Seller Financed Fourplex, 50K in pocket

[Beau Webb]

Investment Info:

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

Purchase price: $105,500
Cash invested: $300

Fourplex in Fayetteville, NC. Found cold calling multi-family owners and caught this seller at the right time. Negotiations lasted months. Fully occupied and minor repairs needed. Seller agreed to finance the entire purchase for 30 years, at 1.75% interest. She also included 50k on top of the purchase price at the same terms for repairs/reserves/future projects, which I walked away with at closing. Only possible with trust, communication, and creativity...and a VERY flexible seller of course!

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

Small multifamily, with low money down is always appealing. I was originally looking for my next house-hack.

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

Cold calling. Phone conversations over the course of a couple months. Met seller in person and negotiated seller financing.

How did you finance this deal?

100% seller-financed

How did you add value to the deal?

Using seller-financed repair loan to make necessary upgrades to property. Slowly raising rent to market value.

What was the outcome?

A cash-flowing 4-unit with no money down, stable tenants, and 50k of reserves already built in

Lessons learned? Challenges?

Creativity is key. You never know unless you ask. Educating and gaining trust of owners will elicit the greatest returns.