One year later, the story so far...

7 Replies

Greetings fellow BP'ers!

It's hard to imagine that I got started in RE just a few short years ago. So much has changed in the market, economy, and even my life!

When I first started out I really had no idea what to think, what to do, or where to start...

Today, I just finished my third investment as a private lender for a rehabber (earning 12.5% interest) and I have a fix and flip in the works (thanks to a great team I've been lucky enough to align myself with over the past year) which looks to be finishing up in the coming months. It was initially supposed to be a buy and hold (rental) but after going over the rehab estimate due to some extremely unfortunate and unforeseen issues, it will be a straight flip.

The beginning of this journey definitely hasn't been all fun and games though. In the beginning I made a rookie mistake and trusted the wrong people. That mistake ended up costing me close to $10k in seed capital when it was all said and done. The worst part is that put my trust in, and believed in this person...in that time, I fear that I may have talked others into making the same mistake that I did. 

To those who are new, please take heed. There are those whom will take your money in exchange for some "service" or "access" to deals, knowledge, etc. 

My advice: Take your time, and learn on your own or with a verified professional whom has been recommended to you.  Keep your money for your deals, and even then, be careful and shrewd with your investments. 

I'm happy that things are finally moving the right direction for me after everything that has transpired, and now that I have the freedom of not working for anyone else, I'm looking forward to growing my business over the coming years.

Cheers everyone, and thanks for reading!

Hey Ben, 

It's good to see you back posting on BP again! 

I hope you're well friend. 

David

@Benjamin Winokur   I have almost completed a year in Real Estate Investing and can relate to you.  I too...trusted the wrong people in the beginning.  I think it happens to all of us.  I trusted everyone when I started.  You could tell me anything, and I would believe you.  Sooner or later peoples true colors are shown and you learn from it.  After some major growing pains I am right where I want to be, and working with the right people.  Its nice to have built those trusting relationships now.  

@David Hart Good to be online brother. Let's get together soon and discuss where we're at. Not sure if you were getting my texts I sent you.

@Joey Noel Absolutely the truth. I think that it is (unfortunately) one of those things that no matter how many people warn you, you'll eventually learn the hard way. Glad to hear that you're on the right track now too!

So where's the other half haha, what are the successful parts of this past year?

Originally posted by @Vincent Crane :

So where's the other half haha, what are the successful parts of this past year?

 LOL, I guess I only mentioned them in passing. 

I closed 3 deals for properties that I provided short-term rehab loans on. Total of about $45,000 in loans that I successfully loaned on and had paid back in the last year at 12.5% interest. So that was a nice win.

Right now, I have my first investment property, that I purchased a few months back, undergoing final stages of the rehab and will then sell it shortly thereafter, which, despite some extraneous costs, should still net me a positive and allow me to purchase something else. 

Beyond that, I'm currently looking for another property to invest in. 

@Benjamin Winokur Haha yeah I was wondering..... did anything good happen? Okay so, does it make more sense to keep the house you're rehabbing as a rental since the profit margin is slim if you try and sell it? If you rehabbed it you probably added a good bit of value, in which case you can rent it out, get it re-appraised, do a cash-out refi and take out 80% of your money or so that you have in it, and then get $300 or so a month in passive cashflow (profit) each on by keeping it as a rental. I'm not sure what the numbers are but would that be a decent option as well? Then you can use the money from the cash out refi to buy the next one.

Originally posted by @Vincent Crane :

@Benjamin Winokur Haha yeah I was wondering..... did anything good happen? Okay so, does it make more sense to keep the house you're rehabbing as a rental since the profit margin is slim if you try and sell it? If you rehabbed it you probably added a good bit of value, in which case you can rent it out, get it re-appraised, do a cash-out refi and take out 80% of your money or so that you have in it, and then get $300 or so a month in passive cashflow (profit) each on by keeping it as a rental. I'm not sure what the numbers are but would that be a decent option as well? Then you can use the money from the cash out refi to buy the next one.

 Good question, that is one of the options I'm currently considering. Waiting to see how things turn up at the end of it. Another thought is to sell it with seller financing and collect the down plus interest.