Real Estate Investing Testimonials

We found a triplex, 115 K**** in Port Colborne, asking price $49,800. It was described as in need of finishing of the upper 3-bedroom apartment. At the showing we saw that the whole upstairs was almost empty with bare- see through walls. We asked a contractor to look at it and he estimated we needed 60,000 to fix it up and make the place a four-plex. We offered 35,000 on June 15. After some offers back we got 41,000 accepted on June 21.  We got a 1st mortgage for 30,000 approximately from the National Bank and a second from a private lender. In total 100 % financing.  In the time we closed one of the tenants moved out and we still have to find somebody else.  We have payments of 253.44 per month for the first mortgage and $175 for the second.  Rents are $500 including bills and $560 including bills (this is the vacant one) so the cash flow at the moment is not too high but there is potential for the future.

Then we found 2 small houses; 201 and 201 A M*****.  (It is a) Power of sale. Both vacant. One is a 3-bedroom and a 2-bedroom. The 3-bedroom is nice and ready for occupancy, the 2-bedroom is small and needs some work or we can rent it out cheap to somebody who doesn't care too much about that.  The asking price was 70,000. We started offering 35,000 and after some negotiating back and forth we got them for 45,000.  We financed these privately through Barry Mills again for 100 %.  We can rent them out for $580 and $380 probably. (We still have to find renters but I think we have two interested)


In between we've got a few other offers on a triplex in Fort Erie and a house in K**** accepted but we rejected them later after further inspection.

We are waiting for a third mortgage on 300 K***, Welland, and then this one will close too. This is a 21 plex (small apartments, it is a former hotel) with a bar and a restaurant on the main floor (was a nightclub). We offered $230,000. This was the asking price. Barry M had the whole financing almost in place for us before we even knew about this.  We have to fill a few more rooms and the two downstairs bar and restaurant but then there will be a very good cash flow here.

Barry is also working on a commercial building what will be renovated into a 21plex for us in downtown St. Catherine’s.  And there is another building we are interested in St. Catherine’s what will be an 8-plex.

In the mean time our Niagara-on-the-Lake property is getting really nice with new roof, windows, bathroom, kitchen etc. We've got the renovation money through Barry as an extra loan on our business building (which is still not sold!)

Greetings,

- André and Angelieke V. Vineland, ONT

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I don't know where to begin.  It has taken me too long to send in a story about the success I am having.  I’m in the real estate game as it is, but my main goal in seeking out a mentoring program was to learn all the little things I didn't know.  My main focus as of late has been flipping properties.  My first property was purchased for $177,000.  We had to do traditional financing which took some time, but it all worked out well.  This first property is almost ready to be listed.  We have gutted the whole house and are just waiting for the new carpet to arrive.  The last step will be to have the landscapers give the exterior some much needed curb appeal.  I have been talking with realtors that know the area about what they think it will be worth when completed.  Their ideas are right in line with mine.  I am going to list it for $269,000.  I think we will be satisfied as long as we get $255,000.  The market is hot, and since we bought the property the value has gone up $20,000 from what we thought we could get originally.  So with all of the costs aside (fix ups, realtor fees, taxes, etc.) we look to take home at least $45,000 on this one!  Not bad for a first try.

 

We are closing on our second property tomorrow at 1 p.m. The purchase price is $240,000 and I have found a private money lender that will lend us the money for 4 points with no interest and no payments. This will be a few thousand more than going traditional, but it has allowed us to close quickly, and it won't be on our credit.  This house is in the middle of Holladay, and it is such a desirable area right now.  We plan to have this one done by the end of the year, and ready for sale by January.  This area is so hot, that offers continued to come in well after the contract had been accepted.  We have already had interested buyers trying to get our contact information form the seller's agent to find out when the property will be renovated and how much will it be.  That's always a good sign.  The thing I learned from this deal is to always be ready to write an offer.  You have to look for good deals everyday because they are all around you.  Anyway, this one looks to be another $40,000-50,000 deal when it's all said and done.  The goal is to just keep them coming.  We plan to do at least 6 of these throughout the next calendar year.  It is excited to see the progress that is being made.  I'll let you know what we end up getting form the sale of our first property.  Thanks for the help and instruction.

 

Sincerely,

- Andrew K. South Jordan, UT

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Since we won't be meeting for another 2 weeks, I just thought I would update you on what I have been up to since we last spoke on Tuesday.

 

The 2 point lots on the golf course of Shannon Country Club that are listed for $30K each, I offered $20K each (gross) and the offer was accepted!!  I signed the purchase/sale agreement yesterday.  How about that???!!!  I got comparatives from my agent on these lots and the last lot sold in this sub division was sold for $60K and they are now appraised at $75K!

 

I'm not done yet! The other property that you viewed on the website, located in Fortune Point that's listed for $45K, I offered $35K (net). (These lots are now going for anywhere between $75K and $100K!)  I also signed a purchase /sale agreement for this lot.

 

Do the math....these two deals will net me a gain of $175K!

 

I had a discussion with the Project Manager of the Development Company yesterday and he confirmed that the Marriott people will be developing this area (Fortune / Shannon) within the next 18 months and property values will sky rocket.  He also said that the waterfront lot that I am now holding is strategic to their development and in every likelihood they will offer to purchase.  So I'll just sit tight on this lot and wait for them to make their move. I bought it last year for $100K and, as we speak, it is valued at $300K, with the value appreciating commensurately with the approaching of the Marriott project.

I have my eye on a few other deals; I will discuss them with you in our next meeting.

 

Have a safe and blessed week end.

- Prudence M. Fort Lauderdale, FL

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Well we are finally prospering (ha-ha get it??). So, these are the houses that we have bid on. 1 house we close on the first week of January, 1 we were out bid by about $1000 and one we find out if our contingencies are agreed upon.

 

The first house we got is close to a popular University. Listing price is $212,900 we put in the bid for $215,000. In the contract we put in the seller pays $6450 for the buyers closing costs and to pay for the one year AHS warranty.  We put down $500 for earnest money. The appraisal comes in today that was done on Monday. The CMAs on that is $275,000 and $289,000 and it was just appraised at $237,000. We think we will be able to sell it for just under $300,000.  As I mentioned before this house closes on the first week of January.

 

The second house we bid for is in an upper middle class neighborhood. The listing price was $399,000 we put the bid in for $410,000.  In the contract we put down the seller pays $12,300 towards buyers closing costs. Seller to provide one year AHS Home Warranty to buyers. Again, we put down $500 for earnest money. The comps in the area range from $525,000 to $600,000. The unfortunate part for us is that we lost the bid to a soldier that just came back from Iraq. He wrote the owners a "sympathy letter" which was fortunate for him that the owners picked him over us (the heartless investors just trying to make a buck).

 

As that door closed another opened up. Our third bid in another upper middle class neighborhood. This neighborhood it is hard to get comps for because NO ONE leaves. However, a smaller house in the same neighborhood with a smaller lot without the extra amenities (i.e. the pool, koi pond, 4 season room with the Jacuzzi) is on the market for $475,000. It is behind the best school in Virginia Beach; everyone who lives there is retired military and once in no one sells. So, we found this house on 1/2 an acre, with an in ground pool, koi pond, 4 season room with a Jacuzzi, lots of open space. The selling price is $390,000; our bid is for $438,000. In the contract we put down the seller pays $13,000 towards buyers closing costs and to provide a one year AHS with an addendum and contingencies.

 

The Contingencies are: Purchase agreement contingent on property appraising for at least $438,000.  If appraisal is less than $438,000 buyer has at her option the right to void contract and be refunded the deposit.  We added the seller reserves the right to rent back for up to 15 days at a rate of $90/day-will sign seller possession agreement. (They changed the 15 days to 30 days)

The Addendum to purchase is written: Seller to pay $40,000 towards repairs to include: new siding and trim, new garage door, refinish hardwood floors throughout, new carpet, remodeling of master bath and kitchen counter. Contractor to be chosen by buyer who will have contractor to start repairs after closing date. Work to be paid for with funds that are in excess from the appraised price and $385,000.

 

They added to the addendum: Appraisal will be ordered and completed within 10 days of ratification of this contract. If not delivered to lender and information release to selling agent, seller can at that time, at sellers option void the contract.

The seller has been nit-picking thru the contract so we are waiting to see if that has gone through.  We will find out as well about if they accept our offer.  Once we get a more accurate CMA for this home we think we can sell for at least $500,000 to $520,000.

 

The last thing I wanted to mention is networking how it really works. Lisa and I went to this place called Home-A-Rama which is a new development that is open to the public for a fee. There are about 20 different houses that you can look thru. Most people go thru the homes to get ideas on decorating and some actually buy the house. This year the homes ranged from $250,000 to $600,000. Vendors who worked on the homes have a kiosk or a spot for people who wish to purchase their product or ask questions. For us it was to look at the homes and network with loan officers and get information on hard money lending.

 

Well, we came upon a mortgage company and briefly talk to this guy and tell him what we are doing and we are new in the business and looking for alternative means for money since we figured all of our credit was shot. He took down our names and we left.

 

A few weeks later we get a call from the same company but a different guy. Jason is not only a loan broker but an investor as well. I briefly talk to him and tell him that I need to speak to my partners. Well, I am excited at this point. We finally found someone who will (take us by the hand and tell us what we are doing wrong and will help us). I talk to Lisa (Ayanna was away on business) and we make an appointment with him. Ayanna's first day back and I go and see him and have Lisa on conference call. So, he physically shows us his most recent transactions and tells us how he does it. Both Ayanna and my eyes lit up. To see $30,000 on one deal and $40,000 on another. So, we have a few more meetings with him. It is a win-win situation for all of us. He gets our business and we get the help that we need. So, one of us was able to get not only one loan but two thru his creative financing while the other 2 are working to get our credit scores up for another loan or 2,3 or 4. Jason has also introduced us to his realtor Holly who has been phenomenal in finding these great deals for us. As a business we have $653,000 of contracts on the line. This has only been in the last month or month in a half since we met Jason and Holly and it has only been 3 weeks since we have started putting these offers in.

 

As I ended our conversation last night I will end this letter in the same way.......HOLY CRAP!!!  I can't believe all that has been accomplished in such a short amount of time!!! As Lisa says, "I smell something and it is green!!"

 

Best Regards,

- Janine C., Lisa & Ayanna Norfolk, VA

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Opportunity knocks next door!

 

With every coaching session my husband and I have felt more fired up to get out there and start making offers! In fact, I do believe it was our 3rd coaching session that I felt compelled to blurt out the question to our coach “What if we see an opportunity in our own neighborhood?”  We were encouraged to do the math and see if this house next door would be a worthy investment. The house was over 120 days on market, and the owner was building a new home out of state, we knew he was desperate for a sale so, we shot him a below market offer and he accepted!  With a few minor improvements we expect to put this back on the market by end of January to reap a hearty profit!

 

While our heads were still reeling from our quick success of the first offer we get a call from our realtor to hear that a second offer had been accepted as well!  A quaint starter home in a Hot Property neighborhood and the comparables are already $40-50k higher than our purchase price!  With a maximum improvement budget of $5k this house will also be back on the market within the month.  We feel confident that both of these opportunities are sound and we may profit as much as $100k in the next 60 days!

- Jeff & Sherri L. Carol Stream, IL

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Gerald and I started with Prosper in October of 2005, and we will be one third of the way to our goal to be out of debt.  We have had a rough time for a few years, but we are now on our way to success.

 

We plan to be completely out of debt in 5 to 6 years.  We bought our 1st home in January for $133,000 dollars and plan on sell the home for $160,000 with a profit of $27,000 dollars. We are planning on selling the home before our first payment is due.

 

We would not have been able to do this with out all the support and help from our coach and everyone else with prosper.

 

We are learning how to save on our taxes and how to run a small business at home. We want to make this a family business so our kids and grand kids can have a better chance in life.

 

We still have a lot to learn but we have the support there for us 24/7. We will get better as we grow with out company and with Prosper. We thank GOD everyday for sending Prosper to us. We are now on the road to success for all time.

- Nancy & Gerald I. Colorado Springs, CO

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It has been such a pleasure working with you. Thank you for all your continued support. The following is the details of "My First Real Estate Deal" by Jessica D:

 

The property on S**** R*** Street in Oakland, CA is a four unit building of approximately 3200sq.ft. It was originally listed at 805k. They had been in contract I believe twice and had the buyers pull out for various reasons. They re-listed it at 775k. We offered (myself along with Kale's help) 750k with a 21 day close and the only contingency being upon inspection. In hind sight I wish we would have had a finance contingency being as how we are now cutting it close. Kale offered to put up a deposit to make our offer sound better. It consisted of 8k up front and then an additional 12k two weeks later. All of this would be paid back with the 3% due back at signing from the sellers.

 

They counter offered at 755k and agreed to the 3% back. We accepted the counter. They then claimed to have a last minute offer come in the door from another seller (of course, let the roller coaster continue). They then came back and asked us for $756,650. I got mad at this point that they were nickel and diming and stayed firm with the 755k offer, take it or leave it! The agents agreed to credit 2k each back to the seller and we all agreed on the 755k from me, and the rest is almost about to be history I hope!

 

Let me know if you need any further details!

 

Thanks again,

- Jessica D. Oakland, CA

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Thanks for the lesson today.  I am excited that I got my first Home tied up with a Lease Option.  Here's how the negotiations went!!

 

The seller was very firm on the price because of all the fix-up work that they did.

The house appraises at $125,000, is a 3 Bedroom 2 Full Bath home built in 1954, but has a complete new kitchen with new cabinets counter tops and tiled floor.  Both of the bathrooms have been remodeled, and also comes with all appliances.  The last renter just moved out and was paying $925 per month in rent.

 

When we first talked he wanted to lease option for $1000 option fee, and payments of $1,050 per month. I thought about it, and came back with a counter offer to buy the property for the full price instead if he would be flexible on the terms, since he was very firm on the price.  He agreed to accept $3000.00 down with a seller wrap around mortgage to cover the remainder of the price at 7.125% interest, 30 years to make payments at $801.73 per month, and a payout at the end for the remaining balance in two years.  I told him that the $3000 would cover any money that he would get from lease optioning it, and that I would still have a positive cash flow of about $100 per month if I was to rent it.

 

He went to his lawyer, and was told that the deal was too risky if I wasn't going to make payments, then they would have to face foreclosure, so they came back with a counter offer using the same numbers, only binding it into a lease option for two years instead of a sales contract.

 

My plan is to Lease Option it back out for a $3000 option fee to be applied to the down payment in one year. The rent will be at $895 per month with a $100 per month charge for the option going towards the down payment.  I will then sell the option in one year for $135,000 instead of two years while still receiving $194 per month in rent and option payments.  Total profits will be $2,328 from rent and option payments, and $10,000 from the option sale at the end of one year of $12,328 minus $4,200 option payments made by new tenant for a total profit of $8,128 minus closing costs at the end.

 

Thanks for your help!  It's amazing what you can do with a little creativity.

I made the mistake of not getting an option to renew my option, but don't believe that they would go for that anyway.

 

Let's go find some more properties!!

- Kenny I. Louisville, KY

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Here are the details of my first purchase:

 

I had hooked up with an investing group mid January out of Keller Williams Real Estate here in South Denver.  We looked at about 12-13 properties on Sunday, 1/29.  One in particular stood out and the next evening, I signed a contract.  The house appraised at $215,000 and on Tuesday, they accepted my offer of $206,500.  This is a lower-end home in a higher end neighborhood, with a home three door down recently selling for $280,000; by the same agent I am working with. 

 

The house is a tri-level w/ partially finished basement, for a total of 1924 sq ft.  Last week, we had it inspected and with the exception of two details, which should be fixed by the current owners, all passed with flying colors.  I am scheduled to close on 2/22.  After some landscaping work and some minor touch-ups inside, my goal is to rent it out to a military family.  It is close to Buckley Air Force Base and is in the Cherry Creek School District, which are huge selling points for the area. 

 

Will let you know how that goes. . .

 

Thanks,

- Zach L. Parker, CO

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It's been awhile since I have talked with you, so I thought I would give you an update on what I have been up to.  My dad and I purchased a condo (2BD 1BA) near my house for about $80,000 - $90,000 below market value.  It was very disgusting and hard to imagine anyone could live in it.  My dad came to me and asked if I would be interested in purchasing it with him and I told him I was extremely interested.  The owner was asking $300,000 but my dad was going to start of by offering him $285,000.  I talked with my dad and told him he should offer even less because it is better to start lower then work up high than to start off high and work it up even higher.  I thoughtthat considering the shape it was in $275,000 was more reasonable.  So, my dad met with the seller and offered him $270,000 and the seller countered with $280,000 then my dad countered with $275,000 and he took the offer.  I was and still am very excited about the deal.  The seller was told by the agent that if he wanted more money for it she could still put it on the MLS and he could get up to $300,000 but he refused because he didn't want to have a bunch of people looking at his home.  Escrow closed on the 26th of January, one day later and the bank would have had it.  It has come along way in only a month and it has been such a learning experience already.  All of my friends thought and probably still do think I am nuts for buying something as nasty as I have but it has already come a long ways.  It is financed in my name as owner occupied in order to get the better interest rate but my dad owns 75% and I own 25%.  We are going to get it fixed up then rent it for at least a year because sometime within the year the HOA is suppose to repaint the condos, which will hopefully only increase the value even more.  The income from the rent will just about cover the mortgage and the HOA Fees, so it will cost my dad and I very little each month when it is rented.

I am also still trying to buy something in Texas.  Robert form Staggs that you recommended is awesome and just a wealth of information.  He is going to finance a four-plex when I find one.  Hopefully, I will find something that makes sense soon.  I had originally planned to go to Texas in January but because of buying the condo and my fiancé's father passing away it has been chaotic the last couple of months.   But I am anxious to make another deal and learn even more.

I just wanted to thank you for all that you have taught me.  I know that I haven't taken advantage of the program as much as I would have liked to with my fiancé’s father getting cancer and then passing away but being able to talk to someone who does it for a living like you makes the program all worth while.  As much as I like to read real estate investing booking, being able to talk to someone who does it for a living and to actually go through the experience is so much more exciting.  I hope to have an offer for you to approve in another month when I purchase a property in Texas.

Thanks again,

- Amber H. Fullerton, CA

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In the two months that I have been involved with EMI I have learned a wealth of information, and am well on my way to building a portfolio.  I have looked at dozens of properties, and made 8 offers on properties ranging from 2 bed 1 bath houses to 4 bed 2 bath houses.  Some have been rejected out of hand, and others have come close to being accepted. If nothing else, I have learned that in order to get a good deal, you have to make a lot of offers, the training materials say to expect one deal out of 12 or 13 offers.

 

My latest offer is a 3 bed 2 bath home that has a large office/den that only needs a closet to become a 4th bed.  The owner was asking $250,000 and told me he would be willing to replace the washer /dryer and the stove if someone would purchase his house.  The appliances are in good shape but are "used".  The only other problem with the house is that it has limited street access on a busy street.

 

I offered $230,000 with the appliance replacement, figuring I could put in a closet for little if anything, and contacted an asphalt company and found it would only cost about $1,000 to turn the driveway into a "u" shaped driveway, vastly improving access to the property.  I have a 2 bed one bath house within 1.5 miles of this home and it was recently appraised at $230,000. So I figure my offer was pretty good.

 

While we were in our coaching session tonight he counter offered $232,000 with a $2,000 allowance for new appliances.  I am going to get back to him and offer $230,000 and drop the appliance replacement.  I am pretty sure that this deal is going to get closed on pretty quickly, as we are not far apart.  Similar homes in the area, (4 bed 2 bath) approx 1300 square feet, have recently sold in the $260,000 to $270,000 range.  Even if I put $5,000 into the house I stand to look at about a $30,000 profit.  That is not too bad of return for 10 to 15 hours a week for two months

 

Well, gotta go make that counter-counter offer, keep your fingers crossed for me, and next week I'll let you know what happened.

 

P.S.  "Who's better than you are?"...... NOBODY!!

- Larry T. Tukwilla, WA

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Wow, well my husband Paul and I have learned so much since starting on this program. Our coach has taught us both a lot. We live in Australia and since commencing the program we have traveled to the United States and spent one month in Fort Worth. While there we familiarized ourselves with the area and put together our success team. We left home for Australia with 1 property under contract and another has just been accepted. We plan to continue acquiring property in the U.S, from Australia which will be made possible with the help of our success team.

 

During the program we have learned many different ways to source properties, how to properly analyze a property and how to effectively network and how to get the best from our success team. Our coach’s experience and expertise we have found invaluable and has provided us with many new ways of sourcing contacts from various professions. We have learned so much, I don't think I could remember everything, but there has been a lot! The manuals and on line resources combined with regular personalized coaching. We feel that 1 to 1 coaching is fantastic as you can ask questions and get honest, to the point answers, and anything that can't be answered immediately our coach finds the answer for us before our next session. I'm not sure, your system is great!

- Angel G. Kawana Island, Queensland, AUS

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We have a property under contract with a mobile on it for 120,000. We will move the mobile and rent it out for $1200-1500 per month. This will pay for our mortgage on the land and we are moving our present home onto the new land.

After our new home is on the land the value will increase again. Real Estate Agent quoted $250,000 after a one car garage is built. Our current home has a 60,000 mortgage on it. We will have a rental, land and home for under 200,000.

 

Since we talked the bank is waffling on a mortgage deal because of the age of the trailer on the land. We may only be able to get a 10 year mortgage. We can still manage this, although it will be tighter.

 

I have had another interested investor within my family approach me since we talked. Another one with the financing ability.

 

Thank you,

- Melanie B. Edson, AB

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Loretta and I just wanted to let you know how much you have helped us in the process of purchasing our first property after becoming students of Prosper Learning.  The seller on this property didn’t seem to be very flexible in the beginning, however as you advised we included some negotiable items in the initial offer.  The sellers counter offer was not very pleasing to us, but our buyer’s agent with whom we did not sign a contract went to work for us and convinced the seller and his agent that our offer was solid.  We are closing this deal in just over a week with the end result being that we will use our existing townhouse as our first rental property with a $230.00 a month positive cash flow.

- John & Loretta W. Fogelsville, PA

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It has been ages and I feel I have been very slack in catching up with you and the program. I have achieved a lot and am now at the point where I need to find the way no money down works here - it is different from the USA.

This is my situation so far. Last year in June I bought an apartment for £228,000 spent fees and building works to around £249000 and it is currently worth £285,000 and I have had tenants in it since last Sept. So my first success.

Then I bought another which took ages to complete - just this week. It was bought for £197,000 and I will spend max £10,000 on it and then put it on the market in 3 weeks time. I hope to sell it for £248,000.

Then I bought another with a friend and it is about to complete on March 31st. We bought it for £310,000 and are spending £30,000 max on it and then living in it for about a year and a half and then renting it out. It's a 3 bed huge apartment by London standards and very lovely. It was  real deal at the time and should have been selling for about £340,000 and it will be worth £390,000 when we do it up.

Then finally I put an offer in on another which is great and a repossession with the same friend I'm moving in with - but we don't know whether the offer has been accepted yet. The banks are taking their time.

So at the beginning of May I will be moving and renting my own place out - that’s 5 properties including the one I don't know if the offer was accepted.

Thanks to you and the program I am really blasting forward. I have always put down 15% as that is the norm here. But now I need to get into the no money down idea and am a little rusty.

Amazing eh? I'm doing really well. Hope you are too.

All the best,

- Sally H. London, UK

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Patience Helps First Investment Property Materialize, and then RE-Materialize!!!

 

After putting offers in on five homes I finally had one accepted. Although this home is not in my “Target” area, based on comps.  Watching the market, this is definitely a good investment neighborhood. It’s a four-bedroom home on 1.1 acres with a fantastic running brook that borders the property. Don’t worry I didn’t fall in love with the home – just the deal. I estimate this home needs approximately $20,000.00 in updates.  It was used as a summer home for a couple that lived in NYC and only came up on weekends. This house was listed back in August of 2005 and even in a very strong market it was grossly overpriced at $329,000.00 considering the updating it needs, when I found this home it was down at $275,000.00. With the owner already dropping the price $54,000.00 I knew there probably wouldn’t be much room for negotiating but I gave it my best shot. Based on the formulas we were taught I should not have offered more than $261,000.00. I took into consideration the fact that I would be doing about 50% of the rehab myself and paying to have the other 50% done. So I placed an offer of $260,000.00 only to find out about a week later (they were very slow) that they had an accepted offer in place. This house was a perfect rehab home because it really didn’t need any major repairs or structural work, just mostly cosmetics and a kitchen. Oh well, there goes another one I said, but patience has always worked for me and once again it paid off. About four weeks later my realtor informed me that that house I really wanted was back on the market- the deal fell. So I sent back my offer of $260,000.00- No good! She’s holding strong at $270,000.00. I went to $265,000.00 and tried to get the realtors to kick in a couple of grand each. Yeah Right! I tried- I ended up at $267,000.00 and she accepted. The funny thing is that there was still yet a better dollar offer on the table but they had what I like to call “Baggage”, they had to sell their home, and me who never goes on vacation, has no baggage (a little New York humor- sorry). So the owner sacrificed probably a grand or two for a much stronger deal-A quick closing.

I secured an 80-20% loan for the mortgage and while we’re waiting for the closing date I opened a Home Equity Line of Credit to cover the closing costs and the updating. I expect this home to be back on the market within two months and based on comps. For the area this should bring me a sale price of $340,000.00 to $350,000.00.

 

I have a long way to go to becoming a professional investor in my eyes but the knowledge I’ve gained by taking Dolf's course and working with my mentor have already propelled me to a much higher level then I could ever have expected in 14 weeks. Thanks Coach, more stories to come- I promise you.

- Jack O. Westtown, NY

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Coaching Students Excels And Becomes Teacher In Her Own Right!

 

Yes my deals are getting better and better – and you can put that info up so far but I used my coach’s contact over here and have now found a way of going further – 8 properties all together – went in with a friend on the last 4. The contact my coach gave me does fast mortgages on buy-to-let properties so I am not selling anything and am now taking out equity and using this as down payments (15% here in the UK) to get more properties. I definitely have an eye for deals and have a great team of builders, solicitors, mortgage brokers, suppliers – all great men who love the way I pay well, on time and give them so many ideas they are now considering doing it themselves. I also engaged my dentist in the property game and I am his coach!

I have given up my job as photographer to be a property developer and will be doing photography as a passion and art – no longer as a job.

And My Yoga Holiday Company has increased its volume and is really doing well. I can now go to Chateau’s and Villas in Europe with fantastic teachers and live the life I want. Finally, I have to say I can have a child and am trying now to get pregnant, knowing I can afford the lifestyle and be at home for that child – because my business is creative. I don’t have a man so this is via donor insemination – and though I imagine my man will turn up soon, in the meantime I am making sure I will be a mother.

I feel I have been negligent about contacting the Enlightened Millionaire team to tell them how well it has been going, partly due to the conversion into dollars – but I will do that as well and I estimate I am now a millionaire on paper, soon to be a 1.5 million pounds sterling and that in US dollars is approximately 2.5 million dollars. Wow!

I have also sponsored a child, given to cancer charity, spent a lot of time on a house-bound friend’s mother (doing shopping etc) and generally become a much more abundant person.

All the best,

- Sally G. London, UK

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Cash Flow Made Possible From A Little Help From Above

 

In September 2005 I began looking for my first investment property. My goal was to find a home, purchase it, and lease it out with the option to purchase. With my list narrowed to ten I made an offer on a home that was listed for $254,900. My offer was for $250,000 and Seller pay closing costs. The offer they accepted was full asking price of $254,900 and they would pay half the closing costs.  I closed in Oct. 3 and the first mortgage payment wasn’t due until December 1. That left me plenty of time to find a renter.

 

With a mortgage payment of $1500, the rent I was looking to get was $1650. After almost a month of running a few rental ads online, in the newspapers and a few interested people that told me they couldn’t afford it; I was starting to worry that the rent was too high. Then a family looked at the home and they wanted to rent for a couple of months while their home was renovated. Since the rental was short term and after learning that the tenant would be running a daycare out of the home I raised the rent to $1850. They signed a two month rental contract for $1850 per month (insurance was making the payments) and $2000 deposit.

 

During the first month they were renting the tenant had hold me their home that was being renovated had burned down and they needed to stay longer. In January they signed a rental contract for $1850 per month until the end of May. And will then do a month-to-month contract until their new home being built was finished or July at the latest.

 

- Jason S. Cottage Grove, MN

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Well, I went with my realtor to look at a house last Wednesday.  When we arrived, there was another couple taking a look at the house too.  The owner showed up soon after us to show them around.  The house is completely remodeled; the owner buys low, fixes up and sells.  The house was still priced below market value (Worth 60K, priced at 54.9K).  As I was looking the house over and talking with the other couple that was there, I found out that they were looking to rent it!  I couldn't believe it; I had the owner to negotiate a price with, and potential renters willing to pay enough rent to make the property cash flow.  I was able to determine that the owner would be a little flexible because the house hadn't sold yet and he was trying to rent it out to cover his expenses.  I could get it below value and have renters willing to move into the place in a month!  I went back to my realtor's office that day and wrote up a purchase contract for 50K and he accepted.  I purchased the house for 5K less than his asking price, an even better deal.  I am renting it out and will have a $100 monthly cash flow nearly 2 weeks after closing when my renters move in.  Absolutely no cost for advertising and no waiting for renters to come calling.  Being persistent and consistently looking at potential houses found me this property.  It was just a matter of time if I kept looking hard enough.  And it all worked out great having the owner and potential renters right there to deal with.

 

Thanks for your help!

- Carl R. Murray, KY

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Thank you so much for your support and encouragement these past two months!! Jason and I closed today on our first two rental properties!! I have to share our success story with you...

 

Our original goal was to travel for 2-3 years to earn enough to pay off our home and all our debts so that we could afford to live on one income when we started having children, and I could stay home with the kids. And Jason could QUIT WORKING NIGHTS!!!! Well, it didn't take 2-3 weeks to start missing home and by 2-3 months I came home twice for visits. We were ready to move home sooner, but not willing to sacrifice our financial goals to return to the same 60-hour-work-week lifestyle that we had before. 

 

It was at this time that one of Jason's co-workers -- a fellow travel nurse -- began talking to him about real estate investing. In November, we ordered Robert Kiyosaki's "Rich Dad Poor Dad" and began reading about how we could change our life. We began to realize that we don't want to be employees for the rest of our lives. Praise GOD for PASSIVE INCOME!!! We had a new lease on life. We wanted to become real estate investors!!!

 

We started checking Kiyosaki books out of the library and reading everything we could get our hands on. Through his website, we learned that he would be speaking at the Real Estate Wealth Expo in San Francisco, and we immediately registered through The Learning Annex!! Upon completing registration, we were sent to another website to sign up for a free e-book about real estate investing. Boy, was that a trip!!

 

Through the Rich Dad influence, Jason and I decided that we wanted to be long-term investors rather than short-term flippers, so we began looking for rental property. As soon as I received my website access, I got online and downloaded everything in the resource center and read the first four lessons before our first session. I used the Prosper article "Rules for Analyzing a Property" to create a MS Excel spreadsheet to quickly analyze rental properties. It didn't take me long to get discouraged in the CA market. Everything I looked at in our area was priced WAY to high to work for rental property. Plus, I had a hard time putting together a network, knowing that Jason was only working on 3-month contracts and moving was eminent. 

 

Well, my Mississippi heart was already homesick for the South -- where I already had a network in place and market values ranged from $70-$105 per square foot. A PRIME rental market!!! If you know how to analyze your properties to find the "Deal of the Decade!" So, I started analyzing properties in Mississippi, and Jason and I quickly decided that we were ready to move home. Within two weeks of our decision, I found a possible rent-to-own property in a good neighborhood in Jackson, MS. Still living in CA, I sent my mom to preview the place for me and take digital pics. While driving there she took note of all the For Sale properties on the street. The initial property I found turned out to not be what we were looking for, but one of the properties my mom saw turned out to be EXACTLY what we were looking for. 

 

We found one unit in a 2-story duplex -- the ugliest house on the street -- that was for sale by owner. The guy was getting out of residential rentals to concentrate on commercial properties and was asking $75,000 for the property but told me he was willing to take $70. Per Prosper, I filled out a complete Property Analysis Form via a brief telephone interview. He told me he had previously rented it for $750 a month and gave me all the operating expenses -- taxes, insurance, land lease payments, etc. It all sounded good. I thought about it over the weekend, played with the numbers and called him back on Monday to talk further. On Monday, we had a great conversation -- turned out we went to the same church, same college, had mutual friends, and his wife and my mom worked together! You've gotta love Mississippi -- everybody is connected in some way or another. Kevin Bacon's got nothing on us. We can make a connection in 3 degrees or less!! ;o)

 

Well, guess what?!! Over the weekend, the owner of the other unit in the duplex contacted him to offer his unit to him. The other unit was for sell!!! The two sellers wanted to work together to sell the duplex to one buyer. So, the first owner/seller put me in touch with the agent for the other side, and I sent my sweet Mama back out to look at this duplex. Of course, she came back to tell me that one side was pretty nasty and it needed a lot of work. That was music to my ears. That meant ROOM for NEGOTIATION!!!

 

The second seller wanted $73k for his unit. But, his unit was in very poor condition. My new friend/owner/seller of the first unit advised me to offer $65 and not give more than $68 for the second unit. 

 

So, again I ran my analysis for the whole duplex -- both units! I knew that I could EASILY rent both sides for $750 each, and based on current expenses I could afford a mortgage on $138k and still get $200/month cash flow. SO... I made my offers -- $65k for unit A (the ugly one) and $70k for unit B (the clean one). Within a few hours, both of my offers were accepted!!!

 

Of course, Jason and I were ECSTATIC ... and it wasn't until closing time that we realized I must have offered too high because my offers were accepted way too quickly. But, oh well.

 

My story continues...

 

We decided we were moving home to Mississippi to start our own real estate rental company!! We notified the hospital and travel nursing company that we were not renewing our contract, secured a new position for Jason with one of his previous employers in MS, loaded up our two vehicles and U-Haul and made that 2,000-mile trek back across the country to Mississippi. Where we found our first real estate Deal of the Decade!!!

 

With my offers accepted, I immediately began looking for financing. It didn't take two days before I realized that I had made a CRUCIAL error in my analysis. In my naiveté and haste, I had analyzed the property using residential, owner-occupied mortgage rates, and lenders wanted to give me commercial loans!!! I spent a week beating myself up and calling numerous banks and mortgage lenders across the country looking for conventional 100% financing. I wanted to use equity from my home to make the 10% down payment and finance the remaining 90%. Finally, I found a bank in Mississippi that would work with me.

To make a long story a little less long, I will summarize by saying that when Jason and I moved to CA last August, we informally rented our home to some friends for well below market rent (less than our mortgage payment even) so that they would take care of the place while we maintained it as our primary residence. Though we decided to move back in only 7 months, we had to honor our 1 year rental agreement. So, we were able to secure the duplex with a HE Loan for the 10% down payment and a consumer loan for 90%. Because we were purchasing from two separate sellers, the bank let us have what they called a bridge loan at a higher interest rate. Then, they would allow us to refinance the loan, combining the two units into one mortgage loan. Since our home is rented until Sept, they're letting us secure the duplex under a residential mortgage at 6.5% for 30 years. Thank you, Lord, for that wonderful blessing!!! 

 

Well, I had put two stipulations in the contract -- financing and a professional inspection. The inspection actually occurred while Jason and I were somewhere between Nevada and New Mexico. We got the report via email while we were traveling, and let me tell you. It was BAD!!! Nothing really passed inspection as Acceptable. It was mostly Marginal or Defective. Needless to say, doubt was creeping in...

 

But, we soldiered on! As soon as we got back to MS, we went to see the property and took our contractor with us. We used his input and the inspection report to get the seller of the ugly unit to do repairs and give us credit back on the contract price for additional repairs.

 

Today, we closed on both units!!!! We ended up spending $309 to close our HE Loan. We then spent $636 to cover our first 3 months on our new commercial insurance policy for our new business -- Aetas Rentals, LLC. This policy provides commercial liability and fire/dwelling insurance for the new property. We then closed on the ugly unit and RECEIVED a check for $1069 for tax and repair credits!! Then, we closed on the clean unit and only had to pay $165 because in the midst of moving, I inadvertently failed to send my $500 earnest money to the attorney. If I had, we would have received $335 back there as well. But, that's ok!!! 

 

SOOOOOO, today Jason and I purchased two units for $135k, which appraised for $166k and will rent for $800 each, providing us with $200/month cash flow -- after all expenses, vacancy allowances, maintenance and a cash reserve. What's even better -- as soon as we repair the ugly side, we will complete our refinance at 90% loan-to-value and secure our final mortgage loan for $149k and still have $200/month cash flow, plus get $14k back to cover repair cost and the down payment on our NEXT property...

 

We couldn't have done this without you. Your support, encouragement and guidance have given us the courage and knowledge to succeed in this first endeavor. The Prosper resources -- property analysis forms and rental analysis formulas -- were invaluable to us. You and Prosper equipped us to make this possible, and we are forever grateful!! I look forward to your guidance through the next phases of repair and property management. We've got new ground to cover!! Time to move on to Volume 2. Just think... we sure have accomplished a lot in our first 5 sessions!!! I've already got my eyes on a few more properties and can't wait to tell you about them...

 

Our new goal is to purchase one rental property a month. I am devoting my time now to get this new company off the ground. I LOVE being my own boss now and pray that God blesses this new venture!! Last week, I went by my old office and sat down for an hour with the owner catching up on our California adventures. It was with great joy and conviction that I told her I hope I never have to be an employee again!!! I told her that I want us to partner in new ventures together. To which, she eagerly agreed!

 

So, I have traded in my 60-hour-a-week job for 30 hours a week of real estate. Jason and I were able to move home, work less, spend more time with each other and our family and friends, invest more time in our church and community, and share our new financial education with those less fortunate and less educated than ourselves. I'd say we're off to a great start! 

 

Jason and I now are concentrating the next 2-3 years on getting our passive income up to at least $3,000/month so we can live comfortably on one salary when we start having kids. We've also added a new goal to be fully passive in 5 years -- as in, Jason can stop nursing if he so chooses. And we're going to be really crazy and shoot for financial freedom in 10 years -- full retirement on $10,000/month passive income. That should meet our needs just fine.

 

I can't wait to share our next success with you Coach. I know you'll play another part in it!

 

Have a great day!

- Jason & Lori S. Brandon, MS

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UPDATE

 

Yesterday, I closed on my third property. I just wanted to complete that, so I could include that update in my testimony. Here's the update.

 

Two weeks ago, I was calling a realtor on a property. After leaving five messages, I finally got her on the phone Saturday morning, April 29. The property I called about didn't pan out, but she became one of my greatest networking opportunities. She invited me to attend our local investors' club. And, even better, she told me to call someone about another property that wasn't on the market yet. For a $1,000 bird-dogging fee (a fee paid to someone who gives you a lead on a property), she gave me the seller's number and let me use her name.

 

I contacted the seller immediately. The property belonged to a 66-year-old widow who was liquidating her rental property. The guy I contacted was wholesaling -- selling his option to purchase the property. The property was offered for $57,500 -- $50k for the property and $7,500 for a Release of Option fee. The realtor who referred me to the property recently sold 4 comparable properties in the area for prices ranging from $100k-$120k.

 

I was blown away!!!! I signed the contract immediately!!! The 1610 sq. ft., 3/2 house was built in 1950. It has a solid structure, good roof, vinyl siding, nice hardwood floors, and a good kitchen. The only rehab needed is new vinyl floors in the kitchen, paint and some updating in the bathrooms. There is a dilapidated garage detached from the house which we will probably tear down. Doing much of the repairs ourselves, my husband and I can put less than $70k in this house, which we intend to sell in 6 months for approx. $105k. This one property will generate more income than I made in a year at my previous job!!

 

The property is currently rented at $700/month -- $201 of which is supplemented by HUD. We plan to relocate the tenants in 2-3 months. But, in the meantime, their rent will pay the expenses and generate a small cash-flow. 

 

The only catch to this property was...we had to close by May 10. I had 11 days to get this property financed!! I tried my personal bank, which 100% financed my duplex I just closed on April 24. They were willing to finance us again, but they couldn't promise that they'd close in 10 days. I shared my dilemma with the guy who's selling me his option on the contract, and he referred me to his bank. This bank is fairly new, small, privately owned and got me an answer in 1 day. They financed 80% of the costs at 7.75% amortized over 15 years with a 5 year balloon. The payment will be $438/mo. This allows me to hold the property for 6 months and avoid any seasoning issues when I sell it. Plus, the $700/mo rent will easily cover my expenses for a few months! 

 

So, yesterday I closed on my third property -- third property in less than a month. It is a rental temporarily, and then we will rehab and retail it to earn approx. $35k in the fall. I plan to use a 1031 exchange to put that money into another rehab project. My new goal is to rehab two properties and roll the equity into a rental property. This method will allow me to have very low mortgages on my rental properties and much higher cash-flow. My husband and I have decided to leave ourselves a nice cushion on our rental properties while we're starting out in the business. It will be much less stressful to know that another disaster like Hurricane Katrina couldn't put us into foreclosure.

 

 

- Lori S. Brandon, MS

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I sold out all of my land on short term cap gains and made some great money.  I never built a home with the builder because the land appreciated so fast that I didn't need to take the risk. I sold the larger parcel (20 acres) for a profit of $70,000 in one month!  And I bought 100 acres in the same area for $367,000 which is now listed for sale at the long term capital gains rate (15%) of $779,000.  I hope to sell it this summer.  My net worth went from under $300,000 to over $1,700,000 as one big huge gain, and I sold my personal residence a condo and bought a over a million dollar house.

 

I also used my contacts in real estate to join a financing company and am now the Executive Vice President of Commercial Lending for a boutique financing company in Beverly Hills.  I have closed $26,000,000 in commercial loans to date and intent on closing with my business partner here, $100,000,000 in the next 12 months.

 

BTW-when I first started I had no job, no 'marketable skills' and for sure was hanging on by a thread in the old bank account.

  

Blessings, let me know if I can do anything else for you. I am a big huge fan of Prosper.

 

XOXO,

- Georgia R. Los Angeles, CA

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I just wanted to thank you for the help these last few weeks. I was going to right this email yesterday but I didn’t want to leave out the great things that were about to come together. Well now they’re together. I now have 6 houses under contract. Ten other motivated sellers are asking us to sell their destroyed New Orleans homes. I made 35k two days ago and I’m just getting warmed up. We now have buyers in other major markets on our list and appointments with investors to flying in and tour all of our discounted New Orleans wholesale properties. In addition to this I am setting up a foundation to donate housing and labor to teachers and musicians that were affected by hurricane Katrina. Really anything that would help the community but right now it seems that would be a good start.

- Daniel L. Metairie, LA

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LETTER OF APPRECIATION

 

Here with a big thank you for all your efforts in helping me over what I believe are some of the biggest psychological hurdles in starting with real estate investing. Three that come to mind immediately are:

 

My real estate business plan has initially focused on establishing a new independent engineering consultancy that will form the financial foundation for moving into real estate investing and land development as a personal income source. The Robert Allen and Prosper curriculum has helped me in being more intentional and disciplined in my consultancy (e.g. the time planning coaching session has increased my billable hours, and I have been able to pass this wisdom on to the under-14 girls soccer team that I coach).

 

During this training period I have taken a conservative approach to real estate investing by aiming at purchasing one new property per year. However, I envisage that there will be more opportunities coming my way since I have had a major change in mindset away from making other land developers rich (i.e. via the engineering consultancy), towards looking for partnership deals.

 

As an example, I have recently been fortunate enough to be included in a power team that is very experienced in real estate development. We analyze at least one large property per week, and I am pretty confident that the right deal will be coming through soon. What is also exciting is that I can contribute my engineering skills and professional signing power to the team.

 

By letting people know that I am a real estate investor, I have had two people intentionally approach me during this initial training period. One with a piece of land that this person wants to build 8 residential units on. The other person is a Builder who would like me to do all the up front work (finding and purchasing the property with his financial input; plus rezoning and engineering design). He will conduct the construction work in this partnership.

 

Thank you again for walking alongside me and showing me the way. It has had a major impact on moving me forward to where real money can now be made.

 

The fear of getting started.  The fear of making offers.  The fear that finding financing will be very difficult. With all tools learnt in course so far, I am much more confident in making offers knowing that there are numerous ways of financing a project. I have recently applied this principle to an engineering project and am making $5,000 on a $30,000 assignment by sub-contracting the work out to other engineering colleagues.  As you say, its not life threatening after all! I have analyzed over 30 properties and made two serious offers with quite a few more on the immediate horizon. . You assisted me in making that paradigm shift to get moving and to get into a habit of doing things. They say it takes 21 days to form a habit. In this case it has been the habit of looking for those special deals that are out there and at the same time looking to see if I can create a win-win situation that helps the seller as well.

- Jeremy C. Kamloops, BC

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As per our previous discussions, I just wanted to give you a belated update on my continued attempts to break into the world of real estate investing, and to thank you for your guidance.

  

As you know, I attended a competitor’s real estate investing course more than 18 months ago. For a variety of reasons - things just did not come together for me. I then enrolled in the Robert Allen program and though the amount of materials has been mountainous, I found it expressed things clearly. The real turning point, of course, was the start of my mentoring sessions with you 2-3 months ago. Your ability to clearly express the fundamentals and more detailed plans was heightened by your wealth of experience, and your incredible enthusiasm. I miss our scheduled phone sessions, but have been infused with your enthusiasm - especially after your recent suggestions as to how to approach real estate investing.

  

The key was your realization that my "day job" as a physician and my frequent traveling combined to make me a person with good assets and credit rating, but short on time to research properties. Your suggestion to "be the banker" and have other people bring properties to me was the key. Much has happened over the past two months.

  

I contacted a development company to make myself available for any opportunities. They called me back, and I have since purchased 3 properties. One, in a North Carolina resort area as a pre-construction unit. One each in Houston at a golf resort area and one in Las Vegas as a condo conversion.

 

I spoke with my local realtor and mortgage broker contacts with the same proposal - bring me properties and we can share the profits. They put me in touch with an administrator for KB Homes who manages some 15 developments locally and needs to have a pre-approved buyer to pick up purchased homes whose financial arrangements have fallen through so that the developers in these built out areas do not have to take back these units. They sell them at a discount so they can rapidly unload them and they have built in equity since the phases have closed out and the new phases will be more expensive. Since no new units will be available for 3-6 months, there is a ready market for my units. I purchased three new homes and put two on the market this week. I expect them to sell since people have already inquired about renting them before they went on sale. I just want to turn these over so I can really see the immediate gratification as I get started with my new career.

  

Also, you recall my brother-in law has some 20 rental properties in San Antonio. He is more of the landlord, property management and foreman/rehab kind of guy and wants to move up to more expensive properties. I took your advice and told him if he did the research, found the properties and brought them to me - that I would finance the deals, he could do the rehab and we would split the profit. The city is in the middle of urban renewal plans and with a contact on the city planning commission and a realtor, we have jumped in. I go to San Antonio next week to review 5 properties there!

  

 It's all exciting news, but now I've been so swamped that I barely have time for my day job, and obviously that's my excuse for this belated Email(I guess I hoped its length would make up for its tardiness).

  

 Again - this would not have happened without the Robert Allen course (it's really hard to find time for those materials now!) and most importantly could not have happened without your mentoring. I truly am in your debt and greatly appreciate your instruction and friendship. My wife is really thrilled with all of this and sends her regards as well.

  

I'll do my best to stay in touch and let you know how the sales go. But, you’ve made me so busy that it will be difficult. I really will plan to stop by in SLC for that visit.

 

My deepest thanks - please keep in touch.

- Skeet G. Golden, CO

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Great to speak with you last week....

 

Since starting the coaching I have managed to get 6 investment properties up and running they are all in positive cash flow and have all increased in value. The coaching is invaluable the thought that my coach was calling me each week created a strong positive pressure to take action.  This complemented the books and CDs I was studying which was part of the program. The coaching created a good synergy and a dynamic which I could not achieve on my own.

 

It has also encouraged me to go on to bigger and better deals. Now with this coaching I’m looking at purchasing property in the states maybe Florida...who knows but with the coaching I have the confidence to go for it.

 

Now to the numbers the 6 properties are generating e 7000 per month in gross rents after my repayments to the lenders etc the positive cash flow from the properties is at e 3,500 (that’s euros).  Thanks for the help Coach!

 

Now on to those deals in the states……..

 

Thank you,

 

- Ken M. Dublin, Ireland,

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You should find three attachments with this email.  These attachments are two of the offers that I took to the bank to obtain a construction loan on four different properties. One of these loans was for the seller with three houses; the other is for the foreclosure property. I am also sending you my cover sheet since Kim thought it was cute.

 

On a personal note, Kim and I want to thank you for your help and encouragement. Your confidence and excitement is always a help in the middle of our week. You are a wonderful real estate coach for us.  We couldn't do it without you.

 

Three months ago when we started these sessions with you we were scared to step out.  You have given us confidence and wisdom that has helped us cross the barrier of fear.  As you know, I left my job a month ago, but with your help we hope to have our income completely replaced in the next six months. 

 

Our original goal was to make a 100,000 this year. With the single investment in these three houses we will be over half-way there in equity. 

 

We are forever grateful to you for the help you have given us.

- Jim & Kim F. Cabot, AR

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We made a deal on the house I have been discussing with you in Escondido, Ca.  It is owned by a college through a gift from an estate.  Networking with people I know, and some I didn't, I found out about it before it ever got listed.  I made an offer, they countered, I countered back, and their acceptance is being prepared as we speak. (The realtor who brought me the property is acting as agent for both parties).  The house will require some fairly extensive rehab, probably around 30,000.00, but I will be doing the work myself along with my partner.  My partner is my brother-in-law, who is providing the funds for the purchase.  Our deal is he provides the money for the purchase, I pay for the materials and the stuff we cannot do ourselves such as termite-tenting the house, we will provide the labor together on the stuff we can do, and we will split the profit.  We are getting the house for 327,500.00.  Zillow.com estimates it should be worth around 497,000.00 after repair and the realtor said he will be able to sell it in a couple of weeks for 450,000.00 if we want to get rid of it more quickly than that.  Even at 450,000.00, after repairs and costs for closing as both sellers and buyers, as well as holding costs, there should be at least 40-45,000.00 for us to split, and get it done within 4 months including escrows.  If we hold out a little and get out if it what my personal estimate of the homes worth (480,000.00!!), we could double that amount, and come away with 35-40K each!!!

   

 I thought you would want to know about this one.  It will eventually turn out to be (I hope) a pretty good first effort for one of your students.  Your advice and efforts provided quite a bit of the confidence I needed to swing this one!!!  Now, all I have to do is become a construction engineer for the next month or so, and then do it all over again!!! 

 

Thanks for all your help, and I look forward to talking with you at our next scheduled appointment.

- John (A Real Estate Investor!!!!!) B. Encinitas, CA

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