It’s time for us to share another student success story! This father and son duo, from Washington, decided that investing in real estate was exactly what they needed to do to change their lives. We love their inspiring story!
DESIRE TO MAKE A CHANGE
Father and son, a plumbing contractor working in the business for 20+ years and young banker just out of college. We were both doing “okay” financially; however, I wouldn’t say great by any means. Your average middle-class Americans working regular Monday through Friday jobs making somewhere around $135K a year between the both of us, just enough to pay the bills and put food on the table for our families. The only problem was, we wanted more; more freedom, more time with family, more knowledge, more fun, and it all boiled down to one thing; more money. Dad was getting bought out of company ownership, and I just loved the idea of being able to work for myself; together we decided with our experience and backgrounds that a real estate investment company would not only be a very viable option, but very lucrative as well.
TURNING DREAMS INTO REALITY
The biggest hurdle was education, we decided to take a risk and work with Advanced Real Estate Education to make our dreams hopefully a reality. One seminar became two, two became three; we finally came to the realization that a full blown mentorship would actually be very beneficial. Our biggest takeaway: Take Action, and Make Offers!
Marketing, talking to homeowners, looking for properties, driving through neighborhoods, putting up signs, sending out letters, talking with realtors, talking with property managers; we did it all. After just a month of looking, we’d put in multiple offers on multiple properties and luckily enough, we actually got a couple of them accepted! Yes, it took some negotiating, and patience, but the light at the end of the tunnel was very apparent. A family member was very happy to be a private lender for us, and we immediately put his money to work on a good property, for a very good price, with a very good return on investment.
REAL ESTATE SUCCESS
We recently closed on our first two deals, and we are ecstatic to find some more property and widen the footprint as our young investment company grows. Our first deal was two multifamily properties being sold as a package; we negotiated the properties to a total of $315K while the gross rents were $3,200 a month with the potential to be $4,000 a month. After showcasing the return on investment of 25% with just a few updates to the property, and a $325K purchase price, it was an easy sell. We sold the property for $325K for a quick $10K, and some operating capital to find some more property.
Our next deal was a vacant property that was going into foreclosure; we could not get a hold of the owner, and had basically deemed it a dead lead; we didn’t have the capital available to buy at auction. We put a sign in the yard advising if anyone knew about the property to call us ASAP; just four days before the trustee sale, the owner called us and offered to sell the property; we put the property under contract at $40K and delayed the lien sale. Our private lender was happy to fund the transaction and was able to get a 12% return. The owner was also ecstatic! He wasn’t going to lose his house to the bank and was able to get $20K out of the property after paying off the lien. Comparable properties were valued at $200K – $235K for a great ARV. We are now working on fixing up the property with a budget of $75K and expect to sell for a profit around $60K – $80K. We continue to look for property, and put in multiple offers every week in our new venture towards financial freedom as successful real estate investment business owners.
Our story is not an isolated case, and the risk was well worth the education and knowledge to get our company off the ground and taking action. Our goals are now to continue to fix and flip properties helping people with their property dilemmas. We are also working at acquiring cash flow, buy and hold passive investment properties with good returns that make sense. We’re well on our way to replacing our J.O.B. as we build our investment company and plan to be free from demand of our employers within the next three years if not sooner.