Investment Info:
Single-family residence buy & hold investment.
Purchase price: $58,000
Cash invested: $1,771
Took over the property subject to existing mortgage. Very motivated seller so this was a lay up for my first sub2 deal. TIMING IS EVERYTHING.
What made you interested in investing in this type of deal?
The opportunity to attempt this strategy was too great to pass up. I researched this type of deal for a few weeks leading up to the closing and negotiating it, whats success without failing. What was the worst thing that could happen...they say no.
How did you find this deal and how did you negotiate it?
I found this deal while looking up comps in the area speaking with another lead on the phone. I saw that it was in a deceased persons name. The surviving spouse, once I skip traced his phone number, felt stuck with having to pay the mortgage alone and then falling behind on his bills slightly. When I heard that I told him that I can take this off his plate in 10 days if he was okay with moving within that time. He jumped at the opporunity.
How did you finance this deal?
Loan assumption and out of pocket cash.
How did you add value to the deal?
Replaced the windows, HVAC, thorough cleaning & paint
What was the outcome?
Despite the loss of a family member, the widower and son moved into an apartment and actually hugged me for giving him a new start on his life. THATS WHAT REAL ESTATE IS ABOUT. Yes I got a killer deal, but I helped a family turn the page into a new chapter of their life with my own knowledge and creativity. Nothing beats that feeling.
Lessons learned? Challenges?
God opens doors for people in order to help others. Learn to listen in negotiating and look to solve problems more than you look to WIN.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Lawyer and accountant.
