What were your 1st and 2nd RE Transactions?

Question

Seems like getting started is always the toughest.

Anyone share your 1st and 2nd RE transactions.  How you found it?  & whether you made money or lost money?

Mark Gallagher · Answer

@Kirk R.  found a house online in 2008, didn't even know the neighborhood as I had just relocated for work about 60 miles from where I grew up. I knew a local Realtor, and went to take a look. It was a full rehab, smelled like animal urine, the floor plan was obsolete, you get the picture. I had probably $1,000 in the bank, if that. The asking price was $79,900. A house across the street had just sold for $135,000. The Realtor told me there had been 94 showings, and no offers. I found a hard money lender who would loan 65% of the repaired value, at 16% plus 7 points (yikes!). Being naive, I jumped in head first. I ended up buying it for $62,000. Meaning I had maybe $20,000 to work with for repairs and it needed probably $35,000. I ended up spending WAY too long trying to do all the repairs myself. I hung 100 sheets of drywall in the cold of winter, after working 10 hours at my "real" job. I moved in 6 months later with an 85% finished product. I refinanced out of the hard money loan into an FHA loan. I had about $40,000 in equity. My payment was $740 a month including taxes, and insurance. I rented 2 spare rooms (found people on craigslist who turned out to be normal thank goodness) out for $450 and $550. After paying utilities, I was getting paid to live in my own home!

Then, a few months later, still not knowing what I was doing, I made an offer to buy a 2-unit apartment house for $24,000 that needed no repairs, seller was essentially desperate for cash. I still didn't really have any money. I made the offer and figured that I would simply find the money somewhere. I went under contract, and then pulled a HELOC from my primary for $10,000 and used that as the downpayment, and got a conventional loan. My payment was, and still is, $234/month taxes and insurance included (15-year mortgage). I rented the top floor (4/2.5) for $550/month. The basement efficiency was rented for $300. I was clearing almost $500 per month. I still own that property, and the same tenants are there, except I let them have the basement when the other person moved out. They don't bother me and the home is 50% paid off at this point.

Then I pulled another HELOC on my primary and bought 2 more.. and then 2 more.. and then I became a Realtor and have since sold over 500 homes, and the rest they say is history.

Anthony Gayden · Answer

1. 4 Plex Northern Phoenix, AZ $179,000, MLS, make money every month on the rent

2. 4 Plex Tucson, AZ $152,000, sort of off market listing brought to me by my RE Agent, make money every month on the rent

Jason Measures · Answer

@Kirk R. If you're having trouble finding deals, join the club my friend. The current market is tough, but there are absolutely deals to be had. I started looking last year, but didn't close on my first until January of this year, but have since then closed on three additional deals, totaling my first year of REI to 4 buy and hold deals. The crazy part about these 4 deals though are that they came to me through people that know me and know that I am a RE investor. In other words, networking is the only way I can come up with an answer to how I was able to capture 4 deals in my first year. Granted, I still had to negotiate, close, rehab, lease, and everything in between, but all 4 deals came from the most basic phone calls, "Hey Jason, I know someone that's wanting to get rid of so-and-so property that you might be interested in." Boom. That's it. I called the sellers, performed due diligence, made the offer, negotiated, then closed the deals. Certainly, I had a great deal of luck involved with these deals simply "coming" to me, but as Daniel Priestley wrote in his book, "Entrepreneur Revolution," you have to "Create ongoing serendipity (create your luck)." Trust me, my intention is in no way to be or appear boastful, but simple to encourage that, while deal flow is difficult, you always have and always will have the power to network yourself, which will prove extremely fruitful in your REI endeavor. Every person that knows you and every person you interact with and encounter should know that you are a RE investor and that you are always looking for deals. When I meet new people, and they ask what I do for a living, I start with saying that my career is REI, but my W-2 job is with an accounting firm. I always want to position myself as a RE investor first, then a W-2 employee second, simply because REI requires networking, and as I said, it could very well be your greatest asset, particularly starting out. If you ever need anything, PM me and I'd be happy to share more or help in any way I can. Be the best networker out there! Good luck!

Jay Hinrichs · Answer

@Kirk R.

as a newly minted 18 yo RE salesmen in  CA... 1975  my first sale of an improved property was a small commercial building in Calistoga CA... right on main st.  for 22k.

today Calistoga is basically world famous wine country town with a ton of charm and variety of resturants hotels mud baths spa's and of course Wineries !

What were your 1st and 2nd RE Transactions?

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