Took 5 Months longer but I will get an Infinite return!

[Amit Patel]

Ok, so I started on here 2.5 years ago because I HATED earning 0.25 percent at the banks. I saved quite a bit and was too scared to invest much in the market.

After getting on BP, Got together a friend so we could split the risk and work and spent a year looking at properties and finally took the plug 2.5 years ago:

HOUSE  1 - TOO EAGER OF A BEAVER

Property 1- 6 Fam + 2 Family in the back for $575K in Montclair with 10+ CAP after financing. Numbers looked great, the property was in OK condition but I Jumped on it as I was eager. It turned out to be a true 3 Cap first year as I totally underestimated the deferred maintenance and was in a horrible area. Still, everyone has paid on time in 2.5 years (except one tenant who was late 5 times in 39 months but paid). We are back to about an 9 CAP (financed 75%) I am still high on hopes for the area for this one and will give it 2 years before I dump it. Live and learn but we got lucky on it so do your due diligence. I drove around during the day but not at NIGHT and didn't ask around as much as I should have. Please don't let this happen to you.

HOUSE 2- HARD WORK PAYS OFF

Property 2- Jersey City-JSQ Area., 8 units with total internal renovation. This was a gorgeous building near JSQ that were able to buy and fully renovate. We are up 30% in Equity already based on similar sales and earning 16% Levered Return on our money down. We looked at 30 properties before we bought this and had bids on 5 that were rejected.

House 3- MYTHICAL INFINITE RETURN PROPERTY AKA HOME RUN !

Property 3 - Jersey City, JSQ area - 6 Units. This involved conversion of ground commercial into 2 units. Fully Gutted and redoing from scratch. Based on recent appraisals, we will get back 100% of the money we put in for purchase, constructions, etc. and still earn about 30K year income stream after financing. This is due to the fact that we bought an a banded crappy property for a low price in the right place and made the right renovations during a market uptick. We are almost finished and rentals will start Jan. 15 so can't wait. This was 5 months overdue and made me almost not want to do this because of contractor delay, crazy city inspectors , variance stuff i never knew about and so many other things. At the end of the day though, we will get our money back earn a 30K/year income stream and increased equity by 400K. We found this on Craigslist of all places and in a hot Jersey City market so you can find such deals as well.

YOU CAN DO IT TOO - I STARTED WITH LITTLE KNOWLEDGE

I started with a very sharp knowledge of numbers and a fear of taking risks. I was THAT guy that thought well has this advantage and he is in the right market blah blah blah. However, I decide I would just do it and at least get some small returns. One small step led to the next and few folks such as Ibrahim helped me out a lot and I got a lot of contacts and finally took the first step and then the next and then next and have been able to do this in a very competitive market with terrible cap rates. Note that I also got lucky that the market has gone up last few years and we had cash to invest but if a skeptic like me can do it, so can you. Good luck to all and hope all your RE and personal hopes and dreams come true.