The first deal, the contacts across the ocean and my departure for independence
#יםמהשבוי Vika Held-Kuzantsov, #Post3
First, thanks to everyone who reads and comments! I really feel privileged to continue writing and sharing my way with you.
It's strange to think, but actually relocation following a career in the field of science paved my way to a 180 degree different career. How does such a turn happen? Staying in the land of unlimited possibilities exposed me to opportunities in the field of investments, and I could not remain indifferent to them. Thus, when I returned to Israel, I spent several years searching and researching, at the end of which I went to learn from the best real estate investment entrepreneurs in the USA.
The road began with several falls that lasted about 10 months.
I had a desire to succeed, with the support of amazing mentors, surrounded by a number of students like me, but those who have already managed to purchase a property or two, on the one hand and other experienced real estate sharks, on the other hand, I purchased the first property!
With great excitement that the method finally works for me as well, I thus purchased 3 rentals in 3 months. Today I have profitable transactions and in the process of flips and constantly continue to look for opportunities.
In the picture, the first house we purchased with a partner.
Property Details
Duplex in Milwaukee, Wisconsin
Population in the area: singles, adults, manual laborers, relatively high level of crime
Offered for sale: $72.000
Purchased: $62,000
Renovation: $ 2,500
Closing fees: $900
Total purchased: $65,400
Expenses: 40%
First year rental:
Tenant 1: $550
Tenant 2: $585
Total rent $1135
Water is paid by the landlord
Yield: 11%
* The two tenants were replaced, the property manager was replaced
Second year rental
Tenant 1: $600
Tenant 2: $650
Total rent $1250
Water is paid by the landlord
Yield: 12.2%
I will only mention that what led me to continue and not give up until the purchase of this property, because I saw in every fall, a jump to the next level. I'm just reinforcing here what dear friends have already written before me, first you have to reach the right mindset. This is what will allow us to move forward and succeed in acquiring real estate transactions.
Now please allow me to fly a little over myself. ?
I simply fell in love with entrepreneurship that I discovered in myself, because I was able in my life circumstances, as I described in the first and second post, to start walking on this new path for me and for my family and all my immediate environment. This is what made me start planning the departure for independence.
As long as I am employed, last year I was allowed to work 75% of the job. This created a window of time for me to continue choosing the right people there, across the Atlantic Ocean. Hundreds or more Zoom meetings and phone calls to locate and then build professional relationships on the one hand, and warm and human, on the other hand, with all my contacts in Milwaukee, Wisconsin. That's where I'm currently focusing.
As many have mentioned before me, I am also a people person, which is why the field of real estate excites me so much. Today I meet and accompany people who want to invest in US real estate. This is what allows me to continue enjoying the journey.
After every meeting in the real estate community, or where a deal is being considered or planned, or conversations with the property manager or the broker or the contractor, my energy level at least doubles.
I'm done flying over myself. ?
How important it is to choose a good property manager, has also been mentioned in this forum many times.
Please note that my first property is in a less pleasant area, to say the least. The deal only works thanks to the management of my property manager who was a local investor. He does not own a management company, he is a private person who manages his assets and my assets. Now, the method works great. Recommended!
In the future, we plan to grow with it and establish our own management system or, there is always a plan B, to find another solution, another good management company, as we expand the portfolio to dozens or more properties.
Win Win
To clarify a bit about my current property management method, using the example of the first property. As you can see above, the rent payments and thus the yield increased in the second year.
It was made possible because together with the property manager, we make sure that everything is handled humanely and well. If something happens and a tenant gets into trouble and can't pay, instead of going to eviction, other solutions are found.
We had a case with such a tenant. The property manager talked to her personally, and offered to return her down payment, so that she would have money to rent another, cheaper house. So everything ends well for her. She went out, left a clean and tidy house, we allowed her to leave things in the basement until she settled down. Within two weeks, another tenant moved in who paid more than her. After another week she returned to collect the things. Thus, we continue to enjoy a higher yield, and everything is done calmly and humanely.
I strongly believe that when you work with your heart and mind, and a desire to do good to the world, you feel better, and also, thank the universe, you earn more.
In addition, as I already mentioned in the previous posts, my great passion is to help the world be a little more beautiful. Therefore, in my opinion, the greatness of being engaged in US real estate is also the ability to contribute part of the profits. I donate to children's brain cancer research. An old dream of mine is coming true. Because I was involved in cancer research for years, which was strengthened in light of a close acquaintance with a friend in the US whose son died of brain cancer. He and his partner set up large fundraising events and at the time I assisted them. I saw how painful it is and how much the donation is required.
To conclude this post, I left a respectable career in the scientific community, because I discovered a new field, which, in addition to all its advantages, helps me engage in making the world a better place. And part of that is to pave the way for financial freedom for myself and get the right to lend investors for the same purpose.
Tomorrow, the stories of the falls on the way to the first real estate deal.
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