What was awesome for me on 4/20...

[Chad Hurin]

My First Deal!

My first REI deal closed on 4/20. My first deal was seller financed w/ 30 year term, 4.5 apr, and only 10% down. My first deal was for, not 1, but 3 single family homes. No bank! No Agents. I have to say I'm pretty excited.

My wife and I have been talking for years now that we wanted to get into REI. My wife is deployed and to keep me busy I started getting a bit more serious on learning more about investing in RE. Around February after do a ton of ready on BP, books, and YouTube videos, I mixed researching with searching for my first deal. I was mainly searching the popular sites like Zillo, Trulia, and CL for the different "rules" like 50% rule, 2% (actually more like 1% in my area) rule, using the BP calculators, etc. I knew I wanted to start out with buy-n-hold rentals with little to no fixing up. After about a month of searching, researching, and showings I found a SFH that meet my minimums and all the rules. I decided to view the property. This guy was an investor looking to sell this rental in the RDU area of NC. I viewed the home and It was a small 1000sqft 3/1 for ~$80k. I asked why he was selling and he said he does all the property management himself and wanted to cut down of his rentals and live off the sale and cashflow from the remaining.

I drove home excited because I felt this was it and I was going to make him an offer that night. I did a little research and used my handy calculators but Knowing he had several homes in the area I viewed the others he owned and all very similar to the one I just viewed. His ad stated he would consider seller financing so I sent first offer. Back and forth we negotiated on purchase price and terms. I then thought I’d make an offer to purchase two more houses he owned in the same neighborhood with lower purchase price per home and sweeter terms; also had tenants in place. He was in and we set up some time for me to view the others. More negotiation we finally came to terms.

4/20 - Also my wife birthday; I got her what I hope to be the start of our financial freedom. A month down- so far so good. I feel like we are off to a great start! As Dave Ramsey would say; Gazelle intense. Speaking of Gazelle Intense, we just closed on our second deal 5/22. A duplex! Unfortunately but not too bad… we bank financed the duplex 25% down still 4.5 APR. I'll be writing more about the duplex later.

From 5 months ago to now with 5 units... I feel we are well on our way!

TL;DR

Bought 3 SFH on a Seller financed deal with great terms last month near Raleigh, NC. Bought 1 duplex, conventional bank loan, still great terms, last week.