Met 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!