Our First Driving for Dollars Deal

[Justin Melendez]

Investment Info:

Single-family residence buy & hold investment in Fayetteville.

Purchase price: $48,000
Cash invested: $3,300

Monthly Cashflow: $515 (pre-refinance)

This is our first deal we landed using Deal Machine and driving for dollars.

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

This is a pretty standard deal. However, what makes this one unique is that it is the first time we generated our own leads in order to find this deal. Due to inflated prices and a saturated market, we decided to begin generating and marketing to organic leads.

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

We drove for dollars. We used a combination of Deal Machine, virtual assistants (for skip tracing/cold calling), and direct mail marketing. We identified the sellers needs (tired landlord) and discovered the sellers goals in order to negotiate a win-win scenario.

How did you finance this deal?

Cash/Savings

How did you add value to the deal?

We are breaking this project up into 2 phases. Since we are inheriting a performing tenant, there is little to no work to be done. However, we chose to ask the tenant about his biggest frustrations with the property. We used his feedback to generate a list of repairs for phase I of rehab. Phase I included fixing the duct work, adding a vent fan to the bathroom, and fixing some electrical issues. Phase II will occur once the tenant moves out. Phase II will consist of paint, bathroom, and kitchen.

What was the outcome?

We kept the tenant in-place and turned the property over to a property management company. Once the tenant moves out we will convert this property into an AirBnB.

Lessons learned? Challenges?

Communication! Consistently communicate with the seller, attorney, tenant, and property manager.

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

Spoat, Jackson, Browne LLC