David Hejl - Vandalia, IL
After attending a Quick Start Real Estate course in Little Rock, AR, I completed my first “pretty house” deal within 3 weeks with a net initial profit of $13,250. The final estimated profit is $21,419.
This was a lead sourced by Eagle VA who generated the property information sheet and then was called by the mentors at the event in Arkansas, who set up an appointment for me when I returned home.
- Purchase price: $179,000 (actual $178,836) | Selling price: $199,000
- Down payment to seller: $5,000 | Buyer’s down payment: $20,000
- Monthly payment: $1,550 PITI | Monthly rent: $1,600 ($250 total+1st month’s rent $1190)
- Term to seller: 9 months / buyer’s term: 5 months | Contract costs: $1,750
- 5-month principal pay down $1565 total ($312/mo) | Term end profit = $8,169
Actual PP is mortgage balance $173,836 + $5,000. Initial profit = ($20,000 down - $5,000 down) - $1,000 closing facilitation fee at title company - $750 attorney fee for document review = $13,250.
During the term, I am paying down debt to mortgage co. directly; Tenant/Buyer is only paying rent. End of term profit = $179,000-(173836-1565)+(1190+250)=$8,169.
TOTAL: $199,000-178836 -1750 cc+1565 ppd+1440 cf=21,419
I started in real estate under the tutelage of my father, who has had rental properties in Texas for 40 years, after settling down in a small town near St. Louis. My father and I bought 15 rental properties mostly through a seller financing and some traditionally through a bank in my hometown.
We are now expanding only using the techniques taught through Ron LeGrand. THANK YOU!!
David Hejl in Vandalia, Illinois