Duplex Buy & Hold w/t Creative Financing!

[Keritan Shelby]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $330,000
Cash invested: $50,000

Duplex buy and hold using saavy techniques.

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

This duplex was sent to me by my friend who knew I had experience with creative financing. He lives down the street from the property and already had a decent relationship with the seller.

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

The seller initially wanted worse terms than what was agreed upon, but I was able to make it a better deal. Not the best, but decent by uncovering what he truly wanted out of the property and why he was selling it as a saavy investor himself.

How did you finance this deal?

We purchased via an all inclusive trust deed and didn't have to go through a bank!

How did you add value to the deal?

My partner will manage the property and construction, while I acquired it and used my resources to facilitate closing and fund the downpayment.

What was the outcome?

Cash flow baby

Lessons learned? Challenges?

I funded the downpayment using my self-directed IRA. Since we created a new LLC at closing and were both 50/50 partners, I couldn't send the funds directly to the title company. So, I created a Subscription Agreement to "invest" in his company to wire the funds to him so he can send the funds directly to title.