What was the deciding factor to buy your first property?

Question

I remember it was 2004 i was a very young man hanging “outside “ making money. A guy by the name of Beyond Wynn who is a big guru in the Cleveland market now, but at the time he was not and he had purchased and flip two properties on the street I hung out on. My best friend pulled up on beyond and wanted to change his life and asked Beyond to show him the “real estate game.”

He showed my friend how to purchase his first property ,my friend comes and gets me and we are walking his property and at that moment I felt so inspired to buy my own property. After I left him I rounded up my money and purchased my first property a couple months later in 2005 a duplex smacked dab in the hood. lol I purchased it for $18k put put $22k in it rented out out for 8 months and turned around and sold it $88k.

For my old school investors tell me what made you initially pull the trigger?

Min Zhang · Answer

Hey Andrew, thanks for sharing it. It’s wild how one moment like that can shift your whole path!

For me, I pulled the trigger in 2020 during COVID. I had been studying the game for a while, but what pushed me was watching friends build equity while I kept saving in a bank account that wasn’t doing anything. I bought a small multi in a rougher area—definitely not pretty but the numbers made sense. I was hooked from there. Fast-forward a few years and I’ve helped a lot of folks, especially out-of-state investors, do the same

Curious, did you keep flippin or switch to rentals after that first deal?

R. Elle Berry · Answer

This is a great post! I pulled the initial trigger in 2005 but I resided at that property. My first investment property was 2008-2009 my client was sick of his property in 44110 area. He made a joke he would sell to me for $5k (he was tired of the headache). I replied “let’s do it” and the rest is history. That home cost me little to nothing to rehab. It’s was the sellers family home and they took good care of it and my contractor was a close friend of mine so I only paid for materials (carpet, paint and few fixtures). I’ll never forget that property. I had a rotation of great tenants. I would give them the month of December at a discounted rate due to the holidays. I loved being a landlord! However, now I’m into STR and mid-term vs long-term rentals. Great question!

Gladimir Lobo · Answer

I finally pulled the trigger because my mother had cancer, and I wanted to retire her.  In 2003, with less than six grand I hit the ground running.  I leveraged creative deal structuring and bank financing. I had one rule-If I could not get a check at closing, I would not buy it. On the first property I got $11,000 at closing, on the second one I got $17,000 and I repeated this process over and over. I bought four properties in my first year.

Jules Aton · Answer

My first was 1995 upcoming inner city Baltimore. Good friend who was a broker called me and told me to grab my wallet and come buy this dumpy old row house across the street from his. Purchased for $55,000 lived there 4 years during reno, spent about $40,000 and sold for $160,000. I just checked it out, last sold for $389,000 but like a slot machine when you walk away don't look back. I made good use of the profits in the decades since.

Alecia Loveless · Answer

@Andre Brock I realized after years of working that I was never going to be able to retire without some big financial improvement.

So after much thought I said to myself “My parents made millions in real estate. Why can’t I do the same?”

And the rest is history. Shortly after I bought my first rental, then a few months later my second.

I’m still adding to my portfolio but it’s more difficult in this market so weeding out all the terrible deals and finding the great ones takes more time than it did some years ago.

Michael K Gallagher · Answer

@Andre Brock thanks for sharing the story, I don't know if mine was so much a light bulb moment or anything more so a discussion with my wife about a decade ago maybe a bit less where we just looked at each other and were like "we did all the things they told us to do, but WTF! what are we actually doing her?"  then we went looking for a house hack!  now we know that if our family and friends think we are crazy we are likely onto something ha!

Andre Brock · Answer

Hey I like “if I couldn’t get a check at closing I’m not buying”

Andre Brock · Answer

thanks for sharing.

Kerlous Tadres · Answer

Hey Andre, it’s all about seeing potential in a property. In Cleveland, there are often undervalued areas with great cash flow opportunities. For me, it was the chance to add value, whether through renovations or better management, that made me pull the trigger. If you spot a property with solid upside, even in a rough area, and you have a clear plan to improve it, go for it. Cleveland, in particular, has areas with strong returns if you know where to look.

Andre Brock · Answer

Thanks Micheal i appreciate it.

What was the deciding factor to buy your first property?

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