Sale of long term hold- @Jordan Moorhead saved the day

[Tim Swierczek]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Saint Paul.

Purchase price: $145,000
Cash invested: $24,000

Jordan is an exceptional Realtor. The buyer almost flaked the day of closing & Jordan saved the day.

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

This property had massive cash flow from day 1.

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

I found it on MLS and it was high priced for the area, but in much better shape than typical. It was actually a good value when you consider how much money would have been needed to spend on other properties to bring them to this condition. We got a serious rent premium over the area (about $200/unit) over the prevailing rents in the comp properties when it was purchased.

How did you finance this deal?

I'm a residential and commercial broker so I got a portfolio rehab loan to make some modest improvements.

How did you add value to the deal?

We added a dishwasher, central air to each unit and we added in-unit laundry and a deck to the upper unit.

What was the outcome?

We mad a lot of cash flow and netted $110,000 from the sale.

Lessons learned? Challenges?

When you find a great deal buy it even if some of the terms are not ideal. Don't let a small factor prevent you from massive gains. Have the patience to find the right deal and pounce on it when you find it.

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

Jordan Moorhead is an amazing Realtor and while any Realtor can help on the smooth deals the best ones are like Jordan and stay levelheaded when things go sideways. You can't miss with Jordan.

[Tim Swierczek]

@Russell Brazil The buyer called his Realtor the morning of closing and told him that he just "wasn't feeling it anymore." Jordan used his personal skills and level head (very important to this situation) to threaten the buyer into taking us seriously and then selling the buyer on why he should complete the purchase.  He contacted the buyer and showed him logical reasons why the purchase made sense.  In the end, it really was just cold feet and Jordan reassured him it was ok and taught him about cozy.  One of the big issues was the buyer didn't know how to collect rent.  Our tenants were already on cozy so Jordan set up the buyer on cozy and had him connected to the new tenats before closing was over.  He dis an amazing job.