2 single family homes on same property - Owner Finance - Erie PA - Sean Maloney

[Sean Maloney]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $64,500

2 single family Homes on the same property. Owner financed. Good location

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

Owner financing. Great price.

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

I over heard a conversation at a Christmas party. The owners wanted to retire and had tried to put the property on the market a few times. I told them I could probably return what they have coming in as cash flow as a monthly payment with no expenses or liabilities anymore. One house was vacant and I could tell they didn't want to deal with finding tenants again. So I worked out some creative terms.

How did you finance this deal?

Owner financed. I used the same Ideas I did before and had my purchase agreement say that I could take over and manage the property until the closing. This gave me the money needed for closing buy moving in a new tenant into the one empty house. The numbers worked best for me on a 20 year term and the owners agreed based on me showing them a purchase price over time that was higher than they were asking due to the interest they would now be getting.

How did you add value to the deal?

Repairs and getting long term tenants

What was the outcome?

Still own and will hold. Good location and property value has doubled. Will leverage in the future to take down some other deals.

Lessons learned? Challenges?

Keep your ears open everywhere and let people know what you do. Anyone could have a deal or know someone that could be a deal so be on the look out. I'm always focused and doing business 24/7 every interaction with some one could lead to your next big thing.

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

Just my attorney to do the paper work and closing.