All Forum Posts by: Hunter Rodman

Investment Info:

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

Purchase price: $345,000
Cash invested: $20,000

This was my first seller finance deal, where the owner owned it outright and we were able to do a seller carryback with almost no money down and an incredible repayment schedule.

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

Seller financing is a win-win; I of course always want good deals, and the seller wanted a purchase price I couldn't make happen. However, with the interest the seller made from me over the term of the loan, I was able to purchase the property for around 70 cents on the dollar, and the seller was able to retire.

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

It's a long and cool story, but it was rough as well. We had known the seller for while from another business I was in before real estate, and I remembered she owned this property that was a great buy. I called her up and asked if she wanted to sell, and long story short, it all worked out.

How did you finance this deal?

Seller financing and a partner.

How did you add value to the deal?

Cosmetic rehab.

What was the outcome?

We were able to raise the value of the property almost double from what we bought it for, and for now we are keeping it on seller finance because we have such great terms. We are using one unit as a LTR and another as a STR. In a couple of years, we will refinance, I will pay off the seller and investor, and use the rest of the equity to buy more property.

Lessons learned? Challenges?

As the first seller finance deal I ever bought, there was a lot learned, which is I will now use for future deals. The seller was difficult at times to deal with as well, but luckily we were able to make it through.

Investment Info:

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

Purchase price: $279,000
Cash invested: $45,000

I renovated this duplex, forced appreciation, and put new leases in place that were almost double than prior management. Now, I have a large amount of equity and cash flow between $800-$900 per month.

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

Originally wanted to live for free, and now use it as a long term rental.

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

Got lucky and found it on the MLS during a hot time. It was poorly marketed and I was able to negotiate a significantly lower than list price, and had sellers replace the furnace and hot water heater after the inspection period.

How did you finance this deal?

First time home buyer, 3% down conventional with ADU used as additional income.

How did you add value to the deal?

Sweat equity! Pretty much rehabbed the entire property, new cosmetics on everything and basically just cleaned it up.

What was the outcome?

Lots of equity, and a fantastic property in a great location that will hopefully treat me well for a while.

Lessons learned? Challenges?

This was the first of many, so it was quite scary all the way though. I learned everything from financing to drywall work.

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

Karen at the Mortgage Source in Laramie. Fantastic lender who found a way to make it work very well.