Subject to deal working out so far

[Matt Smith]

Investment Info:

Single-family residence buy & hold investment in Houston.

Got this deal as a "subject to" and currently holding for amortization paydown, rental cash-flow, and appreciation.

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

Seller needed "x" amount to sign over and walk away. A win-win situation on this property that has had positive cash flow ever since.

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

Found this deal through word of mouth and a lot of persistence.

How did you finance this deal?

Cash to seller was borrowed and in process of being paid back.

How did you add value to the deal?

House needed very little, but ended up putting some money into updating the kitchen and restrooms, as well as a few spot repairs.

What was the outcome?

Positive cash flow within 30 days.

Lessons learned? Challenges?

Persistence works. This deal was made possible simply by reaching out to the seller, keeping in touch over the course of a few years (in a neighborly manner, not as an investor). Met up with the seller out of the blue and he mentioned the idea of selling his house. Since I didn't have the cash to buy out, and he still owed money, we worked out a plan that would get him his cash portion. I paid him off to sign the property over, took over payments, and the rest is history.

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

No agents were involved.