David and Tammy R.
David and Tammy are building their careers as real estate investors with PMI.
We are sharing how we found and purchased real estate with PMI’s help. We had little experience in purchasing and selling real estate prior to joining PMI. We joined PMI to help increase our real estate knowledge and to start a real estate rental farm.
How we find and choose property to pursue is always cruise the area, in day and night. As PMI suggests, know your target areas. We look for the worst house in the best neighborhood.
All properties have needed cosmetic help and elbow grease, cleaning, painting, and trash hauled away with the commercial property.
Making a no contingency offer is one way of putting our offer on the top of the pile. We used many, many ways to find homes: real estate agents, Fannie Mae and HUD’s website, newspapers, drive-bys, and the best by far: the net.
We have used many of PMI’s ideas having the realtor take the commission as a loan to purchase a property. We are just getting started and are looking forward to using more of PMI’s ideas. We feel that with PMI’s teaching there is no limit to our success.
We have two more closings coming up in the next few weeks.
Deal #1: Port Charlotte, FL
I located the home with others at the REDC auction site, looked at this and other houses, comped the houses and the area where they were located. At the auction we purchased the property and closed about 30 days later. We used a line of credit from another property we own in another state.
Deal #2:
We rented the house we purchased in Deal #1 for $750 per month. Payment on borrowed money is $266/month and taxes and insurance are 191 for payments of $458 for a profit of $290 each month.
Deal #3: Port Charlotte, FL
We located this house on the Fannie Mae site. The house had a deal on it, but the financing fell apart. The house was put back on the site Sunday and was reduced from $54,000 to $44,000. We did a drive by early Sunday morning and called the listing agent and talked him into showing us the house Sunday afternoon. When we got back to his office to make an offer we were sure we needed to move fast because the house would move fast at the lower price. We offered $33,100 and had the offer faxed so it would be in the office Monday morning. We were called back at about 11 am with a counter offer of $37,900. We agreed and had the agent write up a new contract and went in on the way home from working to sign. We closed about 30 days later and used about $10,000 that was left from our line of credit from the first deal, we had about $10,000 cash and got the rest on a credit card.
Deal #4:
We have rented the house from deal #3 for 700 per month. Taxes and insurance are about $200 per month and payments on the money are $275 for a payment of $475 and a profit of $225 each month.
Deal #5:
This deal was a lot harder. It was on a commercial property and we had to use many different concepts at once. We borrowed $50,000 from a good friend that we had borrowed money from in the past so he has a track record with us and knows we will repay money. The rest came from an investor, a loan for $29,000 if he could be the first lean (lien?) holder, and we got the agent to take the commission in a loan that we make payments on. We also sold some things and took a small loan from a friend that we have already paid off. The total purchase price was $114,000 plus $10,000 to the real estate agent for a total of $124,000. This is a piece of IL 1 acre with a 2,000 sq ft building. The owner is 74 and ran the property into the ground and had not done any cleaning, pruning, or repairs in many years. It was a mess, but we could see the vision. We are still repairing and cleaning and have hauled many trailer loads of garbage and trash away. We purchased a used dump trailer and this has saved us a lot of money. The agent cannot believe it is the same place and is trying to get us to re-list.
Deal #6: Port Charlotte, FL
We are working on our 6th deal and have a signed contract on a house in Charlotte, FL. The contract was accepted on Feb. 19th. This house was under contract and we were looking at another house listed with the same agent. We were saying how we wished the other house was still for sale. She could not give a lot of info but she said that there was a problem and to give her a call back later. We called back in the morning and the deal had crashed. We looked at the house as soon as she could meet us and had made an offer before noon. Before the house had any other offers, by 2:30 we had a yes from the owner so we are under contract and have a closing date in March. We plan on fixing this house to rent for about two years and then flipping.