FROM ZERO to 7 UNITS in 2018!

[Troy Williams]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in New Orleans.

Contributors:
Colette Chase

Excited to share a small win for two relative newbies in the realm of real estate. We started one year ago and end 2018 with a duplex purchase to bring our total unit count to 7! This year is going to rock!

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

The goal is creating passive income.

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

Funneled probably 150 potential properties down to 50 doing online analysis, then made a trip to New Orleans (I live in Shanghai, China and my sister/partner lives in Denver) for a 3 days scouring of the city. We narrowed the the list down to 4, and made an offer on top choice...closed 2 months later. Boom!

How did you finance this deal?

Long story, but ended up being a cash buy, with 12.5% down on our side with a 87.5% paid by a third partner. The 37.5% portion for our was a personal loan from (at a rate lower than our bank would have given us) the third partner.

How did you add value to the deal?

My sister and I did all the work to find and analyze the deal as well as manage the rehab quotes and property management.

[Troy Williams]

The purchase was a little hectic only because we had poor communication with our agent and title company, but the timezone difference didn't help either.  There was only a short window of time to connect via phone or check emails while all parties were in normal business hours.  In the end, though, it's an experience that is helping us to prepare for the next round of purchases this year....just have to factor in the extra time and travel costs.