OfflineWell, here's my first deal snapshot.
Bought my first investment home through a realtor. Asking price was $179K in an area of homes valued at $250K. House needed a bit of work, had bad paint colours and odd or different flooring throughout, old style bathrooms, nice basement apartment, wooden windows. Only 20 years old. Showed poorly. So it was not even getting viewings after 12 months.
Looking back today, it was a decent deal at the asking price.
Found out the owners were out of state/province, and settling a divorce. I offered $130K just to see what kind of response I got. Told my agent to tell them I would need to spend another $40K to renovate it. They returned my offer at $140K. Nearly fell off my chair. I was ready to go for that. My agent suggested they were desperate. To offer $132K back.
They accepted at $132K. I paid 25% down. I actually moved into ths house with my family. We rent the downstairs to family for $450. I spent about $50K renovating it. A year later teh house appraised for $289K. I know it would sell for over $320 today.
I got a RELOC of $170K against the home. From this, I have bought my next 2 rental properties. 2 more good stories for another post.
I now have a $90K and $94K mortgage on two houses, and a $95K LOC on the third. My house market values are $585,000 so my equity position is fantastic. The properties all cashflow.
For those interested, I bought my second through an agent. It was a distressed property in an estate sale, that had 2 rental units. Asking $109K. I simply offered $70K which they turned down. A month later they came back and sai tehy's sell for $80K. They accepted $75K. I hve invested $25K into it, and now rent for $1900 per month (utilities included). Cashflow is about $500.
The third property was vacant and in poor shape. Banged on two neighbours doors and found the owner lived next door. She said she wanted $59K. Told her I'd get it appraised and get back to her. Appraisal was $75K as is. I offered $52K and close in a month (Cash deal). She accepted. I have since put $20K into it and have it renting for $900 per month. An agent told me he would list it for $145K. I think $130K is reasonable. My RELOC rate is less than 2%, so my cashflow is again about $400 per month.
Those are my deals. Feel free to ask any questions.
That is amazing!!!!! Keep up the great work. You are on your way to becoming a millionaire real soon.
Brian
You've really on your way to be financialy free good work. Now theres no
stopping you.
Great work! That's pretty much how you go about it if you have money to put down on the first house. It is always harder to make the first deal. After that, it gets much easier. I have bought my first house in 2002 with 5K down and kept buying 2 houses each year after that.
Way to go!!!
Yuri
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --
Please share how you got such a low rate, 2%? Small local bank?
Cathy
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
wow that's an awesome story! congratulations on everything you have accomplished so far.
Success and Nothing Less!
So what do you do if you dont have thousands to put down up front?
Selde Enterprises Inc.
Property Investments & Solutions
Seldeenterprises@****
http://seldeenterprises.usapropertywholesale.com/
Congratulations on doing some great deals. Thanks for sharing with us. What is your investment strategy going forward? Any new deals in the works? Besides the RELOC any other creative ideas to share about financing your future deals? Thanks for the information. Good luck on your future deals! Believe and Achieve!
- Joe
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It is really an amazing start!!
How you came up with the down payment and how you manage not to "overextend yourself" in the eyes of lenders, pertaining Debt-to-Income ratios, every time you apply for loans?
Appreciate the response in advance...
Mikelos
Your instincts and imagination surely presented positive results. You anticipated things before they occurred, interesting. Thanks for sharing your story and enthusiasm, we really do appreciate. I know you mentioned two more deals in the making. Cannot wait to hear the details of those. May you continue to flourish and at the same time making it a win/win for all. God Bless.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.
That's how you do it! Like Dean says, thinking outside the box will get you far & using your imagination. My multi-deals will be blowing up shortly also, just waiting patiently right now for the grand finally to occur, I'll keep you all posted it real soon
Just remember something is always going on even if we can't see it with our naked eye.......
Everyone Can Make A Difference!
John A.
Nubiwan, on your first deal you got a house in a $250k neighborhood for $132 and then ~$40k of your $50k rehab came back in the appraisal? You hit a home run.
Way to go you Heavy Hitter!
Mike
Thanks for the inspiring story, I can't wait to attempt to duplicate those results. Good luck on your next deals also.
Lawrence.
I am into day 2 of this program. I am both nervous and excited to get started. I really can't wait to see where this will take me. I feel inspired.. thanks for sharing!
Well, I thought I'd stop back after what (phew 4 years) and perhaps update this thread.
Someone asked how I got my down payment for my first deal. Before my original story began, I sat around for ages thinking about investing in houses. I read a lot, but did nothing. My wife and I bought a condo in a pretty exclusive area of a medium sized martime town. Older building, but well maintained, and only 12 units. I pair $112K. I put about $7K of flooring, and paint into it, and the condo corp replaced all my wooden windows with nice vinyls while we were there. I sold it after 24 months for $145K. Think that was 2001 or thereabout. Today, I kind of kick myself for not keeping it, but it was ameans to an end at the time.
I took my 25K equity and put it on a house. A dumpy farm house, about 45 minutes east of the town, but situated on 10 acres of land. I should mention it also had 1200 feet of ocean front. The locationt by the ocean was key. Asking price was $174K? Can't really recall what I paid for it, but that is close enough. I sunk a further $50k (borrowed in our mortgage) into the house to turn the dump into something my wife and kids could live in. We lived in it for 3-4 more years (I think), and had 3 kids.
3 kids was a limit, and with that we decided to move back to my wifes home province. We put our farm house and 10 acres up for sale. We sold it for $470K. Anyone do the math on that? With the mortgage, and a few student loans paid off, we moved back 'home' with around $180K to start my investing 'career'. Career! That kind of makes me laugh.
That is how I bought our first steal/deal mentioned at the top of this post, with 20 or 25% down, and used my own cash to fix it up.
Fast Forward 4 years, I now own 7 rental houses. I actually decided to build a house for the experience of it. Made a great deal in a piece of land I bought. I've since bought another couple of dump style houses, fixed them up and have them either rented or rent to own. I think this response is getting too long now, but I basically have an income of over $100K in rents. All my debt gets paid out of that, so don't go thinking I make $100K + a year. Far from it, but it isn't bad, and most of it is tax 'independent'. One of the many beauties of self employment.
What I did want to say is that we now have 4 kids, and I spend a great deal of my time at home with my kids. While we are far from rich, we have decent cashflow from my properties, 45% equity on about $1.5 Million worth of property, and my wife also has a decent (not great) paying job, that helps (is essential) with financing. What I am trying to say is that I personally have a load of free time, so that is something I cannot put a price on. I take my 4 kids down to Florida for a month in May, every year, and the wife and I go away for a week around Christmas to fill the tanks. No mansions, no yachts, but lots of time to enjoy my family. Real estate investing is bloody great!
I stumbled upon one of my houses still listed on an international website. It was listed back in 2010, I think. I bought this place for $60K - spent $60K in renos. All cash from my HELOC. I refinanced it for $205K, which paid out my HELOC, and bought my next house. The house never actually sold. In the last 3 years, I have been renting it for $1500-1600 per month on a rent to own. Each tenant has had to leave, for one reason or another, so I am now on a 4th tenant who will pay me $1600 (plus a reasonable deposit), and buy the homne in 36 months for $265K. The rent alone makes me arounf $500 after PITI. THE RTO Is a good deal for both me ant the tenant. Here it is here. Not sure if I can post a link: Have a look.
http://www.buysellhomesinternational.com/web/property_detail.php?home_id...
If you have questions, then fire away. Happy to help if I can.