All Forum Posts by: Spencer Dixon

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $425,000
Cash invested: $5,000

ell after just 6 months of owning. They had about 90k into the property. They would have got about 35k at closing. So a loss of about 55k
We did a lease to own option so I could immediately take over expenses but keep their primary resident loan and interest rate.
We agreed to a deal which would cover all their expenses at closing, their remaining loan balance, and $45,000.
Instead of losing 55k they will probably only end up losing $25,000 - $30,000

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

My past clients were in a tough spot and needed to sell asap. I wanted to help them out and minimize their loss and saw an opportunity to get a property slightly below market because of my commission savings, immediate mortgage and maintenance relief, in addition to keeping a lower short term interest rate

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

Past Client.

How did you finance this deal?

Lease to own. Personal money

How did you add value to the deal?

kitchen update, driveway improvement

What was the outcome?

another property to the portfolio, and a continued relationship with a live long client

Lessons learned? Challenges?

Long term its not a great cash flow property but with some renovations and addition of a parking slab I think long term appreciation is the big goal here.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $425,000
Cash invested: $5,000

Helped my past client out of a difficult situation.
They needed to sell after just 6 months of owning. With down payments, improvements, commissions, title work, holding costs etc.... They had about 90k into the property. They would have got about 35k at closing. So a loss of about 55k
We did a lease to own option so I could immediately take over expenses but keep their primary resident loan and interest rate.
We agreed to a deal which would cover all their expenses at closing, their remaining loan balance, and $45,000.
Instead of losing 55k they will probably only end up losing $25,000 - $30,000

Long term its not a great cash flow property but with some renovations and addition of a parking slab I think long term appreciation is the big goal here.

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

My past clients were in a tough spot and needed to sell asap. I wanted to help them out and minimize their loss and saw an opportunity to get a property slightly below market because of my commission savings, immediate mortgage and maintenance relief, in addition to keeping a lower short term interest rate

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

Past Client.

How did you finance this deal?

Lease to own. Personal money

How did you add value to the deal?

kitchen update, driveway improvement

What was the outcome?

another property to the portfolio, and a continued relationship with a live long client

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $165,000
Cash invested: $35,000

That's right. BF it, live in it, then leave it! ***BUT keep it ***
B - Buy it
F - Fix it
Live - Primary Residence it
Leave - Keep it, rent it out, and find a new primary residence

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

Need a home, it needed work, price and location where pretty great. Clear opportunity for improvement

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

on the MLS, I'm a realtor. I actually met with the agent directly as it was his childhood home, and he wanted to know who was going to buy it.

How did you finance this deal?

Traditional 30 year fixed mortgage

How did you add value to the deal?

It all started with removing some interior walls and changing the floor plan, removing a chimney, adding a bedroom and bathroom, installing patio door to the backyard, and completely renovating every other interior element

What was the outcome?

We refinanced and cashed out all our renovation budget plus $5,000 and actually kept monthly payment the same as rates had dropped. It's been a rental for the past 4+ years and makes on average $400-$600/mth

Lessons learned? Challenges?

I had never used a power tool prior. It takes longer than expected when doing most of the renovation yourself. Small demolition projects make massive impacts. So many houses are built the exact same, it gets easier the more homes you get in. Having time to do the work was the biggest benefit. I'm not as good a professional but the work I did was mostly good enough for us to live in, and the small fixes to make it good enough for renters has been worth trying to do it myself.