Newbie closes First 2 deals in 6 months - you can too!

[Paul Miller]

I wanted to give a big thank you to the bigger pockets platform especially to that dorky guy Josh and the other guy's name i can't remember (haha) Brandon for providing this sight as both a source of inspiration and information. I found BP late spring of 2015 and proceeded to devour the podcasts and forums. Thank you for the podcasts (I listen to them all the time) and to all my fellow members as armed with enough information to be dangerous, I proceeded with "confidence" and found and closed my first MLS originated deal in July and rented it by October and then was able to close another FSBO found on Craigslist in December and rented it February on a 2 year lease. Both are tidy little turn key 2/1's that cash flow and cover the costs (mortgage, vacancy, insurance, taxes, maintenance, reserves, prop mgmt fee). The second one cash flows better than the first b/c I had more knowledge and was less emotional. I used an agent on the first deal and did a FSBO on the second. I use a property manager to handle lease-up and maintenance issues from tenants. I have a full time job so this works very well for me. I did the turnover on the first property (paint, landscaping, mowing, odds and ends) and landscaping/yard work on the second. Also, on the FSBO, my prop mgmt carried about 1/2 of the turnover costs (paint throughout and two room ceiling fix) while not tapping the cash flow from my first rental. I consider my property manager a partner and did three interviews before picking this one to work with. Going forward I won't use a buyer's agent and will work directly with sellers as I am in a better position to negotiate if I have direct communication with either with the seller or seller's agent. Also, not really looking for deals on the MLS and trying to expand my network and use info found here on BP to find off market opportunities. I used my own closing attorney to do the title search and docs.

If you are on the fence as a newbie, just make sure you have your numbers right, have a good team around you (including spouse, prop. mgmt, etc.) and good data on rental rates in your area.  I'm working on doing 3 deals this year with a goal of having 50 properties (doors) in 10 years.   If I can do this so can you.  I'll keep you posted!

[Alfredo O.]

nice job.  You are totally dead on.  Jump in and get started. We are also about 6 months into flipping and we now have 5 properties.  

Fun stuff. Doesn't even feel like a job.