All Forum Posts by: David Garner

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $26,500

Acquired as a long term rental with funding provided by a private lender through our Private Lending program.

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

Cashflow, equity, depreciation.

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

We bought this one as part of a portfolio of 8 homes from another investor.

How did you finance this deal?

Funded by a private lender through our program

How did you add value to the deal?

Purchase discount and renovation

What was the outcome?

We've had a long-term tenant in the home since rehab was finished. The houses cashflows about $115/month net, and we have zero dollars left in the deal. I believe we even took cash out at the point of acquisition.

Lessons learned? Challenges?

This house was a decent purchase, but some of the others in the small portfolio we acquired turned out to be more problematic. Lessons? You have to take the rough with the smooth sometimes.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $15,000

Acquired for our Pathway to Homeownership Program, we bought the home for $15,000 plus costs, and spent around $5,000 on a fairly light, mostly cosmetic renovation.

From early 2020, we had the home tenant-occupied on a 36 month lease-option at $800/month (inc. prorated taxes) with $50,000 strike price.

The tenant-buyer had to vacate in January, 2022 due to her personal circumstances, and we are now rehabbing again to make ready for the next long-term tenant or a similar lease-option tenant.

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

Helping good quality tenants to purchase the home they are renting delivers an exit strategy in a traditionally buy/hold market segment (low to moderate income housing). It also improves monthly cashflow and dramatically improves tenant quality if done right.

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

Sourced via MLS and made an appropriate offer that allowed for sufficient margin for the property to fit our financial and operational models.

How did you finance this deal?

The deal was funded by a private lender through our Private Lending Program.

How did you add value to the deal?

Purchase discount and light renovation. The initial SoW was around $5,000.

What was the outcome?

The original tenant-buyer has vacated after 2 years. Unfortunately she had personal circumstances to contend with and was unable to stay. We are now turning over ready to go again with either a long term tenant or another lease-option.

Lessons learned? Challenges?

This was one of our first purchases in PA after buying 28 houses in MS. It was a good learning curve in terms of how to manage relationships with service providers, partners and tenants in a wildly different culture than we were used to.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Of course... I'm always happy to provide referrals where appropriate.