I made my first deal in 2000

[Robert Vorhies]

Investment Info:

Single-family residence buy & hold investment in Simi Valley.

Purchase price: $194,500

I purchased this home with the intention of fixing it up and renting it out after I rehabed it.
I have been earning a positive cash flow for the last 7 years.

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

I have been looking into real estate since 1993. I went to a few real estate classes on flipping and real estate investments.
I know that real estate is the best way to being self-reliant and becoming debt-free.

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

I've been looking for houses for about 8 months. 1999 Market was on fire I put down several offers on homes people would come in with cash offers and get the property or there was a huge line of offer prior to mine.
My aunt actually found the house that was for sale by owner.
It wasn't in the best condition but I knew I could do the work and fix it up and turn a profit on it and it sure bet renting.

How did you finance this deal?

I had a great mortgage broker that got me a hundred percent financing I just had to come in with some closing costs the homeowner paid all non-recurring closing cost.

How did you add value to the deal?

Well at the time just that house was a deal because it was hard to get into a house with this many people coming in and buying a property as quick as they were so for me to get the that price on that house and close the deal was a deal now it's worth three four times as much as what I paid.

What was the outcome?

My purchase the house fixed it up lived in at for many years. I still have it and I'm running it out turning a profit.

Lessons learned? Challenges?

Biggest lesson is it's hard to do construction while you're living in it sucks especially when I had to change out the bathtub. Because of it only had one bathtub was a one and a half bath.

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

Unfortunately I lost contact with the lender.