Real Estate Magic: $3,277 Invested, $99,929 Earned in 5 Years!
Hey gang, this is Mike with My Real Estate Dojo. Today, I want to share an incredible real estate success story: how I turned a $3,277 investment into nearly $100,000 in just five years. This is a testament to the power of real estate investing, particularly through owner finance, subject to investing (subto), and other creative financing strategies.
The Journey Begins: Subject-To Investing
It all started with a subject-to deal. For those unfamiliar, subject-to investing involves taking over the seller's existing mortgage. Essentially, I stepped into the seller's shoes and began making their monthly payments.
Here’s how the numbers broke down:
- Seller Payment: $250
- Seller's Back Payments: $2,000
- HOA Closing Costs: $250
- Title Company Closing Costs: $773
- Total Investment: $3,273
With this initial investment, I acquired the property and started managing it as a rental.
Turning Passive Income into Major Gains
For the past five years, this property has generated approximately $400 per month in rental income. Over five years, that adds up to around $22,000.
Here’s the calculation:
- Monthly Rental Income: $400
- Total Rental Income Over 5 Years: $400 x 60 months = $24,000
This consistent cash flow significantly boosted my overall earnings from the property.
The Big Payoff: Selling the Property
Now, I’m heading to the title company to close on the sale of this property. Here’s how the final numbers look:
- Gross Sale Proceeds: $77,492
- Closing Costs: Approximately $10,000
- Net Proceeds: $67,492
Summing It All Up: The Real Estate Success Story
When you add the $24,000 in rental income to the $67,492 in net proceeds, my total earnings come to about $99,929.
Here’s a quick summary:
- Initial Investment: $3,273
- Total Rental Income: $24,000
- Net Proceeds from Sale: $67,492
- Total Earnings: $24,000 + $67,492 = $99,929
Why This Works: The Power of Creative Financing
This success story highlights the effectiveness of creative financing strategies such as owner finance, subject-to investing, and wraparound mortgages. By focusing on motivated sellers and leveraging existing mortgages, you can acquire properties with minimal upfront costs and generate significant returns.
Key Takeaways for Aspiring Real Estate Investors
- Focus on Motivated Sellers: Target homeowners who need to sell quickly due to financial or emotional reasons.
- Leverage Creative Financing: Use strategies like subject-to investing and owner financing to acquire properties without traditional bank loans.
- Patience Pays Off: Real estate investing requires patience and persistence. Plant the seed, nurture it, and wait for it to harvest.
Final Thoughts
As a refugee to America with no initial connections or resources, I’ve proven that with passion, hunger, and hard work, anyone can achieve success in real estate investing. If I can turn a $3,273 investment into $99,929, so can you.
Stay tuned for more detailed videos and explanations on how I executed this deal. Follow me to learn more about real estate investing, and remember, don’t take no for an answer.
This is Mike with My Real Estate Dojo. Have a great day, gang, and keep hustling!
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Disclaimer: This video is for educational purposes only. Individual results may vary. Always conduct your own research and consult with a professional before making any investment decisions.
