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$72,000 Profit on First Deal

by Bob (Bob in Atlanta)   

This might be helpful for someone starting out...

I began learning about real estate investing January 2000. By August or September, I felt comfortable enough to take the plunge. During that time I got a partner, saved money, and secured financing. A note on our financing - it is at 12%, no points, simple interest, no payments until we sell the house. We can get a check with one day's notice, and is secured by a Deed to Secure Debt.

We bought the house in October for $245,000. It took 6 weeks to rehab, and we put it up for sale. We had an ad in the Atlanta paper and listed it with Homebytes. Homebytes lists in the FMLS and MLS for $495 plus .12% at closing.

It was really slow and discouraging until January, when we started showing the house. In early February, the house went under contract. We closed on Friday with a selling price of $392,000. Our profit was $72,122.32.

The biggest thing we learned was to properly budget for expenses. We didn't expect utilities ($1,532), Termite Company ($1,100), and several other expenses. We came out fine, but not all deals will have this much profit. Be very careful and conservative when budgeting.

I have learned so much from this site already, but I still have a long way to go. Thank you to the experienced Real Estate Forum posters... I read everything so keep it coming. We close tomorrow on the next house. This one needs no work but has a lot less profit. Oh well, I need a break anyway. Thanks again.

 
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