First Foreclosure Purchase

[Aaron Gillette]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $45,000
Cash invested: $50,000

Purchased my first foreclosure as I started to dip my feet into this new real estate venture. First of many purchases.

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

Needed to own a home in the local area and wanted to find a good deal project.

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

I found this deal on Zwillow and placed a owner/occupant bid.

How did you finance this deal?

My mother was able to advance me her revolving line of credit. After closing, the rate started to climb. I then paid of the line before I could get a HELOC from a few banks that I had asked by refinancing a vehicle and a balance transfer on a credit card with 1.9%APR.

How did you add value to the deal?

I was able to replace minor things, along with all new appliances and flooring. The house was stripped of copper and the boiler was destroyed, So along with new plumbing and a new heat source the house was up and going.

What was the outcome?

The current outcome is I now have a home free and clear that I can take a 70-80% (~65K) LTV HELOC on and place that into my first BRRRR.

Lessons learned? Challenges?

Continue to watch a market in which not many foreclosures or rentals are available and have the cash on hand to offer.

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

Joel Wenk was a local attorney I dealt with during this and he was great!