My first real estate transaction!

[Erik O'Grady]

Investment Info:

Single-family residence buy & hold investment in Palatine.

Purchase price: $178,000
Cash invested: $178,000

This was my first RE Purchase. I had a goal to buy a place by 25. I missed the mark by 5 months but I got the deal done. Now the place is payed off (I know, not popular) but it is cash flowing well.

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

The need to get out from underneath my parents, freedom, etc...that and I knew the path to wealth was in RE.

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

I had help from a RE agent and went in with a low ball offer. The place was listed at $207k and I went in at $160k. The RE agent was insulted and thought I was a punk. I felt uncomfortable about the way she responded but am glad I stuck to my guns because had I not I would have spent likely $15k more that I did...now after the market crashed I was up a creek on paper with places in the area selling for $90k but I held firm to the concept of buy and hold and now it's a great little asset.

How did you finance this deal?

Bank Financing.

What was the outcome?

7.4% COCR - self managed.

Lessons learned? Challenges?

Biggest lesson learned on this deal was that I need to buy right, be patient and know the market. I actually wanted to go in at a lower offer and had I done so I might have bought in at an even better position.