In April 2006 I survived a quadruple bypass, loss of job and close to broke financially. Since then I have improved my net worth by over one million dollars and purchased 20 buildings with 71 rental units using only $22,000. of my own money.
My story: Soon after I recovered from my surgery (didn`t suffer a heart attack it was inhereted cholesteral condition) and lost my job as Publisher of a magazine division for a large publishing company I decided to write a brand new five year plan which would include purchasing rental properties with the idea of buying them cheap, empty on possession as a condition and fixing them up to hold long term. I would increase the rents in order to acieve my five year financial goal and help pay for the renovations. My origninal five year plan was to purchase 17 buildings with 58 units which was my goal. As stated above I achieved much more than this in only 18 months. I purchased my first building in April 2007 (gave myself a chance to fully recover from the surgery) and haven`t looked back since. A big part of my success story was joining REIN in September of 2007.
I attented a REIN Quickstart in Edmonton in November of 2007 with the intention of learning all that REIN could throw at me and to network and meet potential JV investors. I was successful on both fronts and enjoy a great relationship with my JV partner from Vancouver. We share the positive cashflow in one of my buildings. After that I positioned myself to be in the right place at the right time and purchased a number of buildings (10 buildings worth $1,840,000.00) using the last months rents that the seller was holding. It was approximately $35,000. that he would have turned over to me on closing but rather than do that I suggested that he use $15,000. as a down payment, $10,000. for taxes for the coming year and another $10,000. for insurance. This way he would feel secure in knowing that the taxes and insurance were covered for the year. He thought it over, didn`t want to be managing properties anymore (ill health) and accepted my offer.
This purchase represented ten properties and the seller owned fifteen. After a six month`s of successful manageing of these properties he offered his other five of which I was interested in three and went on to purchase these as well. My downpayment this time was $22,000.00 for the three buildings which were worth another $477,000.00. In short I paid (out of pocket) $22,000. for $2,277,000.00 worth of rental real estate. The seller was wealthy enough to be able to finance the whole deal at 5.5% interest over five years with a 25 year ammortization and a renewal clause at prime plus one after five years. I should mention that unfortunately he is of ill health and really needed to exercise his exit strategy now. Like I said, right place right time.
I had purchased seven properties conventionally before I bought the thirteen. All properties are postive cash flowing and the vacancy rate is less than 1%. I have, over the 18 months, managed to save three months worth of taxes, insurance and utilities in reserve for emergency purposes. Through my 30 years of publishing I have never been able to accomplish what I have in only 18 months of real estate investing. My wife and I manage all the properties and have made this our full time occupation.
Thanks to REIN, Don and his team for this forum and all the hard work they do to present monthly workshops, supply a great resource and for being there for all of us to benefit from. It was through REIN that I met my jv partner and the opportunity to meet the investor I eventually bougth the 13 buildings from.
Gregg
My story: Soon after I recovered from my surgery (didn`t suffer a heart attack it was inhereted cholesteral condition) and lost my job as Publisher of a magazine division for a large publishing company I decided to write a brand new five year plan which would include purchasing rental properties with the idea of buying them cheap, empty on possession as a condition and fixing them up to hold long term. I would increase the rents in order to acieve my five year financial goal and help pay for the renovations. My origninal five year plan was to purchase 17 buildings with 58 units which was my goal. As stated above I achieved much more than this in only 18 months. I purchased my first building in April 2007 (gave myself a chance to fully recover from the surgery) and haven`t looked back since. A big part of my success story was joining REIN in September of 2007.
I attented a REIN Quickstart in Edmonton in November of 2007 with the intention of learning all that REIN could throw at me and to network and meet potential JV investors. I was successful on both fronts and enjoy a great relationship with my JV partner from Vancouver. We share the positive cashflow in one of my buildings. After that I positioned myself to be in the right place at the right time and purchased a number of buildings (10 buildings worth $1,840,000.00) using the last months rents that the seller was holding. It was approximately $35,000. that he would have turned over to me on closing but rather than do that I suggested that he use $15,000. as a down payment, $10,000. for taxes for the coming year and another $10,000. for insurance. This way he would feel secure in knowing that the taxes and insurance were covered for the year. He thought it over, didn`t want to be managing properties anymore (ill health) and accepted my offer.
This purchase represented ten properties and the seller owned fifteen. After a six month`s of successful manageing of these properties he offered his other five of which I was interested in three and went on to purchase these as well. My downpayment this time was $22,000.00 for the three buildings which were worth another $477,000.00. In short I paid (out of pocket) $22,000. for $2,277,000.00 worth of rental real estate. The seller was wealthy enough to be able to finance the whole deal at 5.5% interest over five years with a 25 year ammortization and a renewal clause at prime plus one after five years. I should mention that unfortunately he is of ill health and really needed to exercise his exit strategy now. Like I said, right place right time.
I had purchased seven properties conventionally before I bought the thirteen. All properties are postive cash flowing and the vacancy rate is less than 1%. I have, over the 18 months, managed to save three months worth of taxes, insurance and utilities in reserve for emergency purposes. Through my 30 years of publishing I have never been able to accomplish what I have in only 18 months of real estate investing. My wife and I manage all the properties and have made this our full time occupation.
Thanks to REIN, Don and his team for this forum and all the hard work they do to present monthly workshops, supply a great resource and for being there for all of us to benefit from. It was through REIN that I met my jv partner and the opportunity to meet the investor I eventually bougth the 13 buildings from.
Gregg
