Successful stories from my graduates really make my day. Hearing how ordinary people got interested in foreclosure investing, found me and got their first deal – inspires me to help others do the same. I do not share these stories enough and plan to share more client success stories with you regularly.
Let’s take a look at Dave Gregory from North Carolina. He started out with me like most of my clients, joining a live webinar, completing my mastering foreclosures program, followed up quickly with hands on help. Dave wasn’t afraid to make mistakes and dove in with both feet from the start. Check out his journey from unemployed sales man to successful investor…
Unemployed Sales to Real Estate Investor
Before I discovered real estate investing, I was a full time salesman and part owner of a copier sales company. I had sold my interests in the business, was unemployed, and struggling with my real estate investments. I had invested in a few rental homes, but they were generating break even cash flow. I knew I could do better, especially after hearing Alexis and I didn’t want to find another job. So it became my goal to begin investing “the Alexis way” as my new path for income and wealth creation.
Here are the Details of My First Foreclosure Flip…
I found my first foreclosure deal in the south part of Charlotte, North Carolina. I found an owner in distress (pre-foreclosure lead on foreclosures.com) that had equity in her home, and was not listed on the market for sale. I followed Alexis’ steps by building trust and confidence with the owner, so she would want to work with me when the time came for her to sell. After many follow-ups that day came. I crunched the numbers and found a way to give the owner just under $20,000 for her fresh start, and stop her foreclosure. It was the true definition of a win-win deal.
I bought the house for below market value, rehabbed and updated it a bi (nothing outrageous). From start to finish it took us 90 days to complete the flip, and I made 14% profit on my resale. I knew I had a formula that worked and I wanted to replicate this over and over again.
I did it again on my second flip, with this one being mostly cosmetic fix up (only $10,000). Again, I was able to sell it within 90 days, this time for 18% profit on resale. I was getting better at my buying!
How is Dave’s Foreclosure Investing Business Going Now?
I’ve moved from flipping foreclosures to holding for positive cash flow. After my seventh single family deal I decided it was time for me to take it to the next level. So through an introduction from Alexis to her colleague Michal Ballard, I bought my first multi-family complex with huge, growing cash flow. This project was in the middle of foreclosure, highly distressed with high vacancy. I am rehabbing it and increasing the occupancy from 60% to 95%. Paying only $5,000 a door, this project is a home run!
Dave’s Words of Wisdom
My first piece of advice for new investors is to just do it! It’s so important that you educate yourself if you want to be successful at this. You will never get your first deal if you just sit on the sidelines and watch other investors, like me, do the deals. You will make mistakes, and be nervous on your first deal, but you must get past the “analysis paralysis.” I know, as I had it bad when I first got started. But I found the risk of doing nothing, and missing this hot real estate market, was far greater than the risk of losing money – especially if you are buying the “Alexis Way” (30% off market value less repairs). You will make money flipping or holding if you stick to her proven methods. You just need to do it!
My next piece of advice is to network, network, network. You have to tell people you’re doing real estate, even if you haven’t done your first deal yet.. Tell people what you’re looking for and what type of real estate deals you want. I have many of my deals from referrals from friends, neighbors and agents that I talk to on a regular basis. And some of these deals didn’t happen until years later. You never know how great this works if you don’t put yourself out there.
In fact, that multi-family deal I just did came from a relationship I made six years ago! So get on the phone and know it might not immediately pay off, but it absolutely will later. So get educated by the best, tell everyone you’re in the real estate investing business and then do it!
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Thank you Dave for sharing your journey from unemployed salesman to successful real estate investor. You have inspired other investors who maybe a bit nervous about getting started or making mistakes – they now know that it is completely normal. All new foreclosure investors have fears and trepidations in starting something new. The key is to understand the process, and the right way to go about this business, so you can strike win-win deals that really make you feel good about what you do.
For those of you ready to take your first step as a profitable foreclosure investor, as Dave and many other successful clients before him, please join me this Wednesday, April 24th, 6pm Pacific for my Live Webinar “Investors, Make Fast Profits Now“. You can register for free on the right or Click Here for more details. Talk to you then!
Read More about Foreclosure Investors:
- Foreclosure Investor Success Spotlight Series — Randy Mackintosh
- Foreclosure Investors: Close the Hidden Deals Now
- Foreclosure Investors: Biggest Price Increase Since 2006
