New investment stratosphere.

[Patrick Haug]

Investment Info:

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

Purchase price: $108,333
Cash invested: $40,000

This is a four family building which I purchased where investment was required. Investment has been made and is on-going.

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

I was shopping for a replacement investment. I had an accepted contract on an investment property. I was utilizing the 1031 investment property exchange, so I had to locate a replacement. This location fit all of my criteria.

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

I found this deal through a letter campaign. As I advised, since I was utilizing a 1031 exchange I had 45 days post closing to identify which properties I was going to use as a replacement. The added pressure of finding a replacement pushed me to do and try things I had yet to attempt. Letter writing was one of those attempts. My offer price was accepted. But once inspections were complete I was able to renegotiate because of the deferred maintenance conditions that were discovered.

How did you finance this deal?

This deal was financed through a conventional bank. I brought 25% down and received a 30 year fixed rate mortgage.

How did you add value to the deal?

The value add for me was meeting the dead lines stipulated in the 1031. Additionally, knowing the condition allowed me to renegotiate the value of the building.

What was the outcome?

The outcome was a closed deal!

Lessons learned? Challenges?

The challenges were all new. I left a different investment stratosphere and entered a new one. I had to learn all about eviction, & finding related professionals.

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

I am a Real Estate Broker and have an active real estate investment portfolio. I acted as my own real estate agent.