Tooting My Own Horn - What I've Accomplished In Last Two Months
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 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.
[ Edited by makingaliving on Date 01/15/2004 ]
makingaliving,
It is always nice to see posts such as yours. Congratulations on your fine start. Hopefully, this will provide encouragement to others who are getting started.
Regards and continued success,
Ed
They definately sound like they are "in-the-money" Let us know how it goes.
[addsig]
Your post put a smile on my face and gave me encouragement. Thank you so much for contributing! Best success, Dave
While taking a break from my bookkeeping tonight I saw this post.
Congratulations, be proud of yourself!
Keep them coming and going like this, and be happy. Good for you!
Ladybug
That is truly awesome!! I have had some limited success also and it is so encouraging to hear others doing well. Congratulations and keep going!!!
Man way to be, I bet you feel on top of the world, and you should.
This needs to be an article. Please submit it.
makingaliving, I read your "post"..For ME it's great to hear "fresh" newbies taking the plunge. AND successfully moving Forward.
It's a great feeling truely being your own boss !!! mcldavid
Always good to hear about people making legitimate return while doing honest work. Much continued success!!
Nice ... and CONGRATS, it keeps us newbies focused on making it work for us...
Congrats.
Did you find your foreclosures online or at the court house? Please share.
Great job. Just do it! is not just for Nike
Quote:
On 2004-01-16 13:08, Japher wrote:
Congrats.
Did you find your foreclosures online or at the court house? Please share.
Because I am a realtor, I have access to the MLS. I just kept checking the listings. The two I ended up with actually had been listed for quite some time. I previewed both and was a little surprised that no one tried to get them. It seems that there is a correlation between time on the market and end of the year. A lot of companies want to clean their books before the end of the year and they drop the prices. When the condo went down to $30,000, I watched it for a week or so, thinking surely someone will buy it. When no one did, I went for it.
I met a guy who had made an offer on the house I got. He was working on another property in the neighborhood. He told me he offered $18,000 and was turned down , explaining that he never offers more than that. He's got other properties, so I guess it doesn't mean as much to him if he misses out on a few. Being that this house was my first independent effort, I offered near the asking price. Probably could have gone for less, but I really wanted to get started, especially after losing several other bids. I'll still make money, plus I will be established with my lender who promised that if I manage this one well, I can get additional loans, probably even run several projects at once. That's my goal.
One thing I am learning. I don't think I'll hire one person to oversee the job again. I will be my own contractor and hire subs. I think I can control the job, time and money better that way. I have a little experience in this, seeing as my ex was/is a home improvement contractor. I know just enough to get in trouble. ; )
Thanks to all of you who offered congratulations! Now...all you other newbies...go get it! It's waiting on you.
Great Job! Keep up the good work!
Be proud!
Pat yourself on the back for me.
I agree, this should be an article. Please consider it.
Great job men, Being a realtor has its pecks too. Buy properties and still collect comission- what else can u ask for. Where are you located?
Good for encourage to all of us, honest work and great pay - the right way to eat good food and sleep well.
--------------------------------------------------------------------------------
Located in Tenn.
Thanks for all the support. I appreciate it!