My First Deal!

My first deal was an interesting one!

I started out going on individual showings with a Real Estate Investment firm throughout properties in Detroit and the surrounding suburbs. After going through many, many properties I narrowed my focus as to what I was looking for.

From that point forward I was on the lookout for a 3 Bedroom, 1 Bathroom, Ranch with a 2 car garage in a hard working neighborhood. A few weeks later the Real Estate Investment firm contacted me with a great deal! It was a foreclosed property with very little repairs needed. I bought it for $23,000 and collect rent on it for $925 a month.

Since my first deal I have done a varying range of other deals from Land Contracts to Wholesale flips.

I now work for this same firm (after pestering them with 1000s of questions) and I am really enjoying everything about the business. It has become my personal goal to spread the great news about the opportunities in Real Estate for those who never have even considered it.

I feel very fortunate to be in the position that I am in and cannot wait to pay it forward.

The best advice I can provide for a new investor is to not be afraid of taking the first plunge. Do your research and once you make the first move you will never look back!

Take care!

Tod Radford

Developer · Southlake, Texas

703 posts
16260 Influence
12 Awards

Icon_minipost Jul 29 '10, 01:20 PM

Great success story!

What year did this happen?

Also, why did you look for a 1 bath? Did you mean 2?

Tod Radford, Thompson Realty Corporation
Telephone: 817-781-1942
Website: http://www.thompson-realty.com
radyakllc@gmail.com http://www.thompson-realty.com

Charles Perkins

Landlord · Seattle, Washington

2844 posts
47254 Influence
18 Awards

Icon_minipost Jul 29 '10, 02:43 PM

Great to hear about someone's first investment. Getting past the first one helps in opening one's eyes to what it takes and what the possibilities are.

Sounds like you have also found a job that can provide further education and opportunities to buy as well.

Dan Gheesling

Real Estate Investor · Southfield, Michigan

75 posts
1141 Influence
6 Awards

Icon_minipost Jul 29 '10, 10:33 PM

Tod,

It happened in 2009. 3 Bed/1 Bath was the minimum or entry point I was looking for. Anything above and beyond would have been great but I found my target. It has been a great performing Rental for me. There are more deals out here in the Metro Detroit area if you know what you are looking for!

Jon Klaus

Real Estate Investor · Dallas, Texas

2409 posts
48158 Influence
14 Awards

Icon_minipost Jul 30 '10, 06:34 AM

Getting 4% of the purchase price in rent, per month is great for the 20th deal, let alone the first. Did it need any rehab?

Jon Klaus

Real Estate Investor · Dallas, Texas

2409 posts
48158 Influence
14 Awards

Icon_minipost Jul 30 '10, 06:39 AM

One more question; section 8 tenant?

Kevin C.

Real Estate Investor · North of Dallas, Texas

328 posts
2607 Influence
3 Awards

Icon_minipost Jul 30 '10, 07:05 AM

I'm still clawing towards getting 1% on the two rentals I have.

These were both pre-BP, I'm wiser now - LOL.

Dan Gheesling

Real Estate Investor · Southfield, Michigan

75 posts
1141 Influence
6 Awards

Icon_minipost Jul 30 '10, 07:36 AM

John,

It did need some work, I put roughly $3500 into it. Nothing major, mostly cosmetic (carpet, paint, minor flashing, new kitchen floor).

After speaking with the owners of the company (who I bought the property from) they told me it was a extremely good deal. I also landed a great tenant, a young family with a little baby on the way. They were not Section 8.

I like to think it was due diligence hat helped with my first very successful deal, and of course a little good luck never hurt either!

Bill Patterson

Real Estate Investor · Portage, Michigan

448 posts
5034 Influence
8 Awards

Icon_minipost Jul 30 '10, 10:20 AM

Great story Dan! Congratulations!
Bill

Account Closed

11 posts
74 Influence

Icon_minipost Jul 30 '10, 12:13 PM

Great!

Jackie P.

Real Estate Investor · Texas

15 posts
155 Influence

Icon_minipost Jul 31 '10, 01:56 PM

Congratulations Dan. Sounds wonderful.

Dan Gheesling

Real Estate Investor · Southfield, Michigan

75 posts
1141 Influence
6 Awards

Icon_minipost Aug 02 '10, 04:08 AM

Thanks guys! It was easy for me to get in other deals after this one, because the rental worked out so well.

I drove by the rental a few months ago and they even updated the landscaping. I was very fortunate on my first deal! It is a good feeling to know that the tenants take pride in their home as much as I do.

Delondon Dear

Real Estate Investor · 30906, Georgia

139 posts
675 Influence
3 Awards

Icon_minipost Aug 03 '10, 06:20 AM

These are the best types to have. I am so glad that it worked out for you. Let us know how you next deal goes.

Dan Gheesling

Real Estate Investor · Southfield, Michigan

75 posts
1141 Influence
6 Awards

Icon_minipost Aug 05 '10, 03:03 AM

Delondon,

I have done many deals since then, ranging from Land Contracts to flips! My first deal was the most interesting (and lucrative) thus far!

Thanks for the support.

Tony Nguyen

Rehabber · Orlando, Florida

251 posts
1737 Influence
2 Awards

Icon_minipost Aug 06 '10, 08:22 AM

congrats on your first deal! keep it going!

Felix Feng

9 posts
62 Influence

Icon_minipost Aug 09 '10, 10:30 AM

Gratz man! keep it up

Dan Gheesling

Real Estate Investor · Southfield, Michigan

75 posts
1141 Influence
6 Awards

Icon_minipost Aug 12 '10, 08:04 AM

Thanks guys. Do you remember your first deals?

Dan B.

Real Estate Investor · Kansas City, Missouri

22 posts
192 Influence
1 Award

Icon_minipost Aug 12 '10, 09:39 AM

Interesting you ask the question of remembering your first deal. When I read the question I immediately saw the house and knew the numbers even though it was several years ago.

I came across this short sale with Homecomings Financial. Worked the ss, listed with an agent and made a quick $15K and was disappointed. I was disappointed because my offer was accepted immediately by Homecomings and then I fretted over how much I just left on the table. This was my very first ss and then the learning came in - I had many failed deals after this and learned a lot. But this was the very first and was quite easy.

Jimmy H.

299 posts
2713 Influence
4 Awards

Icon_minipost Aug 16 '10, 04:45 AM

I am unfamiliar with Detroit, is this type of return easily attainable? Congrats on a great deal, but there is nothing anywhere close to that available in my market.

Dan Gheesling

Real Estate Investor · Southfield, Michigan

75 posts
1141 Influence
6 Awards

Icon_minipost Aug 16 '10, 10:02 AM

This type of return is an out lier, however, there are still great returns just as easily attained in Detroit.

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