Offline3 unit multifamily home...this is LONG cause went through a lot of the ups and downs...Talks of closing this Monday, but it isn't concrete
Purchase Price
-165,000
Rents
-900
-650
-550
Mortgage including taxes
1280(I believe-right around that if I am wrong)
Insurance - 133 a month(1600 upfront for first year)
all 3 units will be rented out
rents minus mortgage = $820 per month cash flow
The first floor renter actually does maintenance stuff for the property...the 2nd floor guy will do the carpeting for free and is handy...so perfect...Don't get much better than that...
The owner right now is great...I have his number, he is going to sit down with me and go through EVERYTHING with me...and he has said a bunch of times to call him anytime, including down the road...So awesome 1st deal I would say..
I don't know where to start, so lets start with this...
This one property has been in the process of me attempting to buy it since April...So almost 6 months of ups and downs and hoops...
at the beginning of this, I had decent credit...I wanted to improve it, so I opened up a saving acct at a credit union...had money taken directly from my check every week, Refinanced my car through them, got my moms name off the car, and got a much better rate...I have that taken out automatically every month...I also took a personal loan out to catch back up on some things...Same thing, have it automatically taken out...so those help my credit every month since they are obviously on time every month...So that is nice...I kept paying things down, and my credit is MUCH better now than it was...Makes me feel awesome...
anyways, originally, my agent told me the seller was willing to pay the closing cost...So that was a plus...so found a broker that seemed AWESOME...He rolled everything into the loan...Down payment, closing cost and everything...It pushed the purchase price to bout 200,000...The original purchase price was 184,000...So that was sweet in my opinion...The seller agreed to pay the down payment cause I simply ASKED...I have learned to not be afraid to ask questions like that...The worse is a no...And that ain't a big deal...Anyways, after that was all said and done, I filled out the actual application...And waited and waited and waited...Then come to find out, the type of loan the broker was using, couldn't include the down payment, closing cost and all that...So I went from a no money down deal to losing the deal(or so I thought)But also, I needed all the down payment, and reserves in my account to show it for the bank...So that was a ton of money...It was around 11-12 thousand I believe...So that was another thing...After much talking to my mom, she decided to give me the money since I wouldn't be touching it...Just had to have the amount in my account...so that was perfect...
next, I kept trying to get some info from the broker so we could still try to work things out...But he basically kept hidden...Giving me VERY little info since he new he messed up apparently...And threw a bunch of BS at me as to how to make this work...I was determined to make this work, so found another broker, told him what my plans were, and tried to figure things out that way...After I got what I needed, I pulled from the original broker cause I didn't want to work with someone that just says what they think you want to hear...
so anyways, we ran new number and all that...The seller was still paying the closing cost, but I needed the down payment money now...I had no money...the down payment was right around $7000 I believe...So that wasn't cool...and since we couldn't roll the down payment into the loan, I asked the seller again...He agreed, but wanted to raise the purchase price so he could make more...I agreed cause it would get the deal done...I didn't care...I was determined to buy this place, and get in with NO MONEY seeing as how I didn't have any...Again, I still needed to show reserves and all that...
Well, anyways, something didn't work, and we had to switch things round again...I forget exactly what happened to be honest, but things had to be changed around...
Moving forward, where the deal stands now at closing...The appraisal since there were no comps at all, came back at 165,000...Works for me, cause the house is def worth more than that...And when the market goes back up eventually, it will be very nice...The seller wasn't to happy, but he needed to sell it...I STILL have him paying the closing cost of 6500 which is real nice...I still needed to come up with the down payment money which is 5800...I talked with my mom, and after going back and forth with her, she finally said yes...it works out well cause after we close, the first month is free, so I am giving back a bunch of it right away...she will get the reserve money right away also...Lota wheeling and dealing through everything...Banks, mom, and seller...
Also, the agent now after all of this is getting very little for his commission now...He said he doesn't have a problem with it since he plans to work with me for a long time...But still, I am in the process of working things out so he can get more...He has been a HUGE help, and without him, this deal would never have worked...
So all together, 5800 + the 1600(insurance) to get into the place...the only money I spent on it is the 1600...Other than that, I used other peoples money, and kept the deal alive by determination, and the will to succeed...
Well, since I wrote a book, Ill end it at that...I left a bunch out, but included a lot too...The deal almost fell through at least 5 times...Came so close, but I kept pushing, and asking questions and apparently it is going to pay off...Any questions, feel free...I hope it didn't get to confusing, cause I was getting confused myself writing it cause so much info, and so many things...But thanks for everyones help also...
~TAKE ACTION AND THINGS WILL HAPPEN~
***Something to Believe In***
"If you want something, GO GET IT...PERIOD" Will Smith
***"I CAN'T IS NOT A EXCUSE...IT JUST MEANS YOU WON'T"***
"Obstacles are those frightful things you see when you take your eyes off your goal" Henry Ford
~"Success doesn't come to you...You go to it" Marva Collins~
Hey marc! My computer's been down so I havent been on much. So I thought I'd check out how the situation with the house is and WOW! I mean WOW! What a trip! You've gotten so much more out of this deal than just a house. I cant' believe how difficult it's been and how tough you've been to stick with it! I'm proud of you and will be waiting for the Deal CLOSED post!!
Rachael
Thats a nice cash flow Mark, the first of many. I am really proud of you keeping after this deal. I always had faith that you would get it done.
Key thing was never giving up no matter what happened or what people said to you.
continue your success story.
Richie.
You have not gave up and that is the most imporntant part of the RE.I'm wondering how is going to end but hopefully whit cash in your pocket.If this deal doesn't go thru which I hope it does go thru it will be lots of learn knowledge.One question I got is where and how you can upon this propertie Thanks and good luck.
Marc, my friend, I love, love, love your story. I loved that you asked for what you wanted from the seller and got it. I love that you knew when to walk away from your original agent and not waste any more time and ending up finding a gem in the new agent. I love that you didn't let any of things that happened along the way stop you. And I love how it is all about to pay off for you.
You are on your way! Your determination inspires me!
Nancy
Help feed the hungry - www.freerice.com
This is true for RE..."The best way to learn this business is to do this business." - John Addision, co-chief executive officer, Primerica
Aerialist's Journal - Because Life Is a Circus
http://www.deangraziosi.com/real-estate-forums/investing-journals/18857/...
Awesome story! Congratulations on acquiring this property! Do you plan on eventually raising rents or anything?
Success and Nothing Less!
Your hard work, perseverance and determination paid off for you big time. You must be so proud of yourself and now know (in case you didn't already) what you are made out of. Good going!
Lea
SPR Property Solutions, LLC
Rachael - glad to hear from ya...Nice to see ya jumping in...
thank you to everyone...I definitely enjoy the positive responses and encouragement from everyone...It means a lot to me!!!
I hit on most of the stuff, but def had other roadblocks along the way...i went through a few different attorneys, brokers, couple agents, had to write letters to the bank, had to get my employer to write letters, had to have money transferred into my accounts in specific ways, document everything that the bank needed, so on and so forth...
The first attorney was great at explaining things, even though he had no clue what the heck was going on, but after dealing with that clown for a bit and what he was going to charge me, I told him thanks, looked in his eyes, said holy sh*t, but not gonna happen...
The first agent basically blew Chris(partner in some other deals-not this one) and I off cause she couldn't understand the assignment contract since she never did it...Instead, she played along like she was on board even though she didn't understand, then left us stranded on a potential deal...That went over well...grrrr...but anyways,
Some questions that were asked
LUCIO:
*One question I got is where and how you came upon this property
-the agent I am currently working with came to me and said he has a good potential money maker, and if I wanted to check it out...he had it listed, just went on the market at that time(way back in the day it feels like)and as soon as I saw it, and the potential, I got my butt in gear, told him I wanted it, worked on my credit while at the same time going after a loan...
LKWARD13
*Do you plan on eventually raising rents or anything?
-Honestly, haven't thought about that to much...Where its at right now, the numbers work very well...I think I could easily up the rent(which maybe down the road after things really get going, I will)but for now, Ima keep them where its at...
~TAKE ACTION AND THINGS WILL HAPPEN~
***Something to Believe In***
"If you want something, GO GET IT...PERIOD" Will Smith
***"I CAN'T IS NOT A EXCUSE...IT JUST MEANS YOU WON'T"***
"Obstacles are those frightful things you see when you take your eyes off your goal" Henry Ford
~"Success doesn't come to you...You go to it" Marva Collins~
You did it, never thought differently. I knew you had the ability to close this deal. It did not happen by wishing, you had your tools in hand, you stayed the course, you strategized and finally achieved your goal. Your success stories are an example to us all. Marc, we are so happy for you and look forward to many more success stories in the future. God Bless.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.
Thanks you so much...I been working hard at this...And finally things are going well...
still not positive when closing...Attorney actually messed up something, which is delaying the closing...Go Figure...Anyways, still closing, just a matter of when...Waiting to hear the actual day...Which should still be this week at some point...
so another roadblock, but this one is simple compared to everything else...
~TAKE ACTION AND THINGS WILL HAPPEN~
***Something to Believe In***
"If you want something, GO GET IT...PERIOD" Will Smith
***"I CAN'T IS NOT A EXCUSE...IT JUST MEANS YOU WON'T"***
"Obstacles are those frightful things you see when you take your eyes off your goal" Henry Ford
~"Success doesn't come to you...You go to it" Marva Collins~
The tenant which is moving in right after we close, is good at carpentry, and has buddies who are licensed that do electrical work, plumbing and all that good stuff, and will all do it for him no charge...Other than the material stuff...
also, in one of the other apartments, there is an attic that can be turned into another bed room, that he said he will do for me...So not only another bed room, but can charge more, and make more when somebody new moves in...So this is very nice...
Plus the tenant that has been in there a while, does all the shoveling, and maintenance type work around the house...So this too is awesome...
Couldn't ask for a better first deal!!!
~TAKE ACTION AND THINGS WILL HAPPEN~
***Something to Believe In***
"If you want something, GO GET IT...PERIOD" Will Smith
***"I CAN'T IS NOT A EXCUSE...IT JUST MEANS YOU WON'T"***
"Obstacles are those frightful things you see when you take your eyes off your goal" Henry Ford
~"Success doesn't come to you...You go to it" Marva Collins~
What a journey this has been for you to get this deal done! Talk about perseverence - amazing. And now its all going to pay off for you. And on top of getting a good cash flowing property - look at all you've learned! Thats what I love about doing real estate. Every time we take action of any kind we learn something new that takes us to the next level. So congrats again and keep us posted.
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
It's been a long time since I've been on the site, and it's BEAUTIFUL seeing your successes and our dear friend Sandra on the front page.
Continued Success...
You guys will be seeing me a lot more often.
Thank you so much...Things are rolling along right now, and if feels great...I have got this, and a few other things going on...
Believe it or not, the multifamily got held up AGAIN...The attorney actually made a mistake, held things up...And if we don't get this closed soon, the my rate will expire, and it will change things a little bit...It will still close, but its been crazy...
Then as soon as they had the attorney fix that, after they approved me, they had me document money I put in my account in April...I was like, you gotta be kidding me...I don't know if it is cause they had more time to look at things or what, but either way, like always, I got it taken care of, and am waiting to hear the closing date...jeez...
~TAKE ACTION AND THINGS WILL HAPPEN~
***Something to Believe In***
"If you want something, GO GET IT...PERIOD" Will Smith
***"I CAN'T IS NOT A EXCUSE...IT JUST MEANS YOU WON'T"***
"Obstacles are those frightful things you see when you take your eyes off your goal" Henry Ford
~"Success doesn't come to you...You go to it" Marva Collins~
I OFFICIALLY CLOSED THE DEAL TODAY...I now own the home...23 years old...Pretty cool i think...I worked hard on this 1 particular deal...Ups, Downs, and never gave up...Thats what its all about...Never giving up...Getting in the game and playing...Not just standing around...Again, I appreciate all the help from everyone who helped through the whole thing...I learned a TON through the whole process, and sat at closing excited and nervous...but all went well
~TAKE ACTION AND THINGS WILL HAPPEN~
***Something to Believe In***
"If you want something, GO GET IT...PERIOD" Will Smith
***"I CAN'T IS NOT A EXCUSE...IT JUST MEANS YOU WON'T"***
"Obstacles are those frightful things you see when you take your eyes off your goal" Henry Ford
~"Success doesn't come to you...You go to it" Marva Collins~
or should that be "Mr. Home Owner" to you
? CONGRATULATIONS! You must be so excited and proud.
Lea
SPR Property Solutions, LLC
Marc I am SOOOOO happy for you! You have a great future ahead of you - starting in real estate at 23....way to go! You worked really hard on this deal and saw it through to the end. Job well done!
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
Marc, like they say, "This is a done deal." You have proved that it is durable. Marc, I am ecstatic for you, because you never gave up. It was difficult at time, you expressed that also, but your determination paid off. Your October Fest has already began. Congrats Marc, for a job well done. God Bless.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.
You guys are the sweetest...I appreciate the kind words...I will say this, no matter how much you work a regular job, what your age is, what things you go through in life, or anything like that, it can not stop you...The ONLY way you get stopped is cause of yourself..I work a bunch of days in a row, I still make time for friends and family, i have been through a lot of not so good stuff in my life, and I KNOW WHAT I WANT...And I continue moving forward no matter how tired, run down, beat up, annoyed, angry, excited, nervous, I get....
The only way to keep growing as a person is to keep pushing through no matter what life throws at you...I am excited and nervous, but I know if I want to get to where I want to be(which def aint where I am at right now) then the only way is to keep on going....
~TAKE ACTION AND THINGS WILL HAPPEN~
***Something to Believe In***
"If you want something, GO GET IT...PERIOD" Will Smith
***"I CAN'T IS NOT A EXCUSE...IT JUST MEANS YOU WON'T"***
"Obstacles are those frightful things you see when you take your eyes off your goal" Henry Ford
~"Success doesn't come to you...You go to it" Marva Collins~
Congrats Mark!!!!!!!!
I am really happy for you. I know how hard you worked on that deal and never gave up. now go find another;)
take the momentum and run with it. I hope to join you soon.
Richie.
I'm just getting started and I'm extremely happy for you. You are an inspiration to me and others I'm sure . Keep up the good work.
Thanks for the hope
Ken
It must feel real good to get the first one under your belt. Ive been following your whole process. Glad it finally came thru for you.
I have never been happier to receive a text message, you put a smile on my face today though with your message. I have been looking foward to it for weeks.
I am so happy for you.
You really deserve this success,
Congratulations!
How does it feel to be one of the youngest property owners on the planet?
No kidding - that is who you are today!
You are really an inspiration to many people, both on this site and in your 'real' life.
I am SO proud of you!
Give my congrats to Chris too.
Angela
.
You know, through all that long process, I had forgotten you were just 23 years old! You sure have shown great strength and character throughout this whole experience. So, so impressive! Thank you for sharing every step with us. And again CONGRATULATIONS on that first GIANT step toward your financial freedom! That is some great cash flow. Do that a few more times and you'll be able to focus totally on REI. You are DEFINITELY on your way to being a Real Estate Millionaire!
God bless,
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Wow..Awesome that it finally CLOSED! & it's yours & man what a great property & having the tenants that know how to help fix it up for you!And kick ass cash flow!!!!!to boot!!
This is just the best news! I haven't been able to communicate much on the site recently, and only on and off quickly each day. Today, I saw this and was so thrilled to learn you had finally closed. That is fantastic! Like Rina, I forget that you are only 23. You are miles ahead of most people your age...and in fact of any age. You have worked hard to make this happen and good things will continue to happen. There's momentum!
Nancy
Help feed the hungry - www.freerice.com
This is true for RE..."The best way to learn this business is to do this business." - John Addision, co-chief executive officer, Primerica
Aerialist's Journal - Because Life Is a Circus
http://www.deangraziosi.com/real-estate-forums/investing-journals/18857/...
thank you you guys...I am just trying to keep rolling...1 deal like this is great...but imagine a few more deals like that...Oh yeah!!!That would be sweet...Gotta keep going...I am so excited, and still nervous...But I have learned how to talk to people, I don't sound as "dumb" talking cause I am gaining confidence...I have learned to just ask questions, no matter how dumb you think they are...I have learned that no matter what, I CAN DO IT!!!
Richie - You are the man as I have told you before...You are honestly gunna join me in the deal category, and then probably pass me and a bunch of others...I can see that coming real soon probably...just don't forget about me when you past me and keep buying up a bunch of properties...
Kenneth - Thank you...I am glad I am somebodies inspiration...I hope enough for you to get out there and make some things happen...Good luck
Mike - It feels AWESOME!!!and I appreciate you following the "journey"
Angela - I doubt I am one of the youngest property owners, but we can pretend...It sounds pretty good to me(and i stuck to my deal as far as texting you after it closes...I didn't even leave the parking lot, and I sent it)
Rina - "Do that a few more times and you'll be able to focus totally on REI. You are DEFINITELY on your way to being a Real Estate Millionaire" - *I def want to keep doing this a few times over, cause my goal is absolutely focus on REI full time...Real estate millionaire sounds AMAZING!!!
Dan - "what a great property & having the tenants that know how to help fix it up for you!And kick ass cash flow!!!!!to boot!!" - *Amen to that...i ain't complaining at all...I can get it done cheaper, plus they have friends who are licensed who can help too...plus one of the tenants that just moved in is going to turn the attic into 2 more bedrooms for me eventually...so that means more money down the road...How can I turn that down???
Nancy - "You are miles ahead of most people your age...and in fact of any age." - *I certainly hope so...just kidding...Honestly, I do what I enjoy, I don't sit in front of the tv playing video games all the time...I know what I want, I know how to get there, and I don't care what my friends(or anyone) think as far as if I am crazy cause I don't hang out with them, don't let them keep hold back and keep on moving forward...I'll be the one looking back being able to do a bunch of things, and not have to worry about bills, or if I can afford things...
Only reason I mention my age, is cause so many younger people jump on here, and say, I am 19,21, whatever age, and is this possible to do at my age, and my credit, and no money...So I figure, Jeremy did it, I did it, and I am sure others have...Age is just that...Age!!!
If you have the will to move forward in life, then thats all it takes...I have enjoyed being busy doing what I have been doing, and it def gets me pumped up to keep finding deals and figuring out how to get them done...
~TAKE ACTION AND THINGS WILL HAPPEN~
***Something to Believe In***
"If you want something, GO GET IT...PERIOD" Will Smith
***"I CAN'T IS NOT A EXCUSE...IT JUST MEANS YOU WON'T"***
"Obstacles are those frightful things you see when you take your eyes off your goal" Henry Ford
~"Success doesn't come to you...You go to it" Marva Collins~
Congrats Marc! You are on your way! I have been watching you through this whole process with this multi fam unit and I knew that if you kept fighting it would happen for you.
Jesus looked at them and said "With man this is impossible, but with GOD ALL things are possible." Matthew 19:26
"I know the price of success, dedication, hard work, & an unremitting devotion to the things you want to see happen." Frank Lloyd Wright
"If we did all the things that we are capable of doing, we would literally astound ourselves" Thomas Edison
"This time, like all times, is a very good one if we but know what to do with it." Ralph Waldo Emerson
Congrats!!! I am so proud of you buddy, with all the hard times that you went thru and have been going thru, I can relate so much and you know what I'm talking about. That is some awesome cash flow you have going, I knew you would make it happen. When you work for it, anything is possible. Job well done my friend. So is this guy going to hold the mortgage or were you able to get a mortgage on your own? If so then that is awesome, either way it seems to be one hell of a deal, and the right choices were made.
Jeremy
This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
Meet me in the Land Of Hope And Dreams
Bruce Springsteen
I was able to get the mortgage, but had him pay 6500 towards closing cost...for the down payment, I was able to borrow that money, and only thing I paid up front was 1600 for insurance...So all together, I would have needed around 12000 or so to buy the house...Yeah right...I wish I had 12000...
But made it happen...
Jen - I did it...Woooo...Thanks so much for your support...I am glad you still jump on once in a while, and can't wait for you to put something together...
Jeremy - I do know what you are talking about...I thank you very much also...The deal went on and on and on and sometimes was just like, You gotta be kidding me...But stuck with it...Gotta find more deals...It may be harder credit wise, cause having a house on credit hurts the debt-income ratio pretty badly, but I know there is stuff out there...so ill keep on going, and gotta find more...
The mortgage happened to be a little higher than the 1200 unfortunately, but still will be making good cash flow...plus once the second apartment gets turned into 2 more rooms, that will up the cash flow even more...So good things can come out of this...just gotta keep buying as much as I can and hopefully find more deals like this
~TAKE ACTION AND THINGS WILL HAPPEN~
***Something to Believe In***
"If you want something, GO GET IT...PERIOD" Will Smith
***"I CAN'T IS NOT A EXCUSE...IT JUST MEANS YOU WON'T"***
"Obstacles are those frightful things you see when you take your eyes off your goal" Henry Ford
~"Success doesn't come to you...You go to it" Marva Collins~