Moved funds from stock market to promissory note to learn about real estate investing

[Sara Erickson]

Investment Info:

Single-family residence note investment investment.

Purchase price: $270,000
Cash invested: $100,000

I hold a note to fund the rehab and flip of a single family residential home near a military base.

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

The home was in significant disrepair - fixing it will improve the community and make an affordable home available to a military family. Having a defined rate of return was great!

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

My friend has been doing real estate deals and I wanted to learn by doing.

How did you finance this deal?

Used funds from a stock sale.

How did you add value to the deal?

Financially.

What was the outcome?

House will be listed soon.

Lessons learned? Challenges?

New siding melted in summer heat - instead repainted old shingles on front of house. Probably installed carpets too early - workers working on top of them not my favorite.

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

My friend is an experienced agent.