Bigger Pockets dream come true!

[Crystal Ball]

Investment Info:

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

Purchase price: $385,000
Cash invested: $118,000

Contributors:
Brad Penley

A bigger pockets dream come true! After meeting @BradPenley on BP 2 years ago, we started a local real estate investor meet up and helped many others in this market connect great success When Brad was ready to sell his multi-family home, he called me to list it. After a couple of failed contracts on inspections and my other deal falling through, Brad was motivated to pull cash for another project, the timing was right for me, and we were able to create a mutually beneficial transaction!

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

Location, price, potential in market. Also, my full-time handyman was being evicted from his home after his owner didn't pay the mortgage, so he desperately needed a place to stay. He is happy as a lark living in the studio behind the home now!

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

Found through a bigger pockets contact! :)

How did you finance this deal?

Lending Deck. Can't recommend Andrew Kilbin enough!

How did you add value to the deal?

Wired $50k EMD straight to seller to help him meet his goals. Did some needed repairs during pre-occupancy close and cleaned up after nightmare property management company issues.

What was the outcome?

Primary residence rented long term at a discounted rate of $2k / month to my web developer. Studio rented at a discounted rate to my employee of $900 / month. Buyer & seller both met their goals in a super smooth transaction!

Lessons learned? Challenges?

Get the septic tank pumped before listing a property. Have a good title attorney to handle large EMD amounts (thanks Shannon Widman). Use a small, local property management company since cleaning up after the large, national companies is a nightmare.

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

I am the real estate professional I'd recommend in PCB. haha
Andrew Kilbin with Lending Deck is THE MAN! 4.75 rate on a 30 year fixed with 25% down (will be 20% down on my next one).