Our first buy and hold

[Michael Doyle]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Moline.

Purchase price: $1,900,000
Cash invested: $52,000

My partners and I were able to creatively finance this 42 unit from a client of ours we did work for

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

The seller was a client for my contracting firm and he wanted to sell the property to someone he trusted and had a good relationship with

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

The seller is our customer and we negotiated seller financing on the down payment

How did you finance this deal?

Seller financed the down payment and a 5 year balloon on the primary

How did you add value to the deal?

The seller had already rehabbed

What was the outcome?

We are cash flowing already in the 1st year and have had offers above our purchase price. We are holding this one

Lessons learned? Challenges?

1.9 million seemed absurd for us to buy but with the sellers help and the help of bigger pockets, we were able to learn the the deal is in the terms

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

The lender held the portfolio from the seller prior and was very helpful in us putting the deal together. Community bank