My First Apartment Deal Was a Success

If you have a real estate investor success story to share, please do so through
our “Contact Us” page. Thank you.

I'm 63 years old and working on my retirement for my wife and I.

Being a first time investor I came across a five unit apartment advertised as a Vender Take Back (VTB) in Hanover, Ontario (Canada) in December 2009. That's where the owner hold's the mortgage for a certain amount of time while the buyer sets up the financing. The original listing of the property was attractive because of location and the size of the property. I envisioned it would be easy for me to manage and a great entry level commercial property to get in on.

I contacted the seller directly and the seller wanted to get full the asking price of $295,000 and offered 9.5% financing on his VTB. This wasn't going to work for me as I told the seller you can't have it both ways and closed out the conversation with “Good luck with your building”.

I walked away, but I did not give up. After a few more meetings, I picked it up for $279.000, down from his asking of $295.000, with a VTB financing rate of 3.5. The owner was a real don't wanter since he had family problems. I think that was a major motivating factor in negotiating our terms.

In this case, I worked out a full year at 3.5% with the owner and I eventually was able to secure a long term commercial mortgage/note with a rate set at 4.5%.

As far as repairs on the building – just a few new windows needed replacement. All units came rented with one single fellow being there 20 years.

It has a positive cash flow of $1,800 after expenses. This was truly a WIN/WIN deal. Being part of the REICLUB has helped me as a new investor and reading Rich Dad, Poor Dad.

I am happy to report that I'm having fun looking for the next deal…

Thank you for being part of our success!

Doug Robinson
Ontario, Canada

To read more real estate investment success stories,  please click the links below. Thanks.

We love your feedback and welcome your comments.
Please post below:

My First Apartment Deal Was a Success

Are you sure you want
to log out?