All Forum Posts by: Account Closed

Investment Info:

Single-family residence buy & hold investment in Perris.

Purchase price: $108,500
Cash invested: $45,000

3 bedroom, 2 bath

What made you interested in investing in this type of deal?

My cousin was using a self-directed IRA to buy and flip at the time. She showed me which company she was using as well as the bank to get the non-recourse loan.

How did you find this deal and how did you negotiate it?

I was working exclusively with one realtor by now.

How did you finance this deal?

So this is a joint deal. My husband at the time and I bought it 50/50 in our self-directed IRA accounts. We financed the deal with a non-recourse loan which requires 40% down, certain amount of positive cash flow and a certain percentage of reserves in ALL IRA accounts. We used NASB.

What was the outcome?

We still own the property. The rent has gone from $950 the first year we bought it to $1550 currently. The home is currently worth $300,000 and we have started the refinance process in order to purchase another property each individually.

Lessons learned? Challenges?

This is the property that pushed me to realizing that a good property manager was well worth the 10% they charged! I hired iehouses and have never looked back. They actually only charge 8% and that includes landscaping. The tenants don't even know my name, let alone have my phone number.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I work exclusively with Patricia Campos.

Investment Info:

Single-family residence buy & hold investment in Perris.

Purchase price: $182,000
Cash invested: $38,000
Sale price: $290,000

4 bedroom, 2 bath single family home that was older, but had great reno value b/c you could tear down a wall and open the whole living/dining kitchen up

What made you interested in investing in this type of deal?

Since I had a few deals of the same nature, buy and hold single family residences, it was a no-brainer.

How did you finance this deal?

How I financed this deal is actually an interesting story...my dad had given me money to pay off my student loans. Something about paying off my 3% student loans didn't sit right with me when I could use the money to purchase another rental property. After crunching the numbers several times, I decided to forgo paying off my student loans and buy my third property...I still have those student loans!

What was the outcome?

I ended up doing a 1031 Exchange to purchase a larger home in a more desirable area of Perris.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Patricia Campos

Investment Info:

Single-family residence buy & hold investment in Perris.

Purchase price: $90,500
Cash invested: $19,000

My first rental was purchased coming out of the Great Recession for $90,500. It is now worth triple that.

What made you interested in investing in this type of deal?

I would have to say reading Rich Dad Poor Dad and a friend who was purchasing single family rental properties during the Great Recession.

How did you find this deal and how did you negotiate it?

It was a purchase of a bank owned property. Most of the properties we saw back then were vandalized, the copper wiring had been pulled, all the appliances and even the toilets had been taken. There were no buyers back then, so it wasn't very hard to close a deal.

How did you finance this deal?

Conventional loan

What was the outcome?

I still own the property. The rent has increased from $750/mo the first year we bought it to $1650/mo now. The house is now worth $300,000. I pulled $200,000 out of the property and am looking for my next move.