why did I take on a full rehab during the Corona virus Pandemic?

I closed on my first investment property on May 14th 2020. It is not only my first true real estate investment, it is out of state in an area that I have not previously had any connection. Oh, and it is currently a dumpster fire that needs a complete renovation inside and out on both units.

I am not a risk taker, not even close. In fact, I work with my cousin at my w-2 job and he keeps this photo at his desk just to give me a hard time. It is of when we were kids, maybe 6-7 years old, and he and one of his brothers are jumping from a pick nick table on a deck to a trampoline maybe 5 feet below. They both have these huge smiles on their faces like they are having the time of their lives. In the background of that photo is me with a scowl on my face about 4 feet from the edge of that table contemplating if I have the courage to take such a risk and jump 5 feet down onto the trampoline.

Spoiler alert... I didnt jump. I never do. When it comes to taking risks I have never been that guy. I have always played it safe. I only applied to colleges that I knew for certain would let me in. The point is, I am not a risk taker at all. So why did I take this leap during this time period of incredible uncertainty? Below are my reasons and maybe some of you will be able to relate or it will be beneficial to someone. 

1 - Grandpa loved to say during times of indecision "either crap or get off the pot", I always thought that was kind of a gross saying, but it has like most sayings its time and place. I had spent years reading about real estate investing, the different strategies and methods. I took courses on how to analyze and underwrite deals. I attended conferences, read books, listened to podcasts. I did this for so long that there were very few topics that I couldnt have at least somewhat of an intelligent conversation about. However I had no experience and that scared me. But I finally got to the point that what scared me more is that I would find myself in another 3 years at the same point with a few more terms in my brain but no more knowledge as knowledge comes from experience. So I jumped when this deal was brought to me off market by my agent that I had developed a good relationship with and trusted. So reason one is I felt I had a solid educational base.

2 - I had the opportunity over a year ago to do some market research for another investor in my market that was considering looking at some new markets to invest. I had been asking him to let me help in some way. He told me exactly what metrics he wanted me to look at, gave me a bunch of resources and set me loose. I learned I hated researching multiple markets as it was redundant and time consuming. but I also learned a lot about what makes a market attractive. I found this market of Columbus Ohio and a lot of solid fundamentals. It had a growing population, jobs were coming to the city, incomes were rising, vacancy rates were steady and low, house prices were climbing, and it had two solid anchors with the university and being the state capital. Reason two I had confidence in the market I was buying in.

3 - I underwrote over a hundred deals in 4-5 months and made offers on 10+. Every time my agent sent a deal over I analyzed it with the knowledge I learned from the courses. I started to recognize patterns for how much deals were going for in certain areas and what kind of rents it was typical to see. I started seeing what areas deals were going the fastest. I think what helped the most though is putting in the offers. I didnt get discouraged when I didnt win, because that is when I started to recognize better how the market was operating. I could see how many offers were being made and where I stood in comparison to the winning bid. I could see me getting closer to getting the right deal and if the numbers in my spreadsheet were fairly accurate or not. Reason 3 I gained confidence in my underwriting and knowledge of the sub markets in the area.

4- Last, but far from least I started building a team of people I felt comfortable working with. My agent is a total rock star and is in the business for the long run and always seemed to have my best interest in mind. He introduced me to my property manager, who so far also seems like a total rock star. He gave me referrals for GC's, CPA's etc. I am still in the early phase of rehab and the relationship with the GC I chose is still new so the jury is still out on that one. But the good news is I have a couple others that I felt comfortable with if it doesnt work out with this one and that has made me more confident moving forward. Reason 4 and maybe the most important reason is I felt I had important members of my team in place that can help me succeed. 

I am still far away from guaranteed success and have so much to learn. I am in the early phases of my journey and there is still a lot of room for things to go wrong. However recognizing these things helped me finally get over the hump and move forward even in the midst of a global pandemic...