I've been inspired!! Saw someone's 90 day challenge and I've had a note on my dry erase board for the last 3 months when I created my goals for the year of accumulating $1,000,000 worth of property in 2014. At the end of the first quarter I am sitting at $109,500 in buying 4 properties either outright or on contract.
My goal leaves $890,500 worth of value to be created in the next 9 months. I think I can do it i've just got to keep my momentum going.
*Side note* How I am "valuing" these properties is the 50% rule with a little wiggle room so I'm being very conservative as far as what I'm saying the "true value" of these properties are. For instance I've got $10k spread on 3 of the 4 versus what I paid and what they are worth and the 4th one I am buying on contract and have about $10k spread at end of 18 month note.
It really does help to have people holding you accountable saying what have you done, what are you doing to keep the momentum going, etc. If you guys want details or advice on what I'm doing I would be more than willing to share. We are all in ocean I'm just using a different boat!!
Got 3 accepted offers today!! Good start to April!!
We're in contract to buy an apartment building for $1.2M. It's scheduled to close by the end of this month. This is the 1st deal we have gotten this year. I guess we're done for the year.... :0)
Just kidding..... One down, several more to go. We can only take what the market will give us. Things are nuts out there.
Wow!! I'd say that's playing on a little different scale then I am. One good note is that I got accepted offer on a 4th property in 2 days. So I'm set to close at least 4 properties this month and am looking at a 5th property(same seller) in 30 minutes!! So April has been good so far!!
Wow, that is amazing! I'm just getting started with my first four properties, but I've been brain storming about how long it could take me to build a much larger portfolio. I'll be following your progress, keep us posted!
If your market supports that time line and you start with $2,000,000 I'd think you shouldn't have a problem. (LOL)
So what's your boat?
I'd be more selective than buying based on the 50% rule. :)
I'm much more selective than buying on 50% rule, but it makes it pretty easy to see what a property's actual worth is if I want a 15+% return. Already rented at X, I want a Y % return property is worth Z. I'll take em all day if they fit that!! And don't know who wouldn't! (obviously have to take in to account maintenance items)
I have some private lenders on board and already some properties in my portfolio so I'm doing a mixture of flipping to my other investors and paying off debts to get stuff free and clear. It's going to be a lot busier than I had first anticipated when I first made that goal because I don't want to be heavy laden with loans so I'm trying to acquire a couple flip them and pay off this one over here and continue forward. I'm also doing some land contract deals that allow for passive income up front. It's all in the structuring and the price you buy that's where the true value is.
I honestly go through probably 50+ houses a week and i'd say 80% of them are way over valued or the owner doesn't know how to evaluate a properties worth. EX) Well I've got a 3bd in this neighborhood that brings in $500/month rent I'm asking $50k for it. Lol I just keep it moving, but there are deals to be had just got to keep pounding the pavement and networking!
Thanks for the support guys btw too!! It really does help to have a "team" in your corner! I'll keep this updated on progress as things sell I acquire new etc. Currently I'm setting at $208,500 this year in acquired value, but I'm selling 2 of those properties so that'll drop me back down to about $130. I'm trying though!! No harm in setting lofty goals!
Great job @Adam Gerig on developing a game plan and getting it implemented. The dream killer is typically not making enough momentum to get it going, but you are obviously past that part, so keep fine tuning it, and you should reach your goal before the end of the year.
Also, How are you getting your properties leased out in a timely manner?
@Tony Salazar thank you!! We utilize paid FB ads on our company webpage that has almost 1500 fans, CL, Truila, Zillow, hotpads, billboards, radio, tv, newspaper, and flyers to market our properties currently for rent. We actually just signed up for a Brand Builders program through the Fort Wayne Newspapers that should allow us another 4000 "touches" a day through online and hard copy marketing. Needless to say the marketing guy is a little overwhelmed! (ME)
Also, after consideration, and having a long conversation with my mentor I've decided not to sell any of my rental properties. He said why would you sell something for an extra $10k if you'll make that in 3 years. I didn't have any good answer for him so I've now switched my thoughts on that. I'm going to continue to accumulate as financially feasible with the hopes of one day getting to a point where I can decide to work or not. (Hoping by 40) That's why I love this site so many people with a lot of different thought patterns that make you ask good questions sometimes you wouldn't have thought about!
Way to go. We're pulling for you. I'm a bit more conservative but trying to make 2014 my best year also.
Thanks @Charles Morgan I'll keep you updated!
@Adam Gerig Way to go my man! Sounds like you've got the game plan figured out and if you keep executing it the way you have been so far this year you may surpass that goal. I'm along for the ride so keep us updated!
What a month!! I've closed 5 properties as of today April 16th and just went through a 4-plex this morning that they are sending over land contract for me to purchase. That'd be almost 10 units in one month!!! And we're only half-way through.
*Update on total* With the 3 new that I've already closed this month and the one that I should have a contract on here shortly(4-plex) that will bring my total to $316,500 as of April 16th according to my calculations.
Now the next hurdle: Raising more private funding so I can continue to buy 3-5 month. I'm working on getting with a bank to get a portfolio loan on what I've gotten this month so that I can free up cash for myself and private lenders to continue to do deals. Any thoughts/suggestions?
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