$925,000 worth of real estate in 3 years

[Garrett Jess]

When I first started on the real estate path I couldn’t figure out where to start. How to start. What do I buy or what don’t I buy. What’s the best way what’s the worst way. What’s the smart play or the dangerous play. I finally got to a point where I was more afraid of being too afraid to do anything, then I was of something going wrong. So I figured in retrospect I’d share what I’ve done and maybe it helps someone just starting.

2018- I started asking everyone if they had property for sale. If they knew anyone that had any for sale. I finally came across a school teacher friend who inherited a couple places and had been renting them out. I asked if he would owner finance and he would but I had to pay off in two years. $25,000 down 30 years 5%.

House 1 was a 2/1 for $70,000. $10,000 down. Current rent was $600.

House 2 was a 2/2 upstairs and a studio below for $130,000. $15,000 down. Rent was $700 and $240.

I have since refi to a 25 year loan at 4.1%. Payments almost the same. The 2/1 appraised for $100k so I got a loan for $75,000. My loan was $60k. After closing cost I got $10k and am essentially in the house $0. The sewer backed and flooded the studio. Insurance covered the remodel up to $14,000. It cost me $20,000. Current rents now are 2/1: $950. 2/2: &950. Studio:$500.

2019- My wife and I came across a duplex locally listed for $225,000. Both sides 3/1. $700 and $850. We put 25% down through a bank 25 year amm commercial loan at 4.2%. Current rents are $775 set to go to $850 in August, and $1,000 on the other side.

2020- A local resident who owns storage units has i wife that wants to sell. I’m always bugging him about selling so he remembers me. He was set to buy a mom and pop 70 unit facility but it fell through. He asked if I wanted to buy and jumped on the opportunity. Remember me saying I talked to everyone about real estate? This came in handy. The older couple had kids that didn’t want it. I bought it owner finance deal for $500,000. $100,00 down at 5%. 20 year amm. Brings in $4300 a month and cash flows $1,300.

Moral of the story the best way to start is to start. Your going to have problems if you view them as problems. I view them as part of the process. Your going to have vacancy. But not forever.

I control $925,000 in real estate with $170,000 down and other people are paying for it. The best time to plant a tree is 20 years ago. The second best is today. Hope this helps give someone the courage to start their journey to financial freedom.