Closing on my first deal this week! ~$6800 Profit
How excited am I? I feel like screaming out loud randomly throughout the day... I'm about to close my first deal. Do you remember how you felt the first time? ha I think I'm going to make that a thread.
In addition to closing my first deal I have an opportunity to close on (34) properties. I wake up in the middle of the night thinking about it... And find it difficult to fall asleep.
I visited (33) of the houses over the last two days and they are in pretty good condition. The problem is some of the houses should be flips and the investor I'm working with has a buying criteria for rentals so I may have to split some of the houses off and see if I can find a private lender.
My Mom is actually interested in being that lender! How great is that?
I need to learn how to structure the purchase and rehab with her self-directed IRA.
Also, some of the properties have two or three parcels attached in good neighborhoods so there is an opportunity to build brand new houses there. I have a guy that is rehabbing 30-50 houses a month who wants to build full houses that is interested in partnering on the builds if I can get the financing.
This deal has a ton of options so I don't want to just wholesale it and be done with it. There are so many ways to make money from it I just need to structure it correctly so everyone wins.
RD Startup is on hold. I can't spend anytime on it with the big deal in the works.
I'd like to get my buyer postcards in the mail, but I have to have the website operational before doing that!
1) Structure (34) House Deal Offer:
2) Get Website Launched:
3) Call IRA Club about Structuring Investment:
RD Startup ACTION GOALS:
1) Follow UP with Attorney:
2) On Hold...
3)
PERSONAL GOALS:
1) Read 1hr a Day:
2) Workout 3 Days:
------------------------------------------------------------------------------------------------JHP ACTION GOAL:
1) (1wk) Send Direct Mail to Cash Buyers: INCOMPLETE
2) Visit the 20+ Rentals and Create Presentation: COMPLETED
3) Build Buyers List Direct Mail to 400: INCOMPLETE
RD Startup ACTION GOALS:
1) (3wks) Complete Remaining Business Plan: INCOMPLETE
2) (3wks) Revise Business Plan: INCOMPLETE
3) Create Startup Financials: INCOMPLETE
PERSONAL GOALS:
1) Read 1hr/day: 4 of 7 days
2) Workout 45m 3 Days: 2 of 3 days
MEETINGS/SOCIAL:
-BiggerPockets Meetup: Put together a wholesaler walk through presentation
MISC ACTIONS:
-Visited (35) Houses this weekend...
WEEK RESULTS:
BANDIT SIGN CALLS: 3
DEAL STATUS: Closing on Duplex Mon/Tue | Assessing (34) House Deal & Making Offer
Comments (10)
Congrats Taylor Jennings, these are the stories I love reading about. Very inspiring. Please keep us updated on the big deal.
Darien Gipson, about 11 years ago
Darien Gipson hey thanks for letting me know! I'll do my best to continue creating stories haha I've already budgeted the profit for marketing so I plan on having many more to come, God willing!
Taylor Jennings, about 11 years ago
Congratulations @Taylor Jennings , I think your real estate investor post cards look fantastic.
David Rundle, about 11 years ago
He David! Thanks so much for the positive feedback! You should have seen the rough draft! Ugh I'm glad it turned out the way it did. I really appreciate you taking the time to give the accolades.
Taylor Jennings, about 11 years ago
"I need to learn how to structure the purchase and rehab with her self-directed IRA." That is lovely that your mom wants to entrust you with her retirement funds. I hope you will think very very carefully before putting her money at risk. Please consider the very worst-case scenario you can imagine. If it doesn't feel like an acceptable outcome maybe you shouldn't proceed.
Jessica S., about 11 years ago
FOR SURE! I wouldn't do anything to jeopardize her investment. This is why I love BP so much. People like you Jessica and Roger who share their concerns and try to make sure newer REI don't make bad decisions. It really motivates me to succeed so that I can give back to the community just like you. I'm looking to structure the deal with seller financing for (6) months on 8-12 Flips so I only have money in on the rehab until we sell. I was thinking about using the IRA to purchase the (5) vacant lots then use the money from the flips to fund new house build outs. Afterwards buy the land back from the IRA then sell the houses.
Taylor Jennings, about 11 years ago
Be aware that direct lineage falls in the prohibited transactions for SDIRAs unless you are super careful.
Kirby Vandivort, about 11 years ago
I'm ahead of you on that! I called my IRA contact and spoke with him two days ago =) He told me the exact same thing you just mentioned! Thanks for looking out!
Taylor Jennings, about 11 years ago
Congratulations on the first deal! The first deal is always a big deal no matter how you look at it. It's a giant step forward. Looking at the goals you listed above, you are a very motivated person. I wish you best of luck. With regard to the 34 property deal, I can only recommend caution. I don't know anything about the deal but I think it is very easy to get ahead of yourself. Be optimistic but definitely proceed with extreme caution. The thing with real estate is there are always risks that you might not realize. Before I started investing in real estate, I was a real estate attorney. You'd think I know where all the risks are, but truthfully, looking back at every deal I've done, there was always something I overlooked or missed entirely. Good luck!
Roger Lin, about 11 years ago
Thanks so much! I really appreciate the congratulatory comment. Once the deal closes it will establish a point of reference for when my REI became legit. Though I've felt overwhelmingly successful just by the knowledge I've received through BP and my REI peers over the last few months. I will definitely be cautious about the deal. Thank you for the concern. A month ago I wouldn't have known what to do with the situation, but it's like everything makes sense now... It's like learning a new language when all of a sudden you surprise yourself with how much you understand. (Not saying I know much, but the way I'm looking to structure the deal is pretty basic) I am partnering in areas of the deal with some with people who are doing 30+ flips a month in our market.
Taylor Jennings, about 11 years ago