Episode 11: This Guy Did His First Deal with his 401k


Episode 11: This Guy Did His First Deal with his 401k


1011 Blair Street / Ramon Gary

Today we'll talk to a new real estate investor, Ramon Gary, who's already doing deals, from Tupelo, Mississippi. He's been a physical therapy assistant for 12 years, married, with 3 kids. For the last 3-4 years, he's been part of a financial learning community, learning about improving your wealth, networking, and finances. Ramon realized that if he continued with the same habits, he'd have the same results.

[02:50] Until you have a solid financial foundation, sometimes you can't even think about investing in real estate. Ramon's email is [email protected]

[04:00] Ramon listened to podcasts and read some books. One podcast said, “Don't wait to start telling people that you are a real estate investor.” After researching 5-10 properties, he found a property and began negotiating with the owner. The ideal property he was looking for was a 3-bedroom 2-bath setup, standard in that area, and easy to rent. Ramon's property in particular had a garage, which is a good selling point.

[06:30] Ramon contacted the owner, asked if she would be interested in selling, the owner showed him the needed repairs, Ramon made an offer, she countered, and he accepted. 3-4 days elapsed to close the deal.

[07:50] The house was vacation for 3-4 years and needed plumbing work, new floors, carpets, countertops, ceiling repair, new hot water heater, painting and other cosmetic touches. He hired some contractors, but did the painting and cleaning himself.

[10:00] A big hurdle to cross: financing. He examined his own finances, his 401k and 403b. He used that retirement money for the down payment and repairs on his rental property. Ramon was surprised how he was able to get the money in 3-4 days after showing the documents and filling in the paperwork.

[14:15] Purchase price of the house: $45,000, with a 20% down payment. Renovations cost $15,000. The house around the corner sold for $90,000. John estimates the house value is now about $110,000, in 8 weeks.

[16:55] The house is now renting for $975 per month. It took 1 month to find a tenant. His only marketing was placing sign in the yard and people began calling.

[19:20] What person in your life influenced you to get into real estate? Robert Kiyosaki's “Rich Dad, Poor Dad.”

[20:15] Ramon's secret to making this venture work with his family: communication, keeping his wife up to date with the plans to get 100% buy-in.

Email John at [email protected]

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