My First Deal - 08/2019

[Dania Puente]

Investment Info:

Single-family residence buy & hold investment in High Point.

Purchase price: $109,000
Cash invested: $40,000

Purchased 2 acres of land, 2 houses already rented in one acre, and 1 house in the other acre of land that I still have to rehab to get it rented.

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

An opportunity came along with 2 houses with solid tenants living in them for many years, and with the 3rd house that needs a complete rehab. With the help of a good real estate agent, I was able to do the closing on my first deal through sellers financing. This deal was recently made this year, I'm not cashflow anything yet, but once I rehab the 3rd house I will be able to cash flow $600 a month.

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

I found this deal driving around, and was negotiated through sellers financing.

How did you finance this deal?

I took some money borrow from my 401K and from a line of credit to give the owner a good down payment.

How did you add value to the deal?

I had to do some work on one of the rented houses so far (by insulating and reinforcing the structure), and now I will focus on rehabilitating the 3rd house for I can start receiving some cash flow.

What was the outcome?

Still a work in process.

Lessons learned? Challenges?

I believe I could negotiate this deal for a lesser price. That is why I will encourage anybody to get the proper education along with a mentor before trying any deal. I myself will be getting that education but now on the multi-family unit deals.

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

I have a friend who happens to be a realtor. He helped me along with the owners lawyer's for the closing of this deal. I recommend to gather a good local realtor who already have the knowledge of market analysis, who can be able to tell you if the property(ies) is/are worth buying or not, and can help you with the closing.