16 Property Package Deal

[Marian L Claville]

Investment Info:

Single-family residence buy & hold investment in Shreveport.

Purchase price: $425,000
Cash invested: $50,000

Purchased 16 properties through owner finance. Put $50,000. Took properties from 65% rented to 98% rented. Cashflow of $4120 after expenses. We put $13750 in properties to make repairs and rehab. Currently worth $512,000.

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

Even if the cashflow was low we knew with a little TLC the homes would appraise for more.

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

One of my investor clients was owner financing a deal from the the owners. I asked if they would be interested in owner financing other properties and they said yes. I evaluated the homes and we saw the value in them.

How did you finance this deal?

It is owner financed so we have the credit sale deed in our company name. The sales price was $425,000. We paid $50,000 down. The owner's are financing the $375,000 at 7.95% amortized out for 15 years and a few months.

How did you add value to the deal?

We went in to each home and made some improvements even if improvements were made. We also rehabbed two of the homes to bring up the current value.

What was the outcome?

We get a cashflow of over $4000 and we are in a equity position over $140,000.

Lessons learned? Challenges?

Get a property manager from the start. I couldn't manage the properties well so I hired an assistant that specializes in property management and we have been profitable ever since.

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

Myself. I am a real estate investing strategies