Another Kansas City, MO Subject to Deal

[Luther Wilson III]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $84,483

Cash invested: $3,000

This was another property that I was able to purchase, subject to the existing financing, for little to no money down. I hold all of my SFH's and resale them, as is, owner finance. It's a great way to cash flow from my investments without having to deal with the maintenance, upkeep or property management. Why be a landlord when you an be a lender?

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

I was able to purchase the property and get it performing & cash flowing for a very small amount of money compared to most other real estate investments.

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

This one was a referral lead from another investor.

How did you finance this deal?

I bought the property subject to the existing financing.

How did you add value to the deal?

I upgraded the HVAC and the hot water heater before offering to sell it owner finance.

What was the outcome?

Most recently I was able to sell it, as is, on a contract for deed, to a very grateful buyer. Here are the resale terms -- Purchase Price: $103,000 Down Payment: $8,000 Interest Rate: 6.7% Monthly Payment (PITI): $960. :)

Lessons learned? Challenges?

I went through 3 or 4 contract for deed buyers before connecting with a really solid one.