OfflineMet with a local bank that was involved with my first rehab project that I've had rented but this week received an offer and accepted! 75K invested...sold for 109K w/ 4K towards closing! so about 20K in profit!
Asked the loan officer what i would need to bring to the table to get into another deal and he said 20% of sell or appraised whichever is lower. I asked about owner financing and he said that the seller could hold a second for this entire 20% and i would need NO money.
So met with a retiring investor today who owns an 11 unit complex. NOI is around 45K and once I change over the furnaces to natural gas it instantly goes to a NOI of approx. 53K. Value of the property based on the new furnaces (CAP Rate of 12%) is around $440K.
He is asking $285K for the property and i asked if he would finance 20% if I could finance the balance? He surprisingly said that although he wouldn't normally finance this much, that he would! Great News!! Meeting with the bank tomorrow and expect a P&S to be submitted sometime next week!
100K of equity!!!! not bad....with none of my own money!!
Luck is when Preparation crosses paths with Opportunity!
Hey great news on your upcoming Deal 2. I was wondering what had happened to Deal 1 until I just read your post.Good move on the NMD aspect of you next deal and all it took was to ask a question. Best of luck to you...Jan
Thanks Jan....
Looking forward to meeting you all next year at the Edge event.
Plan is to be able to make it!
Luck is when Preparation crosses paths with Opportunity!
SO as a follow up to this 2nd deal post....
I had my real estate agent get me a blank copy of a P&S agreement as this deal is a for sale by owner, so here is the offer summary submitted;
1) Offered $250K or around 20% below his already relatively low asking price...you can see from it's NOI calculation.
2) Subject to full Code compliance and inspection
3) Owner to hold owner financing of $50K or 20% of the deal
4) Owner to pay $5000.00 towards the closing costs of the property
With these terms, i will have none of my own money into the deal!!
The owner called me Friday and said he received the offer and that he would call his brother in Washington (1/2 owner) and get back to me early this week.
Looking forward to hearing his feedback! Wish me luck.....
Starting to get traction with real estate...all the hurdles in learning are paying off.
Luck is when Preparation crosses paths with Opportunity!
Way to Go! That's awesome and like Jan said all by just asking a question. Can't wait to hear the end details.
Cathy L
This sounds like you are keeping busy and Best of luck on the closing of this deal!! Those learning hurdles are great once we stop falling over them and start jumping them with the confidence of defeating the fall. I'll meet you at the finish line ______________WINNER !!!!!!!!!
Brian
Received a call from the seller today and he spoke to his brother and they are accepting the offer as is!!!
Have a meeting with the bank Thursday morning to provide them a signed P&S to get over to underwriting and hopefully be the owners of a $350,000.00 investment property in a month or so!!
Thanks to everyone for the comments.....my goal is to provide others with as much information as possible as proof that these deals are out there and you need to continue to take action!!!
You resolve will be tested over and over again but continue to believe!
Luck is when Preparation crosses paths with Opportunity!