Tooting My Own Horn - What I've Accomplished In Last Two Months: makingaliving

I've relayed some of this at various times, but I thought I run it by again, mostly for those who hesitate. Don't.

Back in August, I was looking at my last $1000 in the bank. (I'm a relatively new realtor and struggling to build my business.) I had no money, but I have a house with a ton of equity, and a decent credit score. So I refinanced and pulled out $25,000. My mortgage payment only increased by $40 per month. I figured I could live on this money


Advertisement

while I continued to build the business. In the meantime, not wanting the money to just go for living expenses, I took the plunge. There was this foreclosure listed for $70,000. A tree fell on the roof and they dropped the price to $31,000. I bought it with a construction loan at 1% above prime. The ARV was appraised at $90,000. My contractor has been working on it for the past several weeks, and we're about one week from completion. Money spent so far on repairs = $12,000. I figure there is another $5000 to spend - carpet, appliances, paint, paying the contractor. All this money comes from the construction loan.

Then I watched a foreclosed 2 bdrm, 1 1/2 bath condo drop from $39,000 (neighboring condos sell for $47,000 - $60,000) to $30,000. I bid $25,000 and got it. It will need about $500 worth of work, plus appliances.

So far, my out-of-pocket expenses include:

$2600 for the first house - (closing costs and $1000 earnest money)

$4300 for the condo (10% down payment and closing costs)

Because I am a realtor, I received $1000 in commission on the 1st house, leaving me with $1600 out-of-pocket, and $1000 for the condo, leaving me with $3300 out of pocket. So for $4800, I acquired two properties. I know some of the pros here get in for much less, but I feel ok about this.

I will sell the first house, and hopefully net $35- $40,000. The mortgage on the condo is $310 per month (which includes the association fee). I can rent it for $600 - 650 per month.

Sometimes I sit in amazement considering where I am now compared to where I was when I only had $1000 in the bank. I've got more debt, but it's "good" debt to me, because these are assets. And since August, I have closed on five properties for clients. Ahhh...life is interesting.

Note: If you have a success story, please share it with the rest of the TCI REI Community.

Word Cloud:
because compared work, condos rent above business. those closing struggling been there meantime, costs) score. bath it's $70,000. money thought working took various foreclosed roof prime. spent $60,000) $40,000. received some could while completion. /> sometimes these plunge. paying $25,000. decent month (neighboring leaving /> $2600 build amazement need this. expenses first (10% down $35- debt, increased $90,000. $4800, /> so accomplished with less, $500 $1000 condo fee). $30,000. feel much pulled this money) realtor times, more business.) appliances, figure (which horn $39,000 $25,000 $600 pros closed last interesting. (i'm $12,000. ahhh...life far, /> back mortgage $5000 months carpet, costs properties wanting include: august, will tree comes contractor appraised bought only $47,000 loan. bdrm, bank. repairs tooting here where house, includes another credit appliances. foreclosure when living we're month. expenses, five they loan commission money, house properties. hopefully live paint, /> then condo, sell don't. earnest /> $4300 relayed fell just realtor, refinanced listed payment /> i "good" out-of-pocket worth know i've (closing /> because $310 figured continued relatively $3300 $1600 have spend pocket. acquired since week debt again, about contractor. mostly equity, association plus hesitate. construction clients. price what out-of-pocket, considering looking past watched drop weeks, $31,000. several assets. dropped

The #1Real Estate InvestingCommunity

Tooting My Own Horn - What I've Accomplished In Last Two Months

The #1
Real Estate Investing
Community