Hello BP members just wanted to reach out and say thank you to the mass of people that have shared some knowledge or helped me in the last few months just yesterday closed on my first official investment property (second rental though). If not for this wonderful group and website I’m not sure if I would have continued to push forward with this process.
When I found every real estate question I would pop into google has a link to some blog or forum on here i quickly realized this community might be what I need. In the beginning I think my joy and excitement of finding a network of like minded individuals may have caused my spouse to think it was some cult or something haha. She’s slowly warming up to real estate though and enjoys checking out BP these days.
Anyways, I got started on this journey back in January when all I thought I had to do was call a lender and go find something I could buy with the 8k I had in the bank (looking back it is funny now). Needless to say from books, blogs, audiobooks, podcasts and networking I was able to learn how to cut my liabilities/expenses and increase my savings rate to around 60%.
Repeatable consistent actions is what got me here and will bring me to my future goals.
•make time to read every day
•save more than you think you can (pay yourself first)
•find individuals to bounce deals and ideas off of that have no financial gains to you closing a deal***
•have reserves before going to closing table (buy what you can afford and still sleep well with affording)
•go to REIAS, meet people, break out of your shell, do what’s uncomfortable but also recognize and understand how not to waste someone’s time who’s helping you.
•hyper focus on one strategy, a Brandon turner line “quit building all these little bridges to one island focus on one bridge”
Deal I got was off market and was probably close to 60-80th deal I analyzed and well into the hundreds I looked at over the last few months.
Asking price 165,990
PP 161,000 plus 3k closing credits
2,500.00 in needed repairs
12,000 in finishing the rest of the basement for a home office and second bathroom, market will support 250-300 rental increase for this.
20% down conventional
tenants are re signed already at 1,700.00 for 6 months in which they can decide if they want to stay with the upgrades and take the rental increase.
**with Covid I would recommend obtaining dated proof of rental payments from previous owner with tenant inheritance.
Purchased rental document package for Illinois off BP
A big shout out to the MVP of this deal that allowed me to bounce properties off of him for months, then when the time came gave me some contacts to help make sure I could close this deal. @Mark Ainley thank you for everything.
Thank you BP!
Atta boy @Zach Gring , way to go getting this deal in the works and good job seeking out knowledge from Mark along the way!
Thank you been quite the eye opening experience. Already planning the next one. Portfolio of properties? MFR? We'll see back to education
It definitely is remarkable to see some results even if it’s just the one door for now. Implementing actions now to scale a bit more in the coming months.
He was not only an mvp on this deal but the priceless lessons was that he kept me from buying other properties that made sense and numbers worked on for reasons I had never considered yet. Probably saved me much more than this deal has made me.
Property is located on the edge of Batavia to Geneva. Falls into all Geneva school districts.
Pm me I’m always interested in networking with a contractor.
Congrats @Zach Gring . One thing I'll tell you is unless you're going through the property with a fine tooth comb, be prepared for a good six months of issues popping up. Make sure your reserves are high enough to handle whatever your tenants find and need fixing/replacement. Within the first year on my duplex, I replaced one water heater, fixed a backed up sewage line, fixed the same pipe when it literally fell to the ground during a massive rain storm, pumped the basement out 3 times, added a new checkvalve, bought new fridge and new oven, and had to have the heater serviced twice. And that is just the first few months.
Point is...these can be either items of operation, or items of pain. If you know (and are honest with yourself, as well not being so hard on yourself), you can quickly act to get someone in to solve these issues quickly. And then its fixed.
I'd recommend having 5k-10k in reserves just for the first few months and your first year to be relatively break-even, if not costing you a few bucks. That's OK - you're stabilizing the property, which makes Y2 so much better.
@Zach Gring congrats!
Thanks for the words of wisdom, money is there. Also am proactively fixing things that were rigged up previously. I’m all for spending money to avoid the headache of spur of the moment calls. I appreciate your advice.
Congratulations Zach! Way to go, on to the next one.
Oh I’m already working on it! Ha
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