I am a new investor just finalizing my second property that I thought went really well. I wanted to post a success story to encourage any other new investors. Starting out it can feel like the strategies the 'big time' investors use are unreachable and I felt that on my first deal. My first deal cost me $23,000 and I thought, 'how am I going to come up with that kind of cash over and over again'. Thanks to biggerpockets and a local mentor...
I bought a duplex in my town from a wholesaler, cost $82,500, and replaced the roof and did some other repairs myself. I used the BRRR method that Brandon Turner talks about, which is essentially he same method a mentor talked me through before that. I used a local bank with portfolio financing. The appraisal came back at 100k post repair, which I was a bit disappointed in. I asked the bank to use an income approach for the appraisal and after some work from my banker they went for it. It then appraised for 111k! After the refinance I was just over $5,000 out of pocket; plus got a line of credit for 6k since there was some room left in the LTV. All said and done I spend much less acquiring this property and actually cashflowed the whole time since I bought it with tenants in it.I really hope this energizes a new investor in whatever their current goal is. My first a second properties are nearly identical in home value and rent but was able to get the second for much less with a few simple strategies.
Good job on that success story! Sometimes, all it takes is a little strategic planning as well as experience to land an awesome deal like that!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.