| | Meet Trisha Allen
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 itís 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 itís available, I also will sometimes use cash to finance purchases. Hereís a tip: Generally local banks will be cheaper than mortgage brokers with loan fees.
How did you go about finding properties?
Iíve 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. Iíve also found properties (and a great real estate agent) in the MLS. Iíve also found properties by simply building relationships, as with one seller who just sold us two housesĖhe now has another one heíd like me to consider.
What is your average purchase price?
Good question. Jeez. Itís been everything so far from $10K to $85K. And, soon, my partner and I are going to be buying a $1M+ property. Iím 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 donít usually consider a deal if we wonít get at least $15K. But, one of the houses weíre 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 Iíd hoped. But, I was more inexperienced when I bought it. It cash-flowed $100 a month for two years. But, weíve had to evict the most recent tenant. Iím 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 wouldnít consider it a failure. Itís 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 ďtraining my brainĒ. Iíve read almost all of the Rich Dad books, the Robert G Allen books, and any Donald Trump releases. Heck, Iíve read almost everything in the Investing sections at Barnes & Noble AND Borders. Hereís a good one for intermediate-level investors: ďNo B.S. Time Management for Entrepreneurs: The Ultimate, No Holds Barred, Kick Butt, Take No Prisoners Guide to Time Productivity & SanityĒ by Dan Kennedy. Itís hilariousĖbut, it will add some zing to your business skills, too. Unfortunately, reading is also time-consuming, so I squeeze it in when I canĖlike while on the elliptical machineÖor, at work (you probably think Iím kidding). Iím also a daily reader of other investorsí blogs, like Shaunís Blog,Brianís Blog, and Steveís Blog in particular.