How we are investing (and how you can too!)

[Erich Beyer]

Hey all! Just wanted to share my brother and my first, second and third success since we haven't shared the others. We decided to buy real estate in college when I read Rich Dad Poor Dad. We talked to a number of people and a few years later(2013) I found a duplex for sale by owner in downtown Phoenixville Pa. We raised 20k from our friends and got the seller to agree to a purchase price of $95,000. We put down 20% (yes, almost all our money) with a 30 year am and 10 year term but were able to raise the $37,500 we needed to rehab the property soon after. Upon finishing the rehab we received a letter from the seller stating she would give us a 10% discount if we could pay her the balance within a year. We negotiated a 12.5% discount and refinanced the property after it appraised at $200,000. We paid her out and were off to our next project.

So after the refinance we had about $70,000 to work with. We found and boght a twin for sale for $210,000 that was a single on one side and duplex on the other(now 2014). We planned on renovating the single and selling it, but later decided to keep both as rentals. They were/are under market rents and as of next month will bring in $2850 in total a month.

After this we went out and raised more money. We worked with the same bank for all transactions and have become quite close with them.

We found another duplex that needed a lot of work and purchased it after raising more friends and family money. We got a construction loan from the bank, and got a one year loan telling them we would refinance after the renovation was done.  We bought it for $160,000, put $85,000 into it, and each side just appraised for $190,000 (we split the zoning so its now two sfrs) We just signed a lease for one side for $2000 a month and have the other side for rent.

To anyone that is trying to get into real estate stick with it!