Hello,
I’m still very much a neophyte to investing. I’ve done alot of reading on various aspects of REI but my biggest fear is not knowing how to spot a worthy deal. I think alot of newbies can attest to that as well…
So to the seasoned investors, post REAL deals that you’ve completed. Explain briefly the sellers situation and how long it took you to complete the deal with all other pertaining information.
Also list any advice or rule of thumbs you suggest the new investors have. I look forward to seeing ALOT of posts in this thread. We might just learn something and it’ll definately serve as some sense of inspiration…
Sarafina,
Have you seen these?
http://www.reiclub.com/success-stories.php
Just checking…
And to all others, if you are willing to post a success story, please do so at this link…
http://www.reiclub.com/success-stories-form.php
rather than in the discussion forums. Or email it to me, if that’s easier. Posts in a forum eventually drift away and disappear as new posts are added.
Howdy Sarafina:
These are not success stories yet but are destined to be:
Bought 1800 SF SFH in Dripping Springs for $24,000 on 1.3 acres. It was listed at $27,900 I believe. Found a hard money lender Streamline Funding, Jaydon Newman at 250-8575 to loan us the money. It appraised after repairs at $153,000. We will spend about $60,000 in rehab and closing costs but It should still give us a great profit when finished. Just closed last Friday. It took about a month to close mostly sellers fault. We had loan approval and ready to fund in less than 2 weeks including appraisal time. Seller here was a bank that loaned $120,000 on a half remodeled house that was totally screwed up. They had used interior doors on exterior exits that had all but rotted away which i am sure came from garage sales. Rear balcony build over downstairs living area and was never properly weatherized and thus leaks into downstairs. Stairway in middle of downstairs bedroom. Just too much else wrong to mention.
Second deal in the works is 31 units. Ordering the appraisal today. Price is $154,000. Low income area North of Austin in Killeen, Tx. I have estimated $50,000 in repairs and hope to use the same lender. Made contract subject to loan funding which is also subject to appraisal. It should be worth $330,000 to $350,000 remodeled and updated and rented. I have been working on this a few weeks. Scheduled to close on the 25th of Oct. Seller here lives in Fortworth. He bought with the idea to rehab but ran out of money on the project. He fixed the roof and plumbing but still has a long way to go. Only 15 of the units are leasable and 10 are paying rent I believe. I have not inspected the rent role. Scheduled to do that today too. I have not decided if I want to sell this after repairs or keep for income. It depends on offers I may get or how well it rents up and a lot of other variables including credit repair. I may take in a partner after completion and keep 50% too.
Hope this helps.
Sarafina:
I was contacted by an ‘absentee’ owner that said she was renting her house out and the tenants stopped paying rent 6 months ago. The house was a 4-2 with a pool. The house needed a complete rehab. The FMV was $315k. I negotiated back and forth for a week or two and we agreed upon a price of $230k with the tenants in place, close in 7 days. This was probably why it was so enticing to her. I paid cash for it, but you can accomplish the same thing by working with a hard-money lender or private investor.
The day I closed, I tenants were presented with two options:
#1- Move out this weekend and I would provide a U-haul and give them $500.00
#2- I would evict them
I forgot to mention that I had my brother who is 6’4" 275 lbs knock on the door for me and present this offer 
I ended up taking possession a week later, rehabbed it up and kept it as a rental. I put a 5 year interest only loan on it at 4.75% with monthly payments of $990.00 plus a couple hundred bucks for property taxes. It rents for $1500.00 a mos.
On this deal, I estimated the rehab to be $10k but actually went over. The pool had to be backfilled and it ended up costing me $2500.00 to demo and backfill. Dirt is expensive these days! To top things off, a building inspector saw what we were doing as I forgot to pull permits, oops, I did it again. So anyways, I had to spend some money for permits, and jump thru some hoops. But it still ended up being a good deal.
I would recommend you get on board with a private investor or hard-money lender so you can offer Motivated Sellers a check next Friday. This will be the one of the keys to your success.
Best Regards,
Jeff Adam
sarafina,
Keep in mind that all deals are good deals… Sometimes it just depends on the Banks I have had deals that other investors would not even think about looking at. After short selling you can never tell what the price may be… I just bought one where the people owed 5k under vaule and after the deal was done I bought it for 45k under market on a 150k house. so that is a 70% LTV (loan to value)
I just clsoed on a home in Spartanburg, SC. 4bd 2.5 ba 2400 sq ft.
appraised for $195,000. I signed an option for $155K from seller. I sold with No money down or credit needed.
Sales price was: $195,000
Lender approved $175,500
I also have a lender that loans downpayment. He charges a fee of 10% at closing. This way I can offer my homes with no money down.
Total Cash at closing: $195K
Pay back down: $175,5K
Pay 10% of down $ 173.5K
Paid half of closing: $ 167K
Paid seller: $ 155K
Balance left: $12K
Address: 109 Terrace DR. Spartanburg, SC
I just love paying cash and getting a heloc after great loan rates
I purchased (4) 3 family brownstone (2) for $1500.00 (1) $1800.00, (1) 2K, (1) SFH frame and (1) 3 Family frame all cash. I sold the 3 fam frame in 30 days for $50k. I am renting out the SFH for $750/month. One of the 3 family’s I am renting two of the apartments and using the third apartment as an office for when I am in town. The other two 3 family’s are each worth $150k renovated and they only need $50k in renovation cost. The last 3 family needs major renovation and I had to make an agreement with the city to rent it low-moderate income, but it is also worth $150K renovated. It has $100k in renovation costs. I am about to go into contract this wednesday 12-01-04 with the rest of the properties and I am only flipping them, not keeping any of them, there is twenty of them maybe I will keep one or two for positive cash flow.
Hello, my name is Franqui (Franky). I am very new to real estate investing. Infact only a week new. I haven’t a clue as to how to do it, or even the finances. I am now a disabled US Marine just back from the Middle East, and now that I cannot re-enlist, I want to pick up what I have always wanted to do. I can walk and all, I am not fully disbled or anything, so I am also currently working in sales. I have alot of time in my hands though, and all I have been doing this week, is reading posts, and how to’s on these web sites. I have also gone to the library and got a few books on real estate investing.
I have a very can do attitude, and even in my current sales job (I sell room additions, sun-rooms, patios, concrete slabs, decks etc. ) I have become the top seller in only 2 months being there, and that’s with no prior construction knowledge.
I tell you all this because I want you to believe that I am 100% willing to learn. I tell you, because as I was reading posts from various people, It sure looks like you know what your doing.
Finally here is my question. A newbie like myself with the will and desire to learn, what would you say should be the very first thing I should be doing right now…? What should I learn right now ? what should I be doing around my neighborhood to get me ready. I live in Virginia Beach, and real estate out here is hot. A home last only 5-7 days on the market if that. They say that for every for sale sign there are 10 buyers bidding on homes out here.
Thanks for your time, and I really appreciate your help.
God Bless…