OfflineThis spring and summer, I kept hearing about "the bad economy" and "the bad housing market" and record foreclosures. I knew deep in my gut that this HAD to be a good time for investors to get in.
Then, as my wife and I were on vacation, I saw this infomercial on TV- This Dean Graziosi guy was talking about this "window of opportunity" to get in on real estate. I told my wife Sarah about this "feeling" I'd been having, and how this Dean guy was confirming what was in my spirit. My wife graciously allowed me to order the book, "Be a Real Estate Millionaire." I read it through quickly.
I started looking at the paper for property for sale and rent, to see what was going on in our area. I called one lady I knew who was going through a foreclosure. I started browsing this website.
One day I got a call from my friend from church about a rental for sale. The owner was another mutual friend of ours, and was moving out of town. He owned a duplex with 8 bedrooms, RIGHT next to Bemidji State University. He owned the property free and clear, and was selling for $125,000. He would take a contract for deed with $25,000 down.
I took my wife and her family to see it. Everyone thought it was a good setup for college students, and helped to convince my wife Smiling. We took out a Home Equity Line Of Credit (HELOC) from the bank for $30,000. We used $25K for the down payment, and the extra $5K is for emergencies. We opened a separate checking and savings account for the rental. It is now full and things are going well, thank God!
There are many other details left out that convinced us that this was a good thing. God's timing was in it all.
As far as the bank is concerned, we are pretty close to maxed out with available equity. My goal, as soon as we can, is to pay off our mortgage on our current home (51K at 5% interest). Once that happens, we will have no more mortgage payment, and more equity to invest!
Now I am looking for investors (the property is all over the place!) I have my eyes on two foreclosures with an asking price of about $65,000 ea. As soon as I have access to a HML, I will make an offer for $30,000 for either (or both!)
I have the time and energy, skill and friends to buy and flip. I am a people person at a large church, and my network potential is HUGE. Dean's teaching and this site have been a great source of info and encouragement- God bless you all!
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Andrew,
How exciting! That's great you're ready for deal #2! Best wishes to you.
Cheryl & Dave
Fearless Property strikes again! We closed on a five-plex last Thursday. This place is decent and ready to go. Already full. Only challenge is bringing rent up to market rent before summer ends. So I get 10% of rent to manage the place, finder's fee of $1000, and 4% equity when we sell the place. Woo hoo!
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Tackling the challenge of raising rent again. This is a touchy subject to breach with tenants, but it MUST happen if we are to keep up with rising costs and taxes. I honor leases and people's time. I give tenants at least 30-day notice if rent is going to increase. If they don't like it, I need to be assured that someone else will move in for that price. If I keep the same tenant, I can renew a lease for as little as $25 extra per month, if I want them to stay.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Andrew,
I hear raising rents can be a double edged sword. I hope it goes well for you.
Andrew Dean
I have raised rents in about thirty units over the past 3 years, and it has gone well so far... I have read a lot about it, and try as much as possible to put myself in their shoes. I do compromise, if necessary. Out of those thirty times, I suppose five tenants left because of it, but I had enough notice to find new tenants at the new and fair rent. I try to space things out as much as possible, so not everyone leaves at once
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Andrew,
I am happy to hear it has gone well with you in the past. I hope to report the same in the future for my deals
If it weren't for the profits to be made, passive, or capital gains, we would not be doing this.
Andrew Dean
I continue to show my investors properties (they want to keep moving). They may make an offer soon on a double duplex. ROI is easily 10%.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
The investors and I closed on four more apartments. Two apartments in each building. That brings their total up to 10 units that I manage for them. Now the investors are talking about a property management company.
We are looking at a SFH as well.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
We are looking at a SFH, getting the details... hopefully we will make another offer soon...
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Since my last post in February of 2012, I have...
Retired from my regular job October 1, 2012.
Got my real estate license to manage rental properties.
My first commission as a real estate agent was over $2,000 on an apartment that the investors bought.
Now manage about 85 rental units (not including storage units).
Hired a full time secretary last week.
Now I will go through and read my journal. I have been gone from deangraziosi.com for a LOOONG time!
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Now that I hired a secretary and handyman, I think I need to focus on doing some DEALS!
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Glad you are back, good to see you here. congrats on getting your license & your agen deals tht is good & also getting a secretary, now like you said let's get some deals!
Tony
Go faster do more! GFDM!