All Forum Posts by: Jose Bernard

 Thanks @Dan Kennerson. We do the leases for the entire year from June to June, so there is no vacancy during the summer time. This lease was renewed prior to the sale through 2024. As far as Cap Ex 5%. 

@Bryan Martin thanks! Yes I hear you I remember how I was in college as well lol. The good thing is there are a lot of grad students who live off-campus here. All the current tenants are grad students, they don't party as much and are more responsible in most cases at least lol.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $285,000
Cash invested: $68,333

Off market 5 bedrooms 2 bathrooms deal, 1 mile away form a large University, currently rented to students for $4,000.00, and cash flowing $1,300.0 a month.

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

I was interested in the deal because it was in a great location/neighborhood, cashflow was great, and the ROI was great as well.

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

This was an off-market deal, I found it through social media. I connected the with the owner through Facebook. He is an investor as well, and he was looking to do a 1031 exchange to get into a larger property. We were able to negotiate the deal in a way that it was profitable and beneficial for both of us.

How did you finance this deal?

I went on the deal with a partner, and we did a conventional 20% down loan with a 6.9% interest rate.

Lessons learned? Challenges?

The biggest challenge was getting through underwriting for the conventional loan. It was challenging due to the number of mortgages my partner and I already have under our names, and that neither one of us has a W2 job as we both have a decent income coming from our real estate portfolios. Fortunately, we were able to get the loan at the end.

@Joe Villeneuve thank you for adding to the benefits. I agree 100%.

Seller financing is a great option for both buyers and sellers in the real estate market. This is when the seller provides a loan for the buyer to purchase the property. It offers benefits for both parties and is becoming increasingly popular in today's market. For buyers, seller financing can offer many advantages. I recently purchased a Triplex using seller financing. I found the deal through a wholesaler; the purchase price was $400k with 10% down 360k seller financed at 3.9%.

One of the biggest benefits of seller financing was that it helped me get into an investment property with a smaller down payment. Because the seller provided the loan, it allowed me to put a smaller amount down instead of the standard 20% to 25% downpayment, which was incredibly helpful. 

Another benefit of seller financing is that it provided more flexibility when it came to the loan terms. Since the loan came from the seller, he was more flexible when it came to the terms. This can be helpful for buyers who may not qualify for traditional financing or don't have the best credit score. They may be able to negotiate a better interest rate or longer repayment period.

Finally, seller financing offered a quicker closing process. Since the loan came from the seller, I didn't have to go through the usual process of getting approved for a loan through a bank or mortgage lender. This made the closing process much faster and easier for me.