Distressed Property Deal in 43224

[Roger Loesel]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $35,000
Cash invested: $13,348

This distressed property was one of six parcels we bought. The cheap houses for sale were purchased using owner financing and a promissory note that the seller is holding for 60 payments. The balloon on all properties comes due on the 61st payment and the seller will be paid the balance. The house now has a after repair value of 70k. The rehabbed home will be listed and sold as affordable house for sale.

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

The structure of the deal

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

By marketing to the right list of sellers. I showed the seller by taking back a note he would receive two streams of income from the property instead of just one.

How did you finance this deal?

Owner financing

How did you add value to the deal?

Turned a non performing portfolio into a monthly cash source without any maintenance.

What was the outcome?

Cash that the company can use for 5 years to buy more properties.

Lessons learned? Challenges?

Always structure deals to be a win / win and good things will happen. One sided deals only hurt future business. No Challenges.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes ! Roger Loesel with Ditter & Associates