Finally Closed My First Deal!
Investment Info:
Large multi-family (5+ units) buy & hold investment in Morganton.
Purchase price: $350,000
Cash invested: $52,500
Small 8-unit Complex. Figured I had to start somewhere, so why not start a few steps into the "stack" as Brandon calls it!
What made you interested in investing in this type of deal?
I felt that multi-family was the best way for me to get started because of the economies of scale. I believe that it is a more "forgiving" asset type and this size is perfect for where I was at financially and comfort wise.
How did you find this deal and how did you negotiate it?
I was actually referred to the seller by a guy from my church. I was telling everyone what I was interested in and he introduced me to the seller.
The seller did not have it listed and initially was asking $350,000 for it. He did not want to pay realtor fees. He also had an adjoining lot that he wanted to get rid of. He originally was asking $35,000 for the lot. I offered $345,000 for it as well as $5000 for my broker that I would pay. This allowed me to finance it all less my 15% down.
How did you finance this deal?
I went through a small regional bank. They offered very competitive rates and was willing to lend to me despite not having any other experience. I was able to use a HELOC on my primary residence to pay for the down payment. So I actually got this with $0 of my own money!
Most Popular Reply
Congrats! It's always nice to see others making great moves and I love how you found the seller. Sometimes it's a matter of just letting people know what you do so that opportunities like this arise. Now it's time to plan for the next one! Best wishes!