Alfred Dzadey bought his first property in 2020. Now he has a real-estate portfolio worth $5.5 million.
According to Business Insider, Dzadey owns eight properties that generate more than $32,000 a month.
The first-time real estate investor got started three years ago when he realized his college degree wasn’t going to help him become rich at a young age. He spent over $30,000 taking in-person real-estate classes that one of his friends recommended, and quickly found the confidence to give it a shot.
Dzadey raised roughly $190,000 from family and friends and bought his first property for about $290,000. He used a little more than $75,000 for the down payment and put the rest of the money into renovations.
Five months later, the renovations were complete, and the house was revalued at approximately $465,000. Dzadey began looking for renters.
“My aim wasn’t ever to sell for a quick return. My long-term goal was to hold the properties and build equity,” Dzadey said.
After finishing the turnaround project, the property rented for $4,500 a month, earning Dzadey about $1,800 a month in profits.
Dzadey was able to pay back his investors after about a year, and used the equity he had built in the home to purchase a second property. He took on a new set of investors to raise additional capital and repeated this process until he eventually owned eight different locations.
The more properties Dzadey purchased, the more he learned about what was working and what was not.
He now uses the same property management company to find renters and collect rent. He knows which areas have higher demand and how local authorities will respond to renovation requests. He also hired a team of builders that help him on each project and a real-estate broker that helps him find deals.
Dzadey has built more than $1.5 million in equity in his properties in just three years and he expects his monthly earnings to grow to more than $38,000 in August.
“This is just the beginning of my real-estate journey,” Dzadey said.
Produced in association with Benzinga
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