First Walk-through & First lead

[Wesley Mullen]

Hello BP Fam, 

As a new member and beginner investor, I wanted to share our experience from the weekend on our first walk-through and share some details on our first potential lead. 

My uncle is also a REI and has been in the game for almost 20 years. His agent made him aware of a deal that may fall through and were taking backup offers. My uncle wanted to allow us the opportunity to take make the offer first, but since it was going to be a cash offer, we currently didn't have the capital to make such an offer. However, my uncle still let us tag along and walk through the property with him to evaluate the property itself and discuss what rehab was needed room by room. It was such a great experience. We also got a taste of how contractors can affect the rehab process as my uncle got two quick bids that were at least 30k apart. Although we are not personally involved, we'll be sure to monitor it closely to see how it plays out and use it as a learning tool.

Additionally, we also came across our first potential lead. Our friend from the gym is buying a new house, which is contingent on them selling their current house. We have begun discussing our interests and are planning to do a walk through in the next few days. The house is not listed, but they are asking for ~130k. We believe the actual market value to be around ~160k. We're unsure on the rehab needed, but believe the house to be at or near rent-ready status; thus are estimating a conservative 10k in rehab - we'll know more once we walk through. Currently without looking, we were thinking of offering ~120k and be able to save them costs of listing the house. Rent avg in the area is around 1250; so were hoping to get 1300. Running the numbers, we would look to cash flow around 440/month with an ROI of nearly 14% in the first year. We would have to get financing on this deal and expect to have to put 20% down.

Being a REI newbie, the excitement in these two experiences only reaffirms our desire to pursue this REI journey. I wanted to share to see if there was any feedback, but more so to share our experiences this weekend with any other newbies that are out there and trying to acquire their first deal. We'll continue to share to update how this lead turns out! We're committed to getting our first deal under our belt.