We can write and write about why you should invest in real estate, and you can read your eyes out. But it’s not the same as reading real success stories from average Joes like you and me. I was reading success stories and decided to share some of the best real estate investments that I read about, to give a proper dose of inspiration and motivation. Read along the stories and enjoy a lesson or two (or more…).
Tarl Yarber, a real estate investor, has one of the best real estate investment stories by far. He was gutsy enough to look into a house that no one else wanted. It was a beautiful home, built in 1908, that no one wanted. Why? Because the house was slanted. The house was in fact sinking between three to five inches in the center! Most investors and potential buyers just assumed that it would cost way too much to fix, so they’d pass on it right then and there.
But we consider Yarber’s investment one of the best real estate investments for a reason. He knew that he should consult his well trusted real estate network community and look into the property before giving up on it. Yarber says, “with the help of my carpenter, we figured out that the solution would set us back about $3,500. DONE!” Only $3,500 to fix this slant issue that everyone was afraid of!
Yarber purchased the house for $150,000. After a fixing and flipping, he sold the house for $280,000 and made a profit of $41,958 (after deducting costs)! To top this off, he also sold the house in only two days after listing it.
“What most saw as a serious problem had a pretty simple solution if you have the right team and people in place,” concluded Yarber. His success story reminds us to keep an open mind on properties we come across. Don’t miss out simply because those before didn’t dare to jump in.
Related Article: 5 Skills Needed For Real Estate Investing
The next best real estate investment story is quite different. Pavel Sakurets, a real estate developer showed how direct mail, a method people usually overlook, can be super effective!
Saukurets sent over 3,000 letters to residents in the area he was interested in, stating the following:
Hello, we are a local builder that just bought a property at 5841 Abbott Ave S, Edina and just wondering if you want to sell yours.
We buy properties, tear them down and build new ones or remodel them and sell. Thus, if you want to save money on real estate commissions and closing cost, we will make it very easy and convenient for you.
In just a few weeks, he received over 100 phone calls about the ad, and closed in on a deal.
His success story reminds us that we need to be creative when looking for properties. We don’t have to only wait for listings and sellers to make an offer. Go out there and be proactive!
Related Article: How to Find Off-Market Real Estate Properties
This story is one of the best real estate investments, purely for its financing creativity. Dawn Anastasi found a listing for a 3-bedroom apartment on the MLS in 2012 for just $23,000 (Antastasi noted this was during a time when houses could be purchased in the $30,000 range).
Anastasi’s realtor told her the tenants were being difficult and won’t allow any person to see the house. Anastasi simply drove to the house, knocked on the door, and asked the tenants if she could see the house because she’s interested in buying it. The tenant was not at all difficult, gave a lovely tour, and showed some things in the house that needed repairs.
After doing some research, Dawn found the seller’s email, and emailed them saying she’d buy the house all cash! After being a little suspicious at first, the seller accepted once Anastasi’s realtor sent the offer.
Quickly after, Dawn requested an $18,000 loan from a Prosper, a peer to peer lending platform, and was able to pay the remaining amount with her savings. In just two and a half weeks, the deal was done! After closing, Dawn took care of the repairs needed.
In the three years I’ve owned the house, I’ve collected $875/month in rent. That’s $31,500 in rent over the course of those 3 years, which is more than what I paid for the house and the repairs together! Best of all, my Prosper loan payments were in essence paid for me by the tenants through their rent.
I learned from Dawn’s story two main lessons: 1) be persistent 2) find creative ways to finance your property. These two lessons exemplify why this is one of the best real estate investments I’ve come across.
Related Article: Financing a Rental Property: What’s the Best Way?
Your investment can be one of the best real estate investments too!
Looking at the stories above, you can see that the bottom line to be successful is to be determined and proactive. Maybe this sounds cliche and even obvious, but these stories exemplify the real meaning of these two words.