Hello everyone ,
Thanks so much for the great positive feedback that I'm getting on my podcast appearance episode #331 . I really appreciate everybody that has reached out to me and I promise I will be returning all inquiries. To reach me quicker, get a more in depth look at my deals and day to day please follow my social media, the link is in my biggerpockets profile.
So a week before I did the show I was really pumped up about finding financing so I can grow my portfolio at a more quicker pace . After I recorded the show I started working with three lenders One Credit Union lender, One Bank lender and a Hard money lender . It was never my goal to have any debts on my property and I definitely don't recommend carrying a lot of debt but I did want to have some experience in all aspects of Real Estate and also I'm trying to buy a million-dollar apartment building. So I'm happy to announce that I closed on my first brrrr which was my multifamily that I talked about on the podcast. So I purchased the property for $14,000 last year put $10,000 in the property rented it out, 6 months later put another $12,000 in for a new roof. So my purchase price was $14,000, and I make $14,400 a year in rental income. But my total investment was $36,000, I just got my appraisal back for $50,000 and I'm able to take out $35,000 of that at 4.75%. Not to mention I already made over $18,000 in rent since I purchased the property a little over a year ago.
Next I closed my first Hard money loan, I got it under contract for $60k and the ARV was $99k, It took 75 days to close this deal. If though I don't recommend this, while we were waiting to close I completed the renovations for $20k. (I had a promissory note that if the sale didn't go through I could purchase on land contract or be paid back). The first appraisal came in at $138k, a week later, I couldn't do the deal with the first lender and had to take everything to a new hard money leader. Since I already had everything from the first lender the second deal was done fairly quickly and we had the second appraisal done 2 weeks later, it came in at $155k. So I closed the deal with a purchase price of $80k and its worth $155k and the good thing about the second hard money lender is there's no seasoning period so I doing a cash out refi, which closed next week and pulling out $112k, after paying back the lender $54k I walk away $58,000 on my first Hard money deal and not to mention the house has been rented for 2 month as of Aug 1st at $1200/month. Also they just opened up a 17 million multi use facility around the corner so after the first year rents will be increased to $1400/month.
Then while working on my next cash-out refi, I was looking online for comps to see what my value maybe, I stumbled across a house for sale 3 doors down for $10k. It was raining and my power went off, It came back on a couple minutes later, but I was already doing something else and forgot about the house. The next day I sat at my desk to start working and the house popped back up and said I have 36 seconds to bid. Without even seeing the interior or doing due diligence I hurry up and bid $11,500, one minute later my offer was accepted. So I turned in all the paper work and now after 15 days I have a clear to close on Aug 6th. I was so anxious to see the inside, I went to the house in hopes that a door or window was left unlock or at least I could peek in the windows to know what the condition maybe. When I got there all the doors and windows was locked, so I got in my car ready to leave. The I remembered I have my HUD keys since I'm an agent, and even though this isn't a HUD home I still would check. I went to the side door and to my surprise the key worked. I started to think to myself,what are the odds that I had the keys to the house the whole time, also what are the odds that I sat at my desk and the property popped up with 36 seconds left to bid.
This whole experience is to good to be true, then I started to think about the Law of attraction, and how now that I've been a member of the podcast and constantly surrounding myself with like minded people, good things are happening almost everyday. Now back to the story, I know I may have been foolish to buy a property site unseen but remember I own a house on the street already that rents out for $850/month. During the 15 days waiting on title, the appraisal came back for the cash-out refi on my house down the street at $55,000. The new house is closer to 8 mile, has same floor plan but has a deck, finished basement, and a 2 car garage. And I already have 2 potential tenants lined up for September 1st at $900/month fingers crossed. So in 6 months I should be able to do a cash-out refi on this property and I'm sure it will appraise for at least $55k like my other house down the street did. At that point I would have invested $11,500 for the purchase and $7k for the renovation, which is $18,500 and if rented out in September I would have collected $5400 in rents, so I'll be out of pocket $13,100 and I'll be able to pull out $44,000 which is 3 times my investment while my tenants pay down the note. If this isn't a perfect brrrr I don't know what is, and this can be done numerous times right here in Detroit.
I know this is a long one sorry, but lastly I wanted to say this past Tuesday Brandon Turner visited Detroit and I got to spend about 4 hours with him and Ryan Murdock. I have never experience anything so powerful in my life, just being around these guys got my blood pumping and the energy was electric, I couldn't sleep for 24 hours after the meeting. These guy's are the real deal, I know they must've of been tired but they stayed and talked to so many people,even stayed 1 1/2 hours later. I'm so grateful to have met them. Being on the BiggerPockets podcast has changed my life forever and I can't wait to see where this next level takes me.
`Ashley
