We learned about the property an hour and a half from where we live. An open house was scheduled for the next day. We contacted a realtor and got the MLS listing for the property. It looked like a lot of property for the money. They were asking $650,000 for a 55,000 sq ft building sitting on about 4 acres. I told the realtor to be prepared to make an offer when we tour during the open house. I told the realtor to add a '7' to the offer to make it $657,000.
We drove to the building, walked through it for half an hour and then presented the offer. The seller's agent told us we had the best offer.
We put $30,000 down from money we borrowed from other properties we owned. Then we began searching for financing. The building was vacant so we had to be creative. We found a lender that charged us a higher interest rate than banks. We tied up a bunch of our collateral and got a $900,000 loan.
We completed the work in 8 phases so the we now have about 70 apartments.
We created a $5,000,000 asset from a $30,000 initial investment.
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