Hey there REIClub and Real Estate Investors!! Thanks for the opportunity to tell you what I have been able to do in the year 2011.
I started my Real Estate Investing career in July of 2010, and learned some of the basics about Real Estate Investing online through an institute. Afterwards I was just ITCHING to do something. I wanted to buy real estate, sell real estate, anything to get the ball rolling. I realized that APPLIED knowledge is power and just having knowledge will get me no where quick. I have learned and understand that now!!.
I was looking at purchasing a cheap property to possibly make into my husband's and my office, so we could save the $1000.00 a month we pay in rent to our landlady. So I saw one that was a foreclosure in our small town, and the price had dropped to $19,900.00 for a 2500 sq. ft house.
I was being mentored over the phone at this time once a week through this same institute that I was learning real estate basics from, and my mentor said to give a low ball offer of only $12,500. I sent a contractor take a look at the house and tell me how much it would cost to rehab it, and he said a staggering amount of $70,000!!!
So my grand idea of fixing this house up for our office was out of the question!! But I still pursued this house. The realtor said that my original offer of $12,500 was not a legit offer, so I upped it to only $13K. The bank then countered with $13,900, and so I took it.
I was going to pay for it myself as all cash deal because I had a little bit of money socked way. So with closing costs, on January 8th, 2011 I bought my first investment property for $14,450!!! Yea, ME!
Now I thought, “Well, since I cannot keep it and fix it up myself, who can I sell it to and make a profit?” I thought I had a buyer who wanted to turn the house into a weekend barbeque place, but the town zoning commission shot that idea or hope down in one shot!!
We could not get commercial zoning on the house. So now what was I going to do? My other realtor friend said to put a “FOR SALE” sign in the front yard. So I did just that and I got 5 calls in 24 hours! Wow! So one of the calls was from the lady who owned the property next door to it and she expressed that she really wanted to buy it from me!
I used my advanced “Lease Option” training that I had bought in the spring of 2011, and told her that she could buy it for $18,500 in 2011, $19,500 in 2012, and $20,500 by the end of 2013, if she paid $4500 down, and I owner financed it to her for $500.00 a month for the next 32 payments. She agreed and we sealed the deal.
Now I've gotten seven $500.00 monthly payments in 2011 so far. I'm waiting for my 8th payment as I am typing this. So far, I have had $8000 of my original investment of $14,450 paid back. That's more than half in under a year!!!
I LOVE being able to look at her check, seeing that amount of $500.00 and remember that I DID IT MYSELF! And I thought all I could do was teach kindergarten for the rest of my life!!!
That was the end of my first deal, now if I could find buyers for the other FOUR houses I have under contract right now, that would be AWESOME!!!