Never Be Embarrassed!

[Blake Edwards]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $18,500

Cash invested: $800

Bought for $18,500

Closing Costs including downpayment $4420

Appraised for $21,000

Rent $800

Cash Flow $480

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

Cash Flow Cash Flow Cash Flow

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

We found this off Craigslist, and got the owner to knock off a whopping $500.

How did you finance this deal?

A bank. At first they were hesitant and said it is not an amount they normally finance. This is where having a good relationship comes in handy. We told them there are many more we will be bringing to the table (and we are), and we will work hand in hand with them.

How did you add value to the deal?

We repaired the "minor" things and put it up for rent.

What was the outcome?

NEVER BE EMBARRASSED!

We used a bank to finance this property. Why you may ask? Could we have paid cash in full for this? Maybe...Maybe not. The point is to not extend your capital so there is some in reserve for the next deal.
Why pay $18.5k when you can finance and pay $4420 and have almost $15k in reserves ready to pounce on the next deal.
We are not ashamed or embarrassed when we tell our friends, family, and fellow investors. Some may scoff but in the end, the numbers work and the cash flow is nice :)