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How I made $37,000 last week from 1 Real Estate play
(THREAD)
@ayeshaselden @XavierCMiller @DeannaSKent
@moseskagan @jkostecki_rei
@toddbillion @theinfamouscpa
@NixonMorra
@IAmChaseMaher @TravisDHughes @StandUpAgent
@jaredlspiller
@joshtooclutch
@B_REInvest
How I made $37,000 last week from 1 Real Estate play
(THREAD)
@ayeshaselden @XavierCMiller @DeannaSKent
@moseskagan @jkostecki_rei
@toddbillion @theinfamouscpa
@NixonMorra
@IAmChaseMaher @TravisDHughes @StandUpAgent
@jaredlspiller
@joshtooclutch
@B_REInvest
You will all enjoy this...
Last Christmas I was home/bored. I got on Zillow and saw this duplex listed for $135k (marked down from $155k)
It caught my eye cuz it had been on the market for 523 DAYS and was the cheapest listing in town
i needed to know what was up
Last Christmas I was home/bored. I got on Zillow and saw this duplex listed for $135k (marked down from $155k)
It caught my eye cuz it had been on the market for 523 DAYS and was the cheapest listing in town
i needed to know what was up
So I called the agent (who happened to be a part owner), went out and viewed it next day.
Good condition, great rents, awesome location. I was interested
(actual pics from that day)
Good condition, great rents, awesome location. I was interested
(actual pics from that day)
I left town but stayed in touch w the owner/agent
I offered $112k (owner wasn’t stoked
) and a couple days later I had it under contract at $118k
I offered $112k (owner wasn’t stoked
) and a couple days later I had it under contract at $118k
Due diligence: I looked at the county assessor. saw the building was listed @ SAME PRICE as the just tax value alone
which meant:
if I buy it for under list price, no way will the appraisal come back < the base tax value. aka INSTANT equity
(btw it appraised for $135k lol)
which meant:
if I buy it for under list price, no way will the appraisal come back < the base tax value. aka INSTANT equity
(btw it appraised for $135k lol)
Fast forward to May
The tenant moved so I drove out to Wyoming to do work on the building myself
Converted the 1 bed to a 2 bed, added walls, painted, some other misc. work, etc
Finished/turned the place over in ~3.5 weeks, placed a new tenant and boosted rents around 19% YOY
The tenant moved so I drove out to Wyoming to do work on the building myself
Converted the 1 bed to a 2 bed, added walls, painted, some other misc. work, etc
Finished/turned the place over in ~3.5 weeks, placed a new tenant and boosted rents around 19% YOY
(busted my ass in that mf too 
and ate a lot of very dignified meals lol )
and ate a lot of very dignified meals lol )
Anyway a few weeks ago I emailed the bank
“Any chance to refinance? I just did some work+rates are low”
: “sure, let us run some numbers and get back to you”
Few days later, they hit me: “Yo... The value came in really high. $178000”
Me: “Bet. Can I cashout?”
“Any chance to refinance? I just did some work+rates are low”
: “sure, let us run some numbers and get back to you” Few days later, they hit me: “Yo... The value came in really high. $178000”
Me: “Bet. Can I cashout?”
So... Long story short, they cashed me out $37,000 
For those of want numbers:
Purchase Price: $118,000
Orig. Appraised: $135,000
Downpayment: $27,500
Construction: $2500
After Repair Value: $178000
Cashout: $37,000
Timeline: <6 mos
ROI: [infiniti sign?]
For those of want numbers:
Purchase Price: $118,000
Orig. Appraised: $135,000
Downpayment: $27,500
Construction: $2500
After Repair Value: $178000
Cashout: $37,000
Timeline: <6 mos
ROI: [infiniti sign?]
*** Here is where it really gets sexy tho ***
DO THE MATH: I only put in $30,000...
But I pulled out $37,000
DO THE MATH: I only put in $30,000...
But I pulled out $37,000
So not only do I now still own the building forever. But now I also essentially:
1. Got it for free
2. Got paid an extra $7000 for my time/effort
3. Still keep all the rent I collected the last 6 mos since I bought it
4. Get to collect rent every month from now to forever
1. Got it for free
2. Got paid an extra $7000 for my time/effort
3. Still keep all the rent I collected the last 6 mos since I bought it
4. Get to collect rent every month from now to forever
So all in all, I’ll actually have gotten PAID ~$10,000+ to buy the building this year
AND for ppl wondering about the tax free part: technically the cashout portion is cash from the refinanced loan proceeds. It’s nontaxed because it’s not income... it’s a loan. the thing is tho: the loan is paid by my tenants
best part is: my new tenants are very happy too 
(convo from 2 days ago)
(convo from 2 days ago)
Btw this is cool and all, but the thing that most stands out to me is:
This is my journal entry from Jan 23 BEFORE I ever even bought the building
I wrote EVERYTHING that I was gonna do...
Then I went and did EXACTLY that
Except even BETTER (appraised way over expected)
This is my journal entry from Jan 23 BEFORE I ever even bought the building
I wrote EVERYTHING that I was gonna do...
Then I went and did EXACTLY that
Except even BETTER (appraised way over expected)
So tbh I feel kinda vindicated rn
Those who know me i don’t really bullshit, don’t say things I don’t mean, or that I won’t back up
Ppl can say what they want, but actions/results speak louder than words
And I think this latest deal speaks for itself
Those who know me i don’t really bullshit, don’t say things I don’t mean, or that I won’t back up
Ppl can say what they want, but actions/results speak louder than words
And I think this latest deal speaks for itself
anyway,
if you enjoyed this please SHARE RETWEET. and COMMENT w/ questions or thoughts
if you enjoyed this please SHARE RETWEET. and COMMENT w/ questions or thoughts
