Emerging Markets Guarantee Success

[Stevan Garcia]

Investment Info:

Single-family residence buy & hold investment in Forney.

Purchase price: $145,000
Cash invested: $15,000
Sale price: $195,000

Second investment property purchased just outside Dallas, TX. In 9 years I made $65K between cash flow and capital gains. I exited with 48% annualized returns.

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

New construction in the path of progress of an exploding market fueled by strong population and job growth.

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

Broker relationship put me in contact with builder with inventory to unload and applicable discounts.

How did you finance this deal?

Conventional 10% Down 30 year fixed mortgage with PMI.

How did you add value to the deal?

New construction in growth area of Dallas metroplex.

What was the outcome?

I exited in 9 years with 48% annualized returns.

Lessons learned? Challenges?

It doesn't matter when you buy as long as it is a good property within a market with strong supply-demand fundamentals.