OK NICK,
35 years ago, 1974 when 2 million was a lot of money!
(reprinted from Meet The Investor Section pn the left of page)
In 1974 I went hunting for the new office location. I was thinking very big at the time. This was my first truly scary investment. I found a brand new vacant 30,000 sq foot office complex and decided I'd try to buy it. It was $1,475,000 and seller was the developer and he wanted 10% down. He had a convertible loan with Metropolitan Life Ins. It would convert from construction to permanent when 80% full. He had it listed for a 3% commission and agreed to pay me $40K. Now I only needed approximately $100K. I had purchased 17 older units in Whittier, CA and asked him if I could create a note for $60K. He said okay but wanted it as a 2nd for $40K and a 3rd for $20K. It gave him flexibility if he needed to sell one or borrow against one. Now, I was down to $47,500 needed. I convinced my parents and my wife's parents to each put in $20K. I still needed $7500. The first person I had hired to join me in my real estate, my friend agreed to do it. I presented the offer and it was accepted. Our payment was $14,909 PER MONTH. I'd negotiated a deal where the builder would manage the building, lease it out and pay me an 8% cash on cash return for one year. At the end of one year, it was my problem if it wasn't rented.
We named the building "Weese Financial Plaza" and put our new office in. Now I really looked successful and people started to come to me, both salesmen and investors. These were people I'd talked to before, that now WERE interested in what I had to say. I started holding seminars in our building and it just took off. People were writing checks and my salespeople started bird dogging properties in many western states. I began doing real estate syndication (fancy name for limited partnerships). We were doing a lot in CO, so I obtained a broker's license and opened an office there and hired a bunch of bird dogs. We bought 156 units in Denver as well as some smaller ones, as well as 202 and 161 in Colorado Springs. We also bought many in AZ, TX, CA and OK. Within a short period of time, I was tired but well off financially.
Oh, btw, in less than a year, the "Weese Finanacial Plaza" building was 95% full, and throwing off a nice cash flow. I gave my dad the job of onsite mgr, and he loved it. A large escrow company, Preferred Escrow, moved into my building and asked if I'd sell a share of it. Eleven months after purchasing, I sold it for $2.2 Mil!! I took a large note, which I split with partners, kept 30% of the building ownership and earned a $70K commission. This was my first "Dream Deal".
other deal, over one year ago. I've posted this somewhere else, but can't find where. I bought a 2600 single level at foreclosure sale in Hidalgo County TX for 107K. Had under 2K in rehab and sold in a few months for 210K. Best of 30-40 foreclosures bought.
Where you've been around as long as I have, you have opportunity to have many "best" deals. Actually, a 286 acre I bought in Pismo Beach area of CA might have been the best deal also. I outlined it in previous post and Book I wrote. Good luck. Rich
