Subject To - Turnkey Rental

[Michael Glaspie]

Investment Info:

Single-family residence other investment in Fayetteville.

Purchase price: $1,800
Cash invested: $1,800

This beautiful is valued at $170,000. I was able to acquire this property through a subject to, or deed in lieu of. The seller was separating from the military and no equity in his home. Through thourough negotaiating and coordination I was able to secure this home for the closing costs and title transfer of only $1800. It was tenant occupied 2 weeks later for $1250 a month.

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

This was an opportunity to acquire a property with very little capital and not take on the debt.

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

Being in a military town, there are a few soldiers who enjoy the benefit of the VA loan. Allowing them to purchase a home with $0 down. Unfortunately, the military also requires soldiers to move quite often. When they are forced to move, many times they have not had the opportunity to build equity in their homes. So I capitalized on being able to provide this soldier value by relieving them of their monthly obligation and allowing them to save money on the costs associated with a sale.

How did you finance this deal?

I simply paid for the transfer of the deed and the formation of a trust.

How did you add value to the deal?

The cash flow from the property and appreciation over time is the IRR on my initial $1800.

What was the outcome?

I still currently have the property in my rental portfolio. At the end of the current lease, I will sell the home.

Lessons learned? Challenges?

There are many different ways I could have tackled this property. Sub-leasing, loan assumption and many more. This was a great opportunity to learn the systems needed to complete this transaction from start to finish.