Real Estate & Lending Experience in Investing Pays Dividends

[Glenn Michaels]

Investment Info:

Single-family residence other investment.

Purchase price: $410,000
Sale price: $810,000

I helped my investor to purchase this home back in the early 2,000's and keep it as a long term investment. I taught her/investor what I did and how I did it. She ended up purchasing and owning over 150 properties. I remodeled and sold 13 properties for this investor. After the owner/investor/friend of mine removed her tenant I was hired to remodel the home and sell it. We did about $40,000 in remodeling cost. I listed the home and sold it to a buyer I met in the same neighborhood and invited to come over. It's a GREAT story! The buyer owned 2 other rental property that I ended up refinancing for him as well. He is one of my best testimonials as a buyer/investor. MLS # 4879007

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

I started investing in Real Estate back in 1984. I was very interested in how ANYONE could become a millionaire. After learning about stocks, bonds, mutual funds and real estate. It became very apparent the easiest way to do this was to buy property that someone else pays off for you.

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

I became very well known for investing in property using creative financing and normal conventional financing. I began teaching other friends of mine how to do the same.

How did you finance this deal?

Conventional financing.

How did you add value to the deal?

Because I have literally done most if not every type of real estate from construction, land, multi-unit, small hotel, raising capital for off shore to traditional and most common investment property my background with how much to put into a deal and how to do it with for the largest return on investment for short term and long term are crucial. I can definitely say there is not a magic formula but experience with winning and losing in markets helps discern what works and what doesn't.

What was the outcome?

This was a huge success. Actually because this investor kept every property for more than 10 years they all paid big dividends.

Lessons learned? Challenges?

Real estate is very cyclical and often what seems like could be bad timing really is never bad timing with the exception of certain regions/areas. Because investing in real estate in most cases when done long term even negative cash flow can turn into tax deductions that actually make it NOT negative and over time equity increases and rates decrease. Timing can be utilized for success!

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

I got my real estate license in 1984 and kept it active for most of these years with the exception of a short time when I only focused on lending. I have learned that few have as much experience as I do in both real estate and lending. I have 39 years in real estate and 23 in lending. I love to share my experience and help others achieve success! I have done both the transactional sale of the real estate and the loan for many clients. Often I am just the lender for real estate professionals.