1st Time RE Investment that went south in 2010

[Monjur Quayyum]

Investment Info:

Single-family residence buy & hold investment in Barstow.

Purchase price: $124,000
Cash invested: $2,000

It was walking distance from nearby Walmart.

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

My Real Estate friend asked me If I would like to invest with him. Later he decided to buy a fixer-upper with his girlfriend (who he met a week ago). I knew him for a long time, It hurt my feelings. So, I drove to Barstow (2 hrs.) and went to real estate office, ask for any available agent, from there I found an escrow officer, who told me there was a house that just fell off the escrow due to buyer can't finance.....opened the door for me; so I bought my first SFR.

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

Since the seller spent over 60 days in escrow and his deal fell off; so without me asking he lowered the price and by the time I got the house (10 days); It had built up 15K equity.

How did you finance this deal?

My friend was a mortgage broker; he financed it with no money down and seller paid most of the closing costs.

How did you add value to the deal?

By signing the dotted lines.

Lessons learned? Challenges?

Lesson learned would be: One must have a clear vision, about investing in real property.
Lesson learned would be: Greed will kill you!!!
Lesson learned would be: As long as you are happy with your slice of the pie; be thankful!!!