Updated almost 5 years ago on . Most recent reply
My first property deal march 22, 2021
Investment Info:
Single-family residence buy & hold investment in Brookhaven.
Purchase price: $50,000
Cash invested: $7,500
Single family 3/2
What made you interested in investing in this type of deal?
I heard so many success stories on Real Estate Rookie that I figured I could do it too.
How did you find this deal and how did you negotiate it?
I called a Real Estate agent and basically just said I want to own rental property. The agent said she had a new property that morning and had not listed it yet and said she thinks it would be perfect for what I wanted. The owners wanted 65k so I had the RE Agent show me the property. I did a basic inspection of the place and offered 50k. It was a pocket listing and was not yet on the market and I was the first person to view the house. I offered them a quick sale and they accepted.
How did you finance this deal?
Commercial Financing through a local bank.
How did you add value to the deal?
There were multiple children who inherited the property from their parents and by purchasing, I offered a way out for all parties to have their hands clean.
What was the outcome?
They wanted 65k and they accepted my counter of 50k. It is rented at 700/month and after PM fees, taxes, insurance, mortgage etc., my cash flow is 164 a month and my COCROI is 21.95%. Much better than the Wall Street average.
Lessons learned? Challenges?
I read that sharing your successes and failures brings on more success. So with that in mind, Ive decided to share away. Every deal does not have to be a Home run, Slam Dunk, touchdown or whatever analogy you want to use. A positive Cash Flow and ROI is still a good thing. This also gives me more control over my investments vs the Stock Market.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I was fortunate enough that the first RE Agent I called was too busy for me. The second one I called is a second generation agent with 30 plus years in a family agency that has been around for more than 50 Years. My RE Agent is also a property investor and has a property management company and is well connected with everyone from bankers to attorneys and home inspectors in the area.