Hello again, Jeanne. This is Lynda Hamid from Texas who wrote a Success Story in 2012. [A Real Estate Success Story? You Decide…] Well, I am writing now to tell everyone that my real estate success continues to this day, as I put my “exit strategy” into motion.
In September 2013, I retired from a government civil service secretary job after 25 years.
There’s more than one way to build your nest egg.
My pension was so small that if I didn’t have a real estate business on the side, I wouldn’t be able live a decent retirement. So I started my exit strategy to fund my retirement. I have now sold 3 of my 6 “buy and hold” properties.Here’s What Happened…
The first sale (2013) was a property bought for $48K from another landlord who was facing a balloon payment and had to sell fast. I sold the property for $78K and after paying off the remainder of the mortgage and closing costs I netted almost $40K.
I used that money to pay off all debts (except mortgages), and establish an Ameritrade account, so I had another location to place my profits. At that point I was “bad” debt- free, and had a portfolio of dividend paying stocks.
The 2nd sale was my “yuppie” property. I bought it for $65K from tired landlords. I lease-optioned it out three times to home-buyer-wannabees for a total of $8K in option fees, but ended up getting the place back all three times when the tenants could not get any bank loan.
I sold it (2014) for $92K. That sale money was total profit because earlier I had transferred the remaining loan amount to another property, so the sale property was free and clear.
A Condo in the Caribbean
Money from that sale was put toward not one–but two condos a block from the beach in the Caribbean. First floor, side-by-side mirror image, one for investment and one for vacationing in–and boy do I enjoy it!
The 3rd sale (2015) was a zero lot line garden home my daughter lived in, so it had never generated any income. My daughter moved out to town and “left it to me,” so I sold it for $72K, paid off the remaining mortgage and had $35K left in my hand.
I took that $35K and paid off the loan on the other house, so now I have another property free and clear and will be able to keep all profits from that sale when it happens.
Where Am I Today?
I still have three properties. One free and clear that my other daughter lives in and pays the insurance, maintenance, and taxes, so I have no costs; two other properties where tenants continue to pay the mortgage and fund my bank acct.
I have two super condos just off the beach in the Caribbean, a stock account paying dividends, and money in the bank. I never had more than six units. I never made big profits from them.
But over time (the past 15+ years), I made small steps to set myself up for future success. Within the next four years, the remaining mortgages will be paid off and and those two homes I will sell for future profits.
Time and discipline was all I had. When I started in 2001, I didn’t think I’d be sitting pretty 16 years later. If I could do it (a low-level secretary with small kids), anyone can do it. All you need is time and discipline. Best wishes to everyone, Lynda.
