Buy & Hold on Creative Terms

[Dominic M.]

Investment Info:

Single-family residence buy & hold investment in Richlands.

Purchase price: $114,000
Cash invested: $12,000

Purchased with creative finance. Subject to and mirror wrap.

Cashflows about $300/month after debt/expenses.

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

I have VA's send out a lot of marketing each month to find motivated sellers.

Seller called and we decided the best option was subject to.

Because we used creative finance we closed in about 11 days.

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

VA handles all my marketing so this is an off-market deal.

Negotiated by laying out all their options 1. on market 2. cash or 3. subject to

How did you finance this deal?

Took deed sub2 existing financing (VA loan at 3% fixed)

How did you add value to the deal?

Didn't. Has renters in place on M2M. Increased rent immediately so it cashflows nicely.

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

Yes, I have an excellent closing attorney that understands creative finance and will get our deals closed.