How did you get your first deal?

Kalamazoo, MI · Member since 2017 · 38 posts · 10 votes

Hi everyone! So how did you get into your first real estate deal? I am looking for guidance and inspiration to get my first deal very soon. Tips welcomed!

6 Reply

220 views

Most Popular Reply

Nathan GesnerBusiness Member

Moderator

Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

I saved up money and told my father-in-law (a REALTOR) I wanted to buy an investment property. He told me about a home that was on the market in my price range. He used to own it and got a good return from it. I bought it without looking at it, crunching numbers, or anything. It was a complete rookie purchase and I can tell you a dozen mistakes we made.

Long story short, I put $6,700 down and eight years later I sold it for over $70,000 in profit. Then there were the tax benefits, a few vacations paid for from the reserve fund, etc.

The DIY Landlord Book4.7244 Reviews

Website View Page

22 Reply

See this reply in the discussion

78 Replies

Jump to latestLatest

Sort by

Sean Ade
Real Estate Agent · Member since 2018 · 90 posts · 25 votes
8y
@Bill Neves That is a really good strategy to start with! I had been wondering the best way to "make an offer" and your strategy seems like a great idea!
I want to find a duplex to live in and rent out a portion but everything I was sent via a Title Company or have been finding through Realtors have either been out of my qualifications for a loan or the numbers don't make sense.

My next thought is to just start sending out direct mailings to the farm list I was sent by the Title Company and see who responds from there.
Would you say this is the best way to find a good deal in the Portland market?
0 Reply
Ghazey Aleck
Grand Rapids, MI · Member since 2016 · 19 posts · 20 votes
8y
Found a duplex on Craigslist FSBO. Was the only buyer on it, it appraised for $15k over purchase price, and I got an unsolicited offer 6 months after I bought it for $36k more than I bought it for.
Still have it, still live in it. Raised rent on the one side by $300/month from when I bought it. When I move out this year, this duplex will cashflow very close to $900/month. Couldn't have asked for a better first deal.
1 Reply
David H.
Madisonville, LA · Member since 2018 · 125 posts · 71 votes
8y
I did a flip gone south in 2009 that was gutted from hurricane Katrina. I wound up renting it out until I could get a decent price whem the market recovered but everything was such a hassle I didnt do anything again until 2017. I saved money for awhile knowing I would eventually get back into it and in 2017 for the first one I found a neighborhood I liked and was just driving it one day and saw a new sign in a yard. Wound up being a foreclosure that the bank wanted out of by the end of the year so I got a great deal. I stumbled into doing the brrrr method without knowing it but it worked out good. I'm closing on a second one now and looking to get a couple a year to get to 10-20 hopefully. I'm still in the learning phase but feel like I'm getting over the hump.
0 Reply
Ryan Allday
Investor · Manassas, VA · Member since 2015 · 13 posts · 2 votes
8y
@Matt P. Awesome find brother! That’s textbook!
0 Reply
Ryan Allday
Investor · Manassas, VA · Member since 2015 · 13 posts · 2 votes
8y
@Aaron Wade Nice Aaron! What’s your ig gig?
0 Reply
Account Closed
Rental Property Investor · Brooklyn NY · Member since 2018 · 263 posts · 469 votes
8y
@Ryan Allday
Sent you a PM.
0 Reply
Jonathan Soto
Lender · Newark, NJ · Member since 2016 · 695 posts · 252 votes
8y
I paid down my debt and saved up for some time. networked here on BP found an agent which was an investor and he helped me find my first deal which took some time as we found it on MLS and was outbidded many times. With some patience I closed December 2017 on a owner occupied 3 fam.. Best of luck.
0 Reply
Bill Neves
Flipper/Rehabber · Vancouver, WA · Member since 2013 · 331 posts · 252 votes
8y
@Sean Ade
Instead of making an offer, ask - If I could write you a check for cash, what's the least you can take?
2nd question - Is that the best you can do?
0 Reply
Anthony Wick
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
8y
@Aaron Krawitz
Duplex #1: FHA 3.5% down (my name only)
SFH: FHA , 3.5% down (girlfriends name only)
Duplex #2: 20% down, with two partners (Formed LLC in September)
2 Reply
Aaron Krawitz
Houston · Member since 2018 · 28 posts · 16 votes
8y
@Anthony Wick
Thanks for the details!
I'm new to REI, but I was under the impression you had to live in the unit to qualify for an FHA 3.5% loan? I could understand a duplex where you live in one room, but i'm guessing you didn't do that for either the duplex or SFH?
0 Reply
Anthony Wick
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
8y
Bought duplex first, lived in it, fixed it up. Then my gf bought her/our house. After living in duplex for standard time, moved into SFH. Now everything will be non owner occupied and 20% down.
0 Reply
Jason Cacioppo
Real Estate Agent · Commerce CIty, CO · Member since 2018 · 127 posts · 78 votes
8y
My wife and I saved every penny we made in the U.S. Navy and found ourselves with $116,000 in cash. Luckily it was 2011 and we had options. Watched youtube videos to spruce up the place myself. The property has doubled in value and I clear $800 a month from tenants.
1 Reply
Account Closed
Real Estate Investor · Shelton, WA · Member since 2013 · 369 posts · 639 votes
8y
Following up with a sketchy prospective tenant when i first rented my personal house out. Previous landlord confirmed the tenant was indeed a scumbag, and i was about to hang up when he said.. "Hey! You wanna buy some rentals?"
Follow up with every previous landlord on every rental application you get.
0 Reply
Andrew SyriosPro Member
Moderator
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
8y
In Oregon: Letter to foreclosure.
In Missouri: REO on the MLS
Podcast Guest on Show #121
0 Reply
Shelby Ek
Real Estate Agent · Allentown, PA · Member since 2016 · 70 posts · 86 votes
8y
I bought a 2 unit at the height in 2006. I put 5% down (with closing costs it took maybe 10k to get me in the place) Got sorta stuck there longer than planned. But the other unit paid my mortgage and I had a room mate for years. Eventually I was able to use the equity from it for other projects.
0 Reply
Rich Senyszyn
Member since 2018 · 46 posts · 43 votes
8y
@Stephanie Pieri Bought a house and converted it to five rentals We live in the largest unit that is 2500 sf. Did a lot of work ourselves to save money, but learning about how jobs get done was the most valuable thing.
0 Reply
Sheena Lee
Rental Property Investor · Midland Park, NJ · Member since 2018 · 38 posts · 13 votes
8y
Great thread! We bought our first house in 2010 for $300K. Lived in it and fixed it up over 7 years, and then refinanced. It was worth $400K! We kept the cash from the refi, used that on a down payment for our new house, and rented out the old one. We got the bug, and now are in the process of buying a triplex.
1 Reply
Matthew McNeil
Rental Property Investor · Boise/Portland · Member since 2017 · 709 posts · 742 votes
8y
In 2002, a guy offered me an owner-carry contract to buy his 4500 sqf house for half its appraised value. The house was too big for him and his wife after the kids left. He liked me and wanted to help me out. I bought it, rented it to a friend for 4 years and sold it at market value. Netted $145K. 1031'd the profits into some SFH's and have been building my portfolio ever since.
0 Reply
Ian WalshBusiness Member
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
8y
I posted a postcard on people's doors in my neighborhood saying I am a cash investor.
1 Reply
Ryan Ridgley
Rental Property Investor · Exeter, NH · Member since 2017 · 19 posts · 13 votes
8y
@Matt P. That’s great, sounds like a nice BRRR
0 Reply
Matt P.
Investor · Columbus, OH · Member since 2015 · 625 posts · 601 votes
8y
@Ryan Allday Thanks man, it wasn't sexy but the cash out refi and consistent cash flow from that place has allowed me to go from that one door to now having 8 units between 4 buildings in the last 2 years or so.
1 Reply
Vanessa Zapata
Rental Property Investor · Missouri City, TX · Member since 2018 · 7 posts · 0 votes
8y
@Nichole Howe I say why not
0 Reply
Vanessa Zapata
Rental Property Investor · Missouri City, TX · Member since 2018 · 7 posts · 0 votes
8y
@Michael Kiley Loved this response 🙏🏽
0 Reply
John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
8y
Bought a vacation nightly rental out of state (Branson, Missouri) for 130k in cash 3 years ago. It's worth 180k now with realtors calling me to sell to their clients. I cashed out 67k worth of stocks from a Roth IRA, I had always tried to max out for something like this or an emergency. Put up some cash in my savings account and took out a HELOC for 38k. Paid it off within a year and enjoying the cashflow! We even visit it once or twice a year with the kids for a free vacation in a great cabin!
0 Reply
Dmitriy Fomichenko
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
8y
Originally posted by @Henry F.:
@Stephanie Pieri
TurnKey from the MLS. I have/had no money so I moved my small retirement account of 30k to a Solo 401k account with checkbook control. I used this money to purchase a property from the MLS (TurnKey). Conventional at a low % down) Decent price, good buy. Not a steal by any means however it did appraise for more than what I purchased it for. Got it rented and cash flowing.
Henry, perhaps I misunderstood your comment, but when you buy an investment property with your Solo 401k plan you are not allowed to use conventional financing, which requires personal guarantee and the IRS rules prohibit that. You must use non-recourse loan. Typically, non-recourse lenders require 30-50% down.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.