My 2nd deal! OFF MARKET

[Michael Strobel]

Investment Info:

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

Purchase price: $207,500
Cash invested: $4,000

After nearly 2 years of hoping for my next real estate deal Hand wrote letters to over 100 property owners. Saw about 7-9% response rate but I was able to negotiate with a couple owners but was unable to find a decent deal. However, nearly a year after negotiating with an owner, they reached back out to me about their 4 plex and I offered the same amount and it was accepted. Entire negotiation was done via text messaging! I sent the owner a contract and closed about 45 days later.

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

Growing my real estate portfolio!

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

My own Direct Mail. Negotiated it via text messaging. Initially, owner wanted $250k. I offered $200. A year later, he came back and asked if I was interested in buying. I offered him $200k and he agreed. Negotiated the owner to pay $7500 in closing cost with a final purchase price of $207,500.

How did you finance this deal?

2nd VA Loan

How did you add value to the deal?

Upgraded the unit I lived in when I moved in (new flooring, paint and appliances) and will upgrade the other units as they turn.

What was the outcome?

4 more units to my portfolio!

Lessons learned? Challenges?

Didn't use a realtor. Very challenging to make sure you have all the T's crossed and I's dotted. I have a huge appreciation for what relators do.

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

Select bank - Rick Comar