$27,000 on First Deal! (Part II)

Since I wrote about the $27,000 profit on my first deal, my opportunities have been growing. I've kept the 3 properties that I had purchased while I anxiously awaited the sale of that first deal. And in ONLY 2 months, since that sale, I've closed on the additional 4 properties that I mentioned were under contract, got another under contract, and BEST of all…got approved for a credit line! It may sound simple, but it really hasn't been. It may sound lucky, but it really wasn't. It may sound unbelievable, and to me it even feels that way, but it's real! Since the posting of the story on my first deal, I've been touched by the emails sent to me by so many newbies, just starting out; many more experienced newbies, sort of like myself; as well as several investors who have been there and done that. They've all congratulated me on my success and have asked me some sort of advice, to which I humbly responded, reminding them that I truly consider myself quite new at this. So, in this, my Part II, I thought I'd share more specific advice: 1. Having and keeping good credit has really helped. I've had other obstacles, like debt to income ratios, but I've kept my job, and lenders really "take that to the bank." Believe me, I've gotten more loans and now a line, by proving my steady income, than by anything else. I'm quite tempted to retire from my job, especially when I read the line in my credit line commitment that said "YOU MAY USE YOUR CREDIT LINE FOR ANY PURPOSE, NO QUESTIONS ASKED." But I won't until my cash flows are MORE than I need. (I also keep in mind repairs, vacancies, etc.) I think it's imperative to stay prepared! 2. Go against the grain! Though I've found that most banks won't grant a line or a loan to a corporation that doesn't have 2 years of tax returns; I still called EVERY local bank. I met with a few. I didn't bring anything with me, but some notes. I mostly spoke about what I've done, what I'm planning to do, what my annual gross rental income is, and how much equity I have in the properties that I own. Finally, one bank approved a line for just under $100,000 (and at Prime + 0!). Now, I know this is only the beginning…with good payment history, and continued growth of my investments, I expect that they'll be offering me a larger line before I have to ask for it. 3. I must reiterate PERSISTENCE! With everything you do! It worked with the banks. It's also worked with direct mail. I sent letters to a community and got 4 properties. I then sent another mailing to the same community and got 1 more, plus a few possibilities (keeping my fingers crossed!). And I'm persistent in my research, still asking a lot of questions, and maintaining and building relationships. This month I've celebrated the 1-year anniversary of the day I incorporated. By Christmas, I'll celebrate the anniversary of my first purchase. I think it's time to make my New Year's Resolutions! Again, I must reiterate that although I'm not very active to posting, I am here quite often. Thanks for this wonderful site and ALL that it offers! Denise FL [Return to Menu]