Posted by RMW(FL) on October 20, 2005 at 16:09:24:
Good luck with Wilma…I hope she DROWNS in the Gulf.
First year recap - Posted by SteveA (FL)
Posted by SteveA (FL) on October 20, 2005 at 11:40:11:
It?s been 12 months since I bought my first property. To date, I?ve profited a little over $5,000. Woo hoo! Boy have I learned a lot in a year.
Lesson #1: It takes time to build your empire, so I discovered. I?ve actually worked 5 deals in the past 12 months. It?s just that I?ve only sold one. Now that the ball is rolling?I should be selling two of those by the Spring, netting well over $100,000.
Lesson #2: The people on this site that tell you you had better have a plan before buying a property? They?re 100% correct. I?ve gone at it being half organized, and half by the seat of my pants. It?s very stressful, not to mention you can run out of money. I haven?t, but I?m getting close. I?ll most likely make it through my current properties, but not by much. I?m in the process of becoming 100% ?planned? and organized now.
Lesson #3: I once asked an extremely successful guru who does rehabs, ?Should I do the work myself or not?? The reply was an emphatic ?WRITE THE CHECK!? I decided to take half of her advice and do the rehab work on my first flip myself, just for the experience. 9 months and many weekends later?..I sold it for much less profit than I had originally planned. I haven?t lifted a hammer or a paintbrush since. (I miss it, but it?s not worth my time.)
Lesson #4: Realtors can be extremely helpful and I have a great one, but they?re not right 100% of the time. The actual sale price seems to always be lower than what the predicted sale price was when I was considering buying a property.
I?m enjoying this tremendously. Some days, I hate it. Most days, I love it. Today, my handyman called me with a $4,700 estimate on new cabinets that I hadn?t decided if I was going to replace yet. So he tells me he?s already ripped out the old ones. I just chuckled (to myself). Chalk it up to more experience. He?s a great handyman and I?ll continue to use him, but now I know what to watch out for next time.
I can?t wait for the day that I have the cash reserves to move quicker and not need partners. It?s not too far off. Don?t even get me started on the day I can do this full time.
Thanks to all for the advice over the past 12 months and thanks in advance for the advice I?ll be asking for in the next 12 months!
Property 1 rental worth $28K more than I paid 12 months ago
Property 2 rehab condo: made $15K split 3 ways
Property 3 rehab condo: should make $30K split 2 ways
Property 4 new const will close at $136K; should sell for $160K
Property 5 rehab house; REO for $235K; $25K rehab: sell for $380K
Signed,
Somewhere in the path of Wilma