Estate purchase from my own Family

[Barrett Goff]

Investment Info:

Single-family residence fix & flip investment in Louisville.

This home was built by my grandparents in the 50's and has been in our families possession ever since. After my grandfather passed away I purchased the home from the family estate and renovated it completely. Between taking out walls, renovating a bathroom, adding a bathroom and finishing the basement, I have turned the property into a cozy little house.

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

This was an easy decision for me as I wanted to carry on the legacy of my family in this neighborhood, and with such a short supply of deals in our market currently, it was a no-brainer for me to buy the home.

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

Negotiating with family is never easy, and you have to tread lightly. I bought the home with $10k of equity built in, and didn't push for anymore than that.

How did you finance this deal?

I financed this home with a 5 year ARM loan with 20% down.

How did you add value to the deal?

I renovated the home from top to bottom, and also registered the home with my city to begin hosting on AirBnB, VRBO, etc.

What was the outcome?

We have had a lot of success with this project in terms of adding value and building equity. The neighborhood as a whole is increasing in value each year and this will be a property that I hold onto for as long as I can.

Lessons learned? Challenges?

Working with family on any deal will have its issues. Keep calm and run your numbers. If the deal works great, if not, move on. No property should be sentimental and unfortunately I have fallen victim to that reality.

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

Barrett Goff with Family Realty in Louisville, KY!