Unit #2 & #3

My first duplex was a opportunity that I could not afford to fuck up.  A good friend’s family has a plethora of rentals in an area I had only hoped of having one.  He asked me if I wanted to buy one and my immediate response was “I wish but no shot I could afford it, thanks for asking”.  A few months went by and through educating myself I realized a lot of investors use seller financing.  I sent a text to my buddy saying I would be interested if I could put 10% down and they would carry the note.  About another month went by and I was asked if I was still interested in the 10% down seller financing.  Very excited, I looked at it the next morning and before I saw the place knew my answer was going to be yes.  The property is very underwhelming and needs updating but its is in a great location.  The next day I said we had a deal and asked for 45 days to get the down payment cash.

With closing cost I would need roughly 33k and I was way short, almost all of it short.  Time to try and refinance Unit #1.  I made a deal with a private lender for 8% with a 3 year ballon payment.  Monthly payments would only be $256 and that would give me just enough cash for the 10% down payment and closing cost needed for the duplex.  The refinance settlement was one week before the duplex settlement leaving no room for delays or hiccups in the process.  It was a stressful period but we made it happen and greatly increased my confidence.  Both units are currently rented and I can only hope I find more deals like that in the future.

Lesson learned was to get creative and find a way to make it work if you want it to.  Rich Dad Poor Dad hit home here when he talks about don’t say you can’t afford it but say how can I afford this.  This deal happened because of a text message I sent suggesting seller financing.  You will never know unless you ask.

Leave a Reply

Your email address will not be published. Required fields are marked *