Always ask if someone is looking to sell!

If you like a property, always ask the owner if he or she would consider selling it.

The Story

So, I bought an end unit townhouse in my local market.

This townhouse is part of a 6-unit complex.

The Lead

I got the lead on this purchase from a local realtor that knows my company, our track record, and has called us on deals before. Referrals are the best – no marketing money, and there’s already a perceived trust in dealing with your company.

The property I just bought – it had a serious roof leak. The rubber roof was old, and the rubber was directly connected to the neighboring property.

So, I contacted the owner of the neighboring property to discuss the roof issues.

A real estate investor needs access to property data and owner contact information to help find deals. Or in this case, to track down the neighboring property owner’s contact information to discuss a shared roof. We have a partnership with PropStream, and they offer a free 7-day trial that includes 50 free records to help you find the data you need. You can use PropStream to find a property owner’s name and contact info, as well as a lot of other information. To be successful in real estate investing, you need to have some type of software that provides you the necessary information for finding investment opportunities.

During the discussion regarding the roof repair, I asked the owner if he was potentially interested in selling the property anytime soon. To my surprise, he actually said, “Yes.”

And because I did the research beforehand, I asked him about the second townhouse he also owned in this complex.

It seemed like a long shot, but we ultimately agreed on a price for each of the townhouses that he owned. I acquired both of his properties, so now owning three of the six in the complex.

Each of the properties had room to force appreciation through renovations, and each property’s rent was below market value at the time of acquisition.

As far as the financing for these deals, I used a private lender when I purchased the properties. I then did a cash-out refinance loan to secure a DSCR 30-yr fixed rate mortgage to pay for the long-term debt. This is an example of the BRRRR exit strategy.

This video explains the two bonus deals and the breakdown of their numbers using the BRRRR strategy.

To summarize these deals from the numbers end:

• Acquired two cash-flowing rental properties
• Cost a net $0 out of pocket
• After refinancing, actually made $1,000 by doing the deals

And that is how one deal turned into three.

The moral of the story: you never know if something is for sale unless you ask. And consider using the BRRRR strategy to acquire as much real estate as possible and grow your net worth. 

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