OFF-Market (Pre-Foreclosure) with one other under contract

[Ruben Galindo]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $145,000
Cash invested: $17,000

4-bedroom 2-bath single family home.

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

I had 2 other properties in the same neighborhood and this specific house was in a pre-foreclosure situation.

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

Search for pre-foreclosures online.

How did you finance this deal?

I did a "subject-to" then a few months later refi'ed into my own name.

How did you add value to the deal?

The house needed all of the carpet replaced and the walls repainted. Total spent was about $5,500.00.

What was the outcome?

I acquired a property with about $50K in equity and I am currently cash flowing $623.00

Lessons learned? Challenges?

I had never done a "subject-to" but this was such a great opportunity that I had to learn how to do one. A challenge on this deal was that I was currently under contract on another property and a lot of my capital was already committed to that deal. That's why I can to do a "subject-to" and it worked! I bought two properties pretty much back to back.

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

I am an agent and an investor, therefore, I understand the financing process and what's a good deal and what's not a good deal.