Investment Info:
Single-family residence buy & hold investment.
Purchase price: $50,000
Cash invested: $7,500
3bdrm 2bath
What made you interested in investing in this type of deal?
I had been reading and listening to everything i could find on Real Estate Investing… There is definitely a point where you’ve just got to dive in, and this was the first deal i came across haha.
How did you find this deal and how did you negotiate it?
A friend a local bank said that i should talk to their foreclosure department and see if anything was available for purchase. I gave the manager a call and he was actually at this property putting out a For Sale sign. I met him there 15 minutes later, he told me that the bank only had two properties for sale at this time. This property ($60K) and the other for ($25K)…. I offered to take both properties off their hands if he dropped the price on the first property to ($50K). They accepted!
How did you finance this deal?
Conventional Financing
How did you add value to the deal?
By offering to purchase both of the only foreclosures the bank had.
What was the outcome?
They were able to clear their foreclosure listings, and i was able to add two properties to my investments.
Lessons learned? Challenges?
I learned to value of being a People Person. If you can treat everyone you meet like an old friend, the conversations seem to go a lot smoother.
