I worked with Jessica & Mark in 2015 and again in 2018. In 2015, they were renting a 1 bedroom apartment in North Seattle for $1400 / month. They contacted me to see if there was any way they could buy something for the same amount.
We worked with a few lenders and finally found them a State Bond Program. They had to go take an 8 hour course on a Saturday, but in exchange, the state provided them 3.5% down payment toward their 1st Home Purchase.
Our strategy from the beginning was to utilize the Equity Growth Trifecta, to ensure the property would be worth MORE in the future.
In 2015, we were able to secure them a 2 bedroom condo with 0% Down Payment in Shoreline, which was appreciating faster than other areas. The unit needed just a little work that these 2 were able to do themselves (mostly painting + hardware upgrades). The monthly payment was $1370/mo, so we didn't increase their monthly housing cost liability.
Fast forward about 3 years, Jessica & Mark had given birth to their 1st born. At first, they thought they could make it work in the condo, but after about 3 months, they realized, no.. they needed more room for the baby to crawl around outside!
Because their payment was manageable on the first purchase, they were able to save up $15,000 for their next home (about $5,000 per year). Because we used real estate to increase their wealth, their condo was worth about $80,000 MORE. After selling costs, Jessica & Mark had $68,000 from the condo to use for a down payment, and didn't even need all $15,000.
So once again, we were looking for a new place to call home, but this time, we needed a 3 bedroom home with a yard. We put in place a similar strategy, we wanted to buy in a growing area and force some appreciation by putting in some work.
We found just the place! It's a 3 bedroom rambler in Shoreline with just 1 bathroom and an old roof. We secured this property and they have already increased value using their extra funds for the new roof + they are adding in the 2nd bathroom in the summer of 2020! Best part, because they had the large down payment, their payment went up to $2,200 / month, still very manageable for their finances!
They plan to sell this home after they're 2nd child is born, stepping up yet again with the equity the built in their 2nd home.
Patience! -- Time your sale strategically, don't rush the process
Message from BB
Nothing makes me happier than helping my friends and clients establish themselves financially through real estate.
Jessica and I were friends well before we worked together on their real estate transactions. Myself and my team take every transaction personally and treat every client as our own friend or family member.