First duplex closed! Thank you Bigger Pockets and Community!

[David Collier Jr]

     In March of 2017 I came across a website run by a couple of successful real estate investors and mentors disguised as average Joe's (and of course their amazing team). I spent countless hours watching their webinars, reading their books/forums and mastering their calculator tools. Using the skill set acquired from the invaluable tools and resourceful community I had my first investment property 12 months later. That website was @BiggerPockets .com. 

     More detail on the deal is below but I wanted this post to be about two things.. A thank you to the Bigger Pockets team/community and motivation to anyone trying to push forward into their first deal. To everyone at Bigger Pockets, this deal and the many more to come are 100% due to the amazing job you do providing people like myself with the education, tools and confidence needed to successfully navigate the RE investment space. For that I thank you. Your hard work is helping others, bottom line. 

     To anyone with the desire to get into RE investing, searching for somewhere to begin that journey, you are here. That is however only one step. You now have to decide to dedicate the time, effort and energy. Everything you need to know is right here but it is on you to invest in yourself. Set your goals, formulate a plan, dedicate the time and most importantly TAKE ACTION (that was written on my BP book marks). Turn off Netflix. Ozarks is a great show, yes, but the cartel is not forcing you to build a casino so shut it off. And stop the mindless social media thumbing!

     I have been self employed since I was 20 years old, always taking steps and learning along the way. So taking action for me was just how I've always figured things out. Nobody cares if you mess up so neither should you. That is exactly what you will experience. Learn as you go. Analysis paralysis is a real thing with medical doctors and everything (jk). With that said, you don't want to get into the wrong deal just to call yourself a RE investor however the tools on BP, when used correctly, will keep you from doing so.

     I analyzed countless deals in my very competitive market and offered on many. When the right property came up I was able to make a full price offer site unseen within minutes of listing because of the skill set I had acquired over constant repetition and market analysis. Know your market! Ignore current condition and rents to a degree. Know exactly what an asset can/should be.  

To the deal.. This is a 3/2 and 2/1 duplex in a very up and coming area (can even see project in background of photo). The closing process took 3 months due to code violation liens not only on this property but others owned by the LLC. I learned that when an entity is selling a property and that entity owns other property with liens, the liens extend over the entire portfolio. Im assuming same goes for private seller?? The closing was arduous but all that translates into is more education. I had many reasons to walk away but knew the deal made sense. If it was easy everyone would do it! Now working on my next..

Duplex 3/2 (large backyard) + 2/1

$299,000 - $3,000 in repair credits

Realtor commission assigned to me at closing: $7,100 (my girlfriend was my Realtor and I am licensed as well)

Current rents: $1,300 / $1,100

Rents after remodel: $1,800 / $1400

Estimated cash flow: $150 per door

Rehab budget: $15,000

Loan type: FHA 3.5% down (I will occupy 3/2 for one year then ReFi)

Realtor: Morgan Marziali - Whitaker Realty 

*Review inspections but don't let them panic you. Also, pay $275 to have the pipes camera inspected. 

TAKE ACTION TAKE ACTION TAKE ACTION