How We Saved $50k To Buy A House

This story is personal and close to my heart. I'm sure some have judged and some with continue to do so, but I'm writing it to show people going through a rough patch that sometimes it takes some hard work and commitment to your goals. You can climb out of any situation and come out on top! I promise you! 

I've started this post a thousand times, and have never finished. It's a question we get asked literally ALL THE TIME. I just never know where to start, or end..or how much information is too much. Or if it's even information to anyone. 

The Truth is, I can't tell YOU how to save money to buy a house. Everyone has different situations, and are dealing with different things and issues. I can only share with you guys OUR story,and how things worked out for us. 
I guess I'll just start at the beginning. 

We were teen parents. When you are 16, and living with your parents, you sort of start to think you won't be able to ever achieve certain things. Home ownership is one of them. We literally scraped change together at times to buy diapers for our son. It was hard, I was scared, and there were certain thoughts that just never crossed my mind. Like owning our own home.

Cut to Nick being 19. He's working a ridiculous amount of hours for a company owned by a really close family friend. One day, in casual conversation, he mentions to me he wants to start renting houses. 

"Huh?"

Was my Response. I mean, we could hardly keep food on the table at the time. I was struggling through classes at Community College, He was making decent money at his job, and I was waiting tables. Still very young, and having a whole lot to learn about love and life in general.. 

That year, we received $8,000 back in taxes. 

We live close to Baltimore City, where they are basically giving houses away. That year, at 17 and 19 years old, we bought our first rental property. It required lots of work.. like, a lot. Nick would work 10 hours a day at his job and then work on the flip house until 2am, often times falling asleep there just to wake up and go to his day job. 

Cut to a year later, Nick had quit his old job and had started his own contracting business. We were tired of renting it out and wanted to sell. We made $10,000 profit on our first flip. Continuing with the trend of buying and flipping, we were able to buy and sell six more houses. 

Each time moving to better areas and buying higher quality houses. 

6 years later we bought a 6 unit apartment building that needed lots of work, after renting for a year, we bought and sold that house for a $50,000 profit. 

Do you know what we did with that $50,000? We bought our first house, at 23 and 25 we owned a house, IN COLD HARD CASH. NO MORTGAGES. 

Over the next year, we would work and continue to rent out our only other rental property. Eventually taking a deal with a hard money lender to buy our most recent flip house.

All while still living with my mom for a small amount of rent and working on our current house when we were able. 

Over the next year we would put about $80,000 in the house. When we bought our current house we live in, it needed SO much work. We pretty much couldn't live in it while doing the renovations, We continued to live with my Mom for another year, while working on our fixer upper and getting things live-able. Mostly just working on the evenings and weekends, since Nick was still running his business and, we still had a few rental properties to take care of.

Cut to now, 11 years later. We are completely debt free. We own both of our new vehicles in cash, and have no mortgage on our house. We just bought our first flip house, not located in the city or urban area and are looking to make a $80,000-$120,000 profit. 

Some things to note about our story:

My Mom helped us a lot, like, a whole lot. We lived with her rent free for 6 years which enabled us to bank money to continue buying and flipping rental properties. 

Do you have a family member you could live with or stay with for a small amount of rent? I know it's a long shot, but this can really help you get a jump start on saving for a house.

Nick is good at everything and over the last few years has truly learned every single trade, which means, WE do all the labor and work on our flips. We don't sub it out which in turn gives us the highest profits. 

Is your significant other, or are you, a handyman or a jack of all trades? You will have to learn how to do the basics in order to really benefit from flipping houses and maximizing profits.

We have dealt with a hard money lender on numerous occasions. This is a lot different from a bank loan (which we were never able to get ironically.) but it worked well for us in the end. You will have to have something of value to put up in order to get a hard money loan, and the interest rates are very high. 

Nick and I have been dealing with the same realtor for the past 8 years, when we told him we were in the market for a house for ourselves, he found this major fixer upper that nobody wanted to touch. Here's the thing we've learned as investors these past few years, The foreclosure lists you see? No matter how "exclusive" aren't really accurate. The really GOOD deals go to investors and realtors that have relationships with their clients. This means, the really great deals on houses are typically gone by the time the lists make it to the general public.

My advice? Find a good realtor and build a relationship.

Now, do you see why it's so hard to give specific advice? Everyone is going through different situations, and dealing with different things. We were teen parents, but thankfully had my Mom helping guide us along the way. We are also really lucky, because Nick is a jack of all trades so to speak. If he doesn't know how to do something, he won't stop until he learns. Also, when buying and flipping houses, you have to understand how minimal the space is sometimes for profit, especially when you have to start sub-contracting things out that you don't know how to do. For instance, HVAC in most houses costs $15,000 ALONE. Nick and I are able to literally cut all of those costs in half because we do the work ourselves, this maximizes our profits. 

Moral of the story? Nothing is out of your reach, ever. I hate when I hear people say, "but I can't because of this.." Just STOP. Because if you want something bad enough, YOU CAN GET IT. We have obviously had a lot of help along the way, but the only reason we're anywhere is because of the hard work and dedication to making our dreams a reality! 

So there you have it guys, that's all I have for ya. I hope it's even the slightest bit insightful, if it does nothing more then help you understand why we're so grateful for everything.

Feel free to leave a comment if you have a question or comment and I'll try my best to respond and answer! 
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88 comments

  1. Thank you for sharing. Wonderful story and very encouraging.

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  2. Hard work is always the key. Thank you for sharing this, I know it must be a little nerve racking to talk about some stuff!

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  3. What an awesome story. I can't believe you were able to do all of this at such a young age. And no mortgage to boot? So jealous!

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  4. Love this post. We are just getting ready to buy our next flip which will hopefully be our final home. My husband is a jack of all trades also...it's always nice to have a reminder that all the hours he spends working away from myself and my small children is worth it.

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  5. What an amazing story! Man, I bet you guys feel incredible knowing that you've come all this way and you got yourselves where you are all on your own! And no mortgage? GAAAAH. Awesome! Thank you for sharing your story. It was good learning more about you!

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  6. Inspiring to say the least!Thank you for sharing 😊

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  7. Inspiring to say the least!Thank you for sharing 😊

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  8. Love this post..I so remember those days when we were young. Nick has always been such a hard worker! So happy for the both of you!

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  9. What an awesome story seriously!!!! You guys are amazing and have really made it! An inspiration to all!!

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  10. I haven't been on social media or the blogs I follow lately, but I'm glad I saw this! Thank you for taking a risk with being honest and transparent about your journey! Such an inspiration and what a powerful foundation to stand on to encourage and help people do the same! Keep it up !

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    Replies
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  52. I got my already programmed and blanked ATM card to
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  72. Hello.

    Greetings, i'm Hogg Geoffrey Graham from LA, I am very happy to receive a loan from the European part of the world, they gave me a loan to settle my hospital bills, They saved me from loosing my house. this message might be of help to you guys that also need a loan in other not to go the wrong side in your search you have to contact this company Michael Clinton Loans. Via E_mail: michaelclinton273@gmail.com

    Regards.

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  73. HOW I GOT MY LOAN FROM NEIL HOWARD LOAN COMPANY LTD.

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  74. Hello.

    Greetings, i'm Hogg Geoffrey Graham from LA, I am very happy to receive a loan from the European part of the world, they gave me a loan to settle my hospital bills, They saved me from loosing my house. this message might be of help to you guys that also need a loan in other not to go the wrong side in your search you have to contact this company Michael Clinton Loans. Via E_mail: michaelclinton273@gmail.com

    Regards.

    ReplyDelete
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  76. Barclays Bank Plc. provide all types of loan at the rate of 2%, amount ranges from $2000 to $300,000,000. Funds is transferred within 2hours of approval. Contact us today via email: Barclaysbank.plc198@gmail.com

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  78. Hello.

    Greetings, i'm Hogg Geoffrey Graham from LA, I am very happy to receive a loan from the European part of the world, they gave me a loan to settle my hospital bills, They saved me from loosing my house. this message might be of help to you guys that also need a loan in other not to go the wrong side in your search you have to contact this company Michael Clinton Loans. Via E_mail: michaelclinton273@gmail.com

    Regards

    ReplyDelete
  79. Hello everyone check out Engr Michael newly designed super intelligent blank ATM cards Which have been specially programmed to withdraw free cash from any ATM Machine worldwide He has hacked the sum of one million dollars into each of the cards. please beware of scams selling counterfeit cards he sell the original cards with documents to validate the transactions. He deliver this cards to all any customers and interested buyers worldwide and it has changed the life of many people including me. I purchase mine to give a try and i saw many people talking about him, i tried my best to get one by doing what he ask me to do with the instructions, he make my card and sent to me without stressing me. Today I'm so happy seeing myself been rich, so i have to tell everyone who might need his help. he have various cards and various prices for them and the cards has expiring date and i cash out $5000 daily. you can email us on micharelatmhacker@gmail.com. text him them +18508008129

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  80. I have my ATM card already programmed to withdraw the maximum of $ 4,000 a day for a maximum of 20 days. I'm so happy with this because I got mine last week and I've used it to get $ 44,000. Mr Martins is giving the card just to help the poor and needy even though it is illegal but it is something nice and it is not like another scam pretending to have the ATM cards blank. And no one gets caught when using the card. Get yours today by sending a mail to martinshackers22@gmail.com

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  81. LOAN OFFER!!!

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  84. My name is zunna, I am from New york, United State, am here to testify of how i got my loan from Mrs Ingrid {ingridkloetloanfirm@gmail.com} after i applied Two times from various loan lenders who claimed to be lenders right in this forum,i thought their lending where real and i applied but they never gave me loan. I was in need of an urgent loan to start a business and i applied from various loan lenders who promised to help but they never gave me the loan.Until a friend of mine introduce me to Mrs Ingrid kloet the C.E.O of INGRID Loan Company who promised to help me with a loan of my desire and he really did as he promised without any form of delay, I never thought there are still reliable loan lenders until i met Mrs Ingrid, who really helped me with my loan and changed my life for better. I dont know if you are in need of an urgent loan, free feel to contact Ingrid loan company on email{ ingridkloetloanfirm@gmail.com} for help

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