No matter how slow you go, as long as you do not stop
# Entrepreneur of the Week Dima and Zinovich # Post 4:
Let's talk a little bit,
When I started dealing with real estate and especially surrounding myself with people who do real estate, I noticed that everyone shares successes, everyone shares how much they get rich, profit from every investment, how much everything goes smoothly and easily and they get "passive income" in a second.
But I think and believe that a person is actually learning and progressing in his less good investments, and these are part of his journey and there is no reason to hide them.
I bought one of my first assets through someone I knew in the course, he was one of the lecturers in the course I did, a friend did mentoring and mentoring through him and got a return and was pleased and I said "I want too",
We searched for properties, checked neighborhoods and areas and found the one,
Duplex house, 2 units (2 separate entrances and legally divided of course), in area C and both units come rented already.
At that time I did not understand such market prices and did not know how to check at all what the right price for the above property was and how to check that they were not working on me, and the numbers worked for me and I trusted the person in front of me.
So do not get me wrong, the investment was great, still working and I still own the property and make a great return on it,
But in practice there were things I might have done differently,
The property is 1600sqft,
2 floors, 3 rooms downstairs and one upstairs and rented for $ 1440,
Bought by for $ 83k,
By a rough calculation, after a management company and more you have about 9% return left.
But in Kenya after reading a bit of the HUD (highly recommend to anyone at the beginning of their journey to start understanding what exactly everything in the HUD means and learn from it),
So after seeing the HUD I saw that the same mentor worked in front of Holsler and how much profit did the Hall Seller make, and would you mind? I wanted too !.
Now it's not that I wanted the profit that Hulsler wanted, I wanted properties at such prices and that I would get to them first and be the one to decide now whether we leave them in our portfolio or pass them on.
One of the smartest decisions I made after buying and investing in some properties is to take my feet off and travel to study the area, now some would say Holsling will do virtual work today and there is no reason to fly all the time, but I believed in doing with my feet and making connections that would go on with my journey.
I have made contacts with debaters who to this day I offer them properties and they offer them to their buyers,
With contractors who have customers who buy houses for fix & flips and always in favor of projects at great prices,
With residents we happened to see a house next door and met the neighbor who was happy to hear that if he heard about houses for sale in the area he would be able to make some money from the side on the connection between us.
Just this week we put out a deal that was sold just yesterday after almost everyone I spoke to doubted it, the area where the house is located and the price at which we closed it.
The deal is a huge duplex house, in the C- area,
2050sqft, duplex divided into 2 housing units + third floor with potential room,
6 Bedrooms
2 toilets
Garage for 2 vehicles and everything is in very reasonable condition,
The property does come half vacant and half with tenants who have lived there for years and pay a low rent ($ 500) with the average rent in the area being $ 1000 per unit,
The house came to us for $ 72,000 after our inspection and some tours we did on the property with one of the workers who lived in the area,
We advertised it for $ 90,000 and everyone who saw and knew the area claimed that we would not be able to sell in this area at a price close to that in life,
The price has to be half in order to have a deal.
After a few weeks and help from guys from the forum and consulting with Gal Shmukler
An investor arrived with an agent representing him, and we closed at 80.5K and a quick close in just 10 days,
From there the investor gets a huge property that gives him an excellent return, in an area that is not amazing but he is an investor who comes with experience and owns quite a few properties there and knows how to deal with them,
And we are earning $ 8500 profit and an investor who is already interested in a few more properties that are supposed to enter us and go on sale right in the next few days.
* In the picture the house from the last deal that actually closed yesterday,
What is not in the picture, all the guys who doubted that we would be able to sell it?
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