Being a real estate investor has been one of my biggest accomplishments. It has not been easy but it’s well worth it.
When I started investing in real estate, I had no money, no credit and no experience. What I did have was a burning desire to succeed and willing to do whatever it took to get it done.
So, how did I start investing in real estate?
My first property was a rehab project or flip. I asked many people if they knew someone who was selling properties at discounted prices. By asking so many people, I was able to get in touch with realtors, agents, bankers, wholesalers and even flippers. I was able to get lists of distressed properties and I would spend weeks and even months looking at houses and making my own inspection reports. I looked at so many foreclosures and short sales that even without knowing anything about the business, I started to distinguish which properties were better than the others. At one point, I ran into a great property and I wanted to make an offer. I was able to negotiate the price so low, and it was such a great deal that I put it under contract. All the books I read said the same thing… “If you have a great deal, you’ll find a way to close on it even if you don’t have the funds”. Surely enough, I was able to find a partner who funded 100% of the purchase price and the repairs and he became a 50%-50% partner in the deal. 3 months later we had it sold to a first time home buyer for full market value. We made about $40,000 in this deal and we ended up splitting profits as we had agreed. My partner was so exited that the day he got his investment back and his profit, he handed me 2 checks for $5,000 each so I can have them ready for our next 2 deals. It was an amazing experience. I learned, I helped the bank get rid of an ugly property, I helped contractors have jobs, I helped our investor make money, I helped the real estate agent at the time make a commission, I helped a title company make a closing and I helped a nice family call this house their home!
This is how I started flipping houses and the rest is history. It was a lot of work but it was well worth it! If you are interested in learning how to flip houses, please comment below.
Stay tuned for our next posts.