First Creative Finance Deal

[Jason Runkel]

Investment Info:

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

Purchase price: $125,000
Cash invested: $25,000

Buy and hold investment creatively financed via land contract.

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

The ability to finance without a traditional mortgage. It has been difficult to get traditional financing on a second deal being self employed.

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

This deal was found on Facebook. We met the homeowner and explained what attracted us to it and our situation as it pertains to financing. We made an offer and hashed out the details from there.

How did you finance this deal?

We financed this deal via land contract. We put 20% down on a 4% loan amortized over 30 years, with a ballon payment in 3 years.