The multifamily home, and all the "fun" OFFICIALLY CLOSED 10/5/09

3 unit multifamily home...this is LONG cause went through a lot of the ups and downs...Talks of closing this Monday, but it isn't concrete
Purchase Price
-165,000
Rents
-900
-650
-550
Mortgage including taxes
1280(I believe-right around that if I am wrong)
Insurance - 133 a month(1600 upfront for first year)

all 3 units will be rented out

rents minus mortgage = $820 per month cash flow

The first floor renter actually does maintenance stuff for the property...the 2nd floor guy will do the carpeting for free and is handy...so perfect...Don't get much better than that...

The owner right now is great...I have his number, he is going to sit down with me and go through EVERYTHING with me...and he has said a bunch of times to call him anytime, including down the road...So awesome 1st deal I would say..

I don't know where to start, so lets start with this...
This one property has been in the process of me attempting to buy it since April...So almost 6 months of ups and downs and hoops...

at the beginning of this, I had decent credit...I wanted to improve it, so I opened up a saving acct at a credit union...had money taken directly from my check every week, Refinanced my car through them, got my moms name off the car, and got a much better rate...I have that taken out automatically every month...I also took a personal loan out to catch back up on some things...Same thing, have it automatically taken out...so those help my credit every month since they are obviously on time every month...So that is nice...I kept paying things down, and my credit is MUCH better now than it was...Makes me feel awesome...

anyways, originally, my agent told me the seller was willing to pay the closing cost...So that was a plus...so found a broker that seemed AWESOME...He rolled everything into the loan...Down payment, closing cost and everything...It pushed the purchase price to bout 200,000...The original purchase price was 184,000...So that was sweet in my opinion...The seller agreed to pay the down payment cause I simply ASKED...I have learned to not be afraid to ask questions like that...The worse is a no...And that ain't a big deal...Anyways, after that was all said and done, I filled out the actual application...And waited and waited and waited...Then come to find out, the type of loan the broker was using, couldn't include the down payment, closing cost and all that...So I went from a no money down deal to losing the deal(or so I thought)But also, I needed all the down payment, and reserves in my account to show it for the bank...So that was a ton of money...It was around 11-12 thousand I believe...So that was another thing...After much talking to my mom, she decided to give me the money since I wouldn't be touching it...Just had to have the amount in my account...so that was perfect...

next, I kept trying to get some info from the broker so we could still try to work things out...But he basically kept hidden...Giving me VERY little info since he new he messed up apparently...And threw a bunch of BS at me as to how to make this work...I was determined to make this work, so found another broker, told him what my plans were, and tried to figure things out that way...After I got what I needed, I pulled from the original broker cause I didn't want to work with someone that just says what they think you want to hear...

so anyways, we ran new number and all that...The seller was still paying the closing cost, but I needed the down payment money now...I had no money...the down payment was right around $7000 I believe...So that wasn't cool...and since we couldn't roll the down payment into the loan, I asked the seller again...He agreed, but wanted to raise the purchase price so he could make more...I agreed cause it would get the deal done...I didn't care...I was determined to buy this place, and get in with NO MONEY seeing as how I didn't have any...Again, I still needed to show reserves and all that...

Well, anyways, something didn't work, and we had to switch things round again...I forget exactly what happened to be honest, but things had to be changed around...

Moving forward, where the deal stands now at closing...The appraisal since there were no comps at all, came back at 165,000...Works for me, cause the house is def worth more than that...And when the market goes back up eventually, it will be very nice...The seller wasn't to happy, but he needed to sell it...I STILL have him paying the closing cost of 6500 which is real nice...I still needed to come up with the down payment money which is 5800...I talked with my mom, and after going back and forth with her, she finally said yes...it works out well cause after we close, the first month is free, so I am giving back a bunch of it right away...she will get the reserve money right away also...Lota wheeling and dealing through everything...Banks, mom, and seller...

Also, the agent now after all of this is getting very little for his commission now...He said he doesn't have a problem with it since he plans to work with me for a long time...But still, I am in the process of working things out so he can get more...He has been a HUGE help, and without him, this deal would never have worked...

So all together, 5800 + the 1600(insurance) to get into the place...the only money I spent on it is the 1600...Other than that, I used other peoples money, and kept the deal alive by determination, and the will to succeed...

Well, since I wrote a book, Ill end it at that...I left a bunch out, but included a lot too...The deal almost fell through at least 5 times...Came so close, but I kept pushing, and asking questions and apparently it is going to pay off...Any questions, feel free...I hope it didn't get to confusing, cause I was getting confused myself writing it cause so much info, and so many things...But thanks for everyones help also...