My 1st Million Dollar Deal!

[Lee Gierszewski]

Yesterday me & a partner closed on 6 separate properties/19 total units! I had found a local guy that wanted to retire on a local website. He had 9 properties for sale. We negotiated to take six of them for just under one million dollars. Then we had to get creative to come up with the 20% down. It took us a while, but the weekend before the closing we had gathered enough funds to purchase. When we initially agreed to a purchase price, we thought our price was good & we had instant value. When the appraisals came back all of them were over purchase agreement price except for one that came in real low. So we negotiated an even lower purchase price. Now as of closing according to the appraisals we have $112,000 in equity in the properties, which leaves us with about $90,000 to pursue other deals when we find one. After running the numbers, all of the properties were cash flowing around $4000/month total at our negotiated price. I couldn't take this deal down by myself so like Brandon Turner says: "50% of a good deal is better than 100% of no deal!"

[Lee Gierszewski]

@Rohith Janga Yes, he was pretty motivated. Most properties around here that come up for sale on the MLS don't even get to the 1% rule. All of his properties were well above this. We met with him a couple times just to talk & he basically said he wanted to travel more to see his grandkids and it just wasn't feasable to try and maintain the properties as well.