Neighborhood Investment in City

[Juan Zabala]

Investment Info:

Single-family residence buy & hold investment in Reading.

Purchase price: $22,000
Cash invested: $12,000

I purchased this home that was located across the street from my house in foreclosure. The owner had fallen on hard times and was about to lose there home. I was able to secure private money and purchase the home from the bank. The owner didn't want to leave the house and actually became my tenant. I was able to put a new roof in the home, converted the boiler to a new gas boiler, and gave them a better quality of life. My goal is to get their credit in order and sell the property back to them in a few years.

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

This property was right across the street from my Primary Residence.

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

A fellow agent was able to represent me in the transaction and helped me to negotiate the price.

How did you finance this deal?

I used Private Money to purchase the property.

How did you add value to the deal?

I was able to refinance quickly because the home already had the tenant living there and I was able to get in it quickly to work on it.

What was the outcome?

I was able to purchase and refinance in a 45 day period and get the private money lender their money.

Lessons learned? Challenges?

Appraisals can be tough. Even though the house was repaired and I invested money into the home. The appraisal kept coming back lower and the LTV was being thrown off. We had to come out of pocket a little more than we wanted to, but in the end it worked out.

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

I worked with Navid Moosa on this deal and I would recommend him to anyone.