After taking the plunge into real estate investing I’m now debt free again!

As I mentioned in my last post, I purchased some land and was tentatively planning to do a small real estate development. However, I had quite a busy schedule over the holidays, so I decided to just list the land and sit on the development idea for a couple of months.

I figured that if I could get a good offer on it, I’d just flip it and then take my profit and invest elsewhere. If I couldn’t sell it, then I’d move forward with the development project.

So… What Happened?

After getting positive responses to my listing and fielding some offers, I accepted an offer that exceeded my list price! In fact, the offer totaled more than double what I paid for my land and I ended up with an after-tax ROI (Return On Investment) of 85%!

Talk about exciting! I was able to get completely out of debt (again) and make a great profit – all for just writing some letters and signing my name a few times.

How Did I Do It?

Ok, so it wasn’t really as easy as that, but it also wasn’t rocket science. Basically, I just followed a few simple steps:

Step 1: Develop A Strategy and A Location

Before you get started, you have to decide what you are planning to do. This isn’t a real estate blog* so I’m not going to go into a ton of detail, but you do need to find your niche. Are you going to wholesale, buy and hold, or buy and flip? Are you looking for land, single family, or multi family units? Are you looking to invest locally or from a distance?

These questions and more will help you hone in on your strategy and help you focus your energy.

(*There are a ton of great real estate investing blogs/websites/forums on the internet. If you are serious about getting into real estate, take some time to look into those. It will be worth your while.)

Step 2: Research

Once you develop your strategy and location, you’ll need to research everything you can in order to educate yourself on the market. I spent a great deal of time on websites such as the one for the local property assessor, the land deed office, Zillow, Bigger Pockets, and other similar informational websites. This just gave me an idea of trends, hot areas in town, how to hone my strategy, etc.

Then I did searches on Google Maps and also personally drove around in the areas that I was interested in. This gives you the best idea of what is happening in the area you are targeting.

Step 3: Identify Properties and Contact Owners

Once you’ve done your research, identify properties that you are interested in and then contact the owner of each property. These properties may not always be for sale. In fact, the best deals are usually ones that aren’t listed.

In my search I identified about 100 properties and reached out to the owners. I received approximately 10 replies of people who were potentially interested in selling.

Step 4: Determine Your Price And Make The Offer

Once you have done all of the previous steps, all that is left is to determine your price and make the offer. The important part here is that you don’t get stuck on one property and end up paying more than you should. Learn to accept “No” and move on. Let the numbers make the decisions for you, and not your emotions.

The first three offers I made I got fairly harsh “NO” responses, and while it felt awkward at first, I just kept on moving down my list. I knew that I trusted my valuations, and eventually found someone who was willing to sell at my offer price.

Step 5: Do Your Thing And Reap The Benefits

Once you’ve made the offer and it is accepted, then do your thing! Wholesale it, Flip it, Rent it, etc. Whatever your strategy is, put it to work.

That’s it! That’s loosely how I landed my first deal. There’s no magic pill – just some strategy, research, and willingness to take the plunge.

My Next Steps

Now that I have sold the land, I’m looking toward continuing to invest in a combination of the stock market and real estate. I already have a few new properties identified and I’ve reached out to each owner.

I may end up using leverage (debt) again if I continue dabbling in real estate, but only if it is necessary and only if my research shows that it makes sense. I HATE debt, and I’d only consider it if I felt that it would help me in a similar way as this last transaction. Fortunately, the success of this past deal has given me a little bit of a nest egg to work with, so I may be able to move forward without debt even if I continue working in real estate.

The Moral Of The Story

I know that I was very fortunate, and few real estate opportunities turn out to be this rewarding – especially within just a couple of months.

However, what I hope you learn from my small bit of success with this venture – as well as with my blog as a whole – is that it is possible! It’s possible to pay off almost 6 figures worth of debt within a couple of years. It’s possible to have success in real estate. It’s possible to save aggressively, spend wisely, and make good financial choices. It’s possible to be frugal and still take fun trips, go to concerts, and eat good foods.

It’s not just possible for me. YOU can do it!

Seriously, I’m just an “Average Joe” who is learning on the fly and doing my best to journey toward financial independence. I have a “normal” job and I do this blog and all of my financial independence work and real estate side hustles on the side.

I hope to encourage you and give you an example of how it can be. If I can do it, I promise you can too, and I’d be happy to help you along the way!

I hope you enjoyed my update! I’d love to hear about your financial journey. Let me know in the comments below!