Q1 2013 in the books - Share your progress!

Goals, Business Plans & Entities
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Q1 2013 in the books - Share your progress!

Glenn Espinosa
Rehabber · Alexandria, VA · Member since 2011 · 446 posts · 171 votes

It seems like yesterday we were celebrating the new year but with the start of April, Quarter 1 2013 just finished! Also, with tax season finishing up, its time for some good ole' spring cleaning. While you're at it, take out that long list of goals you set out to accomplish this year - yeah THOSE goals. Hope you're still making progress everyday.

How are you measuring up now that Q1 is complete? Do you need to kick it up a notch or are you on pace to meet your goals? Any surprises yet? I hope you've at least started!

Let us know and lets try to feed off of eachother!

As for me and my company - we are exceeding some goals while falling behind on others. It's definitely time to sit down, reorganize, and reenergize for the upcoming spring and summer session!

We have a goal of rehabbing 10 houses this year. We have one rehab coming to market this month and a second one following close behind. Our third acquisition this year will start rehab in May. Beyond those three we have no other prospects... It's definitely time to get back out there and put in offers if we wanna meet our goal.

Our other big goal this year was to raise $200k worth of private money and I'm happy to report that we're past 60% on this particular goal. Honestly, I thought this goal would be one of the hardest for us to accomplish this year but so far it's been going pretty well. What a surprise on our end.

That's it for me BP. How about you?

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Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
13y

I have been so busy I have not had the time to look at big picture stuff like goals.

But here are the results for the 1st quarter 2013

9 properties closed - sales
4 under contract waiting for settlement
3 properties acquired and being renovated or waiting to be rented.
10+ other properties taken via tax sale foreclosure.

Perhaps my proudest achievement, 43% return for my partners in 22 month period. This was on their investment on the tax sale properties we have closed on this year.

In addition I have looked at 1450 properties already for the 2013 Baltimore City Tax sale.

I am very happy with my results and it looks like othes have done very well too. - Ned

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  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    13y

    Glenn Espinosa Congratulations. Sounds like you're doing a great job building your business.

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    13y

    I am doing well. I have a bunch of deals lined up for clients. In commercial the deals are bigger and the search process longer so a bunch of upfront work but I don't mind because I enjoy the work.

    The beauty of real estate is there are so many different paths to take. Some love rehabbing and others can't stand it, some like wholesaling, new construction, etc. The great thing is there is something for everyone.

    I have hired a full time assistant to work on my database and other office items. I am in meetings or putting deals together so I delegate the smaller hourly work or it will never get done.

    I might be buying a restaurant later this year that throws off mid 6 figure net income. I am in the early stages of looking at it right now. I looked at smaller restaurants but they all require an owner operator and all my investments have to go by themselves.

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  • Kyle Weimer
    Real Estate Investor · Aurora, CO · Member since 2009 · 155 posts · 60 votes
    13y

    Nice job fellas. It feels good when you make forward progress toward your goals.
    We are in a new Mid West market this year and its shaping up nicely.
    We have closed 6 wholesale deals.
    Just got two Duplexes under contract! These are cash cows. 46% NET ROI!
    Also have a 19 package bulk deal closing hopefully this month.
    Lastly, have a rehab getting ready to start in the hometown of Aurora, CO.
    Hope the year just keeps building off of this positive momentum.
    Who else is killing it??

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  • Tim G.
    Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    13y

    This would be the second quarter ever where I feel like I can share and be proud. Its a great feeling.

    Life is good, I need to step up and hire help. That is a big shift I didn't think I'd hit at this point but I'm drowning without help. If you see me without hiring someone in two weeks call me out on it!

    Closed some monsters, own my first place in escrow on my second. Still rocking the day job and killing it there. Not sure how much longer I can keep it at this pace... the volume is turned up to 11

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  • Kirk Olson
    Investor · Warsaw, IN · Member since 2012 · 61 posts · 36 votes
    13y

    Mine is not as exciting as most but I'll share for encouragement for others looking to start.

    Right before the new year I closed my first property, a duplex 3 bd 2 ba on each side. My goal was to move in and find a tenant for the other side to pay nearly all my expenses on it. I started putting ads on craigslist and other sites on Jan 3rd and found great tenants on Feb 19. They currently pay $1100 and my monthly payments are $1147, mission accomplished.

    My goal for the rest of the year is to just save the rental income for a down payment on my next property. I will be moving sometime in early 2014 and intend to do the same thing, buy a 2-4 unit live in one and rent the rest.

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  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    13y

    I have been so busy I have not had the time to look at big picture stuff like goals.

    But here are the results for the 1st quarter 2013

    9 properties closed - sales
    4 under contract waiting for settlement
    3 properties acquired and being renovated or waiting to be rented.
    10+ other properties taken via tax sale foreclosure.

    Perhaps my proudest achievement, 43% return for my partners in 22 month period. This was on their investment on the tax sale properties we have closed on this year.

    In addition I have looked at 1450 properties already for the 2013 Baltimore City Tax sale.

    I am very happy with my results and it looks like othes have done very well too. - Ned

    1Reply
  • Jason Burton
    Investor · Salt Lake City, UT · Member since 2012 · 38 posts · 8 votes
    13y

    Keep sharing! This is very inspiring for the beginners like me who are making their way into real estate. I haven't completed my first deal yet but I have a couple properties that I'm looking at. Just doing some due diligence on both to see which one I want to move on. Thanks for sharing your stories!

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  • Jack Bobeck
    SFR Investor · Jacksonville, FL · Member since 2012 · 285 posts · 83 votes
    13y

    Sold a buy/flip finally in Feb (purchased in August) for a profit. Watch contractors and put them on a schedule, mine dragged it out far too long into the holiday season, who buys houses when they have to pay for Santa Claus?

    Bought another for lease/option, probably will do a 1031 exchange to lessen taxes of the profit from the Buy/Flip. Father purchased 3 flips for his company this past month. So he is off to the races.

    Would like to do more, just waiting for more foreclosures to hit the market, but will probably do more with FSBO as the big institutions are not hitting them and people still have the same issues whether REO or FSBO.

    Wife is selling the pants of Jacksonville, she was tops in listings in March, so her realtor business is doing well, guess it helps to allow her to buy and sell all our properties....

    Jack Bobeck

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  • Mark Ferguson
    Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
    13y

    We sold two flips so far, we profited over 100k on one!
    We have three other flips under contract.
    We have two flips we are currently rehabbing.

    I purchased two long term rentals and have a third under contract set to close the 17th.

    I'm not sure how many houses I have sold as an agent but its probably around 35-40.

    0Reply
  • Sean Brennan
    Rental Property Investor · Manchester, NH · Member since 2013 · 447 posts · 81 votes
    13y

    Wow, very inspirational results guys!

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  • Tim Czarkowski
    Involved In Real Estate · Jacksonville, FL · Member since 2012 · 216 posts · 42 votes
    13y

    I've got four rehabs going right now which is more than I did all of last year. I'd really like to continue to ramp up, I had a goal to do 12 this year which I think I can hit fairly easily. I'd really like to get to twenty. I'm certainly putting in the time to find them. That alone is almost a full time job. I' hoping once we get a couple more in the pipeline I can take on an assistant. I find that the little rather unimportant stuff I hate doing is starting to pile up because of the expansion. It would be nice to pass it on to someone else, lol. That's what I always did as a restaurant manger. I'm willing to do anything put like to push off onto others more suited to the things I don't.

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  • James Vermillion
    Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
    13y

    I always love these threads Glenn! Q2013 began the shift from solely focusing on rehab flips, to adding rental properties as well. We purchased our first two rental properties and have one of them leased (the other rehab just finished and we are currently screening tenants). In addition, we have our next rehab project under contract and are waiting to close so we can get started.

    We have also done some behind the scenes stuff to prepare us for future growth. We setup some additional entities and created a structure that fits our goals and plan. Overall, Q1 was successful but I am hoping Q2 will see us ramp up the rehabs to generate more readily available cash.

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  • Glenn Espinosa
    OP
    Rehabber · Alexandria, VA · Member since 2011 · 446 posts · 171 votes
    13y

    Wow, great progress from a lot of you guys!

    Mark Ferguson - Incredible! I hope to be at that level sometime soon!

    Tim Czarkowski - Judging from your picture, you seem to be another young guy making big moves - I love it! I totally understand the whole assistant thing. I keep telling myself that the harder I work now the more my company can grow and the sooner I can justify hiring an assistant.

    Ned Carey - No surprise to hear of such great results from a seasoned veteran like yourself. Congrats on that awesome return you provided to your investors. I, too, aspire to be able to provide such great returns to my investors. Can you just imagine the things they're saying about you when they're out talking to their friends and family?

    Kirk Olson - Sounds like a great start!

    Tim Gordon - Totally understand the day job thing. Sometimes I feel like my day job is just slowing me down... but hey it pays the bills - for now!

    Joel Owens - Good luck with the restaurant deal! Restaurants are tough but Im sure you can figure it out with your analytical skills. I still need to pick your brain about commercial deal analysis sometime!

    Kyle Weimer - Still have yet to bag my first cash cow rental so I can't share the feeling. I bet it's awesome though!

    Jack Bobeck - Great progress. Don't let that old man of yours beat you now! :)

    James Vermillion - Yeah, these threads really get me pumped and sometimes it's a big kick in the pants when I see other people taking big strides. When you have a chance I'd like to pick your brain regarding the behind the scenes moves that you made. I've been looking to making a new entity or two but haven't decided the best route just yet.

    Hope I didn't leave anyone out. Keep chugging along everybody! And if you haven't jumped in yet, go ahead and let us know what you've been up to. Accountability is vital when it comes to reaching the goals you set out to accomplish this year.

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  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    13y

    Q1 was pretty interesting for us as well. Our local market has continued to become saturated with out-of-state investors, so we've been transitioning from an Atlanta focus to buying and rehabbing in several other cities. We're also working to expand our business this year to do more and bigger projects.

    Since the beginning of the year, we've sold 6 properties, purchased 8 properties and put several more under contract to purchase and sell. We also knocked down our first house and will be building a new construction project over the next few months. As part of that, I'm working on a big case study for this project that I'll be releasing pretty soon (completely free :) to help others who are interested in larger projects and new construction. To say the least, it's been a learning experience, and I now have a much greater appreciation for builders/developers and the challenges/risks of this business.

    We obviously also released a couple books, which is awesome, as I've been working on them for the better part of the past 18 months...nice to finally get that completed.

    I've been wanting to get into some private-money lending for a while now, and finally started doing that to a greater extent. I did three loans in Q1, including lending on a project that my full-time project manager purchased as his first flip -- thrilled that he's starting to do his own projects.

    The biggest challenge for us recently is learning how to build remote teams and manage them. To a large extent, we feel like we're completely starting over in this business, as the skills required to do this are very different than just rehabbing locally. I'm remembering what it's like to be a new investor!!!

    So, the past few months have been more work and stress than I've seen in a while...but we're learning a tremendous amount!

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  • Jeremiah B.
    Investor · Portland, OR · Member since 2012 · 266 posts · 128 votes
    13y

    I'm a lowly minnow investor, but Q1 has not been a great start.

    We had a modest goal of $3k positive cash flow in 2013 from our 2 SFR rentals, but that is already a bust due to a PM messing up a lease. We should still have a positive cash flow this year, which would be a first, but it will not be what we were shooting for.

    We had planned to have our first out-of-state investment lined up by December. We had targeted Atlanta which looked fantastic at first blush - but our more in-depth research has been concerning. Increasing prices, decreasing rents, increasing vacancy rates, and increased investors (including hoards of out-of-staters and the dreaded hedge funds) have really given us a moment of pause. However, Atlanta was the only city to meet our initial priority list, so our out-of-state plan is currently a big question mark.

    Outside of REI, life is fantastic with a wonderful family including a new addition from February! But within REI - we are already behind track for this year.

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  • Nick Corcoran
    Real Estate Investor · Wasilla, AK · Member since 2013 · 3 posts · 0 votes
    13y

    2013 Is starting out pretty good. My rental in Memphis is doing well and I am looking for more. My rental in Phoenix is doing okay cash flow wise but is appreciating nicely. My brother and I are starting our own Construction Co. and we are looking to do maintenance for other investors as well as doing fix and flips for ourselves. The market is not huge here in Alaska but there are still some excellent deals. Happy investing everyone.
    Nick

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  • Jeff S.
    Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
    13y

    April marks my 1 year anniversary of doing away with a w-2. I am surprised how well I am doing w/o the paycheck. I have changed my spending habits a bit but am not missing a thing.

    It is/was my plan to do a lot of nothing for a year then decide if I will do a lot of nothing or maybe something the coming year. Still thinking that one over.

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  • Jack Bobeck
    SFR Investor · Jacksonville, FL · Member since 2012 · 285 posts · 83 votes
    13y

    Just picked up a 3/1 from the local credit union for 20k, been on the market for 258 days. It was an REO property, OMG, will rent nicely for 700-800 and cash flow in a few years.

    Never ever ever give up!

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