My first four years and first sale! Just getting started.

[fumbrunner]

I will be the first to admit that I jumped into the real estate game without the proper research that REIN and Don Campbell preaches. But I do have to admit that I have been fortunate. I just sold the first rental that I purchased and while it was a solid property, it initially did not cash flow well due to long time tenants with low rents and high heating costs due to an older boiler and older windows.

For a couple years, I stuck with this property and didn`t actively look to build my portfolio. I then stumbled upon Don`s book and it changed my outlook on and approach to real estate investment. It taught me the importance of cashflow, to be ruthless in finding the right property rather than the right-now property and most importantly gave me a goal to work towards - my personal Belize if you will.

I have since accelerated my pace and have added 4 buildings and 8 suites in the past 2 years, all cashflowing well and all in areas that attract good tenants. And that first property that I bought 4 years ago almost blindly? I just sold it for over 40% of what I paid for it. That has allowed me to pay down some of the accumulated debt from other properties and I can now look at larger properties.

I have developed a 10 yr plan to financial freedom. I am currently in year 2 of that plan and slightly ahead of schedule. All in all, I have been very fortunate. Tenants have been great for the most part. Investments have panned out. And most importantly, I am loving every minute of it!!

 

[GaryMcGowan]

Congrats on finding a plan that works for you and one that you can use everyday! Isn`t cash flow great

 

[Emil1753]

Bravo!

Good for you Gerry. Perserverance is key in this business.
It`s always nice to hear success stories like this.

Makes me smile

-Emil

 

[housingrental]

Congratulations!

 

[JoeRagona]

Congratulations on your success and forward movement. I too share a similar story but embarrased to say it was all AFTER I read Don`s book, was a member (but a very enthusiastic one) and still unsure of my complete plan.

But, I`m happy to announce my dog, which was my first property finally sold after vacant for 6 months. This was an RTO property to boot and I admit only seeing the `large` cash coming in and ignored:

• screening the tenants properly
• getting the right mortgage broker on my team
• analyzing the property in case the RTO failed
• the property type as it did not fit my overall plan and tenant profileThree months into the deal the issues started and long story short, I had to evict the tenants less than a year into the deal. This was October 2009 and it sat vacant until now. All carrying costs, huge financing interest rates, maintenance like snow clearing to show potential renters over the winter etc...
  
  The GOOD points?
  
  
  
• It increased in value about 15% in less than 24 months
• I built a solid team of professionals to help me
• I structured a complete system for analyzing properties
• I built a stream of checklists and procedures for tenants, operations, property management etcI learned how to correctly identify future RTO clientsI learned how to correctly screen MY tenant profileI learned about the LTB process and what to expectI faced decisions in dealing with an eviction and RTO option moneyI learned how important it is to have the staying power fund for EACH propertyI learned why you need `B` plans in place (the SPF was eaten up rather quickly so access to additional immediate funds is crucial)I went through the selling process as an investor and "left something on the table"

Did I make money? No...since it is not even 24 months since purchasing; but the increase saved me and I will basically break even. The IRD is expensive and the only ones making money are the realtors - AGAIN.

As my lawyer put it "it`s tuition fees" and I will always remember that. I truly do not regret buying it because I am a much more savvy investor and a better judge of charactor AND property. I experienced quite a bit on my first property so I now have a better understanding and have SLOWED DOWN.

If you take away anything from this, `listen and follow what the experts tell you. there is a reason they are successful, a reason for the workshop repetitive foundation information and a reason the checklists are created. I ignored many of them starting out for reasons I don`t know...I assume it was because I was lazy and thought I knew better. I have learned the chanllenging way to not do that again.

And one more thing...a couple of months changes everything. Back in February I was crying to get help with 4 vacancies and wanted to sell this badly! Today my vacancies are filled with really great tenants that I chose, had my professionals verify and my rents have increased.

 

[2ndstory]

QUOTE (fumbrunner @ May 28 2010, 11:45 AM) I have developed a 10 yr plan to financial freedom. I am currently in year 2 of that plan and slightly ahead of schedule. All in all, I have been very fortunate. Tenants have been great for the most part. Investments have panned out. And most importantly, I am loving every minute of it!!

Great to hear, Gerry! I entered without a game plan too. Started with a flip, but things are starting to come together. I didn`t get the personal "Belize" thing until this spring when I went to Arizona. Now I know in part what I am working towards. Hope to meet in person at some point.

Nik

 

[gwasser]

QUOTE (fumbrunner @ May 28 2010, 10:45 AM) I will be the first to admit that I jumped into the real estate game without the proper research that REIN and Don Campbell preaches.
But I do have to admit that I have been fortunate. I just sold the first rental that I purchased and while it was a solid property, it ...

I have developed a 10 yr plan to financial freedom. I am currently in year 2 of that plan and slightly ahead of schedule. All in all, I have been very fortunate. Tenants have been great for the most part. Investments have panned out. And most importantly, I am loving every minute of it!!

Congratulations

 

[eddyb1978]

Joey, thanks for sharing your great insights! great story and thank you.
Eddy

 

[TerryKruse]

Congratulations Gerry,

I grew up in Winnipeg and moved from there in `86. I have often wondered about the Winnipeg market and I am glad that you have done well.
Cheers, Terry

 

[rente]

Hi,
Congratulation to all of you.
And thanks for the information that you shared with us here and i really help us here..
Keep posting..