The "How", Thank you Liz Nowlan.
Updated: Aug 15, 2020
There are those magic moments when an idea becomes so powerful in your mind that the slightest nudge forward and you feel yourself lean into a new and wondrous direction.
In April of 2018, I received a call from Liz Nowlan of Mid-South Homebuyers. Liz was a recent guest on Keith Weinhold's real estate podcast Get Rich Education. A neighbor and friend of mine recently referred the podcast as we had both set out to learn more about real estate investing.
Within a few minutes of talking to Liz, I realized she was a real good human being with a positive attitude and an authentic approach to helping her clients easily invest. Her company bought homes in Memphis, TN, improved them, leased them out, then sold them to investors.
She next had me log into her website and select a home she had for sale. The home was $80,000 and required a $16,000 down payment. She showed all the expenses including mortgage, tax, insurance, management fee, reserve for repairs. All other expenses the tenant paid such as gas, electric, water and trash. After all expenses there was $195 / month left over in the row marked profit, which was over a 14% return. I asked how common these were and she had sold over 100 that year already. She also guaranteed the first years profit by saying if the tenant was evicted or some other issue, her company would still pay the profit.
I remember feeling as if I had learned a secret and my curiosity, joy, connection and adventure values were all kicking in. Later that year we closed on 46 units each for about $50,000 each with $15,000 down, making $180/mth. Today we have a fairly refined method for evaluating new real estate investments which is not all too different than Liz showed us 3 years ago.