Acquired 3 multi-family plus SFH from one owner

[Carlos Carbajal]

Investment Info:

Small multi-family (2-4 units) wholesale investment in Milwaukie.

Purchase price: $345,000
Cash invested: $1
Sale price: $395,000

Acquired 2 -4 Plex , and 1 Duplex all via Direct Mai from one motivated seller. 10 doors -

Assigned first 4-plex property U.C @ $345,000 for assignment $395,000. $47,500 Profit.

Acquired 2nd 4 plex , U.C $410,000 Assigned contract $465,000. $55,000 Profit

Acquired Duplex , U.C $385,000 Assigned property at $410,000 $25,000 Profit.

Last but not least we bought his 4th property Single Family home in Sellwood,OR. We did a full rehab and succesfully sold. Profit of $40,000

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

Direct Mail- Yellow Letters

[Carlos Carbajal]

@Taylor Smith  The process was years of direct mail marketing. He mentioned his brother passed away and he was the Power of Attorney of the estate. He lived in Ohio, pretty well off and mentioned these 4 properties was more of a nuisance to him as he did not need the money.  I was confident he was not aware of the market conditions in Portland Oregon where the properties where located.

I made an offer for all four of those properties, I knew the rents around the area and knew if it could cash flow someone would jump on them as a wholesale. 

After about a month of going back and forward I made the decission to only pursuit the 2 best properties and promised him that I wanted to prove we can close on 2 before we move to the other 2. He agreed.

After I tied those properties, the market kept going up, low inventory for multi-family properties also helped. We closed on the first 2 and than we moved to the other 2.

Its okay to be honest, Although we like to over promise at times, It tought me a great lesson to take smaller steps.  

What I wish I would of done was actually, raise money and keep at least one or 2 of those properties, As they have gone up in value close to $100k each.

Hope I answered some of your questions!