Client Investment Property

[Dorothy Hurdle]

Investment Info:

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

Purchase price: $427,900
Cash invested: $20,000
Sale price: $399,900

Helped an investor client find and buy his 1st investment property which he turned into a co-living space.

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

I met this customer by chance at an Open House. Initially, I assumed he wanted to buy a residential property for his family. Upon further discussions, I learned he was part of a group of investors who were buying property for the sole purpose of flipping them into co-living spaces. He was interested in properties in residential areas with no HOA in the Piedmont-Triad area of NC with a specific layout. I was challenged by his unique situation and wanted to see if I could help him.

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

I used my access to the listings on the MLS to find suitable properties. We searched for over a year. The seller was an investor with a bottom line. An invoice authorization form was used to help my buyer with renovations costs. The seller was not concerned with why my buyer wanted the property, the seller's main concern was cash in pocket. Negotiations took a lot of patience with both the seller and the buyer. I made sure that both parties achieved what they were looking for!

How did you finance this deal?

The deal was financed through a loan.

How did you add value to the deal?

I added value through successful negotiations with the seller for an extended due diligence period as well as adding time to the closing. I helped the buyer use a home warranty to cover certain issues that the seller would not fix. I used the due diligence period for multiple inspections.

What was the outcome?

After much deliberations and discussions, we were able to come to an agreement allowing us to close later than expected but neither party walked away from the deal. There were compromises made on both sides by the seller and the buyer. In the end, my buyer was happy that he acquired the property and the seller was able to sell the property.

Lessons learned? Challenges?

I learned that patience is key. Never speak out of anger. Always advocate on behalf of your buyer. You have to be willing to listen to not only your buyer's concerns but understand how to talk to the seller and know where and how concessions can be made. It takes insight to recognize what some is saying when they say nothing at all.