Real Estate Student Profits $70K in One Month
I sold out all of my land on short term cap gains and made some great money. I never built a home with the builder because the land appreciated so fast that I didn't need to take the risk. I sold the larger parcel (20 acres) for a profit of $70,000 in one month! And I bought 100 acres in the same area for $367,000 which is now listed for sale at the long term capital gains rate (15%) of $779,000. I hope to sell it this summer.
My net worth went from under $300,000 to over $1,700,000 as one big huge gain, and I sold my personal residence (a condo) and bought a over a million dollar house.
I also used my contacts in real estate to join a financing company and am now the Executive Vice President of Commercial Lending for a boutique financing company in Beverly Hills. I have closed $26,000,000 in commercial loans to date and intent on closing with my business partner here, $100,000,000 in the next 12 months.
BTW-when I first started I had no job, no 'marketable skills', and for sure was hanging on by a thread in the old bank account. Blessings, let me know if I can do anything else for you.
I am a big huge fan of Prosper.
Georgia R.
Los Angeles, CA
I Now Own Over 2.5 million in Property
I just wanted to say hello and let you know how I'm getting on. Since that one flat I bought while you were coaching me, I now own 4 of my own, co-own 4 with a business partner, own 2 houses which are about to be sold, and have now set up a new business in which I raise money with investors and the banks and we renovate and sell on. The properties I now work with are large houses or flats in very nice locations in London, UK. We also buy properties for other people and renovate them in the same way.
I love my job! I still think of our conversations and how much you helped me and wanted to thank you again for all your help. I probably own over £2.5 million in property now and it's continually rising. I will take a salary this year--didn't do that before but that's because I did give up my day job to do this and just downloaded money and paid bills but now it's salary year. You can see my website below.
Sally H.
London, United Kingdom
www.propertytransformation.net
We Sold One Property and Made $95K in Two Months
Since we last spoke, we purchased another 2 properties. We sold 1 property and made C$95K within 2 months. I think you have heard of the crazy Calgary real estate market since the beginning of this year...any one property went up by 30-40% in 6 months!!! I wish I could have bought more, but I ran out of funds and it's becoming hair raising to manage my debts and mortgages. I guess buying real estate is easy with readily available funds.
To date, I have 3 other holding properties on rental, as the rental market have also picked up quite substantially. We recently took possession of a property in a prime location (purchased just before the market went really crazy in April...and the seller wanted to try and rescind the sale). That property was purchased at C$278K and is now valued at C$380K. Adeline and I have decided to keep this property for redevelopment into a multiplex. Meanwhile, I'm refurbishing some fixtures and walls in this wrecked bungalow to rent out in September (already tenant next door came by to see and wants to rent the whole house while I was cleaning the mess left by the previous tenant).
Many people saw the boom in Calgary's real estate and sparked the chain reaction of others wanting to jump into the bandwagon, even my Realtor and some friends. These are some of the areas of concern for us and we are recuperating from the several transactions to date. We did not flip the houses we bought but took possession and did some cleaning before we put 1 back into the market for resale. As the market demand has cooled off in July/August since more listing are out, we are selective of the properties we want to buy...there are no more residential homes in Calgary below the C$200,000!! I have this strange feeling that we are likely partly to blame for the recent crazy market...Calgary in history, has not seen property prices go up this high in such a short time!! No one can believe their eyes...even my bankers regret not buying real estate. My Realtor said you can blindfold yourself and throw a dart on a map of Calgary and it's as good a community to buy properties as anywhere else!!
Philip C.
Calgary, AB, Canada
Student set to make $100k on first deal!
June 2009
Hello,
Things are going well.
FYI. House I bought during coaching:
Purchased $110K
Renovate cost $125K.
I have a contract on the house for $335K
House is sheetrocked; vinyl siding started.
Closing date Aug. 1, 2009
People said, “Are you crazy?”
Your coaching gave me knowledge and courage to purchase.
I'm looking for the next one now.
Thank You,
Sonny C.
West Milford, NJ
Made $55,000 on first deal!
Just wanted to let you know that we have closed on 2 apartment buildings. We paid 45,000 each. The previous owner owed 138,000 each. We have to split profits with partner that put up the money so conservatively speaking we have probably increased our own net worth by at least $55,000. I think we are on our way!!!!!!!!!!!!!!!!!!!!!!
Lisa D.
Liberty TWP, OH
Prosper Coaching Is Unbelievable
Prosper took me to a level I never would have been able to do before. It has given me free time... Owning my own business, I learned everything on my own. With Prosper, it was great because what I learned in 2 or 3 months with Prosper it took me to learn 15 years on my own business. My business has been successful, but had I had someone to hold my hand…it would have been a lot better for me. What I learned from Prosper…motivated me. It has changed my family 100%. I am not as stressed out. I come home, I am not as stressed out, I have money in the bank. It has given me freedom. To me that is worth all the money in the world.
Brent H.
South Pasadena, CA
Our Decision to Join Prosper Will Pay Great Dividends Long Term
We thought you might like to share in some great news - something that clearly would not have happened without your input, encouragement, and patience (after 3 months of coaching I'm sure you must have wondered at times if we would ever get started and do something!). Well, we're on a roll, and with the goal to purchase 5 properties by June, we are now well on the way.
Two of our offers have been accepted and our new property investment group is now the owner of two homes in Grantville. As you know, this area has gone up 20% in the last 12 months and while it is expected to go up 35.7% in the next 12 months, for our figures, we have only worked on 30% in the next 18 months.
Third, and if that wasn't enough, yesterday we took your advice to look in Melbourne's Wild West. We now know the two suburbs we want to purchase our next property in--but more on that in our coaching session on Friday.
In case you hadn't notice, we are EXCITED!! I asked you a week or two back, how many of your students succeed? Your answer along the lines of 98% of those who put in the work really stuck in my mind. We put in the work (not as much as we thought we would have to) and we started to believe we could achieve what we set out to do. You were there encouraging us and providing options, lots of options.
A genuine, huge, thank you to you personally for all your input so far. We look forward to our next session on the "when, where, and how" of our next three properties! A big thank you to the team behind you at Prosper Learning. We appreciate that a major part of freeing you up to what you do well, is to have the right backup and support. Please pass on our appreciation to all those behind the scenes who have helped us, whether they know us or not. We chose your U.S.-based property investment program over a cheaper local one, mainly because we see long term we will be investing in countries beyond our shores, such as in the U.S. We are very happy with the decision we made and know it will pay great dividends long term.
Helen & Howard M.
Cowes, Victoria, Australia
$40K Profit on First Real Estate Deal
We purchased a foreclosure property in Falmouth on December 10 for a purchase price of $185,000. We used a hard money lender, which everyone thought we were crazy, but he financed 100% for us (unusual). We started to rehab the property, replace windows, siding, flooring, kitchen and baths.
While talking to our friends we came across a buyer. We showed them the property on December 21 and on Christmas Eve we agreed on a sales price and had them sign a purchase & sale with an earnest deposit, and a closing within 30 days. What a way to start our new future with investing in real estate. We bought the property for $185,000 and sold it for $295,000. Once everything is finished, paying the investor and finishing the project, we’ll have profited between $35,000 - $40,000. Not bad for our first flip! Now we’re off to try another. Thanks for everything! Sean & Kim W. East Falmouth, MA$50K Profit with No Out of Pocket Expenses
First I want to thank Prosper Learning and my coach for being completely knowledgeable in teaching me the foundations that made this transaction possible. I found a foreclosure going to auction within a period of 1 month. The property was quit claimed to the son to take over possession of the home, to turn around and sell giving the profits to his 3 siblings. It was put up for sale but in its poor condition, it didn’t sell.
During this time one family member put a lien on the property to justify that once the house sold, the siblings would get their share which amounted to $40,000 each totaling $120,000.
We were able to negotiate the $40,000 down to $20,000 for each sibling and the remaining loan on the property was $95,000. The amount owing was $175,000. We then found an investor who bought the property for $275,000, put up 10% down and got the down back upon closing + $10,000 bonus for going on title which also came out of the equity. The net was around $100,000 giving enough to rehab the house and put money in our pocket. Rehab was $15,000 and together with the $275,000 makes the amount owed on the property $290,000. The property will be sold for $350,000 making an additional profit of $50,000 with actually no out of pocket expenses.
The transaction went very well and now onto our next venture. Again, I am indebted to Prosper Learning for making available the knowledge to be able to do this transaction and for walking me through all the different possibilities. I was in very good hands and appreciate being a part of Prosper Learning.
TN
Long Beach, CA
I Made a Profit of $40K on My First Deal
I started by looking for distressed properties and motivated sellers so I would find the best deals. After finding 3 prospects, I contacted the owners to access the properties so I could make offers. I quickly found out that making offers is fun, but takes skill. I asked my coach to break down the process and off I went.
I made 3 offers but, one property stuck out. It was a foreclosure bank owned property worth $200K, but it was listed for $162.9K. I made an offer of $155K and 6% closing cost. They countered with $160K and 3% closing cost. I evaluated the numbers and because it made sense, I accepted the offer.
I started this real estate investing course and my coach has made all the difference in my quick success. He made sure we discussed each step I took every week. If I encountered an obstacle or road block, he would guide me through it. He offered simple solutions and resources to make the process easy.
For example, this property was bank-owned and very different than dealing directly with the owners. I was a bit intimidated, but Prosper Learning taught me how to evaluate the property for repairs and profit, and make the offer and negotiate confidently with the Realtor who was not very cooperative. We didn’t close on time and I had fallen out of contract. I didn’t know what to do so I contacted my coach. Due to his advise, the Realtor realized I was not alone and someone very experience must be helping me because I was on top of my game. She granted an extension on the contract and that advice saved my first deal.
I did exactly what my coach told me to do step by step and I closed on my first investment property with a PROFIT of $40,000. This course is well worth it. THANKS PROSPER LEARNING.
L.A. G.
South Holland, IL
Our Invesment at Prosper Outpaces Any Financial Returns from My MBA
Before joining the Prosper Real Estate program, my wife and I had no Real Estate investing experience. Except for buying our first home, we had never bought any real estate, although I had been reading real estate books for years, trying to get up the nerve to actually do something. I knew there was money to be made, but lacked the confidence and knowledge to make it happen. If I had been single, perhaps I would have been more bold, but with a wife and two children, there was too much on the line to make mistakes.
At the time we started working with our Prosper coach, we had begun construction on a new home. After a few sessions, we realized that instead of moving in, the timing was good to flip the property, which we did one month later for a $25,000 profit. With that profit, we were able to upgrade to a bigger lot on a creek and build another home, which we live in and love.
One year later my wife noticed a home in our neighborhood for sale at what she knew was a low price. Our coach had taught us to become very familiar with a certain area of town, so we were confident it was undervalued and we offered immediately. He had also taught us how you “make money when you buy”, so we offered even lower and we got our offer accepted $10,000 below the asking price ($290,000). We worked on the yard for the next two months, deep cleaned the home, hired an excellent realtor and sold the property for $328,000. I’m still proud of how that yard looks.
Since then the real estate market has changed dramatically. Our coach taught us that we can make money in any market, so this year we found two new townhomes and had them both rented before the closing date. Both of them cash flow and will pay for our children’s college in 10 years. Real Estate tends to double about every ten years in our area, so one townhome for each of our children made sense to us. If we have any more children we’ll probably do the same.
It’s been two years since we began our Prosper coaching program, and one year since we graduated. The return on our investment from Prosper far outpaces any financial returns from my college and MBA education. Thank you Prosper for teaching us that we are in control of our financial future!
Steven & Debi H.
Springville, UT
Our Deal Is Expected to Cash Flow At Least $175 Per Month
We bought the first property for about $170K with a 2% seller concession, and 25% down. The first deal required about $25K of work when all was said and done. The after repair value is appraised in the tune of $280K. It is a 3 unit building. Based on effectively 100% financing (since the down payment and closing costs were effectively covered by loans), the deal is expected to cash flow $175- $200 per unit. Our target is $200/unit per month. This being our first deal, it was not so bad. Particularly since it made the next deals possible (plus, there are strategies being learned that will ultimately improve the cash flow on this build itself).
The day we closed on this property, we applied for a HELOC. Based on the banks appraisal, we qualified for the maximum HELOC available by the lender for investment properties -- $100K. We used these available funds to 1) qualify for a $500K rehab credit line with Brookview Financial with up to 2 deals being done in parallel, 2) cover rehab costs on this property, and 3) to fund down payments on the subsequent deals.
We intend to hold this property. The rental market is great, and the resale market for properties are not so great since others are doing as I am doing – buying REOs first and above non-bank owned properties. Passive income is good!
Kevin G.
Methuen, MA
$500/Month Cash Flow
I ended up purchasing the three-unit building in the beginning of September. There was some cosmetic work that needed to be done, but overall the building was in a pretty good shape. Currently all three apartments are rented and the cash flow from the three units is about $500.00 per month. Come spring time I am planning on doing some landscaping after which I plan to refinance so I can get the money I have invested in the property back and start looking for another property. My plan is to try to buy at least two similar size property each year; however, if the deals keep coming I am not going to stop at two. I will most likely keep going. Thank you so much for your support.
Rashko D.
Findlay, OH
Real Estate Student Negotiates a Great Deal
As you know I had an offer accepted for a duplex in Lake County, California. The original asking price was $429.5K. The seller dropped it to $350K and dropped it again to $299K. I offered a low $250K because I knew it had been on the Market for 6 months and the owner wishes to move out of state and wants to liquidate this property. She came back and suggested $290,000. I offered $275,000 and she has accepted. My Realtor gave me a great compliment in saying "I thought you were crazy to offer such a low price on three units, but by the time you offered $275,000, the seller was ready to jump. "I can't believe that you did that Sue".
I contacted a mortgage broker that I have used in the past and faxed her all of my information for the loan. We are waiting for the pest inspection. Funny thing about this property—one builder built 3 identical duplexes and one of them is also on the market listed at $429K. I contacted a Realtor last week and asked her if she had any good deals in duplexes in the lake area. She told me she had a "super" deal on a duplex for a "low" $429K. It is the identical one to the one I'm getting for $275K.
I have located a vacation rental agency that primarily rents out large homes on the lake. I explained to the office manager where my house was and that there is a large boat launch facility 2 blocks for the property and 5 minutes from the local hospital. She told me that on occasion the Visiting Nurses Program sets up people in housing while they are working at one of the two local hospitals in the area and that my house may be considered for the program. She will be coming to view my house in the next few weeks. If my house qualifies for the program, the Visiting Nurses pay approximately $2000 or more per month to rent it out. Currently my mortgage is $1024 per month.
Susan B.
Oakland, CA
Prosper Student Will Make $45,000 Profit On His First Deal
My main focus as of late has been flipping properties. My first property was purchased for $177K. We had to do traditional financing which took some time, but it all worked out well. This first property is almost ready to be listed. We have gutted the whole house and are just waiting for the new carpet to arrive. The last step will be to have the landscapers give the exterior some much needed curb appeal. I have been talking with Realtors that know the area about what they think it will be worth when completed. Their ideas are right in line with mine. I am going to list it for $269K. I think we will be satisfied as long as we get $255K. The market is hot and, since we bought the property, the value has gone up $20K from what we thought we could get originally. So with all of the costs aside (fix ups, Realtor fees, taxes, etc.) we look to take home at least $45K on this one! Not bad for a first try.
We are closing on our second property tomorrow at 1 p.m. The purchase price is $240K and I have found a private money lender that will lend us the money for 4 points with no interest and no payments. This will be a few thousand more than going traditional, but it has allowed us to close quickly, and it won't be on our credit. This house is in the middle of Holladay, which is such a desirable area right now. We plan to have this one done by the end of the year, and ready for sale by January. This area is so hot that offers continued to come in well after the contract was accepted. We have already had interested buyers trying to get our contact information form the seller's agent to find out when the property will be renovated and how much will it be. That's always a good sign. The thing I learned from this deal is to always be ready to write an offer. You have to look for good deals ever day because they are all around you. Anyway, this one looks to be another $40K-$50K deal when it's all said and done. The goal is to just keep them coming. We plan to do at least 6 of these through the next calendar year. It is exciting to see the progress that is being made. I'll let you know what we end up getting form the sale of our first property. Thanks for the help and instruction.
Andrew K.
South Jordan, UT
Real Estate Success in Ireland
Since starting the coaching, I have managed to get 6 investment properties up and running. They are all in positive cash flow and have all increased in value. The coaching is invaluable--calling me each week created a strong, positive pressure to take action. This complemented the books and CDs I was studying, which were part of the program. The coaching created a good synergy and a dynamic which I could not achieve on my own.
This has also encouraged me to go on to bigger and better deals. Now with this coaching I'm looking at purchasing property in the states maybe Florida...who knows but with the coaching I have the confidence to go for it.
Now to the numbers. The 6 properties are generating e7000 per month in gross rents after my repayments to the lenders, etc., the positive cash flow from the properties is at e3,500.
Ken M.
Dublin, Ireland
$50K in Equity on One Investment
Three months ago when we started these sessions with you we were scared to step out. You have given us confidence and wisdom that has helped us cross the barrier of fear. As you know, I left my job a month ago, but with your help we hope to have our income completely replaced in the next six months.
Our original goal was to make a $100K this year. With the single investment in these three houses we will be over half-way there in equity.
We are forever grateful to you for the help you have given us.
Jim and Kim F.
Cabot, AR
We Plan On Flipping One Property Per Month
We have purchased our first property to flip and it feels great. My wife Vicki and I have been very interested in Real Estate investing for quite some time now. We have read books listened to seminars and looked at properties but had never taken it any farther because we were worried about the risk. After attending the wealth expo in Toronto we decided to sign up for a personal coach… Our coach has given us the confidence to go out and really begin real estate investing. Cameron has really simplified things for us and given us the added knowledge that we needed, as well as reinforced the important things that we already understood. With Cameron’s guidance we were able to learn how to easily find and target strong areas in our market for resale and rentals, evaluate properties, build a strong power team around us, understand the offer process, and understand the purchase agreements and safety nets that we can use, as well as many options that we can use to make our property profitable even if something happens (such as if the market drops and we didn’t foresee it).
We are in a very aggressive market where property is selling well above the asking prices and the average days on the market are under 18. With coaching we have found our first property which we have purchased for $92,000. We will be adding a detached garage, finishing the basement, cleaning the upstairs and the floors and re-doing the kitchen for a cost of $25,000. We are confident that we will be able to sell the property for $150,000 plus, for an expected profit of $20,000. We will be doing very minimal work ourselves as we are now seeing deals pop up all over and we want to spend our time finding creative ways to get some more deals under contract. With our new knowledge and the support from the resource line we plan on flipping 1 property per month over the next year as well as adding 6 rental properties to our portfolio. We are expecting our first child at the end of August and we are very excited at where are lives are heading. Thank you very much from both of us for all your help, motivation and guidance.
Darren & Vicki P.
Beausejour, MB, Canada
Real Estate Students Get a Nice Cash Flow on a Great Deal
I knew of a gentlemen that needed a place to live and his credit was not the best and he didn’t have a big down payment; I also knew of a couple that wanted to sell a manufactured home and I was able to purchase their home for $9,000; I took the money out of my HELOC. From there I offered the buyer the home at $17,000.
I carried the note and I charged him 14%; this made my cash flow $197/month. Recently, he has decided to get married and this home is too small for him, so he is trying to sell it. Yesterday, a young couple came in. They needed a place to live and he sold it to them (or I sold it for him) for $20,000 and again I am going to carry the note. I gave them the same interest rate, but I gave them 15 years. So, their payment is just a little higher than what his was, so my cash flow is right around the same…we still have a really good cash flow. So that is actually two deals with the same property and we still have a really good cash flow. Without the assistance of our great coach who helped us get through this and gave us the confidence to move forward, it just probably wouldn't have happened.
Ralph & Melody L.
Surprise, AZ
Great Deals and a Nice Cash Flow
Things are going slow but great. The property in Georgia we were able to get a tenant starting this month. We rented it for $900 per month. After all the expenses we cash flow $100 per month on this property.
I also found another great deal. On this deal I offered full price and my offer was accepted. I will be closing on this property on the 26 of this month--4 bedrooms, 2 baths 1800 sq./ft, lot size 7000 sq/ft. Price $53.9K.
I have another property that is under contract. My offer was accepted back in September, but I have not able to close because is always something that comes up that delays the closing. If everything goes fine, I will close this month--5 beds/3 baths, 3200 sq/ft. lot size, 17,000 sq/ft. Price $73K.
Julio P.
Monticello, NY
Practical and Applicable Education From Day One
I originally signed-up for classes to help supplement my income. However, less than a day after I signed up to become a Prosper student, my job was down-sized! Going from barely keeping out heads above water with a family of six to living off assistance wasn't quite what I had in mind for me and my family! At first I focused a lot of time and energy into getting another job. I thought that getting a job would be a logical way to help fund my real estate investing. Now that sounds all nice on paper and all, providing you actually get a job.
Prosper has giving me hope during this otherwise dark time in my life. I knew I could not control the fact that I was fired. I knew I could not control the fact that I had not been hired (though I have put out a number of resumes to companies and headhunters). What I did know was that I had an opportunity. Not a gimmick. Not a scheme, but an opportunity…an opportunity to learn from some of the brightest minds in real estate…an opportunity to have a mentor stand beside me as I spread out my wings…an opportunity to write my own future paychecks. No one can ever take this away from me!
My first Real Estate transaction was actually funding a project for another investor. I put up $18K for the deal and I'm looking to net $3600 in about a week. 20% interest for a two week loan? Only in real estate!
I also have another deal in the works where I am buying a property at $20K and with about $7500 worth of repairs, should be worth $60K! I love the opportunity to write my own paycheck!!
My 8 year old daughter asked me just the other day, "Dad, are you ever going to get another job?" I told her, "I hope not! Daddy's don't need to have jobs to earn money." She replied, "You mean you are earning money when you are on the computer?" I said, "Yes." She replied, "Cool!"
Needless to say, I am relieved to see that I have replaced my income from my full time job with investing in real estate. My goal for March was to earn $1000/week in real estate. I am already close to target for that. My next immediate goal is to net earn $1500/week. However, I believe that is totally unrealistic. I should be averaging more than if I only do 1 or 2 deals per month!
I feel like the young, teenage boy who just got the keys to the parent’s new car! Not only do I know how to drive now, but oh won't the neighbors talk once we get this thing started!
My personal goal is to look for the deal where I can earn at least $10K every week for the rest of year. Hitting on this goal only once every other week would still make a quarter of a million dollars per year! Suppose I only hit once a month. That’s still over $100K! Not too bad when you think I used to find security in my $20K per year job!
I would like to thank my coach. I would also like to thank the entire Prosper team! What a wonderful product! Awesome education! Practical and applicable teaching from day one. Supurb!!
David R.
Alma, MI
The Prosper Website Has an Abundance of Information
I’m a single mother and own my waterfront condo in Vancouver, BC, Canada. I am learning to leverage the equity in my property to build my real estate portfolio. I’ve just closed on my first investment property, which is a 5-plex in Rochester NY. Buying real estate can be a stressful experience, even if you are local and able to handle things personally; but when you have to build a team remotely from another country, it ups the ante significantly. My real estate mentor was very encouraging throughout, however, and I’m clear on the fact that it never would have happened without his guidance.
I’ve learned how to easily assess properties for profitable investments and also discovered that there’s an abundance of opportunities out there. I also learned how to build a strong team of people remotely that can assist me in locating, closing, and managing real estate properties. I’ve experienced a clear shift in my thinking that totally changed my reality and expectations where I feel like I embraced the concept that abundance is totally achievable and only limited by my level of commitment and desire. I feel that this shift is what is referred to as “The Millionaire Mind” and once changed I don’t think you are ever the same again. I understand now how I can leverage the equity that I have in existing real estate to buy other investment property and build significant wealth for myself and my family.
There’s an abundance of information provided by Prosper on the website, weekly conference calls, access to mentors via phone, and of course, the weekly calls with your mentor are invaluable. The weekly calls with your mentor can be more productive if you gather your questions before the call and set goals for the next week that you commit to completing before your next call. Your progress is only limited by the time, effort, and commitment that you’re willing to invest in your future. Thanks to Prosper I’m eagerly looking forward to adding the next real estate deal to build my portfolio.
Janice C.
Vancouver, BC, Canada
I Doubled My Assets within Two Years
I decided to join Prosper because I started investing on my own. After purchasing 5 properties, I wasn't able to get any more financing from any banks or institutions for a whole year. I went from one bank to the other and wasn't getting any kind of funding for any of the properties that I wanted to purchase. I kept wondering how come there are people that have 20, 50, 70, 100 and more properties? There must be something that they know that I don't--that is how I got to Prosper and I am happy I did because right after I started my training I closed on three properties on the same day. That was for me like "wow! It really can happen!" I acquired more properties and I continued applying the knowledge that I learned and got into real investing life and started working in land and purchased lot properties. So within two years I more than doubled my assets and to me that is fantastic—its like a miracle!
Ester L.
Falls Church, VA
Commercial Property with No Money Down
If it were not for Prosper and my coach, I never would have thought buying my first investment property would have ever happened. I had been looking for some time for a commercial property and went through a few dozen different scenarios with my coach, until we came upon one that fit perfectly.
The negotiations went back and forth for a time, but ultimately my coach helped me do a no money down deal and was able to recapture funds for repairs and carrying cost for a couple of months. Although I still have quite a bit of work to do in order to make this purchase a success story, I believe I am well on my way in this tough but rewarding field. I’d like to emphasize how high my intimidation factor was on my list of reasons of why not to go into Real Estate. However, with baby steps comes walking, then running. I’m not at the running stage yet, but having acquired my first commercial property with no money down I am well on my way.
Thanks Prosper,
Horatio G.
Poughkeepsie, NY
I Have 4 Homes That Will Cash Flow $125 Each
So far I have 4 homes, currently rented, that cost me $500 out of pocket each, (total of closing costs and down payment) and will flow about $125 each a month. Pretty good rate of return on my down eh?
I’m working on more of these. Wanted to get this to you so, perhaps, we could make this, or things like this a topic of our next discussion.
Jeffrey K.
San Marcos, CA
My Positive Cash Flow Will Be About $700!
It has been a busy 3 months but the outcome has been great. I’m closing on two duplexes in the next couple of days. I'm buying them for $78,000 each and they are valued at almost $95,000! Not only is that $17,000 in equity I'm walking into, but they are currently leased with almost two years remaining on the leases. Each unit brings in $550 a month, so $2200 total. My positive cash flow will be about $700!
Michael T.
Cols, OH
We Made Close to $250K in Less than One Year
Tracey and I are off to a great start! Tracey wanted this cute little house across from the new town park. It was on the market for over 3 months and was listed at $160,000. Most of that time it was under contract and the people were trying to do a 1031 exchange. Tracey was very determined to get this property and kept watching for any changes or signs of the contract falling through. She had a hunch to call our Realtor to see what was going on with the sale. Her timing was impeccable! They had just released it back on the market and we scheduled to go see the inside of the house. Tracey made an offer of $50,000 and the gentlemen accepted. We remodeled the property and it appraised for $165,000. We got a fixed mortgage that paid off the initial $50,000 for the remodel and then cashed out $40,000. We still have $60,000 in equity. We are going to rent it out and make a positive cash flow of $150 per month.
When we closed on the above property, Tracey decided that she would eventually want to buy the entire block. The two houses to the north were in pretty bad shape, one of which was vacant. I called the city and they gave me the number of the owner. He was living out of state. Looking at the comps, we knew the two houses would go for about $110K each when fixed up. I called the owner and asked him if he would be interested in selling the two homes and he said yes. I used Millen’s coaching and didn’t offer a price, but instead asked what he would be looking at to sell them. He said he wanted $80K per house. I then countered and said that we would like to pay $80K for both of them. He said he would think about it. I explained that it would take a lot of money and time and since he was out of town it might be more difficult to get them in "sellable" shape. He came back and said that he didn’t want to haggle over price and said he would take $82K for both houses! We of course agreed and went to our lender and we decided to buy one of the houses for the entire $82K and the owner quit claimed the other to us free and clear. This saved us closing costs, because we closed on only one. When the appraisal came back it appraised at $90K. We put about $20K total into both of them and have $220K in property for only $102K.
Tracey and I just bought the fourth house on the block and now have 4 properties in less than 1 year and have made close to $250K! The best part of all is that we haven’t used any money out of our own pocket. We have friends that were asking how we did it. They said that they thought we must have had $500K set aside in savings. The techniques that we learned have made it possible to make more money in months than most people do in an entire year.
Brett & Tracey B.
Eaton, CO
Real Estate Student Gets a Great Deal
First off, well it's been confirmed, my financing was approved for the condo-townhouse. One broker gave us a rate of 5.89% closed for 5 years, however my girlfriend's friend who is a mortgage broker gave us 5.1%. He gave up his commission from Scotia Bank to apply it to us. The bank told him we had immaculate credit and versus putting 25% down, we need only put 10% and should buy a second property!!!! He's going to amortize over 30-40 yrs so that our mortgage payments remain the same. Monday I will have the exact figures. I then called my real estate agent and told her we wanted to buy a second unit in the same development. She suggested we diversify and wait a few days as she has other properties coming up this week for sale that are older but already rented and the cash flow is crazy. We could get a 2 bedroom townhouse for $140K, and rent is $1300. So, this said, looks like I'll be picking up a second (possibly 3rd) property this week! We are definitely signing the papers on Tuesday for the one new unit with the builder.
Life is Great! I'm so excited.
Caroline B.
Missisauga, ON, Canada
Student Creates a Win-Win Situation
One of our real estate contacts made us aware of a property which was coming out on the multi-list for the next day. We made an offer on the property with contingencies on inspection and loan approval to lock it down that night. We did get it locked down and gained control of the property for the offer of $115,000 which was the price of the house. The house was mostly remodeled and in need of repairs. After the inspection by our construction leader, we put the pencil to the deal using the short form. We used the short form to determine the offer amount based on our training on the short form. We looked at the fair market values of the houses in the area to determine the sales price of the property and priced the house for a quick sale at $145,000. After holding costs and estimated repair costs of $24,000 and profit of $20,000 we came up with an offer of $93,000. We found out the lender would take a short sell before we made the offer, so we decided to offer $90,000. We were countered at $92,000 and accepted the counter. Our next step was to find the financial resources using OPM. I found someone to front the money for the project for 50% of the net on the deal which is $10,000 for them and us. We have a closing date on 6/29. We will be assigning the contract to the financer so we have $0 dollars in the property. We are protecting our interest in the deal with a side agreement on the split of the proceeds. We have our construction crew ready to start the next day and will be out of the house in 2 weeks after construction is started. The team is working on having a buyer for the house before completion of the rehab. This is a win for the financer, for us, for the real estate team, financial broker, and the customer who will buy the house $10,000 below fair market value.
Clyde & Cynthia B.
Rodgers, AR
I Plan on Making a Profit of $35K
My searches for property began with me searching on the Internet for HUD and REO homes. It was hard for me to make the call to begin physically looking at property. My area is very large due to being near a large metropolitan area in the Mid South. The first houses I saw were 'dumps'. This kind of scared me into believing that on very bad dumps existed. I increased my exposure to looking at houses. I began looking at 2 to 3 houses a week, to 8 to 10 houses per week. After looking at about 36 houses; I made my first offer and was told that it had a contract on it, yesterday. Just my luck. But after each talk with Jeremy, I kept up the faith and the new the program would work. I made offers on 12 houses and all 12 refused. I than counter offered on 6 of those 12, also refused. My spirits were getting low again. I needed help.
I began using a realtor to help me search on homes with my criteria. Bingo. She found me 2 great houses. I made an offer of $56,000 on a single family home with 3 bedrooms, 2 bath, single car garage, dining room, living room, kitchen. The asking price was $84,000 on this REO property. The bank refused my offer. I offered $59,000 as a counter offer; again refused. I figured I had lost on this piece of property.
The market value is around $129,000. My agent called me on the last day of July. She told me that sometimes banks will take an offer on the last day of the month, just to get the property off their books. So, I made one last offer of $60,000. At 6:00 PM, on the last day of July, my realtor called me and congratulated me on my purchase.
Wow! Wow! I could not believe that this is really happening. So, this property will be purchased for $60,000. Repairs will be at $11,595. The repairs needed are fresh paint on the inside, new carpet, replace some of light fixtures. The house was built in 1999. The cabinets and other areas of the house are in great shape. I had the house inspected to determine these factors. The AFV will be at $119,000 to $129,000. I plan on flipping on this property, with a profit of around a minimum of $35,000. This amount to be made is 75% of my salary on my current job. I hope to sell the property in 90 days from closing. My financing will be with a mortgage company and is a conventional loan.
I now have made an offer on the second home. I expect to get this one too. My words to present investors and new investors is 'DO NOT GIVE UP, KEEP LOOKING, KEEP WORKING THE PROGRAM. SUCCESS IS NOT SITTING ON A HOUSE, ' SAYING TAKE ME'. YOU MUST LOOK HARD AND YOU TOO WILL FIND SUCCESS. I highly recommend 'Prosper Learning' for you to learn about Real Estate Investing. The mentoring program is the only way I felt that I could succeed in real estate investing.
Hal S.
Bartlett, TN
My Coach Taught Me How to Find Investors to Partner Up
I have always wanted to try my hand at real estate investing but I was uninformed and didn't know where to start. At first I was a little over whelmed. I had to find a property worth investing in, and my coach gave me some great ideas on how to find these properties. Well, I found a diamond in the rough. Next up was how and where to get the financing, my husband and I were in the processes of purchasing a new home, so we were unable to finance the property ourselves. My coach was able to teach me how to find investors that wanted to partner up with me in this venture. We are now in the process of closing on a property that will give us a gross profit of around $35,000. WOW!! Thanks Prosper, we would have never been able to do this without the help of you and your coaches!
Jeff & Annette B.
Peoria, IL
I Now Have a Clear Understanding of How to Evaluate a Property's Cash Flow
Working with my coach helped me get a clear understanding of how to evaluate a property’s cash flow. I remember him saying, 'Trust your Numbers!'
I found a commercial/residential building with four apartments and two commercial spaces. In the beginning, I thought I was getting a great deal because I was dealing directly with very motivated seller (no brokers involved, means another 5-6% discount), plus the seller accepted my offer of $280K for a property listed for $350K. I remember being very excited and ecstatic about owning a building in a town that is undergoing revitalization, but my excitement was short -lived.
Todd walked me through a systematic analysis based on current market structure and condition of the property. We went through the income and operating expenses, maintenance, vacancy rates and minimum profits for each apartment. At the end of the coaching call, it was clear it was not an ideal situation for investment because of the vacancies and scope of repairs involved.
A few weeks past, we continued to negotiate. From $280K to $255K to $220K…down to $210K. It was beginning to make sense with these numbers, however, the building need extensive work. I don’t want to carry the mortgage while I am renovating, as there won’t be rental income coming in from the commercial spaces and two other units.
I proposed a lease-purchase to the seller, where I will pay him $1,000 rent per month for the next six months. I get to fully renovate, the seller continues to pay for the mortgage, all the utilities, taxes and insurance while he keeps the rental income from the two apartments. At the end of 6 months, the seller credits me back for total rent monies at settlement. I reduced my out of pocket expense tremendously. Creative financing allowed me to purchase this building and helped end the seller's misery. This turned out to be a really GREAT deal!!!
I am very grateful for the knowledge and confidence I gained in the short time that I have been in coaching. Having a coach to guide me took the emotion and fear associated with investing. Now, I am more relaxed and looking forward to buying another property. It is money well invested!!! Coaching works!
Carmina M.
Malvern, PA
I Got a $26K Profit for My Efforts
This home is a 2/1 block in the HOTTEST part of town and funded just today! A friend of mine brought this deal to me. The sellers were his aunt and uncle. He has recently been confined to a wheel chair and she takes care of him full time. He has cancer, among other problems. Their bills were eating them alive, so they asked the tenant to move out--it was their daughter-in-law. Her husband, their son, died a number of years ago, so they let her stay in the home, but she completely trashed the home and quite obviously her nose quit working YEARS ago.
They called me to see what my estimate would be to repair the home so they could list it. My estimate was $40K, which they really didn't have. I told them I had another idea—How about they sell it to me. I put it under contract for $45K. The ARV is about $150K. I immediately sold it for $66,250. About 5 days later I get a call from the title company. My buyer has 11 federal tax liens and did I know he was also selling it? Oh, I was mad! After much consternation, I finally get his cancellation and a new offer. While I was waiting to get his cancellation I went and found a new buyer at $75K. I turned in the cancellation and a new contract to the title company. I sent my old buyer a rejection of his offer. He was not happy. Anyhow my new buyer is STOKED.
Fifteen minutes after I dropped off the contract to the title company, I receive a phone call from another party that wanted the house and said they were willing to pay $90K! I told him that I was sorry but "I keep my word." I thought a little more and decided to call my buyer to see if they would be interested in making a fast $10K. They agreed to my proposal! So I get the signed cancellation, again, a new contract, again and take it to title. We closed on the deal yesterday and funded today. It broke down like this: my second buyer got a check for $10K just for signing a couple of docs, boy were they ready to adopt me! My Realtor made $5400 for sending a few faxes (I needed her to make some money so that I could keep getting her help). My seller got a little over $45K and loved it. I got $26,323.49 for my efforts. It took a while to finally land a good size deal, but it’s worth the wait. All my creditors will be zeroed out and I will still have a bunch for reinvesting.
Jason H.
Albuquerque, NM
$36,000 Cash Flow in My First Year
I just closed escrow on my first property in New York. It is a 4-unit building that is fully rented and brings in $900 a month in passive income. The asking price was $129K and I got it under contract for $124K with 10% down plus closing costs. I must admit, obtaining conventional financing took a bit longer than expected, as I did not own any real estate and the lenders considered me high risk. I managed to find a lender to take on the loan and, after an exhausting process, I got the OK to fund the loan and by the following week I closed on the property.
Right now, I am using my first building as leverage into a multi-property deal where the seller has agreed to do seller financing and hold paper. I am very excited about doing this next deal. If all goes according to plan, it will bring in a fantastic cash flow and will be a great addition to my real estate portfolio. I will then be a few steps away from quitting my full time job.
I want to thank you for all your help and guidance over the last few months. You kept me motivated and gave great advice on how to handle certain situations.
p.s. Having a business partner of this deal, I managed to do it $0 out of my own pocket.
SUCCESS UDPATE
As you know, I closed on my first property a few months ago now and I was looking to do seller financing on my next deal. I found a gentleman who had several properties on the market and I had four of them under contract, after doing all the usual verifications I decided to let two of them go and only pursue two deals. He wanted 30% down and 9% interest. I managed to secure 10% down and 8% interest. The first property is a 4-plex, which was over-priced and I got him down to $125K from $135K.
The second building is a 2-plex, which was $119K secured it for $110,500. I must say this was not an easy deal to do as the seller was not the most pleasant person and was holding back on information, I pressed my lawyer to get the issue resolved and a made a few calls to the city to check this guy out. Basically SLUM lord is the only word that I can describe him. Without going to much into detail all the issues got resolved and I closed on both properties. The total cost to get into the deal was $22,646.70 as credits at closing plus back taxes.
The transition period has been pretty smooth I had my property manager on the case and things seem to be moving along. The monthly payment to the seller combined is $1542.65 after all expenses I am left with around $2000 a month, which is plenty as I financed they deal with a credit card and I will be clear of payments with 12 months at which time I will be converting the land contracts into regular financing. My property portfolio is around $370K with $72K in rents with around $36K cash flow. Not bad for my first year.
I am in the process of converting all my basements into on site laundry mats for the tenants which will bring in some additional cash flow and looking into permits and zoning as one of my properties came with huge back yard that potential could house another 2 plex.
As for now I am starting to get into wholesaling, already have 4 properties that I am pursuing and have offers in. I am looking forward to taking on a new challenge and expanding my real estate business.
Richard M.
Hermosa Beach, CA
We Earned $10K on Our First Investment
We have bought our first investment property. At closing we got back $10,000. The property is 30% below market value. We are buying at $86,100, and will rent at $950...and will cash flow. We expect this property will be a cash cow!
Jim & Cathy B.
Forest Park, GA
$85K in My First 30 Days
My wife and I having been living month to month, pay check to pay check , ever since we were married. We cleaned up most of our debt along the way and still found ourselves low on cash.
One morning, before I went off to teach my early morning bible class, I saw the real estate advertisement on TV. I called and ordered the book and read its contents in 2 days. Then Prosper called me about coaching programs. I didn't have the tuition to get started, but I was determined that this was my future.
I went and got a personal loan, after being turned down several times by banks and other credit unions because of my bad credit. I called in and paid for the tuition and started my program. This was nearly 4-5 weeks ago. Since then, my coach and the staff on the resource real estate coaching line have helped me succeed in my first purchases. By the end of this month, I will have 4 homes that I have purchased. I already have renters lined up for 1 home, in which I will walk away from closing with nearly $40,000 cash in my pocket. The other two combined will total up to $45,000; making a total of $85,000 in my first 30 days of doing real estate. I learned how to get qualified for the right loans, make the correct offers for the correct price and find foreclosures within a few miles of my own home. I couldn't have done this without the help of the real estate team at Prosper. I look forward to the New Year and what it will bring financial freedom to our home. With my new company Financial Liberty, LLC, I hope to have near 30 properties in 6 months. Real estate investing takes time, discipline, and being teachable. I am thankful to have had this opportunity to be apart of the teachings from everyone at Prosper.
Jacob T.
Puyallup, WA
My Coach Has Inspired Me and Kept Me Focused
I was unemployed for almost a year. I had been researching on-line business opportunities when I came across the Real Estate website. I signed up and kept searching. It was several months later when I was contacted by Prosper. My husband and I were invited to participate in the Real Estate Investing Program and OH MY GOSH!!!! I just bought two properties yesterday! I only intended to view several properties and find one to make an offer on. After spending the better part of a day with a Real Estate Agent in a small resort town I had not yet worked, I found a great deal and made an offer of $70,000 on single family residence that had been listed for $124,900. The offer was accepted and we closed the deal with a short sale. I will be renting this home out while rehabbing it for approximately $40,000 and intend to put it back on the market in 6-12 months, asking around $195,000. That same afternoon an opportunity was presented to me to purchase another single family residence on a short sale. I offered $40,000 for a home that was listed for $84,900. The offer was accepted and I will be leasing this home with an option to purchase. My husband and I are so pleased we can now help out two families. Just two weeks ago I purchased a single family home for $15,000 and will wholesale this property anticipating a profit of approximately $5,000 to $10,000. I just wanted to say that I am extremely happy right now with all of this activity. The reassurance and mentoring from my coach has inspired me and kept me focused to break through and accomplish these sales. I am energized and can't wait to find more deals!!! Thank YOU Prosper!!!
Dawn F.
Valparaiso, IN
I Closed On My Third Property and Should Profit $35K
Thank you so much for your support and encouragement these past two months!! Jason and I closed today on our first two rental properties!! I have to share our success story with you...
Let me start at the beginning... Jason and I got married in December 2004. I was a 60-plus-hour-a-week workaholic -- market research & business development strategy for a small marketing agency. Jason was also working 2 jobs nursing -- on the NIGHT shift. We were married for less than a year and hardly spent more than one day a week together (or night) during which we were so exhausted we barely felt like being sociable with each other -- let alone enjoying being newlyweds!!
Last summer, Jason and I decided to move away from our home, family, friends, church, jobs, LIFE in Mississippi to pursue travel nursing in California. In September, Jason began travel nursing, and I became a stay-home wife -- in California. (I went from 200 miles-per-hour to about 5!! Can we say depression?!!)
Our original goal was to travel for 2-3 years to earn enough to pay off our home and all our debts so that we could afford to live on one income when we started having children, and I could stay home with the kids. And Jason could QUIT WORKING NIGHTS!!!! Well, it didn't take 2-3 weeks to start missing home and by 2-3 months I came home twice for visits. We were ready to move home sooner, but not willing to sacrifice our financial goals to return to the same 60-hour-work-week lifestyle that we had before.
It was at this time that one of Jason's co-workers -- a fellow travel nurse -- began talking to him about real estate investing. In November, we ordered Robert Kiyosaki's "Rich Dad Poor Dad" and began reading about how we could change our life. We began to realize that we don't want to be employees for the rest of our lives. Praise GOD for PASSIVE INCOME!!! We had a new lease on life. We wanted to become real estate investors!!!
Through the Rich Dad influence, Jason and I decided that we wanted to be long-term investors rather than short-term flippers, so we began looking for rental property…Today Jason and I purchased two units for $135k, which appraised for $166k and will rent for $800 each, providing us with $200/month cash flow—after all expenses, vacancy allowances, maintenance and a cash reserve. What's even better -- as soon as we repair the ugly side, we will complete our refinance at 90% loan-to-value and secure our final mortgage loan for $149k and still have $200/month cash flow, plus get $14k back to cover repair cost and the down payment on our NEXT property...
Gail, we couldn't have done this without you. Your support, encouragement and guidance has given us the courage and knowledge to succeed in this first endeavor. The Prosper resources -- property analysis forms and rental analysis formulas -- were invaluable to us. You and Prosper equipped us to make this possible, and we are forever grateful!! I look forward to your guidance through the next phases of repair and property management. We've got new ground to cover!!
Our new goal is to purchase one rental property a month. I am devoting my time now to get this new company off the ground. I LOVE being my own boss now and pray that God blesses this new venture!! Last week, I went by my old office and sat down for an hour with the owner catching up on our adventures. It was with great joy and conviction that I told her I hope I never have to be an employee again!!! I told her that I want us to partner in new ventures together. To which, she eagerly agreed!
So, I have traded in my 60-hour-a-week job for 30 hours a week of real estate. Jason and I were able to move home, work less, spend more time with each other and our family and friends, invest more time in our church and community, and share our new financial education with those less fortunate and less educated than ourselves. I'd say we're off to a great start!
Jason and I now are concentrating the next 2-3 years on getting our passive income up to at least $3,000/month so we can live comfortably on one salary when we start having kids. We've also added a new goal to be fully passive in 5 years -- as in, Jason can stop nursing if he so chooses.
I can't wait to share our next success with you. I know you'll play another part in it!
SUCCESS UPDATE
Yesterday, I closed on my third property. I just wanted to complete that, so I could include that update in my testimony. Here's the update.
Two weeks ago, I was calling a realtor on a property. After leaving five messages, I finally got her on the phone Saturday morning, April 29. The property I called about didn't pan out, but she became one of my greatest networking opportunities. She invited me to attend our local investors' club. And, even better, she told me to call someone about another property that wasn't on the market yet. For a $1,000 birddogging fee (a fee paid to someone who gives you a lead on a property), she gave me the seller's number and let me use her name.
I contacted the seller immediately. The property belonged to a 66-year-old widow who was liquidating her rental property. The guy I contacted was wholesaling -- selling his option to purchase the property. The property was offered for $57,500 -- $50k for the property and $7,500 for a Release of Option fee. The realtor who referred me to the property recently sold 4 comparable properties in the area for prices ranging from $100k-$120k.
I was blown away!!!! I signed the contract immediately!!! The 1610 sq. ft., 3/2 house was built in 1950. It has a solid structure, good roof, vinyl siding, nice hardwood floors, a good kitchen. The only rehab needed is new vinyl floors in the kitchen, paint and some updating in the bathrooms. There is a dilapidated garage detached from the house which we will probably tear down. Doing much of the repairs ourselves, my husband and I can put less than $70k in this house, which we intend to sell in 6 months for approx. $105k. This one property will generate more income than I made in a year at my previous job!!
The property is currently rented at $700/month -- $201 of which is supplemented by HUD. We plan to relocate the tenants in 2-3 months. But, in the meantime, their rent will pay the expenses and generate a small cashflow.
The only catch to this property was...we had to close by May 10. I had 11 days to get this property financed!! I tried my personal bank, which 100% financed my duplex I just closed on April 24. They were willing to finance us again, but they couldn't promise that they'd close in 10 days. I shared my dilemma with the guy who's selling me his option on the contract, and he referred me to his bank. This bank is fairly new, small, privately owned and got me an answer in 1 day. They financed 80% of the costs at 7.75% amortized over 15 years with a 5 year balloon. The payment will be $438/mo. This allows me to hold the property for 6 months and avoid any seasoning issues when I sell it. Plus, the $700/mo rent will easily cover my expenses for a few months!
So, yesterday I closed on my third property -- third property in less than a month. It is a rental temporarily, then we will rehab and retail it to earn approx. $35k in the fall. I plan to use a 1031 exchange to put that money into another rehab project. My new goal is to rehab two properties and roll the equity into a rental property. This method will allow me to have very low mortgages on my rental properties and much higher cashflow. My husband and I have decided to leave ourselves a nice cushion on our rental properties while we're starting out in the business. It will be much less stressful to know that another disaster like Hurricane Katrina couldn't put us into foreclosure.
Lori & Jason S.
Brandon, MS
We Purchased $500K of Property with None of Our Own Money
Since joining Prosper we have bought over half a million dollars worth of real estate with absolutely none of our own money. My husband quit his job to do real estate full time. We are expecting our third baby and this year looks even more promising than ever!
We have partnered up with Roly's dad to do rehabs...we find the deals, and design, buy, and organize, and then he puts up all the money for the mortgage and rehab costs. Plus, Roly and his dad will work full time on the houses (they are both REALLY handy!) so we plan on doing at least one every two months for this year.
Now that our investors know we are able to do what we intend with our deals and make them $$$, it will be sooooo much easier to get money to fund our next deals. We plan on doing quite a few hard money loans this year, and hopefully move into one of our rehab homes or a home that we have foreclosed on (though I don't wish that on anyone!).
Real Estate is perfect for us, as Roly gets bored of anything really easily (as do I)...this is a lifestyle that is always expanding our knowledge and comfort zone! We really enjoy Real Estate!
Nathalie & Roly R.
Winipeg, MB, Canada
Real Estate Student Purchases a Great Rental Property
I just closed on a house in Indianapolis. It needs some cosmetic repairs - to do those AND finish the basement, we're estimating about $20,000. A lot less if I don't finish the basement. So, here's the best part... I bought the house for $20,001 - seller paid half the closing costs. ARV is $65,000. Rental averages for similar properties in the area are $825! No matter what I do with this house, I am making out very well!
Thanks so much for all of your help.
Megan B.
St. Cloud, FL
Success in Flipping Foreclosures
After my 8th offer, my real estate agent sent me a foreclosed home that was on the market for $114,900. After analyzing this property using comparables supplied by my agent, I determined that the resale value of this property is approximately $144,000. Before making a offer, I received an estimate from a general contractor to do the repairs for $9,000. Therefore, my max allowable and still net $10,000 was $110,583. My initial offer was $95,000 and the bank countered with the original $114,900. My next offer was $103,000 and the bank countered with $112,500. I countered with $107,500 and the bank countered with $109,960. We settled on the $109,960 price. Additionally, the bank offered to pay up to $4,000 of the closing cost. I worked with a traditional lender (80/20 loan) to get 100% financing and I also opened a home equity line of credit using the equity in my primary residence to fund the repair expenses. Since signing the contract and closing on the house, 2 comparable homes have sold in the same area for $160,000 and $167,000.
Darryl W.
Hiram, GA
I Couldn't Have Done Any of this Without My Prosper Coach
After looking at lots of houses over a couple of months I finally found the property that I knew was it. It was a nice home from the 50's that had been on the market for almost a year and the seller was asking $127,000 but it needed lots of upgrades. I was also told that the sellers were highly motivated which was what my coach had told me to look for when going for the deal. The first offer I made was for $100,000. My Realtor and everyone in her office kept saying that the offer was too low and that the seller wouldn't even consider it and that I needed to make it higher or I was going to lose the deal. I said NO and that this was my offer and that they needed to present it. Under much protest they presented it and the seller came back with a counter offer of $107,000 ($20,000 less than the asking). I countered with a final offer of $104,000 and they accepted. My real estate agent was amazed. They just couldn't believe that my offer had been accepted that low. I completed the deal in September. I've spent approximately $10-12,000 to replaced the shingles on the roof, replaced the furnace, replaced the windows, painted all the rooms, pulled carpets to expose the beautiful hardwood floors, re-carpeted the basement, and enclosed the laundry room. Right now I'm in the midst of closing a lease-to-buy deal on the house with a couple who have agreed to $135,000 for the home. I am also working on developing 3 lots I have owned for quite some time in Challis, ID. I couldn't have done any of this without the knowledge that I got from Prosper Learning and my coach. Thank you so much.
Janelle P.
American Falls, ID
Stay Firm--Take it or Leave it!!
The property...is a four unit building of approximately 3200sq.ft. It was originally listed at $805K. They had been in contract I believe twice and had the buyers pull out for various reasons. They relisted it at $775K. We offered (myself along with Kale's help) $750K with a 21 day close and the only contingency being upon inspection. In hindsite I wish we would have had a finance contingency being as how we are now cutting it close. Kale offered to put up a deposit to make our offer sound better. It consisted of $8K up front and then an additional $12K two weeks later. All of this would be paid back with the 3% due back at signing from the sellers.
They counter offered at $755K and agreed to the 3% back. We accepted the counter. They then claimed to have a last minute offer come in the door from another seller (of course, let the roller coaster continue). They then came back and asked us for $756,650. I got mad at this point that they were nickel and diming and stayed firm with the $755K offer, take it or leave it! The agents agreed to credit $2K each back to the seller and we all agreed on the $755K from me...
Jessica D.
Oakland, CA
I Brought No Money to Closing and Left with $4000
I looked at fifteen houses, made three offers and had one offer accepted at a wholesale price. Most of the properties that I found were through my real estate agent, but I found the last one online using Craig’s list. The three-family house was listed on Craig’s list by a real estate agent. The listing was very detailed and had several pictures on it. Based on the information on the listing, I decided to give the real estate agent a call. He quickly returned my call and I was able to view the property within a few days. After seeing the property and analyzing its Fair Market Value (FMV) using the tools I learned from my coaching sessions, I was ready to make an offer. I identified my base price ($125K) and my max. offer price ($140K) so I met up with the seller's real estate agent and made an initial offer of $125K plus the seller would provide $2,500 as a decorating allowance and $1,000 to pay for a one year warrantee on all three units (asking price $155K and projected FMV 175K). I received a counter-offer the next day for $141K. I made a second offer for $137K, but in addition to what we already agreed to I asked for an additional $2,000 from the seller to pay for closing cost. The seller made a second counter for $137,500 and agreed to all my other terms. I accepted the counter and after all of the negotiating I ended up netting a $132K contract for the house which was 8K below my max offer. My next step was to lock down financing. I called at least 10 banks and mortgage companies to see if I qualified for 100% financing. I could not find anyone in the industry that was offering 100% financing so I went with the next best things which was a FHA loan with 3% down. Since my goal was not to bring any money with me to closing, I negotiated with the seller to add the 3% to the sales price and agree to an additional 3% seller concession. I had an inspection done and overall the property did very well, but there were a few things that did not pass inspection so the seller agreed to fix them before closing. I found a home insurance policy and the appraisal came back positive so we were ready for closing. I did not bring any money with me to closing and I ended up bringing home a check for a little over 4K. I bought this house with two out of the three apartments rented and I plan to live in the third apartment. This is my third property and I have bought the last two within the last 6 months. I am planning to buy my next property over the summer.
Thank you again for all your support.
Adrianne M.
Cincinnati, OH
We Can't Wait to Find Our Next Deal!
My wife and I tried our hands on real estate last year. On our own, we ended completely lost, desperate and with a $400 negative cash flow. We are turning things around this year with the help of Prosper and our coach. With the knowledge, skills and confidence that we acquired from our coach, we purchased this property with a small down payment using seller financing. We can’t wait to find our next deal!
Edison H.
Yorkville, IL
Tremendous Cash Flow Potential
We found a triplex in Port Colborne, askingprice $49.8K. It was described as in need of finishing of the upper 3 bedroom appartment. At the showing we saw that the whole upstairs was almost empty with bare, see-through walls. We asked a contractor to look at it and he estimated we needed $60K to fix it up and make the place a fourplex.
We offered $35K on June 15. After some offers back, we got $41K accepted on June 21. We got a 1st mortgage for $30K approximately from the National Bank and a second from a private lender. In total, we got 100% financing.
In the time we closed, one of the tenants moved out and we still have to find somebody else. We have payments of $253.44 per month for the first mortgage and $175 for the second. Rents are $500 including bills and $560 including bills (this is the vacant one). So the cashflow at the moment is not too high but there is potential for the future.
Then we found 2 small houses. The power of sale. Both vacant. One 3 bedroom and a 2 bedroom. The 3 bedroom is nice and ready for occupancy, the 2 bedroom is small and needs some work or we can rent it out cheap to somebody who doesn't care too much about that.
The askingprice was 70,000. We started offering 35,000 and after some negotiating back and forth we got them for 45,000. We financed these privately through Barry Mills again for 100 %. We can rent them out for $580 and $380 probably. (We still have to find renters but I think we have two interested).
In between we've got a few other offers on a triplex in Fort Erie and a house in Kinnearstreet accepted but we rejected them later after further inspection.
We are waiting for a third mortgage on 300 King street , Welland, and then this one will close too. This is a 21 plex (small appartments, it is a former hotel) with a bar and a restaurant on the mainfloor (was a nightclub). We offered $230,000 ,this was the askingprice. Barry Mills had the whole financing almost in place for us before we even knew about this. We have to fill a few more rooms and the two downstairs bar and restaurant but then there will be a very good cashflow here.
Barry is also working on a commercial building what will be renovated into a 21plex , for us. The address is downtown St. Catherines and there is another building we are interested in in St. Catherines what will be a 8-plex.
In the mean time our Niagara-on-the-Lake property is getting really nice with new roof, windows, bathroom, kitchen etc.
André & Angelieke V.
Vineland, ON, Canada
One-on-One Coaching is Fantastic
Wow, well my husband Paul, and I have learned so much since starting on
this program. Our coach has taught us both a lot. We live in Australia
and since commencing the program we have traveled to the United States
and spent one month in Fort Worth. While there we familiarized
ourselves with the area and put together our success team. We left home
for Australia with one property under contract and another has just
been accepted. We plan to continue acquiring property in the U.S, from
Australia which will be made possible with the help of our success team.
During the program we have learned many different ways to source
properties, how to properly analyze a property and how to effectively
network and how to get the best from our success team. Our coach's
experience and expertise we have found invaluable and has provided us
with many new ways of sourcing contacts from various professions. We
have learned so much, I don't think I could remember everything, but
there has been a lot! The manuals and on line resources combined with
regular, personalized coaching. We feel that one-on-one coaching is
fantastic as you can ask questions and get honest, to the point
answers, and anything that can't be answered immediately our coach
finds the answer for us before our next session. Your system is great!
Angela G. & Paul B.
Kawana Island, Queensland, Australia
These Two Deals Will Net $175K
The 2 point lots on the golf course are listed for $30K each; I offered $20K each (gross) and the offer was accepted!! I signed the purchase/sale agreement yesterday. How about that!? I got comparatives from my agent on these lots and the last lot sold in this sub division was sold for $60K and they are now appraised at $75K!
I'm not done yet! The other property located in Fortune Point that's listed for $45K, I offered $35K (net). (These lots are now going for anywhere between $75K and $100K!) I also signed a purchase /sale agreement for this lot.
Do the math....these two deals will net me a gain of $175K! I have my eye on a few other deals, I will discuss them with you in our next meeting.
Prudence M.
Ft. Lauderdale, FL
My Coach Helped Me Understand Properties from an Investment Point of View
My coach has assisted in my learning experience in Real Estate. He helped me build my team (real estate agents, lender, etc), encouraged me to attend club meetings, and understand properties from the investment point of view. I feel that our weekly discussions have been productive.
I chose an agent who helped me analyze investment properties and develop offers. The lender has been positive and creative through re-financing and getting my most recent loan approved. I’m in the process of purchasing waterfront property that is a great value and investment. We are scheduled to close on March 21st and will then begin the process of selling our current beach house. I truly believe that both of these transactions will be profitable for me.
I appreciate the advice and guidance. I will continue to invest, as I have another offer submitted on a foreclosure property that is being reviewed by the bank. If this transaction is approved and accepted, the property will be a total rehab that I will use as a rental.
Mike & Margaret J.
Kent, WA
We May Profit as much as $100K in the First 60 Days
With every coaching session my husband and I have felt more fired up to get out there and start making offers! In fact, I do believe it was our 3rd coaching session that I felt compelled to blurt out the question to our coach “What if we see an opportunity in our own neighborhood?” We were encouraged to do the math and see if this house next door would be a worthy investment. The house was over 120 days on market, and the owner was building a new home out of state, we knew he was desperate for a sale so, we shot him a below market offer and he accepted! With a few minor improvements we expect to put this back on the market by end of January to reap a hearty profit!
While our heads were still reeling from our quick success of the first offer we get a call from our Realtor to hear that a second offer had been accepted as well! A quaint starter home in a Hot Property neighborhood and the comparables are already $40-50K higher than our purchase price! With a maximum improvement budget of $5K this house will also be back on the market within the month. We feel confident that both of these opportunities are sound and we may profit as much as $100K in the next 60 days!
Jeff & Sheri L.
Carol Stream, IL
$70K Profit from Two Deals
So, these are the houses that we have bid on: The first house we got is close to a popular University. Listing price is $212,900 we put in the bid for $215,000. In the contract we put in the seller pays $6,450 for the buyers closing costs and to pay for the one year AHS warranty. We put down $500 for earnest money. The appraisal comes in today that was done on Monday. The CMAs on that is $275,000 and $289,000 and it was just appraised at $237,000. We think we will be able to sell it for just under $300,000. As I mentioned before this house closes the first week of January.
The second house we bid for is in an upper middle class neighborhood. The listing price was $399,000 we put the bid in for $410,000. In the contract we put down the seller pays $12,300 towards buyers closing costs. Seller to provide one year AHS Home Warranty to buyers. Again, we put down $500 for earnest money. The comps in the area range from $525,000 to $600,000. The unfortunate part for us is that we lost the bid to a soldier that just came back from Iraq. He wrote the owners a "sympathy letter" which was fortunate for him that the owners picked him over us (the heartless investors just trying to make a buck).
As that door closed another opened up. Our third bid in another upper middle class neighborhood. This neighborhood it is hard to get comps for because NO ONE leaves. However, a smaller house in the same neighborhood with a smaller lot without the extra amenities is on the market for $475,000. It is behind the best school in Virginia beach, everyone who lives there is retired military and once in no one sells. So, we found this house on 1/2 an acre, with an in ground pool, koi pond, 4 season room with a Jacuzzi, lots of open space. The selling price is $390,000, our bid is for $438,000. In the contract we put down the seller pays $13,000 towards buyers closing costs and to provide a one year AHS with an addendum and contingencies.
The last thing I wanted to mention is networking how it really works. Lisa and I went to this place called Home-A-Rama which is a new development that is open to the public for a fee. There are about 20 different houses that you can look thru. Most people go thru the homes to get ideas on decorating and some actually buy the house. This year the homes ranged from $250,000 to $600,000. Vendors who worked on the homes have a kiosk or a spot for people who wish to purchase their product or ask questions. For us it was to look at the homes and network with loan officers and get information on hard money lending.
A few weeks later we get a call from the same company but a different guy. Jason is not only a loan broker but an investor as well. I briefly talk to him and tell him that I need to speak to my partners. Well, I am excited at this point. We finally found someone who will take us by the hand and tell us what we are doing wrong and will help us. I talk to Lisa (Ayanna was away on business) and we make an appointment with him. Ayanna's first day back and I go and see him and have Lisa on conference call. So, he physically shows us his most recent transactions and tells us how he does it. Both Ayanna and my eyes lit up--to see $30,000 on one deal and $40,000 on another.
So, we have a few more meetings with him. It is a win-win situation for all of us. He gets our business and we get the help that we need. So, one of us was able to get not only one loan but two thru his creative financing while the other 2 are working to get our credit scores up for another loan or 2, 3, or 4. Jason has also introduced us to his realtor Holly who has been phenomenal in finding these great deals for us. As a business we have $653,000 of contracts on the line. This has only been in the last month or month in a half since we met Jason and Holly and it has only been 3 weeks since we have started putting these offers in.
Jeanine, Lisa, & Ayanna B.
Norfolk, VA
Success for a Lifetime
Gerald and I started with Prosper in October, and we will be one third of the way to our goal to be out of debit. We have had a rough time for a few years, but we are now on our way to success.
We plan to be completely out of debit in 5 to 6 years. We bought our 1st home in January, for $133,000 and plan on sell the home for $160,000 with a profit of 27,000 dollars. We are planing on selling the home before our first payment is due. We would not have been able to do this with out all the support and help from our coach and everyone else with Prosper.
We are learning how to save on our taxes and how to run a small business at home. We want to make this a family business so our kids and grand kids can have a better chance in life.
We still have a lot to learn but we have the support there for us 24/7. We will get better as we grow with our company and with Prosper. We thank GOD everyday for sending Prosper.Com to us. We are now on the road to success for all time.
Nancy & Gerald I.
Colorado Springs, CO
$2300K Profits from Rent and $10K Profit from the Option Sale
Here's how the negotiations went: The seller was very firm on the price because of all the fix-up work that they did. The house appraises at $125,000, is a 3 bedroom 2 full bath home built in 1954, but has a complete new kitchen with new cabinets counter tops and tiled floor. Both of the bathrooms have been remodeled, and also comes with all appliances. The last renter just moved out and was paying $925 per month in rent.
When we first talked he wanted to lease option for $1000 option fee, and payments of $1,050 per month. I thought about it, and came back with a counter offer to buy the property for the full price instead if he would be flexible on the terms, since he was very firm on the price. He agreed to except $3000 down with a seller wrap around mortgage to cover the remainder of the price at 7.125 % interest, 30 years to make payments at $801.73 per month, and a payout at the end for the remaining balance in two years. I told him that the $3000 would cover any money that he would get from lease optioning it, and that I would still have a positive cash flow
of about $100 per month if I was to rent it.
He went to his lawyer, and was told that the deal was too risky if I wasn't going to make payments, then they would have to face foreclosure, so they came back with a counter offer using the same numbers, only binding it into a lease option for two years instead of a sales contract.
My plan is to Lease Option it back out for a $3000 option fee to be applied to the down payment in one year. The rent will be at $895 per month with a $100 per month charge for the option going towards the down payment. I will then sell the option in one year for $135,000 instead of two years while still receiving $194 per month in rent and option payments. Total profits will be $2,328 from rent and option payments, and $10,000 from the option sale at the end of one year of $12,328 minus $4,200 option payments made by new tenant for a total profit of $8,128 minus closing costs at the end.
Kenny I.
Louisville, KY
I Got My Asking Rent Price that Will Cover My Mortgage
After a nightmare time with my first mortgage consultant I was able to get a great 100% loan and ultimately close on my first property two days later with closing costs of around $900.
I have taken the first tow months to clean up the house, paint, put in a lawn, and ultimately get it ready for renters. Total costs put in to prepare were under $1500 and I am happy to say that the renters move in the first week of May. I got my asking rent price which will cover my entire mortgage.
Wanted to thank you again for helping to light the fire and for your assistance with my first purchase. Hope to tell you about plenty more in the future.
Zach L.
Parker, CO
Having Someone to Talk to Is Much More Exciting
My dad and I purchased a condo (2BD 1BA) near my house for about $80,000 - $90,000 below market value. It was very disgusting and hard to imagine anyone could live in it. My dad came to me and asked if I would be interested in purchasing it with him and I told him I was extremely interested. The owner was asking $300,000 but my dad was going to start of by offering him $285,000. I talked with my dad and told him he should offer even less because it is better to start lower then work up high than to start off high and work it up even higher. I thought that considering the shape it was in $275,000 was more reasonable. So, my dad met with the seller and offered him $270,000 and the seller countered with $280,000 then my dad countered with $275,000 and he took the offer. I was and still am very excited about the deal.
The seller was told by the agent that if he wanted more money for it she could still put it on the MLS and he could get up to $300,000 but he refused because he didn't want to have a bunch of people looking at his home. Escrow closed on the 26th of January, one day later and the bank would of had it. It has come along way in only a month and it has been such a learning experience already. All of my friends thought and probably still do think I am nuts for buying something as nasty as I have, but it has already come a long way. It is financed in my name as owner occupied in order to get the better interest rate but my dad owns 75% and I own 25%. We are going to get it fixed up then rent it for at least a year because sometime within the year the HOA is suppose to repaint the condos, which will hopefully only increase the value even more. The income from the rent will just about cover the mortgage and the HOA Fees, so it will cost my dad and I very little each month when it is rented.
I just wanted to thank you for all that you have taught me. I know that I haven't taken advantage of the program as much as I would have liked to with my fiancé’s father getting cancer and then passing away but being able to talk to someone who does it for a living like you makes the program all worth while. As much as I like to read real estate investing booking, being able to talk to someone who does it for a living and to actually go through the experience is so much more exciting. I hope to have an offer for you to approve in another month when I purchase a property in Texas.
Amber H.
Fullerton, CA
I Have Learned a Wealth of Information
In the two months that I have been involved with Prosper, I have learned a wealth of information, and am well on my way to building a portfolio. I have looked at dozens of properties and have made 8 offers on properties ranging from 2 bed 1 bath houses to 4 bed 2 bath houses. Some have been rejected out of hand, and others have come close to being accepted. If nothing else, I have learned that in order to get a good deal, you have to make a lot of offers, the training materials say to expect one deal out of 12 or 13 offers.
My latest offer is a 3 bed 2 bath home that has a large office/den that only needs a closet to become a 4th bed. The owner was asking $250,000 and told me he would be willing to replace the washer /dryer and the stove if someone would purchase his house. The appliances are in good shape but are "used". The only other problem with the house is that it has limited street access on a busy street.
I offered $230,000 with the appliance replacement, figuring I could put in a closet for little if anything, and contacted an asphalt company and found it would only cost about $1,000 to turn the driveway into a "u" shaped driveway, vastly improving access to the property. I have a 2 bed one bath house within 1.5 miles of this home and it was recently appraised at $230,000, so I figure my offer was pretty good.
While we were in our coaching sesion tonight he counter offered $232,000 with a $2,000 allowance for new appliances. I am going to get back to him and offer $230,000 and drop the appliance replacement. I am pretty sure that this deal is going to get closed on pretty quickly, as we are not far apart. Similar homes in the area, (4 bed 2 bath) approx 1300 square feet, have recently sold in the $260,000 to $270,000 range. Even if I put $5,000 into the house I stand to look at about a $30,000 proffit. That is not too bad of return for 10 to 15 hours a week for two months
Well, gotta go make that counter-counter offer, keep your fingers crossed for me, and next week I'll let you know what happened.
Larry T.
Tukwila, WA
We'll Make $10K on Our First Offer
We got our first offer accepted this morning. This is the bank-owned property that we went back and forth on, and finally have settled. The final numbers are sale price of $91,400. We believe the quick sale price is $121,000 and we'll make $10,000 based on our estimates on fix-up costs, etc.
We might try to sell it ourselves for a month and try to save the ~$7K.
Katie W.
Cedar Rapids, IA
A Nice Deal on a Nice Rental
We have a property under contract with a mobile on it for $120K. We will move the mobile and rent it out for $1200-$1500 per month. This will pay for our mortgage on the land and we are moving our present home onto the new land.
After our new home is on the land the value will increase again. Real Estate Agent quoted $250K after a one car garage is built. Our current home has a $60K mortgage on it. We will have a rental, land, and home for under $200K.
Since we talked the bank is waffling on a mortgage deal because of the age of the trailer on the land. We may only be able to get a 10 year mortgage. We can still manage this, although it will be tighter. I have had another interested investor within my family approach me since we talked. Another one with the financing ability.
Melanie B.
Edson, AB, Canada
We Are Closing On Our First Rental with a $230/Month Cash Flow
Loretta and I just wanted to let you know how much you have helped us in the process of purchasing our first property after becoming students of Prosper Learning. The seller on this property didn’t seem to be very flexible in the beginning, however as you advised we included some negotiable items in the initial offer. The sellers counter offer was not very pleasing to us, but our buyer’s agent with whom we did not sign a contract went to work for us and convinced the seller and his agent that our offer was solid. We are closing this deal in just over a week with the end result being that we will use our existing townhouse as our first rental property with a $230.00 a month positive cash flow.
John & Loretta W.
Fogelsville, PA
Working with My Mentor Propelled me to a Much Higher Level
After putting offers in on five homes I finally had one accepted. Although this home is not in my “Target” area, based on comps and watching the market, this is definitely a good investment neighborhood. It's a four-bedroom home on 1.1 acres with a fantastic running brook that borders the property. Don’t worry I didn’t fall in love with the home – just the deal.
I estimate this home needs approx. $20K in updates; it was used as a summer home for a couple that lived in NYC and only came up on weekends. This house was listed back in August and even in a very strong market it was grossly overpriced at $329K considering the updating it needs, when I found this home it was down at $275K. With the owner already dropping the price $54K I new there probably wouldn’t be much room for negotiating but I gave it my best shot.
Based on the formulas we were taught I should not have offered more than $261K. I took into consideration the fact that I would be doing about 50% of the rehab myself and paying to have the other 50% done. So I placed an offer of $260K only to find out about a week later (they were very slow) that they had an accepted offer in place. This house was a perfect rehab home because it really didn’t need any major repairs or structural work, just mostly cosmetics and a kitchen. Oh well there goes another one I said, but patience has always worked for me and once again it paid off.
About four weeks later my realtor informed me that that house I really wanted was back on the market- the deal fell. So I sent back my offer of $260K- No good! She’s holding strong at $270K. I went to $265K and tried to get the Realtors to kick in a couple of grand each. Yeah Right! I tried- I ended up at $267K and she accepted. The funny thing is that there was still yet a better dollar offer on the table but they had what I like to call “Baggage”, they had to sell their home, and me who never goes on vacation, has no baggage (a little New York humor- sorry). So the owner sacrificed probably a grand or two for a much stronger deal-A quick closing.
I secured an 80-20% loan for the mortgage and while we’re waiting for the closing date I opened a Home Equity Line of Credit to cover the closing costs and the updating. I expect this home to be back on the market within two months and based on comps. For the area this should bring me a sale price of $340K to $350K.
I have a long way to go to becoming a professional investor in my eyes but the knowledge I’ve gained by taking Dolf”s course and working with my mentor have already propelled me to a much higher level then I could ever have expected in 14 weeks.
Jack O.
Westtown, NY
$350 Monthly Cash Flow
In September I began looking for my first investment property. My goal was to find a home, purchase it, and lease it out with the option to purchase. With my list narrowed to ten I made an offer on a home that was listed for $254,900. My offer was for $250K and Seller pay closing costs. The offer they accepted was full asking price of $254,900 and they would pay half the closing costs. I closed in Oct. 3 and the first mortgage payment wasn’t due until December 1. That left me plenty of time to find a renter.
With a mortgage payment of $1500, the rent I was looking to get was $1650. After almost a month of running a few rental ads online, in the newspapers and a few interested people that told me they couldn’t afford it; I was starting to worry that the rent was too high. Then a family looked at the home and they wanted to rent for a couple of months while their home was renovated. Since the rental was short term and after learning that the tenant would be running a daycare out of the home I raised the rent to $1850. They signed a two month rental contract for $1850 per month (insurance was making the payments) and $2000 deposit.
During the first month they were renting the tenant had hold me their home that was being renovated had burned down and they needed to stay longer. In January they signed a rental contract for $1850 per month until the end of May. And will then do a month-to-month contract until their new home being built was finished or July at the latest.
Jason S.
Cottage Grove, MN
My Tax Return Was 5 Times the Size of Last Years
I went with my Realtor to look at a house last Wednesday. When we arrived, there was another couple taking a look at the house too. The owner showed up soon after us to show them around. The house is completely remodeled, the owner buys low, fixes up and sells. The house was still priced below market value (Worth $60K, priced at $54.9K). As I was looking the house over and talking with the other couple that was there, I found out that they were looking to rent it! I couldn't believe it, I had the owner to negotiate a price with, and potential renters willing to pay enough rent to make the property cash flow.
I was able to determine that the owner would be a little flexible because the house hadn't sold yet and he was trying to rent it out to cover his expenses. I could get it below value and have renters willing to move into the place in a month! I went back to my Realtor's office that day and wrote up a purchase contract for $50K and he accepted. I purchased the house for 5K less than his asking price, an even better deal. I am renting it out and will have a $100 monthly cash flow nearly 2 weeks after closing when my renters move in. Absolutely no cost for advertising and no waiting for renters to come calling. Being persistent and consistently looking at potential houses found me this property. It was just a matter of time if I kept looking hard enough. And it all worked out great having the owner and potential renters right there to deal with.
SUCCESS UPDATE
I've been quite busy over the last month and the last year. The house you are referencing below is going great. The lease ended in May this year. I advertised for free on the rental listing at our local Chamber of Commerce and had it rented to a good tenant in about 3 days...great rental market in this college town. I bought the house in great shape, so I haven't done any major repairs on it since I bought it.
The next property deal I did was a 4-plex in the next town north of here. A Realtor that I had been working with and hadn't talked to in a while, called me out of the blue and said he had a place to look at. I got it for $164900 and it appraised for $189000 (If rented at market rates. Currently it is still under market rent.). Well, I closed on that property in December, just in time to call it a Christmas present for myself! The rents totaled $1685 per month when I bought it. I raised them to $1735 in February. I just had a tenant move out on me last minute in June (lost his job). Luckily, it was the worst apartment, the guy had a cat and smoked so everything was a yellowish brown smoke color or had cat pee stains on it! I say 'luckily' because I have been busy fixing it up and have it rented starting July 1 for another rent increase. Boy was it a mess for the last month as they ripped out carpet and painted and re-did all the floors. I replaced a lot of stuff and got it fixed up. This should greatly add to the value of the property. To get it rented, I called the Realtor that I worked with to buy the property. He recommended another Realtor from his office that was looking for a new place. So now I have a good tenant, a Realtor that understands taking care of rental property and real estate, and she has no pets and doesn't smoke...excellent upgrade if you ask me.
Last but not least, I just finished a deal on June 5. I bought a property in my town that is a small house with an apartment building behind the house that has 2 apartments in it. The purchase price was $68000, it appraised for $70000 and the former owner paid $70000 for the property in 1996...I got a deal. The gross rents total $850 per month, for about a $200 per month positive cash flow... I feel that I can even raise the value more by doing some cleanup work. It needs shrubs/bushes trimmed, new exterior paint, and other minor repairs. It just looks shabby and a few cosmetic repairs would go a long way on this one. I haven't started working on it yet because I have been so focused on the vacant apartment fix up on the second property. I'll be moving on to this one next.
The best part of this spring was that my tax return was about 5 times the size of last year's return, I had so much depreciation, mortgage interest, business expenses, etc. that I was able to write off. I will have even more at the end of this year. I can't wait. I am exploring other deals now. I made a good contact with the contractor that was working on my apartment building. He does a lot of building and developing, so I'm tossing around ideas of either adding additional structures to the properties that I already have or buying land and building on it... I have been so excited that it is so easy to rent in this town. I couldn't believe that I rented my house back out after it being on the listing 3 days. And I haven't spent a dime in advertising expenses to get the house and the vacant apartment rented.
I owe so much of my success to Todd. He encouraged me to just keep on looking and keep on trying. It truly is a numbers business and the more you hunt around, make offers, and look for deals, sooner or later one is going to come right out and find you!
Carl R.
Murray, CT
You Helped Me Make a Paradigm Shift
My real estate business plan has initially focused on establishing a new independent engineering consultancy that will form the financial foundation for moving into real estate investing and land development as a personal income source. The Robert Allen and Prosper curriculum has helped me in being more intentional and disciplined in my consultancy (e.g. the time planning coaching session has increased my billable hours and I have been able to pass this wisdom on to the under-14 girls soccer team that I coach).
During this training period I have taken a conservative approach to real estate investing by aiming at purchasing one new property per year. However, I envision there being more opportunities coming my way since I have had a major change in mindset away from making other land developers rich (i.e. via the engineering consultancy), towards looking for partnership deals.
As an example, I have recently been fortunate enough to be included in a power team that is very experienced in real estate development. We analyze at least one large property per week, and I am pretty confident that the right deal will be coming through soon. What is also exciting is that I can contribute my engineering skills and professional signing power to the team.
By letting people know that I am a real estate investor, I have had two people intentionally approach me during this initial training period. One with a piece of land that this person is wanting to build 8 residential units on. The other person is a Builder who would like me to do all the up front work (finding and purchasing the property with his financial input; plus rezoning and engineering design). He will conduct the construction work in this partnership.
Thank you again for walking alongside me and showing me the way. It has had a major impact on moving me forward to where real money can now be made.
The fear of getting started, the fear of making offers, the fear that finding financing will be very difficult. With all tools learnt in course so far, I am much more confident in making offers knowing that there are numerous ways of financing a project. I have recently applied this principle to an engineering project and am making $5,000 on a $30,000 assignment by sub-contracting the work out to other engineering colleagues. . As you say, its not life threatening after all! I have analyzed over 30 properties and made two serious offers with quite a few more on the immediate horizon.
You assisted me in making that paradigm shift to get moving and to get into a habit of doing things. They say it takes 21 days to form a habit. In this case it has been the habit of looking for those special deals that are out there and at the same time looking to see if I can create a win-win situation that helps the seller as well.
Jeremy C.
Kamloops, BC, Canada
I Made $35K and I Am Creating a Foundation to Help Hurricane Katrina Victims
I now have 6 houses under contract. Ten other motivated sellers are asking us to sell their destroyed New Orleans homes. I made $35K two days ago and I’m just getting warmed up. We now have buyers in other major markets on our list and appointments with investors to flying in and tour all of our discounted New Orleans wholesale properties. In addition to this I am setting up a foundation to donate housing and labor to teachers and musicians that were affected by hurricane Katrina. Really anything that would help the community but right now it seems that would be a good start.
Daniel L.
Metairie, LA
How is that for Sweet Dealing?
Before my wife and I started the Prosper program, we had a couple of properties that we had made some decent deals on. We have been coached for a while now and we have just made a really good deal on three houses. Before prosper, we thought that you just simply either gave people waht they were asking or knocked a little off and purchased their property. Now thanks to Prosper coaching I had one of my bird dogs call and tell me of 2 homes for sale in my area the day they went on the market. The deal sounded to good, so I got in the truck and drove to residence that he was calling about.
I looked at both houses and decided to call the Realtor who was representing them. The realtor then told me of a third property that was being sold by the same couple. After all was said and done, I offered her $50K for all three properties. To my surprise, she said yes. We are now under contract and waiting on the money to come through.
If I hadn't learned how to talk deals from my coach I don't think that I would have made near the deal on these houses. So through a little smooth talking, I now am purchasing 2 single family dwellings and one duplex for $50K. How is that for sweet dealing.
Shane & Janet A.
Kokomo, MS
I Have Been Infused with Your Enthusiasm
I just wanted to give you a belated update to thank you for your guidance.
As you know, I attended a competitors real estate investing course more than 18 months ago. For a variety of reasons - things just did not come together for me. I then enrolled in the Robert Allen program and though the amount of materials has been mountainous, I found it expressed things clearly. The real turning point, of course, was the start of my mentoring sessions with you 2-3 months ago. Your ability to clearly express the fundamentals and more detailed plans was heightened by your wealth of experience, and your incredible enthusiasm. I have been infused with your enthusiasm - especially after your recent suggestions as to how to approach real estate investing.
The key was your realization that my "day job" as a physician and my frequent traveling combined to make me a person with good assets and credit rating, but short on time to research properties. Your suggestion to "be the banker" and have other people bring properties to me was the key. Much has happened over the past two months.
I contacted a development company to make myself available for any opportunities. They called me back, and I have since purchased 3 properties. One, in a North Carolina resort area, as a preconstruction unit. One each in Houston at a golf resort area and one in Las Vegas as a condo conversion.
I spoke with my local Realtor and mortgage broker contacts with the same proposal - bring me properties and we can share the profits. They put me in touch with an administrator for KB Homes who manages some 15 developments locally and needs to have a preapproved buyer to pick up purchased homes whose financial arrangements have fallen through so that the developers in these built out areas do not have to take back these units. They sell them at a discount so they can rapidly unload them and they have built in equity since the phases have closed out and the new phases will be more expensive. Since no new units will be available for 3-6 months, there is a ready market for my units. I purchased three new homes and put two on the market this week. I expect them to sell since people have already inquired about renting them before they went on sale. I just want to turn these over so I can really see the immediate gratification as I get started with my new career.
Also, you recall my brother-in law has some 20 rental properties in San Antonio. He is more of the landlord, property management and foreman/rehab kind of guy and wants to move up to more expensive properties. I took your advice and told him if he did the research, found the properties, and brought them to me, I would finance the deals,he could do the rehab and we would split the profit.The city is in the middle of urban renewal plans and with a contact on the city planning commission and a Realtor,we have jumped in. I go to San Antonio next week to review 5 properties there!
It's all exciting news,but now I've been so swamped that I barely have time for my day job,and obviously that's my excuse for this belated Email(I guess I hoped its length would make up for its tardiness).
Again - this would not have happened without the Robert Allen course(it's really hard to find time for those materials now!) and most importantly could not have happened without your mentoring. I truly am in your debt and greatly appreciate your instruction and friendship. My wife is really thrilled with all of this and sends her regards as well.
My deepest thanks,
Skeet G.
Golden, CO
I Have Become Much More Confident in My Knowledge of Real Estate
During the time I have been associated with Prosper, Inc., I have learned so many things and have become much more confident in my knowledge of real estate. My coach has not only been very helpful, but also very patient in dealing with me.
I have looked at thirteen properties, including two apartment complexes and a sixty capacity child care center, and have made offers on five of these properties. I have also applied for a line of credit.
During these sessions, I have learned how to search for property, make offers, write contract, secure financing. I will continue to apply what I have learned, and am confident that some of the things I currently have going will come together.
Phil M.
Poteau, OK
I Made $15K on Three Deals
I started up the program in the London where I was on a working holiday visa soon found out I couldn't borrow any money in the U.K. because I hadn’t been living there long enough for anyone to be able to check my credit. So I decided to move back home to New Zealand in January. After that I learned how to revalue the properties I currently owned, which allowed me to release the equity to do more investing.
After looking and analyzing lots of deals, I purchased a run down property in Northland Wellington for $340K. I cut the lawns, repainted the front and inside of the house, and cleaned up the excess rubbish. I sold the house privately two months later for $367,500 to someone who wanted to finish off the renovations themselves.
Since then I have Left my job as a carpenter and have started working full time as property finder for Investment Company sourcing properties deals to sell to other investors. The last 3 sales I have completed have been on assigning property contracts to other investors making a $5000 profit per deal.
Currently I have 3 properties in locked up contract which are ready to be on sold. Not bad for some who is only 24 years old?
Tom C.
Wellington, New Zealand
Total revenue generated from Storefront & Apartment Rental will be $100,095
I found a property while driving home from a lunch meeting and saw that it was being shown. I stopped in and they allowed me to view this along with 4 other properties he has for sale. This property is a two-story historical building with a total square footage of 8,866 sq. ft. with a side lot for parking. It also contains nine apartments on the upper floor and a retail store front on the main floor with a warehouse in the back half which is capable of housing two other store fronts. Eight of the nine apartments are already leased at an average of $350/unit ($33,600 annual). The store front will be leased to my company, a real estate broker, an interior designer, and we can build to suit the back half for a total lease rate of $15/sq. ft/yr. ($66,495 annual). Total revenue generated from Storefront & Apartment Rental will be $100,095. The property was appraised for over $300,000 but due to the current market the owner is willing to owner finance it at the following terms. Purchase price is $185,000. The property needs about $200,000 in repairs but will be worth around $700,000 after repairs are made. The building is functional but can generate double its current income after repairs. This property also qualifies for State and Federal Tax Credits, so for every $1 we spend in eligible repairs we get $0.45 back in tax credits. This property also qualifies for a facade grant from the City of St. Charles. We will spend $25,000 in facade work and the city of St. Charles will reimburse us for $12,500.
Mike P.
Saint Charles, MO
The house is bringing in a cash flow of approximately $2000 a month
Here is an account of our first successful accepted offer: It took us a while to find our property. We looked through a lot of newspapers, we drove around and checked out For Sale By Owner signs and Agent signs, we checked MLS online and worked with a couple real estate agents. In the end, the deal that we were successful with was through an agent in the city. The property that we purchased was a single-family, five bedroom house. We bought the house to use as a rental and only minor repairs were needed (replaced light switch, etc). The asking price of the house was $629,000 and we initially offered $539,000. In the end we purchased the house for $575,000 with some of the furniture included. The house is worth $640,000. We went with traditional financing for the property (although we went with a partner that financed the down payment and we’ll make payments to them). Our plan for the house is to rent it out for now with the intention of selling sometime in the future. Currently the house is bringing in a cash flow of approx. $2000/month. I think it was easier for us to go the traditional route (real estate agent/ traditional mortgage) on our first deal and we hope our next deal will include seller financing.
Darren and Jody W.
Fort McMurray, Alberta, Canada
Long-Term Investments that Will Require No Work on Our Part
My first potential deal was for a pre-foreclosure property that could easily sell for $247,500 in good shape according to comps for that community. My first offer was for $200,000 with $5000 towards closing costs paid by seller. The bank informed my realtor that there was already a cash offer for $209,000 on the table. So I figured in enough profit over their best current offer then made my second offer at $220,000 with $5000 towards closing pd by seller (to build fees into loan and reduce out-of-pocket).
Since the seller/bank is handling the offers for this property in an unusually slow fashion, I haven’t yet heard anything back as to whether or not I will be getting the deal. I’m crossing my fingers for an acceptance because this property would not need much in repairs and worst case I would profit $10-15,000 if I sold right away. If I get it, I plan on renting it out and selling after a year which would bring in an additional $20,000 (figuring low) in appreciation.
My second potential deal turned into a done deal when an offer on an investment property in Costa Rica was accepted. I and two other partners went in on a beach condo in Jaco that we plan on holding for 4-5 years. The comps call for $550,000 but the developer lowered the price to $515,000 since he’s got several hundred other planned units up and coming all along the beaches of Jaco.
Recognizing his need to move sales and needing more funding for his construction costs, I suggested to my partners (who were ready to make offers starting at $485,000) that we offer $450,000. That offer was rejected; however, they signed the deal at $460,000! This is $55,000 below the asking price and even further below comps.
Following the trend of Costa Rican beach properties, we expect that in about 3-4 years our beach condo will sell for about $1,000,000 with no trouble whatsoever. The condo will also come fully furnished and decorated; the developer has a management company (for a fee) that will handle all of the renting/bookkeeping of the unit, maintenance of unit & property/pool, & security (these expenses come out of the community ‘pool’ even if our unit doesn’t rent out, which is good); they handle opening a Costa Rican SRL (like an LLC) for us; and as part of the service they will file our annual taxes for us.
The best financial benefit in this deal is that there are no government taxes when we sell (details too much for this letter), but that will enable us to pocket an additional $100,000 or more! Another nice part about this deal is that the sales tax when the unit sells is only 1.5% (which buyer & seller split) and property tax is only 0.25%. This is not a no-cash deal, so we will be putting 30% down (some of it still OPM as it will be taken temporarily from credit and HELOC) and construction won’t be completed until December or January, but this will be great for future income. And best of all…(listen)…NO taxes must be paid to the US!!!!! This entire transaction is invisible to the US Government (and 100% legal, of course.)
Long story short, it’s a great long-term investment that will require no work on our part, make us more money than if it were in the US, and we gained a gorgeous little getaway because we’ll be able to use it some during the off-season (which means getting out of the dry Phoenix summer heat for me!!) Some may say that investing in another country is risky but one of the first things I learned since I began my coaching is that I have to be willing to do the things most everyone else is afraid to do. I definitely did my homework on Costa Rica first, but I went one step further and defined myself from the majority. I ventured. I broke some chains. That’s where I feel my big success really is in this deal!
SUCCESS UPDATE
Originally I signed two new-build contracts for $249,501 and $266,821. The Phoenix market started sliding in 2006 and keeping an eye on what the second quarter trends meant for the third quarter, I was able to renegotiate with the builder getting them to lower the sales prices to $222,001 and $239,821, respectively.
Additionally, the builder agreed to me using my own lender and to pay $7,650 towards my total closing costs. I sent in my own appraiser in order to obtain conservative values and they still appraised for $233,000 and $248,000, respectively; and these values do not account for landscaping and window shutters throughout, both of which are done now on each home.
Based on the conservative numbers, there is already $19,178 total equity. Having experience in the mortgage industry and having a seasoned & savvy loan officer who keeps track of everything, I opted for neg-am loans (this is NOT recommended for just anyone) so that the rents would cover the mortgage payments. (In Phoenix, the average rent is much lower than a regular mortgage payment.)
My plan is to lease them out and sell in 12 months. It is hard to say exactly what my total profit will be when they sell because the Phoenix valley housing market has slowed and sales prices are still settling down; but overall, there will still be appreciation and the good news is that there WILL BE a profit!
Kimberly H.
Scottsdale, AZ
Hong Kong Investor Makes a Profit of $44K
Thank you for your coaching, it gives me confidence and knowledge to start a property business. I used your advice and invested in my first property using Other Peoples Money. Doing all the leg work from auction houses, finding a good estate agent to work with. Even though some of the rules and regulation don't apply to Hong Kong, however the principle is the same, buy low sell high. It proves all the hard work pays off. I bought my first property about just over one year ago and renovated it, I separated the flat into 3 studio flats to maximise my income and received 10% every month. I sold it recently I have just made a profit about US $44,428 before tax.
I have just invested another commercial property with the profit, which I believe it is very profitable, as the government is putting Tens of millions to upgrade the facility and promote tourism in the neighbour hood. The owner was a few months behind in his mortgage payments; so, I offered to help him to pay off his debt and in return I could complete the transaction in 6 months time. If I get a good offer within the next 6 months, I will flip the property. Which means I will make a profit with minimum of my money and helping others at the same time.
I also invested a piece of land, I got an offer to make 28% profit, I believe the price will go up more when that happens I will sell it. I wouldn't have had the confidence or 'know how' to start a business, never mind a property business with no money on my own, I knew I wanted to have my own business and I knew I needed skill and knowledge and I knew it's important to learn from the people who have succeeded before, therefore I didn't hesitate to take a Real estate course. Thank for giving me an opportunity to live the life I want and helping others....
Chi B.
Causeway Bay, Hong Kong
Thank You For Your Advice On How to Get My Apartments Rented Out
I wanted to let you know, and thank you for your help and advise you gave me on how to get my apartments rented out. Like we discussed, I was having dry spell with my apartments, and was having a very hard time getting them rented out, as they weren't in the best part of town. With the strategies you gave me to try, I was able to get 2 apartments rented out in just shy of 2 weeks, and more calls on the remaining apartments. I really appreciate your help.
Steve H.
Simi Valley, CA
Real Estate Investment Yields a $110K Tax Write Off
I put a $5K deposit on a pre-construction deal in Buloxi, Miss. The purchase price was $110K for a 3 bedroom 2 bath patio home with 1153 sq. ft. The builder agreed to pay $2K towards closing costs. No payments until closing. I financed through Wells Fargo with 10% down and a 30 year fixed loan with 7.375% interest. The need for rentals is still high due to Katrina, although new construction seems to be meeting rental demands. I closed the end of March and have listed it for rent with a property management company on site. Projected rents are $1000 per month. The property was initially expected to cash flow.
The rise in insurance rates (approx. $3000 per year) make this a break even deal, my payment is $1015 per month (PITI). The other benefit with this particular investment is that it qualifies for the Federal 'GO ZONE' Investment Tax Credit. Basically, I will be able to write off 100% of the investment amount ($110,000) on next years taxes for investing in areas hit by Katrina.
Sonja S.
Clive, IA
Real Estate Student's Investment Career Launches With Several Offers
My first offer involved a 4 br house and a 2 br apartment. The house is ready to rent (although I will probably paint it and re-carpet it) and the Realtor that sold it to me says he may have some tenants for me already. It is in the downtown area and not fantastic but it is livable. The apartments will require a little more work as that house has just recently burned down and another has been put in place there.
Our offer was for $70,000 with the seller paying all closing costs. We have a “10 days to terminate” clause which gives us time to inspect the property and ensure a few things with it. We also have a contingency for the apartment to be placed, painted and wiring and plumbing to be complete and working. It is also contingent on adequate finance being acquired by us.
The second offer includes 4 houses – 3 of which are rented out already. These renters are Section 8. They are paying just about enough to cover the mortgage on all 6 houses. The contingencies include a property inspection for us as well as a “10 days to terminate” clause. I have spoken to one of the renters already when I was inspecting the houses and she told me that she was trying to get enough money to buy her house. I think I will try to set her up with a 3 or 5 year lease option and possibly hold the paper on the mortgage later…
One of the houses is not in great shape but the renters are only asking for a door to the bathroom. I intend to do better than just a door as long as the house passes inspection. The other house I was able to get into was empty but, was in good shape. The final house I was not able to get into, but the renter has expressed interest to the previous owner of staying there, but I do not know if she wants to do a lease option or continue paying rent…
I have an appointment to go to know concerning another 2 bedroom house that is being converted to 3. I already have a potential renter for that one if the terms and a workable solution can be worked out with the seller. I will keep you informed…
Flavius H.
Augusta, GA
Real Estate Student Earns $500 Finders Fee
I got a call from a couple that had received one of my flyers. I mailed the flyer to the address that was on the foreclosure list at the court house. They were renting to own the property and had lived there for almost a year. They found out that the owners filed for bankruptcy and the property was now in foreclosure. They also found out that the owners were using the monthly payments for themselves instead of paying the mortgage. It took a month for me to talk with the owners because they would not return calls or accept them.
I got in touch with their bankruptcy attorney and he told them they should talk with me. I explained how I could help them and they would have nothing to do with it. The renters would have to get permission from the courts in order to possibly buy the property and they did not want to take the chance of losing their money. I gave them some names of investors in the area that had rent to own properties available. They looked at some homes over the weekend and loved one of the homes they looked at and moved in. Within 1 week I had earned a $500.00 Finders fee.
I am in the process of helping someone else in the same way and it makes me feel great that I helped someone. I am also currently working on a short sale that I hope to make $5,000.00 on. Thank you for the confidence and all the knowledge that you have brought to me.
Tara V.
Summerville, SC
Prosper Showed Me the Light
I started with Prosper as a hockey player wanting to get into what I call the most secure investment that still makes good money, real estate. I started with simple rental units a few weeks after I started my prosper classes. A slower way to build what I call a kingdom.
As I took in more and more homes I found this amazing opportunity on the gulf coast, which was a way for the government to bring back the rental housing after hurricane Katrina. They were going to pay me up to $40K for each rental unit I purchased. On top of that, the IRS was going to let me depreciate 50% of the total value of the structure towards my income tax, up to 5 years back and 20 years forwards.
Wow, get all my taxes back from that past 5 years and maybe not pay taxes for the next 20. I came down here to the coast to research and, to my surprise, I found it was hard to find a good builder that could get what I wanted done. I knew a very good builder from Arizona who was doing nothing there due to the bad market so I had her come here and check it out.
After looking into this amazing opportunity and moving to Mississippi, we started a company called Bay Homes. We now own about 600 lots throughout the gulf coast and are building for investors like yourselves. This is a one stop shop from us building to finding renters and even managing the properties for out of state or even in state investors. This all happend in less then two years and I believe with the help of Prosper and hopefully with some help from myself, you can be is the same position I am in, as to basically get paid to buy a home.
Thanks Prosper. I owe you one.
Brandon E.
Johnston, PA
We Will Profit $10,000
I am really happy to say that we closed on our first property. It is bank owned. We fought for a month and a half to get it for the price that we did. Based on the quick sale price we will come out on the positive side with $10,000.
Kim N.
Orangeville, ON, Canada
$110K Below List Price
As yet we have made no other purchases, however, Caroline and I are leaving Australia and moving back to Raleigh in August. We hope to make it permanent.
Once back in the states we intend to start with some fix and flips to build capital and pay down some bad debt. I am a carpenter by trade so will do most of the work. Then, we plan to accumulate more multi-family cash flow properties.
With our current four-plex in Raleigh we are considering going section 8 as we have had frustrations with tenant turnover and late rent payments etc., remember, it was listed for $265K and we got the offer accepted for $155k with the potential rents being $2800/mo.
Craig & Caroline M.
Mooloolaba, Queensland, Australia
$7K Profit and a $250/Month Cash Flow
Here's the analysis and numbers on the deal we discussed. The ARV on this home will be in the $75K - $80K range. I am adding another bedroom and bath as part of the rehab which will obviously add more value.
I will clear at least $7K on the front end rehab loan. At that point I will refinance at 80% LTV with a payment at $500 PITI. Rents in the area are $700 - 750.
End result. $7K profit with $200 -250/month positive cash flow. Life is good!
Allan O.
Gladston, MO
I Expect to Net $40K at Closing
Just wanted to let you know that business is still going. I close on my Hampton house in Rocky River on July 3rd. It took a little longer than I wanted but will net about $40,000 after paying closing cost.
I am still bidding on many homes but still waiting for the next deal. I believe it will be very soon. My goal is to have 4 homes bought and sold by the end of the year. Should be a better year than last.
Aaron L.
Fairview Park, OH
Real Estate Success on eBay
I made several good contacts for future purchases.
One of the properties was a duplex in Detroit, MI. It was listed for $2,500. I offered $500. The bank countered at $1,999. I countered at $700. The bank countered at $1,500. My final was $999. The bank caved. So, with closing costs, this property cost me $1,762. This was in March.
In April I decided to go on "Now-let'-go-see-what-I-actually-bought" tour. I flew to Detroit, checked out the 4 I purchased there, then drove to Indiana to look at the 2 there. The $999 duplex looked like it. I mean it honestly looked like it cost nine hundred and ninety-nine dollars. But I knew that it needed lots of work.
My agent, who drove me to the property, kind of patted me on the shoulder as we got out of the car and walked up to the place. I told him, "I've spent a thousand bucks on worse things". Then I told him that I had put the building up for sale on eBay because I had learned from a seminar that you could do that. (Actually it took me 2 seminars to really "get it" because I was really thinking "You can really do that?!" The 2nd seminar was in Palm Springs in March and this guy said the same thing that Jeff had said, so I figured "Ok, it's worth a shot".)
Well, I got back from Detroit on Sunday night, checked my email and I'll be dog-goned if I didn't have an email waiting for me that said "Your listing sold on eBay!!!!" I was like "GET OUT OF HERE!!!"
I hurriedly completed the paperwork (GOT PAID) and emailed it off to the winning bidder!!!
Another worker at the seminar (one of the guys in the back of the room, I think his name is Bryan) told me at the second seminar that most real estate listings on eBay go for less than $10K. So, keeping that in mind, I had offered the duplex for $4,950. So, minus the cut to Ebay (~$250) I was happy to make an almost $3K profit.
I remember telling my parents that I had sold one of my properties on Ebay and both said "Yeah, OK. Just let me know when you have the money". Believe you me, I was more than HAPPY to make that phone call!!!!! "Hey Mom! Hey Dad! The money just hit my bank account, and I'm going to get it right now!!!!"
Kelli D.
Moreno Valley, CA
Nothing Out of Pocket Except a $2500 Earnest Money
Well with the help of my agent we put an offer on a property I had talked to you about. It was a 3bd/2bth large home with big lot. Appraised in the low 5's and asking for $450K. Offer: $500K with $100K down buy the owner which leaves $400K for me to finance and seller to pay closing cost. Basically nothing out of my pocket except for $2500 in earnest money.
Monday my agent called to let me know he had excepted the offer. The loan will be a interest only payment (to keep mortgage down), fixed for 7 yrs and taxes payed separate.
Mario V.
La Habra, CA
I Purchased a Property with Cash and Anticipate Making $30,000
We bought a townhouse,bank owned,for $69,900. It needs some rehab,which is estimated to be $20,000. The current market place for the comparable properties is anywhere between $115,000 and $120,000. It gives me a potential profit of $25,000 to $30,000.
It is important to note that, in this price range, some of the properties were still requiring some TLC. Ours will be in like new condition,which might allow me to sell it relatively fast. Also,as it was a cash deal,our expenses while waiting to sell will be minimal. Besides,this property is also good for rent...If we decided to rent it,we would have a positive cash flow of $500/month.
I am thrilled to share it with you! I am pretty sure that it is just the begining. I am sure that,with your help,more and more deals will be possible.
Mayra B.
Wellington, FL
Great REIA!
Upon the advice of my wonderful coach I joined a local real estate investment association. Their focus is education and I feel my annual membership of $99 is well worth the education I've received. I got a deal through one of the members at approx 50% of the ARV and received referrals for all the people I've hired to work on the house. I got info on where to find great deals on cabinets and other building materials (which alone I believe has helped me recoup about 10 years worth of membership fees).
So thanks for the great advice on joining a local REIA.
Carol L.
Greensboro, NC
Success with the Five Day Round Robin Auction
We got involved with Prosper Learning just this year in hopes that we could move our fledgling Real Estate business into a higher gear in preparation for retirement. We purchased several single family homes in 2004 which we thought would bring a decent cash flow for a few years and then begin to sell them off and move into some new areas. Some properties offered a cash flow, a few have broken even, and a few have lost us money. This particular property had always a cash flow usually between 200 and 250 per month. Yet then it became vacant. We decided to put it on the market primarily because we do want to try our hand at something besides landlording and this property was salable because it has a full basement and a 4 car garage. As everyone knows the market is very soft just now. So, marketing now could be a real challenge.
Our coach told us about the Five Day Round Robin Auction which immediately seemed doable. Although we didn't get the traffic we had hoped for, we did get two offers, accepted the higher with a an Agreement for Deed or Land Contract with a three year baloon. We made several calls during this process to both our coach and to the coaching staff and found them to be always helpful, encouraging, and, when necessary, corrective.
Here are the figures for this house.
- Purchased in 2004: $95,000
- Rehab: $20,400
- Total Expenses: $115,400
- Cash Flow from rent: $10,560 (220 X 48 months)
- Down Payment: $3,600 on this sale
- Cash flow seller finance: $10,800 (300 X 36 months)
- Sale Price: $130,500
- Total project gross income: $155,460
- Total Net Income: $40,060
Carson & Christine L.
Joliet, IL
I Will Realize a Profit of $23,000
I recently sent out a coupon offer in Value Pack advertising for pre-foreclosure property. I almost immediately received a call from a property owner who was not in a foreclosure situation, but was anxious to sell his home due to a job transfer. He explained his situation and asked if I could help. I immediately took down information on his home and set up a meeting with him and his wife for that evening.
In preparation for the meeting, I did a comparable analysis of this home which was a 4/2 with 1775 sq ft home and was built in 2004. The comps averaged around $180,000. I was able to purchases the property for $140,000. As soon as I had a signed agreement, I started advertising the property on Craig's list for $169,900 and had a buyer in two days.
Three weeks prior to the sellers closing, the new buyer and I are awaiting closing a.t.t.. Thanks to my coach and knowledge gained, I will be able to realize a profit of approximately $23,000 after closing costs.
Joe F.
Daphne, AL
Thanks for Your Help and Encouragement
My brother and I have purchased two duplexes in Indianapolis. They are side by side buildings in decent condition that are three fourths rented. We are negotiating for coverage by local managers. There are other properties that we are also considering. One of the renters has asked if his nephew might be able to rent the neighboring apartment. So we have begun are quest to become real estate investors.
Thank you for your help and encouragement.
Duane B.
Orem, UT
My Partner and I Made $120,000 in 16 Days and Started 3 Companies
The real estate course and the coaching from you started me on a path that is nothing short of amazing over the last year and half. A couple of months after joining my local real estate investing club (which was one of my assignments), I met a real estate investor from San Diego who specializes in investing in the Go Zone (MS where Hurricane Katrina) did so much damage. He and I hit it off fabulously. We realized that there would probably be some grant $ for disaster relief.
To make a long story short, we found a pot of money through Housing and Urban Development that was given to the State of MS ($262 million) called the Small Rental Assistance Program. The $ is to rebuild apartment units that were destroyed by the hurricanes.
With my grant background I was confident that we could help people apply for this money and with his real estate background, he was confident that he could find some developers and investors to work with. So, we found a couple of developers who were offering duplex properties to investors and the properties fit all the eligibility criteria for the funding. We offered to put together the applications for the investors as they were kind of complicated.
At the end of Oct., we submitted 90 applications for 90 investors, totaling $7.154 million in forgivable loans. They are still waiting on the official awards, but everything we've been told is that they are all going to be approved. Each investor will get what amounts to $70,000 in free money on a $225,000 property. Not a bad deal. As long as they follow the guidelines for renting to moderate-income people over the 5 year period of the loan, they don't have to pay it back...so it's pretty much free money. And, my partner and I, in offering the service made $120,000 in 16 days, processing people's applications. Not bad, huh?
Based on that success, we've started three companies - Real Estate Grant Specialists (specializing in grants for real estate), The Grant Connection (provides traditional grant writing services like I've been doing for years), and a nonprofit called Homes That Change Lives, which focuses on special needs housing. We are holding a 3-day real estate grant training event at the end of September in Irvine, CA and we expect to have 50-100 people there, which should be pretty lucrative as well.
I can't thank you enough for the coaching and training. I really believe that if I had not enrolled in the course that I would not be where I am today, so I am very grateful, very grateful.
Dawn D.
Lynn, MA
I Bought a House for $75,000; Its Appraisal Value is $113K
I have learned to be able to determine a good buy when I see one. I can do the cost analysis for rehabbing/flipping and renting. I understand the power of networking and how to leverage other people's money. I am closing on my 1st house in 3 days. I bought the house for $75K and its appraisal in its current condition is $113K.
This was our intended quick sales price after making many repairs ($6K), so I think we will hit the sales price. I have partnered up with my best friend's brother. He is a realtor, inspector and has built houses all his life. His now teaching me how to estimate repair costs and make the repairs.
My goal was to make pay for my class before the end. I may miss that by a couple of weeks, but I am o.k. with that as I have more confidence in what I am doing. My wife just wanted me not to lose any money on my 1st deal.
I have decided not to take a promotion and go back to being an individual contributor, so I can have more time to devote to my real estate business. This is not immediate, but will take place in Jan. It is a serious career path decision for me.
Steven L.
Plano, TX
We Should Clear Over $600 a Month in Income from this Property
As you know summer was off to a bit of a slow start as we worked hard and long to get a bank that would give us the line of credit we needed to get things off and running. That finally happened in the later part of June, and we began our quest looking for real estate deals.
We finally came across our first deal in late July, a single family home that was in foreclosure. We made an offer of $11,500.00 and a few days later it was accepted by the bank. The house needed a total of around $34K in rehab with an ARV of $65K to $70K. Although we ran into some snags getting a clear title for this property, we are now half way through our rehab and should have the house on the market to rent by mid September. It sits just 1/2 block away from the mass transit line to Pittsburgh as well as local food stores, the laundry mat, post office and more.
Now you know how they say sometimes thing come in waves, well for us it did. Just one week after we closed on this first property, we came across a duplex that was also in foreclosure and conveniently located to all of the same amenities as the first property. The property had only been on the market for a few days and an offer had already been placed by another party. We decided to view the duplex anyway, and with much luck the first offer was declined by the bank. It was surprisingly in good shape and will only require about $20K in rehab. We picked it up for $26.5K and will be closing around September 22. The duplex after rehab will ARV around $75K. With rent, we should clear over $600.00 a month in income from this deal alone, plus the equity we have in the property as well.
Tell your students not to get discouraged by road blocks, as we have faced many. We are now on our sixth real estate agent and have high hopes that our new agent is the one we have been looking for for almost a year, it looks very promising from we have seen to this point. My goal was to have six rental properties, and as of to date we now have four. With the end of the year fast approaching, we expect to see more
foreclosures and banks becoming more anxious to clear them off their books for
2008.
Mark & Sherri B.
Bridgeville, PA
Real Estate Student Purchases Property $55K below Asking Price
When we looked at the flyer from Bid Select on the property at Evergreen Trail, our first thought was “this property is a mess!” The flyer told us it had foundation problems, cracks in the ceilings just to name a couple on the long list. Definitely not something we would want to tackle, but we know that it is important to physically look at all properties, our coach at Prosper has taught us that.
Upon inspection we found a property needing a moderate amount of repair, NOT major. The foundation problems were easily addressed and the cracks in the ceilings inside were cosmetic. Because of the poorly prepared, probably hastily done, inspection report performed by the HUD inspector, we were able to purchase a wonderful rental property for $45,000. The asking price, in as-is condition was $100,000. By using the strategies and tips from Prosper Learning and financing from a private investor, we were able to put together a real sweet deal. Our plan now is to finance the property, rehab it and pull our profits out at that time and continue making money with it as a rental.
Bob & Roseann G.
Cartersville, GA
$44,000 in equity from on-line auction
I purchased a house on an on-line auction for $2,700 + $260 recording fee with a value of $47,000 for instant equity of $44,000! Wow. A house for $3K that is not in Detroit! I plan to rent the property. I found this auction website through my coach, Janeen. She has also provided me with multiple exit strategies if I decide not to rent.
Carol L.
Greensboro, NC
I Expect to Double My Money
I have just purchased a 3 bed/2 bath New Englander on 1/3 acre lot. This home sold in Oct for $91,600.00 and I just purchased it from the bank for $40,000.00. I consider this a good buy and expect to double my money.
Roger M.
Hillsborough, NH
$350 a Month Cash Flow
...I closed on a 3/1 townhouse in a nice area that was in good condition, it just needed a lot of cosmetic work and updating. I did almost all of the work myself, it took me 6 4-day weekends – painted the whole place, replaced carpet, redid the bathroom, etc. It is now tenanted with fantastic tenants and provides me with $350 a month in cash flow, which I am very happy about. It is also professionally managed, which frees up my time to work on other deals. This was a joint venture deal, as I needed to bring in a partner, and I did the work. Now I am lining up other partners to do future deals with.
By following what I learned from you, as well as my own research, I found an amazing team in the area in which I want to invest, and this was my first deal with them, the first of many. I am also enrolled in a coaching program to learn how to do tax liens/deeds/foreclosures, and recently purchased my first foreclosure property at an auction, which I plan to hold until the Spring, then flip, or I may keep it and rent it out, I haven’t decided on my exit strategy as yet, but I got in for 16 cents on the dollar, so I’m not too concerned.
Thank you for your coaching, support, and information along the way. Now that I am out of the program, with a few deals under my belt, I know what I am doing, and with the team I have in place, I know that the sky is the limit. Thank you for all of your help, I would not be doing as well as I am now without your guidance. And I am looking forward to making many, many profitable deals in the future.
Stephen W.
Etobicoke, ON, Canada
We Bought Eight Houses and Added $30,000 to Our Net Worth
We bought the eight houses for $250,000. The appraisal came in at $280,000, so that added $15,000 each to our net worth on the front end. The current rent roll is $3,060 per month, but the properties can sustain an increase of a minimum of $700 per month and possibly $1,000 per month that we'll gradually put into effect over a three year period. That will bring our potential monthly rent up to $3,700 to $4,000 depending upon market conditions. At the start we will have a positive cash flow of $250 to $300. Our banker gave us a 5.95% loan, and our closing costs are only going to be around $3,000. We will finance 85% with a first mortgage at our bank, and the other 15% will come from individual investors of which we are offering 8% for three years. We already have commitments for $25,000. We'll be closing on December 15, and if for some reason we're short on remaining capital, the seller has agreed to carry us on a short term promissory note for any capital we're short. We're raising a total of $50,000 in capital, so we'll have approximately $12,500 in reserves of which we'll do minor improvements to justify raising the rents. At the end of three years we intend to refinance the deal, pay back the money to the investors, with the increase of cash flow from improvements to support our increase in first mortgage payments. In March of 2005 the appraisals came in at $299,000, so as market starts its upswing plus improvements we expect future appraisal to come in at $300,000 to $325,000.
Larry B.
Nixa, MO
UPDATES
Check out this house. It’s a foreclosure that came up on the Multi-List just a week ago. The house is two doors down from a house that my partner owns by the same builder and is almost identical. His is worth mid-seventies in today’s market. I made an offer Sunday night for $45,000 and found out yesterday that my offer was accepted. The rehab will run about $10,000, and if the appraisal comes in around $75,000 I’ll be able to add another $15,000 in equity to my portfolio after expenses. The house is a 3/2, and 1,150 square feet. It also has a large outbuilding. It will rent for $675 to $700/mo. which will give me a positive cash flow of $100 to $125 per month.
I'll be attending my first auction for a house I found on one of the websites you gave me to check out. Zillow.com has it valued at $85,000. It's definitely worth around $35,000 or so.
By the way, I decided to go ahead and purchase the two houses on North Summit street. The seller came down to $70,000 for both properties, 10% down, and owner financed at 6%, 30 year amortization and an 8 year balloon. Total rent in present condition will be $950/mo. and I can easily add a bedroom to each house which will bump the rent up considerably. I really appreciate your help over the last few months. It's really increased my confidence to step it up a notch or two!
I think I snagged a good one! I had to make an offer the day it came out on Craig’s List. The owner is from Houston, TX, and he’s sick of trying to be a long distance owner. This is a small four unit apartment building less than two blocks away from Missouri State University. It’s less than two blocks from downtown. Lofts are going for $150,000 and up, and they’ve just built a 12 cinema complex four blocks away.
The four units are very small, but the owners had them rented for $375 to $425 each. They said they’ve never had to rent to college students, the tenants were always professional people that worked downtown.
I found one of the houses on the Multi List, and we ran into the owner while looking at the house. I found out that he also owned the house next door which he wanted to sell next year to avoid paying capital gains on both properties this year. I proposed to him that I buy both houses this year, and postpone capital gains on one of them by doing an owner-finance for 10 months so he could pay taxes next year on the second house. Here’s the deal.
Purchase price for both properties: $45,500
Market value: $70,000
Paula’s aunt is investing in our company via promissory notes, so I paid cash for one of the properties and the owner financed the entire amount of the other property at 6.25%, 30yr. with 10 month balloon. The promissory note for the first house is 8% interest only. Our banker said after six months he would allow us to refinance both properties with the intent of getting all of our money back.
Market rent for the two houses is $950/month. It will take a few months to get up to market rent as one of the houses is rented for only $325 per months and the other is empty. I should have a positive cash flow starting out of around $200 per month increasing to $275 to $300 once we get both houses up to market rent.
Not too bad for a no-money down deal.
I will be able to realize a monthly profit of $800 a month
Out of the 30 properties my broker found, we agreed on three potential great fits. Out of the three I looked at I was most excited about 170 Polk Street. It was listed at $267,000, two homes on one lot. Both have three bedrooms one bath. Both come with their own utilities hook up. Tenants will pay all utilities.
One house is rented out now at $1,200 a month. The other house is vacant. After doing a profit and loss statement, I was confident that I could make the numbers work at $230,000. I also knew that the house had been on the market for several months, and I felt confident—based on what I have learned from the coaching—that I would be in a good position to negotiate.
I went to two different lenders and secured preapproval for a loan of $220,000. After a few offers and counter offers, I countered with a deal of $217,000. I would put down $5,000 (2.5%) on binder; that upon signed contracts I will show the house to potential tenants and that we will close within six weeks. I also demanded signed contracts within one week and asked for a seller’s concession of $12,000 to cover closing costs. The seller agreed to my terms.
Using the techniques that I learned, I was able to buy a house at a discount of $52,000 with literally only $5,000 out of pocket. The mortgage and taxes will be $1,800 a month. I will be collecting $2,600 a month in rent. I will be able to realize a monthly profit of $800 a month. A heartfelt thank you to the Trump organization and to my coach as well.
Keith & Molly H.
Westhampton Beach, NY
We purchased a home with great workmanship
We found our new home by searching the internet at real estate sites in the geographical areas we had chosen.
We needed a home with an in-law suite, four
bedrooms&at least two bathrooms. We wanted at least one acre. We wanted
to stay in the price range of $300,000 to $350,000. The price listed was
$399,000, just reduced to $379,000.
There was another interested party who had a
contract but their purchase depended on whether their current house sold. We
did not have this issue. We toured the house and sat down to write the contract
with the real estate agent. We learned that evening we had a motivated seller
who needed to settle a pending divorce. The real estate agent who served as a
dual agent was also motivated to make the deal. We made an offer $8,000 lower
than the other interested party. Our offer was accepted because we were ready
to buy immediately. We also really wanted to buy the home and did not want to lose
the deal. The next day we went to the mortgage company and got a mortgage for a
fixed rate of 4.75%.
We went to settlement a few weeks later.
The owner was the builder of the home. He took
great care and thought in the building process because he thought he would be
living there for the rest of his life. He paid amazing attention to detail. So,
not only did we meet our goals in the purchase but we also purchased a home
with great workmanship.
Carole L.
West Chester, PA
Total rent in present condition will be $950/mo
I decided to go ahead and purchase the two houses on North Summit street. The seller came down to $70,000 for both properties, 10% down, and owner financed at 6%, 30 year amortization and an 8-year balloon. Total rent in present condition will be $950/mo. and I can easily add a bedroom to each house which will bump the rent up considerably.
I really appreciate your help over the last few
months. It's really increased my confidence to step it up a notch or two!
Larry & Paula B.
Nixa, MO
$2,150 in Monthly Rent
I learned about several properties at a real state investor’s meeting. I contacted one of the owners and he expressed willingness to owner finance a duplex that needed rehabbing. I bought the property for $125,000 and budgeted $30,000 for rehabbing. After four and a half months and $5,000 over budget the units are ready. The after-rehab value is approximately $180,000 in this down market. The 1345 sq feet unit will rent for $1,200 per month and the 1,000 sq feet unit will rent for $950 per month. Fair market value is about $180,000; however, I intend to hold the property for three to five years.
Charles L.
Okemos, MI
Check in the mail made to me for $4,000
I started with Prosper in the beginning of January 2009. I was reluctant and nervous and felt out of place but I decided to get out of my comfort zone and just do it. As a beginner, I decided to start with wholesaling real estate, since it seemed have the least amount of risk. Also, I do not have any capital to work with so I wanted a way to build a little safety net for myself.
Just recently I got an e-mail from the investor I was working a deal with and found out I have a check in the mail made to me for $4,000! I am ecstatic because I went about the whole thing wrong and somehow it still managed to work out. The whole thing really just seemed too easy to be true. I posted two phantom ads on craigslist. One said “We buy houses” and the other said “Buyers/investors wanted.” From this I got an email two days later from an investor trying to sell a house he had on short sale. The house had an asking price of $72,000 and the comps on it were $115,000 ARV with $10,000 in repairs needed.
I emailed this info to the buyer I had made contact with through the craigslist site but told him the asking price was $76,000. The buyer called me and wanted to see it, so I connected him with the seller. They did a walk through together, it met my buyer’s criteria and next thing I know I have a check coming my way. I never had a contract or signed any document with anyone.
The investor that sold the house was kind enough to warn me not do deals like this in the future, because people will cheat you to make more money on their end. Then after that he sent me another house to see if I could find a buyer for him. Talk about lucky! And for the record, this wasn’t my coaches fault. He told me what to do and for some reason I just didn't listen. I guess I was feeling lazy!
Amber B.
Caseyville, IL
One of the best decisions we have made
The decision
to enroll into the Bach financial coaching and Real Estate coaching is one of
the best decisions we have made in our lives. Thanks to Janeen and everyone at
Prosper.
The coaching is based on educating the student to make the right
choices after following the proven steps to research a property..
1.
We bought a rental cash flow property in Detroit , MI . We followed the steps
taught by Janeen to do all the research about the property. We used the rental
cash flow spreadsheet and other tools to make the right decision to buy this
property. We bought the property for 60k - 4 plex - All rented when we bought
it.
12k below market price. Cash flow of $400/month
2. We bought
a foreclosed 2 family home in Jersey city , NJ. We bought the property for
152,000. About 100k less than market. We spent 25,000 in rehab.We rented out
both the floors. Cash flow of $300/month.
3. We are looking at
more properties to buy in 2009.
The student care, the resource
line and everyone in prosper are so professional and do a wonderful job in
helping the students to achieve their goals.
We cannot thank our
coaches enough for showing us a way to secure our future. Jay and I are really
excited about our financial future..Thank you Bach!!! Thank you Prosper for
helping us PROSPER!!!
We are currently looking at 2 properties in
Alabama. one for 46k - hud owned and another for 50k - just came down from
69k.
Jay and Renu
Morganville , NJ
My Story
Words can't not explain how much my life has changed since joining Prosper! I always wanted to be in Real Estate but did not know how to get started. Then I finally decided I was going to do this and the Prosper coaching team helped me along the way. Prosper's Real Estate coaches' knowledge of the industry is impeccable. They were there with me every step of the way.
I have bought two bank-owned homes since joining the program. I fixed them up and both are rented with $1500 cashflow a month! Currently, I am working on a couple more deals and if they go through, I could have an extra $5,000 of cashflow each month, just from doing real estate!
The way I view myself has changed. I feel much more confident and progressive and it's because of the time I spent with my coach. His encouragement and positive attitude has gotten me to this point today. Thank you very much!!
Shoaib K.
Canton, MI
It really works!
Prior to working with Prosper, my exposure to and knowledge of real estate investing was limited and jumbled. I had lots of bits and pieces of information, but I felt as if I was trying to reinvent the wheel and constantly running into pitfalls. Janeen was able to bring the big picture into focus. She then walked me safely through the various aspects and strategies so that my knowledge became useful to me.
Based on my coaching sessions, I was able to go completely through the property assessment process, evaluate available exit strategies, and successfully obtain a property at a tax deed auction in Texas. I acquired the home in November for just over $25,000. Yes, it needed extensive work - but I had my budget, and even with the depressed market, I was able to put in $8,000 of repairs/improvements and successfully close escrow on a $46,000 sale within six months!
In my case, my coaching sessions were interrupted by unforeseen circumstances. I was able to complete my last four coaching sessions with Janeen just recently and she helped me evaluate what could have been done better in my first deal and further refine my goals and available strategies.
The coaching process is really what took real estate investing from a "maybe" to a "definite" business venture for me. The fear is gone - I have the tools, I have the reference materials, I have the documents, I have the resources - and most of all, I have a successful transaction completed!
Julie S.
Sparks, NV
Eliminated Around $80,000!
We have eliminated around 80k, including two timeshares and one vehicle. We have purchased one rental house in Las Vegas and one more timeshare. So debt-wise, we have our home mortgage, one timeshare, and our rental property. We are currently shopping for a financial advisor and planning on moving this year into a home we are building.
The rental in Vegas went really well, and we're also considering a rental in Phoenix but will wait until after we move.
Haven't taken the plunge into stock market and options but will do so this summer.
Thanks for all your help! I look forward to retiring by 51!
Jennifer M.
Elko, NV