

Second deal first flip!
My second deal I was able to obtain a private loan after only a few months since my first deal being rented. I was excited for this house because it was in a great neighborhood in my opinion and it was another foreclosure looked like it only needed painted and cleaned and the basement looked pretty bad... Also something was wrong with the furnace that no doubly scared others away. I was excited because it was listed for half the zillow value!(horrible idea looking at zilllow value get a realtors opinion)I bought it for 40,000 I was able to get a loan for 42,000 from 2 people 1 person loaned 15,000 I promised 1,000 profit hopefully within 6 months and one 27,000 was ok with 4.5% interest. I liked it because it had charm and a big lot. Maybe instead of renting it I could just sell it then my first rental would be paid off already in just 1 year! I was able to get a good handyman as a referral from my renter. He was able to fix the furnace problem by re plumbing it for only $100! It saved me thousands more then I thought. I needed new garage door openers $120 cleaning and painting took a long time. It also needed flashing. I listed it for 85,000 3,000 above zillow value thinking I would negotiate down to 80. My realtor said that should definitely be worth around 65 to 70. After a month in the market I was getting nervous that my realtor was right and thought about making it a rental like I originally wanted. However I got super lucky and found a cash buyer who we negotiated down till 80! WooooHooo yey i just made like 37 grand!(I got very lucky I cleaned up the basement a bit but it still leaked it would be doubtfully that an appraiser would have passed it and the bank would not have put a loan on it without that fixed thus most buyers in that area would not just have 80,000 dollars laying around. Again super lucky I probably should have made 10 grand less.)After this deal the world was the limit I was all in to real estate I put about 70 man hours and none of my money into it and made about 37 grand in the period of 2-4 months 37 alone seemed like enough for a whole year of earnings for me. Once again I learned valuable information from this I learned that sometimes I need to hire out work and that its good. I learned the fear of not selling a house and the desire to be better informed. Thus I set out to get my realtor license as I still had little knowledge of real estate. I thought not only will I learn more I will get the commission making it cheaper and also be able to see the houses on my schedule which was a huge plus because I only seen about half of the houses I wanted to that I told my realtor about.
Comments