How to Succeed in Real Estate Investing: Ashley Kehr's Story

TL;DR

Ashley Kehr shares her experience in real estate investing, highlighting a successful deal involving a duplex purchased for $35,000. Through strategic financing, including an unsecured loan and refinancing, she and her partner were able to secure the property with no money down and achieve positive cash flow. Her story exemplifies the potential of real estate investment in rural areas.

Transcript

you found it you know an underpriced property you stabilized it that's sort of the renovation component as you stabilize it you got the rents then you refined it even pulled a little bit of money out now it cash flows like a champ you throw in there the 50 50 partnership on top of it talk about a great deal really good first deal welcome to the big... Read More

Key Insights

• Ashley Kehr successfully purchased a duplex for $35,000, which later appraised for $55,000, creating $20,000 in equity.
• Strategic financing was key, using an unsecured loan initially and later refinancing to cover costs and generate cash flow.
• The property generates $420 in monthly cash flow despite high property taxes and flood insurance costs.
• Partnerships in real estate can be effective; Ashley worked 50/50 with a partner, sharing responsibilities and profits.
• Local banks can offer flexible financing options, such as unsecured loans, which can be crucial for investors.
• Managing properties can be challenging; Ashley transitioned to using a property management company for efficiency.
• Investing in rural areas can offer opportunities for lower purchase prices and good cash flow despite potential higher taxes.
• Ashley has diversified her investments by forming separate LLCs for each partnership, enhancing organizational clarity.

Questions & Answers

Q: How did Ashley Kehr finance her real estate deal?

Ashley Kehr financed her real estate deal by initially securing a 90-day unsecured loan from a local bank, which allowed her to purchase the property without any money out of pocket. After purchasing the duplex, she refinanced it for $42,000, which covered all closing costs and additional expenses, effectively allowing her to profit from the refinancing process.

Q: What is a key strategy used by Ashley Kehr in her real estate investments?

A key strategy used by Ashley Kehr in her real estate investments is partnering with other investors to share responsibilities and profits. She forms separate LLCs for each partnership, which helps in managing investments more effectively and ensures clear division of ownership and responsibilities.

Q: Why is investing in rural areas beneficial according to Ashley Kehr?

Investing in rural areas is beneficial according to Ashley Kehr because it allows investors to purchase properties at lower prices, which can lead to significant cash flow despite higher property taxes. Rural investments can offer opportunities for purchasing undervalued properties that can be strategically financed and managed for profit.

Q: What challenges did Ashley Kehr face in managing her properties?

Ashley Kehr faced challenges in managing her properties due to the time and effort required for effective property management. This led her to transition to using a property management company, which offered professional services and systems that improved efficiency and allowed her to focus on other aspects of her real estate business.

Q: How does Ashley Kehr handle high property taxes in her investments?

Ashley Kehr handles high property taxes by ensuring that her properties generate sufficient cash flow to cover these expenses. She strategically finances her investments to minimize out-of-pocket costs and maximize returns, allowing her to manage high taxes while still achieving positive cash flow from her properties.

Q: What role do local banks play in Ashley Kehr's investment strategy?

Local banks play a crucial role in Ashley Kehr's investment strategy by providing flexible financing options, such as unsecured loans and refinancing opportunities. These banks, often with fewer branches, can offer personalized services and are willing to work with investors to structure deals that maximize investment potential.

Q: How did Ashley Kehr's partnership impact her real estate deal?

Ashley Kehr's partnership impacted her real estate deal by allowing her to share responsibilities and financial obligations with her partner. This collaboration enabled them to leverage their resources and expertise, leading to a successful investment outcome. The partnership also facilitated strategic decision-making, such as securing financing and managing the property.

Q: What is the significance of refinancing in Ashley Kehr's investment approach?

Refinancing is significant in Ashley Kehr's investment approach as it allows her to extract equity from properties, cover expenses, and improve cash flow without using personal funds. By refinancing her investments, she can reinvest in additional properties, enhance her portfolio, and achieve long-term financial growth in her real estate business.

Summary & Key Takeaways

• Ashley Kehr describes a successful real estate investment involving a duplex purchased for $35,000 that appraised for $55,000, creating $20,000 in equity. She and her partner used strategic financing, including an unsecured loan and refinancing, to secure the property with no money down and achieve positive cash flow.

• The deal highlights the benefits of investing in rural areas, where lower purchase prices can lead to significant cash flow, even with high property taxes. Ashley emphasizes the importance of partnerships and strategic financing, using local banks and unsecured loans to maximize investment potential.

• Ashley transitioned to using a property management company to handle her properties, illustrating the challenges of self-management. Her approach to forming separate LLCs for each partnership demonstrates a strategic way to organize investments and manage risks effectively.