First property - a wedding venue

[Alena Srostlíková]

Investment Info:

Retail fix & flip investment in Prague.

Purchase price: $100,000
Cash invested: $7,568

At the end of 2020, after 3 years of listening to podcasts and reading about RE, I bought my first property with zero money down (mortgage with 1.79 % interest rate). I figured it would make an excellent wedding venue while investing little money ($7,568 in total) into it. Since then I have learned a lot about project management and RE in general. Now, in 2022, I am selling this property with both forced and market appreciation for almost double the price including the business.

What made you interested in investing in this type of deal?

In 2018 I was getting married and figured, that wedding venues are superiorly far more profitable than typical long or short-term rentals. After that, I created my own analyzing method for such properties and started looking for a proper deal while overcoming my fear of the unknown (the actual buying process).

How did you find this deal and how did you negotiate it?

I found this subdued property on a Czech website (similar to an MLS in the States) that was unknown back then. The real estate agent took terrible pictures of the property. The lawn hasn't been taken care of for ages and the beautiful limestone barn was barely visible in the pictures. Since nobody reacted to the listing, the owner decreased the price multiple times. Thanks to that the price was super low. My biggest mistake was not trying to negotiate the price even further. :-)

How did you finance this deal?

Because my family owns a house with excess equity, I was able to secure a 1.79% interest mortgage to buy this property with zero money down.

How did you add value to the deal?

First, I added value to the property with simple landscaping work. Then, I hired a top 20 emerging architect that was happy to work with an art director who had crystal clear vision for the property. Since the barn looked lovely, the idea was nice, and the project would eventually add value to his portfolio, he offered us a great price for his work.

What was the outcome?

After some minor landscaping, mowing the lawn, and the architect's finished project, we figured it made more sense to sell the property and use the cash to secure more deals. After all, dealing with the day-to-day agenda of running a wedding venue would be time-consuming. In summary - it would take us much longer to grow our RE portfolio.

Lessons learned? Challenges?

Oh, sooo many lessons... First of all, I learned to do my due diligence thoroughly. Namely by talking to multiple contractors and obtaining referrals. After that, I learned to stick with great contractors and take their advice seriously – they really know their stuff. I also managed to shake off the fear of the unknown and just ask questions instead. Last, I learned how to effectively manage a project and that there is always a solution to any issue. Just be creative and open to new ideas.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I have. However, they are located in the Czech Republic. Message me if you want to get to know them! I am always happy to help. :-)