I closed my first deal YAYYY!!! "HOUSEHACK"

[Redgy Saint-Germain]

Hello BP,

I am not a big writer but I felt compelled to share my story as it may help other people close their first deal. I joined BP back on January of this year because I was looking for a passive income and didn’t know what represented a good real estate deal and how to crunch numbers. I want to thank Brandon and Josh and the whole BP community for this wonderful website with tons of free contents. I am proud to say that BP is the reason I was able to close my first deal.

I was clueless about real estate, I was so scared to make a move prior to BP because I was afraid I may lose my money and not make any profits. After watching a video of Brandon on how to analyze a rental property I went on MLS and using BP`s rental calculator I started analyzing every deal in my neighborhood for a whole week. After 25+ analysis I started to establish a baseline on what numbers I was comfortable with. As I analyzed more deals I got more comfortable with the numbers and one day I have decided to call a few banks to know if I was eligible for a loan. Four out of six banks told me I didn't have enough money to do what I needed to do because over 25K was needed in my savings to start investing if I wanted to buy a house over 100k. After the fourth bank, I was discouraged but I was determined to get a deal no matter what. The fifth bank which I was referred to by my realtor gave me a pre-approval letter for 350k using a FHA loan with 3.5% down.

I met my realtor on Jan 23rd of this year and we`ve best friends 😉 ever since. I have met my contractor, my lawyer and my mortgage broker through him and closed my first Duplex deal with him on 4/28.

My Numbers

Number of deals analysis before closing 40+

Duplex Listing price 259k MLS

Purchase price 252K including 7k closing costs

Inspection 525$ (out of pocket)

HUD Consultant fee 825 $ (out of pocket)

House appraisal 613$ (Out of pocket)

Reno budget 66K + 10% contingency

2017 Property Tax $4554.70

ARV 380K

Equity going into the deal 53K

Monthly Income:$3,500.00	Monthly Expenses:$2,924.55	Monthly Cashflow: $575.45	Pro Forma Cap Rate: 7.17%
NOI: $27,233.00	Total Cash Needed: $11,445.00	Cash on Cash ROI: 60.34%	Purchase Cap Rate: 8.33

I will share the pictures later when the rehab is done. I have to say I learned so much on my first deal that I have decided to help my GF buy her first property, long story short we are closing on that property on 6/15.

To all the newbies out there, it`s okay to be scared and feel uneasy, you just need to jump in and make your first deal. You will feel more comfortable as you analyze more deals. Stop living in fear, it gets better I promise, just make sure you run your numbers right.

Again, thank you Brandon and Josh for helping me close my first deal. My property will be ready for tenants on July 1st.

Redgy

[Tony Wooldridge]

@Redgy Saint-Germain, AWESOME! GR8 first post. Sounds as if you are on your way to establishing a solid foundation for your REI ventures. Kudos's to you Redgy for taking action and following through where most do not.

If I may make a suggestion, I will have to disagree with you and say that you are a good enough writer to post more than once since January of last year. What they say about putting yourself out there and gaining exposure is so true. It does several things for you but mostly keeps you motivated and accountable to continue to grow and advance if that is what you chose to do in your REI ventures. Once again, just a recommendation please don't take offense to me saying you should do X.

Even when you don't think you have anything to offer find a way through your own inexperience to help educate and add value to the community (by asking a question on a forum which in-turn not only helps educate you but others that read it and respond as well).  I know it has certainly done wonders for me.  

Congrats once again on your taking action! It is always encouraging to see other's such as myself taking the journey as well. Keep up the good work and would love to see you more active on BP. See you around the Site. Here is wishing you success in your 2017 REI ventures!