YAY!!!! Closed my first deal!!

[Clifford Merritt]

Investment Info:

Single-family residence buy & hold investment in Louisville.

Purchase price: $103,000
Cash invested: $24,000

Purchased my first property after many offers and counter offers that didn't work out on other properties. Many weeks later was able to close on my first deal! Asking price was 130K, then dropped to 115K, closed at a price of 103K with 1k towards new appliances and 1.5K towards closing! Purchase price of 103K and appraisal came back at 117K. I'm now a believer that deals are made, not found, just like this one!

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

I was looking for a SFH to get started with, get my feet wet. A buy and hold strategy.

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

Was found on the MLS by my realtor. Initially priced to high for my numbers. Waited awhile and price was reduced. I reran my numbers and found the price I needed. I started below my price which they counter offered just below my limit. No appliances so I asked for 1k to help support which they agreed. After inspections, property needed some work. I asked for 1.5K to help with closing as I will pay for all repairs. Which they agreed.

How did you finance this deal?

I used my money for down payment, financed at 4.125 interest rate over 30 years, conventional loan.

How did you add value to the deal?

Worked with my agent and sellers to find a happy medium. They wanted to sell but didn't want to deal with the inspection or repairs. I offered no strings with inspection and repairs if they would help with closing. They gave an additional 1.5k towards closing on top of the 1k towards new appliances.

What was the outcome?

Closed on 11/15! Making a few minor repairs and upgrades, then up for rent!

Lessons learned? Challenges?

STICK TO YOUR NUMBERS! As a newbie looking for nearly 3 months, making offers and counter offers, know when to walk. I was beginning to feel desperate and a few times caught myself compromising my numbers to "make it work". I'm so glad I didn't, be patient, stick to your numbers.

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

Yes, worked with Brenna Brooks at Remax - awesome agent (and a house flipper so she helped me along the way). Worked with Todd Barnett at Interlinc mortgage very helpful with finding the right rates and closing fees. Worked with Ryan Pogue at common wealth title who also worked on title fees. They all helped to reduce costs and know the investor side of the business rather than a typical conventional lender.