Landlord from Sudbury, Ontario
My first deal was boring triplex bought it from my father second deal was my personal home. Also boring , but this summer I bought a home to rentat about fair market value payed 165k. 32k down 20% to avoid cmhc fees and it pulls in 500/months after expenses and pays down the mortgage by about 300 a month, but the interesting part was the fact it was on a double size lot, two days after I got the key I was applying to devide the lot , because I found a buitiful house that was going to be sold or demolished. So I bought it for 1000$. And moved it onto my new lot, build a new foundation/ basement my total cost was 140 k for the project but the house is worth 225k it's currently rented and brings in about the same money as the first house 500/ month plus 350 paying down on the mortgage after expenses I wish I could post pictures
I had just turned 19 and had no clue what I was doing, I just wanted to move out of my parents' house. I found a condo I liked, it had an awesome view and was a little 2 bedroom, 1 bathroom on the fourth floor of a 12-story building.
In hindsight, the agent I used was terrible. I don't even know how I picked her, she must have been the listing agent. I had no clue what I was doing and she didn't explain anything, again, I was a naive 19 year old. She just flung papers at me and told me where to sign and that's what I did.
At the time I bought, our market was in the middle of bidding wars, I ended up paying $8000 over listing price because I wanted it quite badly, I think I was up against three other offers. Earlier in the year that same condo would have probably had 20+ offers on it.
Real Estate Investor from New Castle, Delaware
I got started when a foreclosure notice got taped to the house next door. We live in a
historic neighborhood, row homes only feet from each other...so the notice was hard to miss. Hadn't know the couple next door very well, but had been over a few times to know the house was really great, just needed a good cleaning and some fresh paint and carpet. The couple divorced, both moved out and couldn't agree on accepting the offers that came in...and ended up getting foreclosed on instead. Oooof. But I digress.
Because I was friendly with the local real estate agent, (he was my agent when I bought in the neighborhood) I knew there had been several offers in the $279K range. I researched the local foreclosure auction process, borrowed money from family, and quite happily bid up to my limit of $199K...(my best homework at the time, I thought that gave me a great margin and enough room to cope with any potential hidden issues). I was aggravated beyond belief when some guy in a suit outbid me. Jerk.
I was crushed, but hung around to speak to the winning bidder. After all, he might be my new next door neighbor! Turns out he was the attorney for the foreclosing bank. We chatted, and he offered to "assign the winning bid" to me at my last offer of $199 (he won at $204). We came to agreement quickly and it was mine for $199. This bit, I truly don't get and would appreciate the help of vets out there - is the bank attorney mostly looking to cover their outstanding principle on the foreclosed loan? Seems in my state almost all foreclosure auctions are won by the bank attorneys?
So bottom line, paid $199K, spent $5K on some minor fix ups, ended up it sold it for $299K. Hooked! This was in 2007 though, the house today has probably dropped to $250K or so in value. Only 2 awkward over the fence chats about home values with the nice people who bought it from me.
Real Estate Investor from Iowa
Found a bank owned house that was trashed in a very good neighborhood. Bought it for $14,500 and the lot next to it(due to property line issues) for $1,500 put about $29,000(with commision/holding costs) and 5 months into the rehab. Sold it above asking price for $67,500 with DOM being 1.
Real Estate Investor from Houston, Texas
My 1st deal was in fall of 2003. It was on the other side of town. I was so excited I didn't care that it took 45 mins to drive there. The sellers were a couple who were divorcing. The husbands sister saw one of my bandit signs and passed the number to him.
I met them wearing a suit(lol). They agreed to sell for what they owed. I had a Purchase and Sales Agreement signed on the spot and an authorization to release. I faxed the agreement to a title company to check title. The property was in bad condition but I tried to sell retail.
I marketed in the Houston Chronicle for sale but listed the wrong area. I received a lot of calls but no deal when they found out where it was.
I had an agreement after 3 months but it fell through when his lender did an appraisal. I then decided to short sale it. I didn't know how but fumbled through it.
I had a sign in front and stumbled around and short saled the property after 7 months in total and barely made a profit.
I learned so much from that 1st deal. From the BPO to flaky buyers to difficult sellers signing releases on liens.
Experience is a great teacher