All Forum Posts by: Adam Carter

Investment Info:

Single-family residence other investment.

This is a 3 bedroom 2 bath single family residence. We purchased this investment as a Rent To Own property.

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

We are constantly on the lookout for single family properties below market value (who isn't?). These create the perfect opportunity to be ran as rent to own.

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

This deal was on the MLS and we identified the listing amount as below market value. We put an offer in site unseen with contingencies the day it was listed.

How did you finance this deal?

This deal was financed by my LLC and investor loans.

How did you add value to the deal?

We added value to the deal with fresh paint and flooring. We also established this as a rent to own property. This is great because we receive a down payment, above market rents, and establish a purchase price above our paid price.

What was the outcome?

We had several candidates reach out and ultimately decided upon a tenant. This family was unable to qualify for a traditional mortgage. However, they had good job history, were able to put 10% down, and we are collected $300/mo above market rents that will be a credit to their end purchase.

Lessons learned? Challenges?

It is important to have a great system in place for procuring leads. We received over 100 applications on this rent to own property and it is important to have a system in place to record their information, schedule their appointments, and keep them in a data base to share future opportunities.

Investment Info:

Other buy & hold investment.

This is a mixed use building located in downtown Three Rivers, MI. It has two large apartments located in the upper levels that are run as Short Term Rentals. The main level has 5 rentals offices occupied by various business. The basement is also rented for storage space.

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

This offered a mix of residential and commercial space in one package. We were able to add value by furnishing the two upstairs apartments and running them as Short Term Rentals. The office space below has been a good, steady stream of income to help with expenses.

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

We were able to acquire this deal on a land contract. The previous owners lived in the apartments upstairs and we negotiated including their furniture in the sale.

How did you finance this deal?

My business partner and I were able to hedge other assets to produce cash for the down.

How did you add value to the deal?

We added value to the deal by turning the two apartments into Short Term Rentals.

What was the outcome?

We now have 4 offices rented out and both apartments running as efficient Short Term Rentals.

Lessons learned? Challenges?

The pandemic has created a unique environment for office spaces. People now have the ability to work from home. To overcome this, we essentially created smaller, private spaces with great internet and comfort for those that need to get out of the house to achieve a work life balance.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

This is a 5 Unit Apartment complex. 3 Units are currently leased to long term tenants and two units are run as Short Term Rentals.

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

My business partner and I were able to pick this property up for a bargain and was the first rental of my portfolio. This property had great structure, 3 recently renovated apartments we could fill instantly, and 2 apartments that we could renovate to improve the properties value.

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

This deal was on the MLS. We put in an offer below asking due to 2 out of the 5 units needing renovation. The seller accepted our offer.

How did you finance this deal?

Coming from a traditional business background and our first investment project in rentals, we financed this with a commercial note through a bank.

How did you add value to the deal?

We complete renovated two of the units, furnished them, and listed them for Short Term Rentals.

What was the outcome?

Once we added value to the property we went back to the bank and did a cash out refinance. We then used that cash to fund our next deal.

Lessons learned? Challenges?

I had three large revelations from this project. First, any property with 5 units or more is creates challenges for financing and insurance. Second, standard landlord insurance will not cover short term rental claims (luckily, we didn't learn this the hard way). Third, creative finance is key when growing your real estate portfolio.