Investment Info:
Large multi-family (5+ units) buy & hold investment.
Purchase price: $400,000
This was an off-market seller financed deal with a local investor who had owned the property for over 30 years!
What made you interested in investing in this type of deal?
I'm always looking to connect with experienced investors in the Lebanon Area, and often they want to make a deal when they are ready to exit their investment. Using a seller financed strategy worked better for the seller's goals and ours as well!
How did you find this deal and how did you negotiate it?
This particular investor used to be my middle school English teacher, and wanted to do a deal that would pay him every month so that he knew he and his family would be taken care of even if something were to happen to him.
How did you finance this deal?
100% Seller Financed deal with a flexible balloon option if the seller were to need the funds in case of emergency.
How did you add value to the deal?
This property is a 10 unit in need of a full renovation. So far we have painted the common areas and the exterior of the building. We have begun renovations on one unit, and will be replacing the roof and windows this summer.
What was the outcome?
A great deal for both parties.
Lessons learned? Challenges?
Relationships are everything. You never know where a new deal with come from, so treat everyone with respect and kindness. Those who want to do a deal may not be willing to do it right away, so stay patient and just check in with them periodically. This particular deal took over three years, but it was never about the money. It was about staying in contact with someone who I had already known for years, and serving them on their timeline and on their terms.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I work with a few lenders in the Lebanon Area that I recommend for investors and homeowners. Jonestown Bank and Trust Co. is the bank that I use for all my investment deals. Their commercial loan department is excellent to work with and they are willing to help you with all your financing needs! If you're looking for a non-conventional mortgage, Ideal Mortgage has been a staple for many of my clients who are buying a home on an FHA, PFHA, or USDA loan.
