As I look Forward… - Posted by HR
Posted by HR on January 23, 2001 at 18:17:27:
Geez… I already owe you a brewery; what are you shooting for? The entire city of Milwaukee? (lol). Flattery will get you everywhere, buddy…
Phil, I hope you and the other seasoned pros get as much pleasure out of giving others info and watching them succeed as we do getting the information and enjoying the success.
Let me give you one, little example that I know you were witness to.
Last year at the convention, I had a lot of fun pickin’ Piper’s brain about low income rental property. I hadn’t realized this was one of his specialties (what isn’t?) and it was an area I was willing to experiment with. Well, after talking with Jim, I came back and bought a cheap inner-city fire damaged property for 2k, fixed for 18k, and now rent section 8 for $750/month. It appraised for 68k! It’s a 5 bedroom single that’s 1800sf.
This week, we finish renovating my first owner finance deal. I gave the owners 3k at closing, and I owe them another 2k June 1, 2001. I then owe them $1750 each June 1 during 2002, 2003, 2004, and 2005. Then I own it free and clear. That’s a 12k loan, no interest, one annual payment with little down. I’ll have it rented by the convention for $850/month section 8. Yummy.
This month alone, we’ve picked up another two 4 bedroom homes for about 30k, a 4 plex for 2k, and a 4&5 bedroom duplex for 6k. When we finish these deals by the summer and refi them with a small, local bank for no money down deals (Thanks Ed & Terry!), we will net 3k/ month +cf and have over 200k in equity in these properties.
Now, how much was that little conversation with Jim worth? At least a steak in Atlanta, right? (Geez, I’m gonna have to sell one of these homes I owe so many folks so many beers and steaks. And you know what? It’s worth every dime!)
I agree with David: the grass has not always been green. Remember that big, beautiful rehab I started working on for my family? Well, we are still working on it. My costs to finish were off by about 40k, which meant I had to do some other rehabs to generate the needed money. No problem. Just a delay plus some lessons learned. But it’s not without struggle (is anything worthwhile?).
I’m really looking forward to Atlanta to see all my rei buddies. If I’m lucky, I might even catch a presentation this year!
Thanks for the kind words. Truly, if it weren’t for the people and information here, and the constant support, my re career would have been far less profitable.