Investment Info:
Single-family residence buy & hold investment.
Purchase price: $62,000
Cash invested: $2,500
Single Family home purchased with 20K in equity at closing. Property was a foreclosed home that produces $425 monthly after all expenses paid. The 20K in equity was used to purchase a second single family home same price similar monthly cashflow, No money involved in second deal.
What made you interested in investing in this type of deal?
I always buy and hold single family home real estate with certain parameters for purchasing.
How did you find this deal and how did you negotiate it?
I found the deal with my agent on the listing services in my city. I made offers based on comps in the area, several counters were made, until we reached an agreement that matched my minimum requirements that produced a desirable cash flow.
How did you finance this deal?
I used traditional financing on both deals.
How did you add value to the deal?
I added value to the deal by negotiation and understanding the sellers motive along with having strict purchasing rules.
What was the outcome?
I was able to receive 2 properties by offering an under market price offer.
Lessons learned? Challenges?
Negotiation can be very frustrating for both parties and always run the comps.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, my agent sent me the properties and a good agent is good have for selling and buying.
