How long have you been involved in real estate investing?

The first property I ever purchased was a SFH in 2003. I bought it to have as a rental for college students from the school across the street.

What strategies do you use and why?

I look for a low dollar amount per square foot. I also have gotten to know my city very well over the last couple of years. So, generally, I can take one look at an address and tell immediately if it’s a house that will make cents (haha, sense).

What types of financing do you regularly utilize?

I make it a habit to call various local banks every once in a while to see what kind of programs they have for investors, as well as to get a feel for how comfortable they are with investment funding. By this point, I have at least three lenders in my mental rolodex that I could call for financing. But, when it’s available, I also will sometimes use cash to finance purchases. Here’s a tip: Generally local banks will be cheaper than mortgage brokers with loan fees.

How did you go about finding properties?

I’ve found properties lots of ways. There are lenders who will call me when they have one that has been foreclosed. I found one property in the classifieds of the local paper. I’ve also found properties (and a great real estate agent) in the MLS. I’ve also found properties by simply building relationships, as with one seller who just sold us two houses–he now has another one he’d like me to consider.

What is your average purchase price?

Good question. Jeez. It’s been everything so far from $10K to $85K. And, soon, my partner and I are going to be buying a $1M+ property. I’m quitting my day job right after that. So, stay tuned!

What is your average net profit per deal?

On average, we net around $17K per deal. I don’t usually consider a deal if we won’t get at least $15K. But, one of the houses we’re rehabbing right now will most likely yield about $40K.

Describe your first deal and how much you made on it?

The house I bought to rent to college students has not done as well for us as I’d hoped. But, I was more inexperienced when I bought it. It cash-flowed $100 a month for two years. But, we’ve had to evict the most recent tenant. I’m seriously considering doing minor repairs on the house and putting it on the market. I think we might net about $10K when it sells.

Describe your biggest deal (purchase price) and how much you made on it?

My highest purchase price is also the college rental I described above.

What was your worst deal and did you loose any money on it?

My worst deal was also the college rental I described above. But, I wouldn’t consider it a failure. It’s taught me almost everything I know about investing!

Any favorite real estate web sites, books, software, mentors etc.?

Where do I start! I believe very strongly in “training my brain”. I’ve read almost all of the Rich Dad books, the Robert G Allen books, and any Donald Trump releases. Heck, I’ve read almost everything in the Investing sections at Barnes & Noble AND Borders. Here’s a good one for intermediate-level investors: “No B.S. Time Management for Entrepreneurs: The Ultimate, No Holds Barred, Kick Butt, Take No Prisoners Guide to Time Productivity & Sanity” by Dan Kennedy. It’s hilarious–but, it will add some zing to your business skills, too. Unfortunately, reading is also time-consuming, so I squeeze it in when I can–like while on the elliptical machine…or, at work (you probably think I’m kidding). I’m also a daily reader of other investors’ blogs, like Shaun’s Blog,Brian’s Blog, and Steve’s Blog in particular.