Creative Deal making

[Spencer Dixon]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $425,000
Cash invested: $5,000

ell after just 6 months of owning. They had about 90k into the property. They would have got about 35k at closing. So a loss of about 55k
We did a lease to own option so I could immediately take over expenses but keep their primary resident loan and interest rate.
We agreed to a deal which would cover all their expenses at closing, their remaining loan balance, and $45,000.
Instead of losing 55k they will probably only end up losing $25,000 - $30,000

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

My past clients were in a tough spot and needed to sell asap. I wanted to help them out and minimize their loss and saw an opportunity to get a property slightly below market because of my commission savings, immediate mortgage and maintenance relief, in addition to keeping a lower short term interest rate

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

Past Client.

How did you finance this deal?

Lease to own. Personal money

How did you add value to the deal?

kitchen update, driveway improvement

What was the outcome?

another property to the portfolio, and a continued relationship with a live long client

Lessons learned? Challenges?

Long term its not a great cash flow property but with some renovations and addition of a parking slab I think long term appreciation is the big goal here.