Package deal in Michigan, about 90 miles north of Detroit

[Jacob Allweil]

Investment Info:

Single-family residence private money loan investment.

Purchase price: $60,000
Cash invested: $1,000

I started cold calling property managers and found a couple going through a divorce, based out of WA, that had three properties in MI (2 SF and 1 three unit) that the property manager was managing. The couple needed to liquidate. I got the sellers to seller finance 40 of the 60k over 10 years at 5.8%. Most of the down payment I raised from my brother and a friend that I'm also paying back at 5.8%.

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

I wanted to find a price that was below the intrinsic value. I wanted steady cashflow in Michigan.

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

Cold calling property managers to see if any of their clients were looking to sell. I feel like I negotiated the price down even more when I said I didn't even need to go inside before I made an offer.

How did you finance this deal?

seller financing

How did you add value to the deal?

Got them cash and closed quick

What was the outcome?

I have three properties that are cash flowing and still managed by the manager that linked me up with the deal

Lessons learned? Challenges?

It's been a new challenge communicating to the property manager while I'm in a different state. I'm learning I have to be very clear in what I want done and how I want to go about things.
Also as part of a package deal they split the 60k sale price equally amongst the three properties where as now I'd have preferred they prorate them based off an estimate. This is because it's now more of a tax burden if I thought I wanted to sell the most "expensive" one.