First Two Deals Done.

[Robert J.]

So this story actually starts about 5 years ago. I lived in Los Angeles and was looking to go to a four year to finish my degree and one of the criteria i wanted was someplace i could afford a home and that was growing so i could eventually use that home to finance my real estate investing. After researching schools and areas and visiting a few places i settled on a place 90 minutes south of Portland and just outside of Eugene Oregon. The town was going through a lot of improvements and i (gambled) figured this was "the path of development." Sept 30th 2015 we closed on our 3/1 on .25 acres for $159,000 and i put roughly 5k down and negotiated the sellers to pay me about 11k at closing and we lived life. I finished school, joined the national guard, did some welding and building and different things and my wife grew in her career.

January 2020 I closed on a HELOC and our house was appraised for $265,000 on the low end so we pulled out $80,000 for our line of credit and got to work. I started writing offers and sent postcards and built a website and started talking to people and purchased a little 1000 sq ft fixxer on Apr 10, 2020. We (my father came up from LA for a few weeks) fully gutted and rehabbed the whole house in 40 days. The deal closes tomorrow and our numbers look a little like this.

Purchase price - $165,000

HML - $130,000

Down Payment + (closing costs & HML fee) - $42,500

REHAB - $22,700

Holding Cost - $4,100

Sales Price $269,000

Profit - $62,000

Next steps: Take that 62k and get to marketing. I've spent about 18k of that so far on long term marketing plans that should start paying off over the next 6-10 months and the rest will be used for inbound marketing and setting up systems that get me going on to bigger things.

Plan is to get three or four more deals before I think about quitting my job and have 15 (flips) and more wholesales (25-30) done by year two.

Robert Jenkins