Posted by JHyre in Ohio on February 09, 2001 at 13:03:40:
Satan? LOL, for those of you who remember when Saturday Night Live was funny. Feel free to call & chat, (419) 427-2316. I can talk Greenpoint, I can talk partials…
Later,
John Hyre
A word of encouragement - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on February 09, 2001 at 10:14:00:
Since so many people have contributed to this site by relaying their deals, I thought I might give some of the newer real estate investors a little motivation.
In early 1997, I started investing in real estate. A very good deal came my way, and I was able to buy 5 townhomes at once. I purchased these at an average of 35K each. I paid about 2500 each to reinstate the loans, and took them over subject to. After some rehab, I rented them out. As opportunities presented themselves, I sold some of the units. Today I closed on the sale of 2 more. Next week I will close on the last one.
The particulars of the deal on the two I sold today :
Purchased for 30K, invested 2500 each to reinstate loan, and 2000 each for rehab. Total cost of each unit is $34,500. I rented these for over 3 years, netting $250 per month profit. So each unit grossed at $9000 profit, minus expenses, so about $7000 per unit. I sold these today for $102,500 for both and walked out of closing with a check for $41,000 profit.
So lets look at the numbers :
Amount invested - $9000 ($4500 each)
Profit from rental - $14000 ($7000 each)
Profit at sale - $41000
Total amount profit - $55000 on a $9000 investment.
Not too bad. These deals exist all over the place. You can find them too. I am nobody special. I am not some “real estate guru” or something. I am just a person that decided to take action.
Get out there and find those deals!!!
Re: A word of encouragement - Posted by JPiper
Posted by JPiper on February 09, 2001 at 13:12:47:
Nice deal Tim. Impressive numbers. Hope you considered a 1031 exchange.
JPiper
Why sell? - Posted by Dave (CA)
Posted by Dave (CA) on February 09, 2001 at 11:09:48:
Tim, great job and thanks for sharing. Just curious why you decided to sell. Dave
Class Act… - Posted by JHyre in Ohio
Posted by JHyre in Ohio on February 09, 2001 at 10:24:32:
Great example, thanks for the details- that’s ALWAYS encouraging! Nice to see good things happen to good people, hope you’ve more such deals in the works.
John Hyre
Re: A word of encouragement - Posted by Stacy (AZ)
Posted by Stacy (AZ) on February 09, 2001 at 10:22:11:
Nice, Tim. Strictly speaking of cash-on-cash return, it looks like about 200% annual, not including taxes. Hmmm…a little better than a CD at the bank.
Stacy
Re: Why sell? - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on February 09, 2001 at 11:54:26:
Oh yes, I forgot to mention. These particular townhomes are located in a community that has an association that provides water and sewer along with the other usual services like lawn maintenance and trash pickup. Due to poor management by the association, and poor plumbing on the property, there have been a large number of water leaks. This has led to high water bills for the association. The association charges each unit a flat amount every month. They have not been able to keep up with the water bill. They are now over $15000 behind. Up until now I and some other investors have been helping with the water bill to keep it from being turned off. The homeowners in the association have made it abundantly clear that they believe the landlords are the reason for their community problems. So I have decided to take my profit now and purchase other townhomes or houses in my area.
The lesson to learn here is to thoroughly check out an association before you buy in. In my case it worked out well, but that may not happen the next time.
Re: Class Act… - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on February 09, 2001 at 12:00:05:
Well now, I might be getting into more mobile home note deals…
Maybe I could buy a few repos from Greenpoint???
Maybe somebody I know has a good contact that could lead me to some great opportunities with mobile homes???
Hmmmmm… I wonder who that could be…
Tim Masters