All Forum Posts by: Alfath Ahmed

 Galen, Thank you! 

There are a few ways to finance 100% of your purchase. 

1. Raise Private capital for the down-payment and have the bank finance the rest of the cost (typically 20-25%). 

2. You can even use seller-financing on the down payment. Some banks will allow that. 

3. You can find some in-state banks that may purchase 100% of the financing for usually a higher interest rate. 

Isaac, It is better to close on the 1st of the month so that you can have all of the pro-rated rents for the month alongside the security deposits. This makes it possible to bring less money to the table for closing. 

I would go to the county auditors website and find the name of the owner. You can use truepeoplesearch.com to find the name of the owner and their phone number usually. 

If it shows an LLC, Search "LLC search in your state/city/county" to find the name and address of the owner. Let me know if this helps!

I can send over some lender referrals that my clients and I have worked with in the past. 

I have some great referrals for commercial lenders that you can take a look at? Is this your first investment? 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $100,000
Cash invested: $40,000

This SFH is in a prominent location in the heart of Dayton off-campus of University of Dayton. This was my first cosmetic rehab. I bought the property below market price using a HML.

PP: $100K + $3k (double close)
Down payment: $38k
Hard-money for purchase: $65k
Hard-money Line of Credit for Rehab: $30k but utilized on $10k and funded the rest
All in: $138k

 If Appraisal @$170k @ 25% LTV: ($10,500) in deal
 If Appraisal @$180k @ 25% LTV: ($3,000) in deal
 Gross Rents: $1500

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

I wanted to do a minor cosmetic remodel before taking on large full-gut jobs.

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

Wholesaler

How did you finance this deal?

$38k cash out of pocket and funded the rest through a hard-money lender.

How did you add value to the deal?

2-week remodel created nearly $30k-$40k in equity. I will know the full amount once I refinance.

Lessons learned? Challenges?

1. Always vet contractors.
2. The rehab will almost always go overbudget
3. Keep your contractors accountable & on-time.
4. Buy the property undervalued. No exceptions. If the numbers work they work or else they don't.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $100,000
Cash invested: $40,000

This SFH is in a prominent location in the heart of Dayton off-campus of University of Dayton. This was my first cosmetic rehab. I bought the property below market price using a HML.

PP: $100K + $3k (double close)
Down payment: $38k
Hard-money for purchase: $65k
Hard-money Line of Credit for Rehab: $30k but utilized on $10k and funded the rest
All in: $138k

 If Appraisal @$170k @ 25% LTV: ($10,500) in deal
 If Appraisal @$180k @ 25% LTV: ($3,000) in deal
 Gross Rents: $1500

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

I wanted to do a minor cosmetic remodel before taking on large full-gut jobs.

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

Wholesaler

How did you finance this deal?

$38k cash out of pocket and funded the rest through a hard-money lender.

How did you add value to the deal?

2-week remodel created nearly $30k-$40k in equity. I will know the full amount once I refinance.

Lessons learned? Challenges?

1. Always vet contractors.
2. The rehab will almost always go overbudget
3. Keep your contractors accountable & on-time.
4. Buy the property undervalued. No exceptions. If the numbers work they work or else they don't.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $405,000

4-Unit Brick multi-family purchased in South Linden

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

The South Linden part of town is gentrifying & appreciating fast. I wanted to grab this deal right before the neighborhood prices skyrocket.

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

Found this deal on the MLS. The deal had been sitting on the market for some time now and the investors were out-of-state. One of the units were going through eviction. I understood the sellers were looking to sell and they were asking for way too much. My agent and the listing agent were from the same brokerage. As soon as the sellers responded to my first offer, I knew I was in the driving seat and I negotiated the deal about $45k down.

How did you finance this deal?

100% financed. No money in the deal.

How did you add value to the deal?

Negotiation Tactics created equity. Raising rents as 2/3 leases end this year.

Lessons learned? Challenges?

Close after the 1st of the month instead of closing 2 days before the end of the month.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $346,000
Cash invested: $22,000

Purchase Price: 346k + closing, all in 352k
Down payment: Conventional 5%
Expected Rents: $1545/side so $3,090 gross
Mortgage payment + hazard+ other costs: $2,029 + water/garbage
Management: Self management

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

My property is a complete remodeled duplex. It does not meet the 1% rule but I’m okay with that. It’s a 4 minute walk from the largest children's hospital in Ohio, 2 minute walk from a decent middle school, 1 minute from the freeway to downtown which is 5 mins away. Also, the hospital has a 4 billion dollar project in that location in the next 5 years. I am still able to walk away with $1k in net profit (before taxes).

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

I found this deal through my realtor who is also an investor himself. We offered on this deal an hour after it hit the market and locked it up the next day.

How did you finance this deal?

Conventional Financing

How did you add value to the deal?

Future-value add will be to finish the half-finished attic and partition them into 2 bedrooms. I will also convert both the laundry room with the water-lining into bathrooms. However, I will wait at least 2 years to do this because I am looking to increase my portfolio rather than value-add and refinance or simply increase rents by $100/month.