  Are we all "those agents"?  No.  A good agent with a team of lenders, insurance brokers, handymen, cleaners, etc. is worth many TIMES their commission.  A good agent who is also an investor is worth even more.

I also disagree with "stay away from the MLS." I can sort by owner financed deals on the MLS - they definitely exist. I'm a great resource for investors, and I also understand and can advocate for creative financing no matter where the listing comes from.

Finally, I'm perplexed by your clickbait title here as I'm certain you have not quit your day job based on a property that only operates for 3 months a year.

But good luck to you...