Our first Investment

5 Replies

Hi Everyone,

I wanted to encourage all the new investors like myself to keep pushing yourselves. My husband and I began reading BP and joined a local REI club back in September 14". We listed our home in Dec. 14' (3 months later) to raise capital for another flip and we close in 4 days! ($51,000 net profit after just 3 years). We are now purchasing a HUD for $98,200 with a 203k streamline loan and will rehab and flip after the required 1 year stay. We are also looking to obtain private money later this year to flip at least one more this year. Quite a roller coaster ride but definitely worth it! My advice is definitely keep reading and learning and not be afraid to ask many "stupid" questions. Surround yourself with positive, experienced investors and keep going out of your comfort zone. We never thought we could actually find a way to make this happen but meeting an experienced investor/realtor at a local REI meeting was who encouraged us to sell and pull out equity to start. We also found another amazing realtor with over 39 flips of her own who has been our incredible mentor. There are people who can really help you in this business so make sure you keep looking until you find the right one! Don't give up!

Great to hear! '

'meeting an experienced investor/realtor at a local REI meeting'

Very important, glad you found one :)

Originally posted by @Jennifer Shuler :
We are now purchasing a HUD for $98,200 with a 203k streamline loan and will rehab and flip after the required 1 year stay. 

 Congrats!

Just make sure you do the math after year one to determine if you should actually stay two years -- that way you can likely avoid paying taxes on the "flip" gains...

Thanks for all the replies.  We are going to be okay on the Capital Gains.  Thanks for the advice!

Great Job! 

Originally posted by @Jennifer Shuler :

Thanks for all the replies.  We are going to be okay on the Capital Gains.  Thanks for the advice!

Definitely not trying to tell you what's best for your situation.  I just know that some people (not saying you...this is for others who read it) can't really get their head around the numbers...

For example, if the plan is to sell the house to capture the gains to use on another flip, those gains will likely be taxed at 15%.  But, if you can borrow money to use on another flip at less than 15%, you might be losing money by not holding onto the personal residence for one more year and not paying any capital gains.

Arbitrage is a wonderful thing!  :-)

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