Investment Info:

Single-family residence other investment.

Purchase price: $102,300

Cash invested: $1

Subject to existing financing deal. $0 of my own money invested. The seller was behind 4 months on his mortgage and started to accrue late and legal fees. The total payoff to bring his property current was around $9,500 with closing costs The property comps at $145,000 and needed no repairs (built in 2006). My exit strategy with this property was a lease with the option to buy. Total Projected Profit: $46,000

How did you finance this deal?

I used one of my cash buyers for a hard money for $9500 with interest only payments.

How did you add value to the deal?

I was able to prevent the seller from being foreclosed on and saved his credit. He was also able to walk away with a little money to get into another home.

What was the outcome?

I was able to get a $5,000 option fee and rent the property for $1,050 per month; tenant is responsible for all maintenance and repairs. When they execute the option in a year my total profit from the deal will be around $46,000 total with no money invested.

Lessons learned? Challenges?

Being only 23 at the time, I felt out of my comfort zone trying to negotiate with the seller being over 50 years old. I had to make him feel comfortable with someone half his age taking over his mortgage and essentially the fate of his financial future.

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

Rob Bergeron helped me by running comps on the property! He's the #1 real estate investor friendly realtor in Louisville, Ky!