Jan and I just closed on our 1st 4 unit property yesterday. I just got back home after spending a beautiful weekend at my partner Jan Malek's house in upstate ny. Headed up on Friday night and within an hour of getting up there Jan was already driving me around town showing me some potential props. We looked around for a while and called it a night, it was late.
Rise and shine, Saturday morning comes and Jan and I were out pounding the pavement as soon as we woke up. We headed out around 9 in the morning cruising town to town looking at for sale signs. At 10am we headed to the meeting spot we had arranged with the seller of the 4 unit, we signed and finalized all the papers, and the keys to our 4 unit were handed over to us. We CLOSED on the property!
For those of you that didn't read our past post... Jan and I met thru this site and began partnering together. I am 18 years old. None of us come from money but we were and are determined to find success in RE. Here is the offer we put in about a month ago that was accepted.
4 unit home
asking price 102k
Offer accepted 78k
comps 90k - 115k
After all taxes, mortgage, utilities are paid we have an average of about $645 a month in POSITIVE CASH FLOW
We did put down a small down payment, but in a year from now this will be a no money down deal. We got the previous owner to carry the mortgage for 1 year with a 90 day extension upon our request. SELLER FINANCING, does it get any better? We actually wound up walking away from the closing with about $2600 in our pockets!! We were at the closing for about 45 minutes, and after that there was no time to celebrate. No time for a nice meal and glass of wine, no no no, it was time to work and lunch was our last priority.
Here we are soo happy, I'M 18 YEARS OLD AND I AM A LANDLORD RIGHT NOW!!! It is just great.
So on with the day, we hit the pavement again and had a busy day ahead of us, it was around 11am and we headed to our 1st appointment with a realtor right after we closed. We drove for hours and hours for a total of 170 miles put on the car yesterday from town to town, street to street, just checking out so many props, so many potential deals, for sale signs, and eveyrthing you can think of. Jan showed me the good, the bad, and the great parts of town. We drove by hundreds of homes, and had 5 walk throughs with the realtor, all multi family units.
We decided to put in an offer on the last home we walked thru. We wrote up a purchase offer right on the spot in the house and gave it to the realtor to present to the seller.
Asking price 110k
Mortgage $418 month
Taxes $250 month
Insurance $35 month
total costs $703
Rents are 2 units, $650 each = total rent of $1300
leaving $597 positive cash flow if our offer is accepted!
We also found another 2 unit home that can be a possible deal in the works as well. We are thinking of making an offer, it is a REO and the bank is anxious to get rid of it. Asking price is 35k, needs a little work but enough to work with. I am thinking we might offer 22k and try and get the bank to finance it, if this happens we would get it cleaned up in about a month or so and have it rented out pretty fast.
Jan and I are looking forward to posting our next deal that is finalized.
WE BOTH INCREASED OUR NETWORTH BY $51,000 EACH YESTERDAY!!!!!!!!
I'M 18yrs old AND I'M A LANDLORD COLLECTING RENTS! IT IS JUST GREAT!
None of this would have been possible if it wasn't for Dean, his books, courses, and site. THANK YOU DEAN and all the DG members for your support!
We sent you our video Dean, and we hope to meet you soon and partner with you on a deal and be on a commercial! Maybe even get that trip to the islands, but I don't wanna push it right now, haha!
I just want to say that anyone can do this, if you follow the tools Dean gives you then you will find SUCCESS!!!
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