hillvalley's Daily Journal

You're on the right track; get some Buyers on your buyer's list, you can start contacting Sellers to get some deals under contract to shop to other investors or lease option. Take a few pictures and post it on Craiglists, Citycribs.com, Postlets, Oodle and few other sites to get the word out about the availability of home for sale. A good thing is Postlets syndicates you postlet to other sites like such as Oodle like I mention and you can also post that postlet on Craigslist. Also advertise it in your local newspaper for Sunday (which is when majority of ppl are usually looking through classified ads for houses for sale or for rent) once you get some properties under your belt.

Its amazing what can be learned here on this site! Congratslations on your progress on this journey! I think doing the flyers is a great idea. So far I have gotten a good response from them. Now I'm working on doing post cards. Building your buyers list is what Dean recommends. No harm at looking at properties now. They go hand in hand. Assignments, birddogging, double closings all can be done with no money down, no credit, bad credit. The technique can work regardless. Continued success to you.........Lubertha

Thanks, for all your encouragement. Today is a new day to start off with my feet running. I am contacting my real estate agent to set up appointments! Trying to work on the deal that I have in the pot-need to post that to DG. Following up on some leads that I have discovered this weekend. Yeah!

Today, I have put in an offer on a FSBO at full price with the owner financing for two years. Keep our fingers crossed. I have set up an appointment with another FSBO to go look at a house this weekend. I think this might be a diamond in the rough. Really excited about moving forward.

I talked to a banker in regards to a short sale property that I have in the pot. Owner is giving me the house, I just need to figure out how to make it all work, buy it on a short sale and then double close, cannot buy it out right myself yet and have no buyer for it yet. Listed it on CL, maybe should amp up advertising. I am looking at all the MLS listing my agent sent me. Whew! there is alot to chew on. Trying to pick out a bunch to look at and put offers in on. Need to call and make appointments. I am feeling like there is just not enough time in the day!

No time like the present!

I know what you mean and there is not enough time during the day to get things done. Congrats on your project and keep on going so you can get it done. Best of luck on your success !!

Warm regards,

Paul

I'm glad to hear you're moving forward! I hope to soon be in about the same position as you. Keep us updated!

Well, this weekend I looked at my FSBO, has a lot of potential and possible profit. The person has it on land contract, husband is ill they want to move closer to town, want $20k to buy them out of their contract so they have money to put down on another place-so not necessairly money if I can find another house for them. I would have to take their contract which I would put renter in and buy out for remaining of contract in the end of two years. Owner that is financing wants to just dump the place along with extra property-so could work. Just not sure yet how.

I looked at a FSBO tonight, owner is funny, he's a car salesman-a wheeler and a dealer lowest price kept changing, so I planted the seed and we will see.

Put in seven offers to my agent that we went and looked at this last week. Haven't heard anything from her yet.

Got a possible interested buyer, owns 50+properties now wants to amp up to more, currently working on buying a 12 property deal, and wants to know what I have-nothing yet, but did not tell him that. He said he likes the fixer uppers and if the price is right has the means to purchase them. Did not tell me what he was looking for-I did ask.

Have a meeting on Wednesday with another investor and owner for a short deal. Investor says he will give me a half of percent of what he sells it for.?

Made a call on a FSBO with lease option for some property on the lake. Received a call from him, have not had the chance to return call yet.

So that is my day so far. I am excited to see the determination in myself!;0)

It is great to read that your plan is being put into action. Keep up the great effort and good things will follow. It becomes a numbers game and the more proeprty deals you review, the better the chance of locating those great deals. Continued success. Believe and Achieve! - Joe

Thanks for your continued support. There are days that I get a little fustrated. I am going to continue to chip away at. Each day brings a little more experience and knowledge. Today could be the day! ;0)

I am glad to hear that things are going good for you and thanks for sharing all your deals, the info is sure valuable.

hillvalley

Well I got the reply on my offers that I put in last week. My realtor says that the answers were not so favorable like "get real" and one "blow it out your dufflebag" She stated that where there are markets this may work, but not really here. I asked for comps for the last three months here and she sent them to me. Most everything is selling in the 85-90% price range. Not quite sure if I should up my offers, if they are even getting to the home owner, and how I should pursue the next batch I want to look at. I will pursue, and keep digging- there is treasure to be found right.?!

I have a distant cousin in the local area who is selling out all of his rentals-mostly duplexs and a couple triplexes. I believe there are 6-8 buildings.(most of them are kinda of rundown and not in the greatest neighborhood). He wants to get out and follow his ministry dream. I think this could be away to put my foot in the door and allow for some cash flow. I am not sure how to pursue this. I don't have any money that would allow me to put a down payment or to buy them out right now. Don't know how I should approach him? "Hey let me have your rentals, I have no money." LOL

I found a good deal on a REO that they are asking 34,000 frozen pipes, water damage to the ceiling. All simple fixes I am pretty sure we could do oursleves and rent the place out for good money, already have renter in mind. I believe it comps out at 67,000 according to Dean's tool. But bank wants pre approval for financing none if cash buyer. Will not go FHA. Here is the problem- No money.

On the positive note, I am excited to see what Dean has to offer tonight on the call. ;0)

Yesterday, I went to my first Sheriff Sale with Rina. I learned alot of information. I have a couple of house owners to contact today. I have several people who called me looking for rentals-no place to put them yet. I am waiting for a rental unit owner who is out of town until next week. I need to put more time into it-life just is so crazy some times. I am going to have a few days of somewhat vacation in Decatuer, IL next week and will put a couple of good solid days into it. I am so excited to just make it happen. It is amazing to me to see the passion that has become alive inside of me.

It has been a while since I have written. I am on the site constantly reading and learning. I don't post much because I am busy reading, need to make that more of a point. My REI journey has a little slower than I would like it to have been but has been progressively moving forward. I have made offers, which have been rejected, but have learned so much. I have a multi-unit owner who is willing to let me take one of their properties with no money down and re-evaluate in one year. If all goes well they might do others that they own. NOT BAD! Hopeing that will take effect on Jan 1, 2010. I have a house that I might be able to do a sandwhich lease and make about $350 a month in possitive cash flow. Again, not bad, just hasn't happen yet. I struggle daily on being stretched in a million different directions, and I also struggle with fear and disappointment. Which if you know me that is not like me at all. I am talking more with people and wishing that I would do more and I know that the only thing stopping me is ME! So I need to keep moving forward and complete my goal of being a REI! I am writing this as a reminder to myself that I can do it.

I decided to purchase the Rock Bottom Blue Print. I have started on the 30 day Cash Now. I am working on the first 5 days. I have contacted my REA, she has sent me the listing for hot areas, listed As Is, Vacanant or have had price reduction. She has told me they don't have list of cash buyers, even though I told her about the #800 on the MLS like Dean has mentioned. She told me that it is a violation of the privacy policy to release names and info of their clients. I think she is wrong. I believe if Dean said it can be done. It can be done. Just need to find a way to get it. I am getting more and more RE focused, almost obsessed. I am in the mist of finishing "Think and Grow Rich" by Napolean Hill. Definately reflects what I am trying to do with my real estate career and has confirmed the fire that I feel to succeed. Just felt a little deflated after email from REA. But tomorrow is another day. :0) I will figure it out.

Well, since my last posts, I have bought my first REO and double closed on it to make small profit. I have partnered up with another investor on two other houses that I found from my bandit signs. We have purchased them with their money and have agreed to split the profits when we resell. We have one listed now in a great neighborhood and the price is well below market comps and have had lots of lookers but no takers yet. :0( The other one we just closed on and the owner is moving out this weekend. I just purchased a house "Subject to" and I am doing minor rehabs. Goal is to lease option the house so that there is money up front, a little cash flow every month and hopefully a big pay off in two years. Have a few buyers on my list literally like five, not the greatest but it is a start. Having a hard time finding houses that fit their needs but am still working on it. I have five offers out on houses that are REO with my agent right now. Although I am laying the brick work and see some long term success in the future, it is hard to stay a float and could really use some incoming cash flow right now.

I have a couple of leads on a few houses and I am not quite sure what to do with. One the guy owes $88k on his house, which is top doller what it is worth. Needs at least $10k in repairs, he is two payments of $770 (which includes taxes and insurance)behind. Son was living there with his girlfriend and he is moving out. The homeowner is lives with his fiance and does not want to keep his house. If I could work this deal-if it is a deal, I am thinking Lease Option. But it is coming up with the default payments, and repair money which I don't have right now.

The other lead I have, a FSBO, is a couple who wants to move back to their home town down state. They have a nice log home on 10 acres. They owe more than it is worth. They owe $200K, Tax Assessed at $175K, payments are $1600 a month including taxes and insurance. That is really high rent for people in our area. So I am not sure Lease Option would work, not of enough profit for me in the middle, could possibly be in the end but not sure how to make it work.

A third lead is a FSBO 14 1 bedroom apartment complex. The older gentleman moved out of state and has sister managing it. He is asking $460 which what it tax assessed at. That is $32k per unit. I have heard other investor all say that "that guy is asking way too much" Which is true, I don't know or think that anyone has talked or negoiated with him. It does cash flow, each unit is $450 a month and has a N.O.I. (Net Operating Income) of $49,434. Trying to figure out how to swing this one, I remember if one person sets the price and the other sets the terms, you can have a deal. I have tried running the numbers as if the owner does the fiancing, even at 6-8% interest for 15 years and would still cash flow about $25,000 a year for me. Just don't know how or what to say to the owner. Fear is taking a hold of me. I don't know what to say to the owner if I contact him, so I have been putting it off. I know it sounds crazy, but it keeps me from making the call.

I have had others ask what I am doing now? I explain to them I am a Real Estate Investor. They love my enthusiasm and say I am so passionate about it and have had some ask me if I can teach them what I doing. I give them my Dean books and tell them to be a part of the website, to learn as much as possible and to take ACTION! I have a meeting with another couple this weekend who wants different for their lives, something extra. I am hoping to start them off as Bird Dogs for my team and hopefully if they want more, I can help them take the next step. I am still learning more and more everyday. I can honestly say that my results are not as fast as I would like and

I will be putting out bandit signs and craigslist ads tomorrow night and hope that brings in some good leads. I need to start turning some cash, because I am having a hard time supporting the extra gas, signs and other marketing, earnest money, repairs etc. I am not giving up because I believe this is where I want to be and I am laying some good ground work for the future and am enjoying every minute of it! Just lack of continous cash flow or a significant lump sum, is the slowing me down a bit.

I am a go getter and I will keep pushing forward.:0) When I have deals, I have no investors, When I have investors, I have no houses available, or deals such as Subject to that I have to wait for my payday.

What a week...uuuuggghhh!!! A couple of weeks ago we partnered up another investor that has been doing it for 20 years the old fashioned way and he wanted to partner up with us because we are doing the new way-the DG way! Wholesaling, Lease Options, Subject to etc. He had the money, the credit and rehab/refi ability. We have the drive and the knowledge to make it happen. So we set up a LLC, found a local bank that would refi at appraised market value. We paid for the business set up fees did all the leg work and pr with the bank. Put in offers with a private seller and with my real estate agent. "Partner" was going to provide 25% of purchase price and minor up front rehab cost and we were providing 75% with our hard money lender. We had the owners permission to rehab get ready for renters before closing, set it up to refi with the bank within a week or two after closing. We had put a few offers out with my REA that got accepted. It was looking good. Then....

The night before closing my "partner" calls freaking out saying that he is putting all the money forward, and that he wants 100% control and ownership of the property but still wants us to provide our $80,000 with our private lender or he is going to take his 20% and fund it tradtionally with his bank. Obviouslly we could not do that. The contrators that were working on the building to get up and running were put to a halt. I had to cancel the several showings I had set up for tenants that were supposed to move in on Dec 1. Call the homeowner who was quite upset. I had to cancel the closing and insurance. Tell the bank that we decided to do something different with the building and we wouldn't be refinancing it. I had to cancel with my hard money lender who wasn't happy, and advised me not to get involved with people like that because they just waste everyone's time and was reconsidering doing business with me.

My "partner" let the contract expire, reworked it out with the homeowner to buy it himself tradtionally, pulled out of the LLC. Left us with the contracts of the other two properties that have to close by this Friday. I tried to see if I could refi one of the rentals that I have with equity but the bank said no because they have been burned by rentals before and my rental history hasn't been long enough and would consider after a year of history.

These are excellent deals should cash flow about $700 a month each. One I already have a tenative lease signed. I am trying to wholesale or come up with the other 25% (which is about $20,000) to save face with my realtor and hard money lender. Wow, definately not ever a dull moment.

Even though this is a very stressful and trying week I am greatful that I am taking the action to move forward. I have accomplished wholesale deals, bought houses with no money and have come so far. I have no idea as to how this is going to turn out but I refuse to let it get me angry or bitter because I beleive when you do things out of anger and bitterness that is what comes to you. I will not let it defeat me. I am a part of something much bigger. :0)