Subject to Purchase- Low risk, low buy in

[Valorie Williams]

Investment Info:

Single-family residence other investment in Conroe.

Purchase price: $125,000
Cash invested: $6,000
Sale price: $165,000

This property was purchased as a Sub to, we rented it out had a few evictions and hiccups, Got a great tenant in then sold it to another investor.

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

Cash on Cash return.

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

We did extensive mail marketing campaigns in our local market and worked very closely with the sellers.

How did you finance this deal?

Personal money

How did you add value to the deal?

Cleaned and did light renovation when original owner was able to move out. This deal was unique where we let the owner who was defaulting on the loan stay and rent it till they could figure something else out. We let them pay twice a month, in peoples mind it is easier to budget that way and they ended up paying more in rent then their mortgage.

What was the outcome?

We made a continually cash flow and sold for profit.

Lessons learned? Challenges?

Be strong about your renter criteria. I am not a very strong landlord and like to help out others and we ended up in Eviction court. Interesting experience but not one I want to continue in doing.

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

I am a licensed real estate agent, so I handled all contracts and leasing. I recommend to always budget in a property manager. Keep yourself seperate from your investments at all times and realize you need to pursue to expand your portfolio and not babysit tenants.