Posted by ditdoe on January 28, 2000 at 09:16:05:
It’s always great to hear success stories. Congrats on your first and I’m sure not your last purchase.
I’m a newbie myself and sort of fumbling through trying to make my first deal happen. I would love to pick yours or your mentors brain so very soon I can join the ranks of having RE success!!
Any help would be greatly appreciated.
Ditdoe
Our First Deal!!! - Posted by Kathie E.
Posted by Kathie E. on January 23, 2000 at 18:36:11:
Finally, folks! We’ve DONE it!!! After many hours reading the posts on this website and finding a mentor that offered to let us pick his brain for FREE and the promise of our testimonials for his new business, we have “arrived”!!!
Our first deal is closing in a week…we purchased two rented singles for 70% of FMV, no money down, borrowing 90% of appraised value, getting cash back at closing and the seller is paying all closing costs. We are being PAID to purchase these two properties and they are already rented with long-term tenants that we’ve met and think are wonderful! The rent pays the mortgage and gives us $200 in positive cash flow each month also! Through creative financing, a seasoned broker and a seller who is motivated to liquidate his rentals to start his own construction business, we were able to pull this off and are anxious to purchase more! It helps that we could leave our OWN home’s equity alone and know that it will be paid for in 5 years without borrowing against it and raising our current payment as well. It’s really exciting and we’ve appreciated all of the advice and expertise we’ve gained from this site.
It’s been invaluable to us!
Thank you all and good investing to you!
Kathie E.
Re: Our First Deal!!! - Posted by steve
Posted by steve on January 29, 2000 at 10:52:06:
Hi Kathie,
Wow congrat. That’s seems so simple. It must have been very exciting experience to get both of those properties.
Kathy, I am a beginner, both to this investment business and to this web site. I am wondering if you could explain by “borrowing 90%”. Do you mean a mortgage? How did you get a mortgage for this?
I thought the broker needs to know, whether you put any money down or not. At least everytime I ask a broker for a mortgage, he said how much money coming out of my pocket. When I told him, I tried to buy no money down, he said it may not get approved, because no one would give me a loan if there’s no money coming out of my pocket. Could you explain? Thanks.
regards,
Steve
Re: Our First Deal!!! - Posted by Frank
Posted by Frank on January 24, 2000 at 20:51:57:
Congrats on your first deal! Can you let us know what major city/area you bought these properties? For those of us like me living in extremely high priced markets, I’m curious to know what other investors find in their area.
Re: Our First Deal!!! - Posted by Lance
Posted by Lance on January 23, 2000 at 21:18:00:
Congradulations!! to kathie to a job well done. Keep it up and hope to hear from you in the future.
LANCE
Re: Our First Deal!!! - Posted by Kathie E.
Posted by Kathie E. on January 23, 2000 at 22:15:44:
Thanks, Lance!
The key was finding the BROKER. He “peddles” properties for friends and business associates running newspaper ads for “no money down” deals and then MAKES them happen! With his contacts and 16 years experience in all areas of REI and creative financing, I think that we were lucky to make his acquaintance! The mentor that contacted us has also been a real GEM to know and his wealth of advice has prevented us from making deals that were NOT in our best interest as newbies. We’ve been given his “thumbs-up” on this initial deal and, again, are incredibly excited!
As a footnote for anyone who is thinking that they can’t make this work for themselves, I am a stay-at-home mom, therefore, my husband’s credit and income are all that we have in our ventures. While shopping for different types of equity loans and refi’s on our current home, we failed to prevent all of the brokers and lending institutions from pulling a credit report on my husband each and every time that we applied while shopping around. This resulted in my husband’s Beacon score dropping significantly (to 580) in the last 6 months. When we realized how severely the inquiries had affected his score, we were convinced that we’d have to wait until it rose or a miracle happened for us. The broker we are using now has made it HAPPEN, so don’t get discouraged by anything!!!
Thanks again for the congrats, Lance. :)))
Kathie E.