All's well that ends well
Today was monumental for my new company. Originally I had gotten into real estate part time, using the basic formula of 25% down, 75% mortgage, and then you fund the repairs out of your pocket. Its hard to screw up using this formula unless you over pay for the property. After buying a couple of houses, my limited credit ran out and in order to keep going, I needed to find an investor.
So after finding one, I used investor money on a project which is basically 100% borrowed money at a low interest rate. We bought a house which was in dire need of a bulldozer. But I accepted a low salary to work on it, because I wanted to do this project for two reasons:
1.) To learn everything I could about construction/renovations (the house needed everything)
2.) If I could make that house work, I could make ANY house work.
Well today was a huge affirmation of all my goals, the house was completed last Sunday and rented today (Friday) so only 5 days on the market and I rented it. Then to top things off, I have a duplex which I just barely started on the second unit, and the one tenant wants to upgrade to the new side (a 45 dollar per month increase) and then I already have the other side rented (25 more than the first tenant was paying), because people are hearing Joel Huenink Rentals are awesome!
Then to top things off, I rented some space in my building, so all in all I'm getting a +$600 dollar per month increase after all expenses!
Considering I was riding on the edge of zero cash flow after eating with my frugal salary, the increase will be very welcome. And hopefully there will be more before the year is over yet.
The main thing I'm happy about though, was that I was able to take a property that was a total disaster, and make it have good positive cash flow, with zero down, and I learned a great deal more about renovations. Now I can do pretty much anything, and that is good because I do not like a business where there are weaknesses where you are at the mercy of a service man if something goes wrong.
Another thing I am proud of is that even though I'm still learning the business, I've been able to create a full time job for myself, another guy, in a TOUGH economy, and still build passive income on top of it.
Here is a before and after video of the project:
Before
After
So after finding one, I used investor money on a project which is basically 100% borrowed money at a low interest rate. We bought a house which was in dire need of a bulldozer. But I accepted a low salary to work on it, because I wanted to do this project for two reasons:
1.) To learn everything I could about construction/renovations (the house needed everything)
2.) If I could make that house work, I could make ANY house work.
Well today was a huge affirmation of all my goals, the house was completed last Sunday and rented today (Friday) so only 5 days on the market and I rented it. Then to top things off, I have a duplex which I just barely started on the second unit, and the one tenant wants to upgrade to the new side (a 45 dollar per month increase) and then I already have the other side rented (25 more than the first tenant was paying), because people are hearing Joel Huenink Rentals are awesome!
Then to top things off, I rented some space in my building, so all in all I'm getting a +$600 dollar per month increase after all expenses!
Considering I was riding on the edge of zero cash flow after eating with my frugal salary, the increase will be very welcome. And hopefully there will be more before the year is over yet.
The main thing I'm happy about though, was that I was able to take a property that was a total disaster, and make it have good positive cash flow, with zero down, and I learned a great deal more about renovations. Now I can do pretty much anything, and that is good because I do not like a business where there are weaknesses where you are at the mercy of a service man if something goes wrong.
Another thing I am proud of is that even though I'm still learning the business, I've been able to create a full time job for myself, another guy, in a TOUGH economy, and still build passive income on top of it.
Here is a before and after video of the project:
Before
After
posted by Joel Huenink at
12:25 AM
0 Comments
