Before I enrolled in the Armando Flip and Grow Rich Training Program, I was working with properties, but I was never involved with the deal making—had very little experience with that side of things. However, last year I made the decision to move forward and really push myself—I made that commitment! I read all the books, listened to the CD’s and jump started my program. The training program has kept me on pace and exposed me to more strategies. I looked forward to the weekly classes to get motivated and my questions answered.
I paid $85K for an REO property. The property had serious title issues and having my attorney working for me helped immensely. Having my team in place was critical! I ended up putting $65K in full rehab costs for a total cost of $150K. It sold for $236, and my profit was $70K.
I closed on another property in February 2009 for $130K, and rehabbed it for $22K. This property was pre-sold as a lease/option for $210. So, in 18 months, I will have a locked in profit of $55K when my tenant/buyer exercises his option. I have established a unique niche—customization! Right at the point of plastering, I drive traffic through my property, get people interested and offer customization. It creates a call to action, with some urgency—“call now to pick your colors”!.
I try to stay away from hard money; however I have worked with partners. I work mostly with traditional lenders and have learned to build a rapport and negotiate fair prices with the banks. I have a contractor’s license, which has helped build a good relationship with bankers, as they feel confident with my credentials.
I just finished another rehab property with a partner I met at my local REI club. My partner actually purchased the property for $110, and then decided that he didn’t want to work on it himself, so I took it over, with a contract in place to split the revenues 75% - 25% (myself receiving the bigger percentage). We put $70K into it for a total cost of $180, and it’s currently on the market for $269K. Other people are starting to call me now with their situations wanting to partner.
I bought a different property for $185K with another partner at the end of 2009 on the West Port River, but structured it 70% - 30%. We have put $50K into it, and we expect to sell it for $375K to $425K. There is room for really good profit on this deal. We are meeting with a real estate agent next week to find more properties. So far, things are going really well. I am putting together a comprehensive business plan with the banks in my area for 2010. My goal is to complete six properties this year. I also want to diversify with several rental properties for some consistent cash flow. I’ll be 100% vested in the real estate business by the end of 2010, and plan to pass along my current flooring business to family members.
One of the biggest things directly connected to my success was signing up for the coaching program. Once I made the investment, it pushed me forward to start putting the principles into practice. I needed to take that calculated risk and get involved. I received the best advice during my orientation session—join your local REI club. What a great resource! The clubs offer education and networking opportunities to find partners and build your power team. I would highly recommend the Armando Coaching program to others. The program made a real difference in my life. The Resourceline was invaluable with getting all my questions answered! Thanks to the coaching staff and Armando Montelongo, I am well on my way to become financially independent!
SHORT VERSION:
Before enrolling in the Armando Montelongo Flip and Grow Rich Program, I was working with properties, but had not figured out how to put all the pieces together. Through the weekly classes and the Resourceline, I purchased an REO property using traditional financing for $85K, put $65K into it for a full rehab bringing the total cost to $150K. Sold it for $236K—making a profit of over $70K on my first deal!
With my second property, I found the buyer first, and then found a property to fit his needs. I set it up as a lease/option transaction. I purchased the property for $130K. I spent $22K for fix-up and repairs, and I have a locked in contract to sell it in 18 months for $210K, which will bring in a total profit of $55K!
I just finished another rehab property with a partner I met at my local REI club. My partner actually purchased the property for $110, and then decided that he didn’t want to work on it himself, so I took it over, with a contract in place to split the revenues 75% - 25% (myself receiving the bigger percentage). We put $70K into it for a total cost of $180, and it’s currently on the market for $269K. Other people are starting to call me now with their situations wanting to partner.
I bought a different property for $185K with another partner at the end of 2009 on the West Port River, but structured it 70% - 30%. We have put $50K into it, and we expect to sell it for $375K to $425K. There is room for really good profit on this deal. We are meeting with a real estate agent next week to find more properties. So far, things are going really well. I am putting together a comprehensive business plan with the banks in my area for 2010. My goal is to complete six properties this year. I also want to diversify with several rental properties for some consistent cash flow. I’ll be 100% vested in the real estate business by the end of 2010, and plan to pass along my current flooring business to family members.
-Michael in MA
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