Mike Baird spent plenty of time with his head in college text books, but he realized his interests lie elsewhere. He began reading real estate books, attending seminars, and pursued the school of hard knocks. Upon Mike’s college graduation Mike’s father drove him down to the local hardware store and gave him the gift of equipping him with the essential tools of the trade.
Now armed with knowledge, a tool set, and blind ambition, Mike figured it was time for some real world experience. He called local ads in the paper until he found someone who was willing to assist him with the necessary capital. He quickly found himself acquiring properties for flipping, as well as his first long-term holds.
No Background
My start in real estate was very different. I had a degree in economics and was a full-time commercial airline pilot. The only thing I knew about real estate at the time is that I was paid to fly over it.
I have always been a bit of a gambler and come from an entrepreneurial upbringing; a childhood friend in the mortgage business asked me to head down to a local foreclosure auction and meet Mike Baird. I cautiously walked up the courthouse steps for the first time and inquired around for Mike so we could shake hands for the first time.
I was not prepared for what I was about to witness; an ordinary and unassuming individual approached, proclaimed “buyer beware”, and start firing off addresses of properties impending sales at the auction.
Where was the courtroom, the judge, a sheriff?
This was the wild, wild west of real estate, and Mike was the quick draw outlaw bidding up a property and staking his claim as the new owner. I followed him to the property and absorbed every word out of his mouth. I showed up the next day to see him in action again, in fact I showed up every day after that, and my love of real estate investing was ignited. I was hooked and I hadn’t yet bid or acquired a property.
The first two deals
Our first deal together was a two bedroom condo we acquired for approximately $70,000. I was in sheer panic and terrified I would not recoup the small amount of money I had contributed. I spent 14 uninterrupted hours cleaning and performing touchups while struggling to prevent a coronary episode from the anxiety I felt from risking my capital in unfamiliar territory.
The modest investment went under contract after only three days and closed four weeks later. We didn’t set any investor records, but we did manage to make more than 10 percent on our money in just a month’s time. My schooling in economics quickly registered this would equate to a 120 percent annual return if I could repeat this each month.
Our second deal was monumental for me, changing my life forever and setting me on a new professional path in real estate. Mike and I purchased an older, five bedroom, property on a relatively busy street.
We scouted the value of the home we had just purchased, driving other homes that had recently sold in the area. We encountered a gentleman at a neighboring property putting a for-rent sign in the ground. We jumped out of the car and asked the investor if he was interested in additional rental properties. He was eager to see our property and didn’t even notice Mike running around to the back of the house. We hadn’t had time to change the locks yet so Mike had to break in the property while I kept the gentleman entertained on the front porch.
Less than two hours later we were in a title company and the deal was done. My hands were shaking as I grabbed the check containing our profits. In just hours we had made $17,500; it was in this moment I knew I had a future in real estate investing.
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Read more about what Doug and Mike have learned on their journey to flipping 1000 homes in the January 2012 issue of the Foreclosure News Report newsletter, published by RealtyTrac. For a limited time only you can get the January issue for free by subscribing to a 30-day free trial of this award-winning newsletter.
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