This is my very first real estate investment property. 4 months ago I sent a $100,000 bank wire transfer to Kristin and Eric as my portion of our very first real estate investing deal together for a home renovation to flip a house. In about a week she’s supposed to be sending me $120,000 back when the home renovation is complete. It’s been 4 months since I sent my money and I haven’t talked to her about our first real estate investment property since, and I’ve never even met or spoke to Eric, and now… it’s time for an update.
This is an update video on my very first real estate investing deal and investment property. Here’s what the $72,000 house looks like we purchased together before the home renovation began. The plan was for her, as a real estate agent, to buy this home quickly at the below market price, and put Eric, her trusted contractor in charge of allocating my $100,000 to renovate the house over then next 3-4 months, then relist and sell this fixer upper for a sizeable profit, then pay me a fixed $20,000 hard money lending fee for getting her the cash quickly in order to secure the real estate investing project before someone else could swoop in buy it before she could get approved for a loan and go through the closing process in a traditional manner.
I thought kristin was simply calling to give me an update on our real estate investment property and how things are going, but it turns out this story has a plot twist in our real estate investing which you’ll learn more about in a moment.
Kristin an eric have been flipping houses and working in real estate for years. Eric says he has 20 years of experience as a contractor remodeling homes and many of his workers have stayed with him for 10 years or more. Kristin has been selling real estate and doing home renovation for many years as well. They currently have 16 real estate investing homes in the area they are working on with various real estate investors such as myself and others.
If you want to try real estate investing you may find inspiration from my first fixer upper home we are renovating as a team. My role in these investment homes is to provide quick cash to help them fund the purchase and repairs needed to flip the home for a profit.
Before I forget to mention it, don’t forget to click subscribe to see future updates on these real estate investments, and if you have any questions or comments leave them below and I’ll get back to you.
This is where things are with my current real estate investments. My initial investment was a straight forward $20,000 hard money lending deal where basically I just send the money and they invest it as they see fit. The project is running a little bit behind, our contract says it should have already been repaid by now, but it’s taking a little bit longer than expected. They ran into some issues with the insulation where they had to remove insulation they already installed and then use spray foam due to a new particular rule, but they had never done spray foam before and ran into an issue where the spray foam kept expanding and had to redo it all which took more time and money than planned. Don’t quote me on any of that about the insulation, I just know there were some technical issues with it and I may provide a text update in the description box if I misexplained this point or get further clarity
It is a bit nerve racking having so much money invested into this home and it being my first investment and it’s running behind schedule, but I have full confidence in my partners Kristin and Eric to get the job done beautifully and seeing my money back soon enough.
Kristin is going to send me a full break down of how much every thing cost to do on this home renovation and the house fixer upper project should be completed soon. When it’s done I will post another video showing the completed home renovation and how much everything individually cost to do and how much the home sells for along with other fees.
And I have a lot more content coming on our second real estate investment property. This investment home is the creepiest place I’ve ever been in, the inside looks like something out of a horror film. We teamed up on this second property with a different structure where instead of me lending money and getting a set amount in return, we are all equal partners on the project and when the home sells we will split the profits up equally. So there is not set amount of time and there is not guaranteed amount of money for anyone.
It’s all a bit nerve racking and I’m completely new to these sort of real estate investment property deals, but I have confidence in my partners and there ability to keep on doing what they have been doing for quite a while now.