Emerging Markets Guarantee Success

[Stevan Garcia]

Investment Info:

Single-family residence buy & hold investment in Keller.

Purchase price: $143,000
Cash invested: $2,000
Sale price: $179,000

My first investment I made approximately $50K between cash flow and capital gains over 9 years on a $2K earnest money deposit. This a 278% annualized return! Difficult to do this today on new construction!

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

No money down on new construction!

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

Made contact with local real estate agent, flew to Dallas and closed deal.

How did you finance this deal?

Loose lending standards of 2006 allowed me to get an 80% LTV first mortgage and a 20% second with a $2,000 earnest money deposit.

How did you add value to the deal?

New construction in the path of progress of a strong market.

What was the outcome?

I exited 9 years later with 278% annualized returns.

Lessons learned? Challenges?

You can always make money in real estate if you choose the right property in the right market irrespective of the credit cycle.