Enjoying a 6 Pack of Houses.
Last week was nuts. Not because of the three day weekend, but because we finally closed on 7 deals we had lined up. One was a plain vanilla fixer from the MLS, the others were a nice 6-pack: refreshing, abandoned, and in need of a good home.
I stumbled across this seller by accident some months go when I was looking for sources for good notes. My property manager mentioned one old house, and I decided to go to county records to see who owned it, then saved their info and forgot about it. In the middle of March my inventory of note supply was running low so I started pulling up old leads to see if I could find anymore deals.
We originally budgeted $30,000 in repairs, but after seeing some of these, we’ll be all-in for under $15K a door for most of them.
When completed we’ll have new rentals for less than 30% of market value. It took a few weeks for me to chase down the seller and get a relationship started, but in the end it was worth the time and effort considering this city is one where we already have 4 other deals in process.
The moral of the story is this, turn your local teams into your best assets by putting them to work as lead generators. You never know what that “old vacant house I drive by on the way to work” can turn into. In this case, we got 4 really REALLY nice houses for less than a new car. Two are rougher, and we may sell them off to pay for the others, but all in all a big win for Powerhouse.
Since these are not mortgage notes, we had lenders and backup-lenders ready to close. We’re already working on the exterior clean up and negotiation with the city to get some of the fees/fines/liens removed. When they know a good company will come in and fix up homes, they make accommodations.
I’ll keep you posted.
If you’d like to get your money out of the Wall Street casino, give me a ring and we’ll find a way to introduce you to real estate and what it can offer you.