First Investment Property

[Jerry Tello]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $470,000
Cash invested: $8,000

This is my first Investment property. I am being conservative with the numbers and keeping more reserves than I need. I will loosen up slightly, once I have saved up enough for another investment property.

What made you interested in investing in this type of deal?

Buy and Hold Single Family properties was the most appealing to me because of the repeatability of the process as well as the growth it offers if done in a strategic and methodical manner.

How did you find this deal and how did you negotiate it?

My Real Estate Agent Donald Appleberry showed me this deal along with a few others that met the criteria I was looking for as well as provided me with historical data in regards to rents, growth and appreciation. My agent Donald gave me the best advise for negotiating as well as getting the offer accepted even with competition looming.

How did you finance this deal?

I used the VA Loan to fund this deal.

How did you add value to the deal?

I added value by recognizing the high appreciation of the property as well as seeing its potential in producing cash flowing Rental Income.

What was the outcome?

Property was appraised at value of purchase price and is now in the process of practical Tenant proofing

Lessons learned? Challenges?

I learned that hourly paid Real Estate Agents can be difficult to work with. I also learned first hand the difficulty of working with contractors and the importance of systematizing the entire Buy and Hold process. Most importantly I learned how much I enjoy Real Estate Investing.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Real Estate Agent: Donald E Appleberry @ Discher Real Estate Group
Property Manager: Ross Derrod @ Derrodproperties
Lender: Nick Maglio @ Cross Country Mortgage