Success Academy Journal

Spoke with Ryan yesterday who got me started with the following action steps.
*Read Email & orientation
As of 12/3, there ISP is currently down and I have not recieved this email.
*Complete 1st 3 class assignments on account
Waiting to gain access

*Attend as many REI Clubs as possible to begin networking
Found 2 that are fairly close. Will call today to get permission to sit in
on meeting.

*Locate local property auctions and meet perspective buyers
- Emailed several townships to find where and when those auctions take place.
- Also will look in local paper
*Set up business (S-Corp. or LLC)
This is placed on hold until I have some descretionary funds

*Call Advisors as needed with questions.
Several questions I currently have:
-I assume the Fast Cash strategy he's starting me on is Wholesaling. If
so, paint me the Big Picture of how this works.
-
-
-
Yesterday I:
~ e-mailed several townships for auctions.
~ Spoke with 2 realtors. 1 is sending MLS listings trying to get an idea of what I
want. The other called me about the Obama Tax credit. I then asked hime about
REI's. He's now helping me locate distressed and/or foreclosed properties.

Today I need to:
~ Contact several Townships regarding property auctions
~ Call the two REI Clubs and invite myself to their meetings (DONE)
~ Focus on creating that buyers list:
~ ~ Local paper: Want/4 sale/4 rent adds, and Auction properties
~ ~ Craigslist

~ Contact advisor about questions I have (DONE)
~ ~ Big Picture of whole sales (DONE)
~ ~ Not received email from them (DONE)
~ ~ What info do I need for a buyers list? (DONE)

Copied from the following link:
http://www.deangraziosi.com/real-estate-forums/buying-foreclosures-reos-...
You want buyers NOW??? Do the following?

1. Go to your local Real Estate city club and ask the president of the club to show you who the serious buyers are.

2. Attend a AUCTION and see who the serious buyers are and introduce your self and get the buyers phone numbers. You can find auctions through the local newspaper.

3. Once you lock up your deals, advertise a a "Foreclosure Tour Bus" in your local paper and sell all your homes and collect your check. If you have 5 deals locked up, you should at least pocket 25K on the low side.

4. You may need a shortline or trailways bus, because your phone will be ringing off the hook. One thing to keep in mind is that when people call you for the bus tour, explain to them that they need to show proof of funds or letter from their bank. You definately don't want people who are not qualified serious buyers on that bus tour.

Hey Sport, welcome aboard! Its fair to say that I instigated this whole competiton thing between A-Rod and I and would love to have you on board as well. There's nothting like a good ol' fashion race. Where the finish line is could be determined in many different ways but we'll get to that down the road. Looks like you are "on fire"! After reviewing your entries I'm under the impression that I probubly don't have the experience you have in your pocket already....but I'm ready to make this happen. I think turning this into a game for fun will be a great way to hold each other accountable to learn quickly, take action but most importantly to close "great deals". I'll be sure to check in on your journal on a daily basis to see your progrees so I'm not feeling left behind.
Good Luck and let the games begin!!!

Hey Sport,
Glad to see you're taking advantage of the academy. I am looking at join them too. Just need to get a couple things in order and then I can be in the same position as yourself.
Side note: Hey Dave I'm interested in the race. I think it is a real motivator!! I'll have to track your progress. Do you have a blog going on this with A-Rod?
Best of luck to all!
Earl in MI

so this are the steps that u will learn in the academy or is it a faster way to do thing, should i start with this before i commit to the academy.

alicia

Dean's program can be successful with or without the academy. With the academy, you'll have a guide to help you avoid pitfalls and see the proverbial trail more clearly. Without the academy, your learning curve may be a bit slower and not as 'clear cut'.
I'm sure I could have achieved success without the academy, but my goal is to avoid the pitfalls, speed up the learning curve, and make this a career move within a few short years.

The academy is an investment; thus, you MUST have faith in your own abilities to overcome your fears and strengthen your weaknesses.

No matter your decision, I have already learned that this forum is a GREAT source of wealth, knowledge and assistance; so remember to use it.

Hope this helps.

Rick

*Spoke to Pres. of local REI Club and I'll be attending Dec. 22nd @ 7pm.
*Finished Orientation and passed quiz. I'll start the first lesson tonight???

*Completed Overview Lesson

* During the overview I was directed to a web page that looks up Property info. Come to find out the house across the street from me just went through foreclosure and will be auctioned in the next couple weeks. Guess what I'll be doing?

*Strengths & Weaknesses (aka Skills)
**Strenghts
***Research
***Crunching numbers
***PC knowledge
***Organized (unless you ask my wife )
***Seeing the money

**Weaknesses
***Selling/Negotiating (no real experience)
***Connecting buyers to sellers (no real experience)
***Contracts (don't understand them)

Need to finalize my 5 year goals.

Found someone selling bulk REO's and sent an email indicating interest. Then sent an email to a large property investment firm enquiring their about interest. Could be a large Assignment of Contract deal coming...

New with DG I`m soon to join the academy also. That may take me a minute but I plan to watch all of you and and join the competition. I will have to catch up but that will help me keep the focus and move a little quicker.Meanwhile I will be reading this website , my books and doing my research; getting going here in central Fl.

Completed.

Whoa! information overload.

There's quite a bit to the action items. Think I'll start that tomorrow.

Signing out.

Hey Sport, Looks like a nice productive day for you. I don't want to give the movie away..but I found it interesting to learn over the last day and through the Foreclosure lessons that "Auction Day" is the absolute worst time you could chose to try and win. Unless of course there are very un-usual circumstances. But it will be a good idea for you to attend.
Keep up the great effort!!!

ACTION STEPS:

~Develop Power Team List
~~Call Escrow Officer (friend) (DONE)
~~~He see's quite a few foreclosures weekly and thinks he can help!!!!
~~Locate and interview several more Realtors (1 friend)
~~Call local bank for REO's
~~Research, call, and identify needs of 5 buyers

~Research
~~Biz cards online
~~differences between S-Corp & LLC

~Identify locations and types of properties intersted in investing
~~3/1 Single family residence (stay away from inner city)
~~Appt complexes

Got off the phone with an investor whose selling an occupied 2 unit rental in my area. Here are the specifics:
1 ~ 3 Bedroom 1 bath Rented for $700 a month
1 ~ 2 Bd 1 Bth rented for $550 a month
1 ~ Garage which rents for an additional $75 a month

That's $1,325 monthly income

Annual taxes, water, sewer and trash are just under $2,500. That a little shy of $250 a month. Add reserves for vacency, reconditing and marketing costs of $125 a month, expenditures are roughly $375 a month.

The units have been rehabbed to include new paint, kitchen & floors. He's asking $79,000.

There is potential for about $400 positive monthy chashflow in this property. Unfortunately I am not ready to purchase yet. But I'm interested. I'll also be looking for buyers.

Thoughts and suggestions are welcome.

Trying to get things in order that i can join by monday. Positioning myself and getting ready. Making contacts and plenty research . I will look at some properties this weekend.

Hey Sport, You should seriously look into getting it a little cheaper in order to assign and give this roi to an investor , all while creating a handsome profit for yourself

Yup,

That's there asking price.

FMV (Fair Market Value) is only $60,000, and I wont pay more than FMV. Infact, I make offers and keep my price point well below FMV.

The weekend is here. Time to gather my research, organize it into something more userfriendly and prepare for next week. I'll also try to complete another lesson or two. I also wnat to form an action plan for next week.

My thoughts now are to locate specific areas of interest and identify distressed properties. Building my buyers list is also on the forefront.

So far my power team consists of:

~ an escrow officer (he also comes across Pre-Foreclosures),
~ a Handyman (of which I am one as well)
~ Several realtors..ohh ya...

Met with a realtor yesterday who wanted me to sign a contract limiting me to using only him. I did not sign and even found that a bit tacky. thoughts?

~ and several REI Club investors

Now to develop my buyers list.

Keep it up Sport!

Hey Sport,
Sounds like you have a great action plan to develop a great action plan.
As far as the Real Estate Agent thing goes...I personally don't think it's a good idea to limit yourself to one agent under a signed contract at this point. Although you have to give the agent an "A" for effort in trying to lock you in as a client.
My reaction to an agent who is requesting an "exclusive contract" would be to say something like ...."I'm sorry but My policy as an investor is not to limit myself by signing an "exclusive contract" with any agent until that agent proves to me that their work ethic and practices are exactly what I'm looking for in an agent. On top of my policy.... My personal opinion and belief is that it wouldn't be wise or fair to either of us to get so far ahead of ourselves before really knowing if we're compatible. But I will promise you this...If you are willing to work with me and you help capture my next deal and we find that we work well together, then I will promise to sign an exclusive contract with you in the regional area of your experise. How's that sound? If he says no thanks...MOVE ON>

Words from the wise. Thank you Dave. Although my sentiments were shared, I was not so eliquent with words, but I remained pollite.

Right now, as shared, I'm struggling with finding wholesale buyers. Granted, I haven't spent a LOT of time searching, but I was kinda hoping they would just jump out of the woodwork.

I'm looking at starting my retail buyers ad in the next week or so. Need to get my phone line set up a little differently and several places to advertise...probably free online local web pages for now.

ATTRACT BUYERS
1. Place free Ad to attract investors; ie, Craigslist, Backpage**********(DONE)
2. Call Ads that say "I buy houses" or "I pay Cash for Houses" or...
3. Script Ghost ad & find paper to advertise in ***(DONE 12/10)***
4. Run scripted ad for 2 weeks
5. Call friend regarding Investor**************(DONE)****************

BEGIN FORMING A BUSSINESS
5. Identify Biz Name for myself ****(DONE 12/10)*****
6. Biz cards
7. Biz Web Page & Email
8. Biz phone message

LOOK FOR MONEY'S
9. Call local bank and discuss my plan

PROPERTIES
10. Meet with realtors and have props sent to E-mail ***(DONE 12/10)***
11. Meet with wholeseller to view possible investment house 12/11

Here's something I haven't seen yet. Decided to contact a property management co. regarding vacancy rates of a given location. After sharing a little bit of my plans, he wants to meet. Seems he has wholesellers, contractors and hard money lenders already established. All's I need to do is find one I like and move forward to own it. Once owned and move in ready, I'll refi it then rent and or lease it. I wonder how often I can do that???

With that said, I encourage the reader here to contact your local property management co. and get to know them better...who knows, they may have what your looking for???

I didnt really ever go away i just have not been on the site in a few days but i have been still reading and doing research. I was able to make contact with a couple of RE wholesalers and Realtors that deal (sell) REOs and distressed properties.Right now I need to work on my buyers list.That will be among one of the next things i do. Im working on all areas and aspects of this and do plan to join the Academy before the end of this week.

Just met with a local owner to a fairly large RE investor company. They network with Hard money lenders, banks, Title companies, Escrow Companies, and advertise HEAVILY in the area (1 800 All Cash Offers). Seems they have a niche here where I live and buy approx. 75% of the properties that otherwise would be made availble to yours truly. Pretty stiff competion here!

hey SPORT, Thats a tough one.You may have to get very creative with your advertising to beat them to the sellers.
There are many methods of advertising im sure they do not capitalize on.
The good news is there are not a zillion REIs attacking your areas.

Part of what is shared by Cfuller:
http://www.deangraziosi.com/real-estate-forums/financing-and-credit/3572...

100% financing contacts:

Wachovia: http://www.wachovia.com/
They offer 100% mortgage financing. You can apply for their loan online and also get a pre-approval. You can contact them at (800) 922-6267, Monday - Thursday: 8:00am - 10:00pm ET; Friday: 8:00am - 6:00pm ET; Saturday: 9:00am - 6:00pm ET.

Commercial Mortgages: http://www.commercialmortgageyes.com/
They offer 100% mortgage financing for both commercial and residential properties. You can contact them at 1421 Sheepshead Bay Rd, Suite 255, Brooklyn, NY 11235 ; Office: 1- 718-791-3333, Fax: 1- 718-504-6203.

Ameristar Mortgage Corporation: http://www.ameristarmadison.com/
They offer 100% mortgage financing for people in Wisconsin and Illinois. You can get a pre-qualification with them. Contact them at 5325 Wall Street, Ste. 1500, Madison, WI 53718; Phone: (608) 242-0826, Fax: (608) 244-5850, e-mail: [email protected]

Alliance Mortgages: http://www.alliancemtg.com/
They offer provide 100% home mortgage loans and 80/20 home loans with no money down 100% financing with 600 fico scores. You can apply for their loans online. Contact them at Alliance Mtg Inc., 18000 Studebaker Rd Ste 700 Cerritos, CA 90703.

Wells Fargo: https://www.wellsfargo.com/
With them you can get a real estate financing with little or no money down. They offer a number of traditional and flexible options. You can contact them at 877-937-9357 ; M-F, 7 a.m. to 11 p.m., CT, Sat., 8 a.m. to 4:30 p.m., CT.

GMAC Mortgage: http://www.gmacmortgage.com/
They offer no down mortgage loans at affordable rates and at minimal private mortgage insurance premiums. You can contact them at 1.877.941.4622 for more details on their mortgage processing and offers.

Quicken Loans: http://www.quickenloans.com/
They offer no money down mortgage loans. You can contact them at 20555 Victor Parkway, Livonia, MI 48152 OR at 1500 W. Third Street, Cleveland OH 44113-1422 OR at 16425 N.Pima Road, McDowell Mountain Park, Building A, Suite 200, Scottsdale, AZ 85260 ; phone: 800-251-9080.

My two biggest fears are:

1) Buying a property and not being able to rent/lease or sale. Now I have a mortgage I can't pay.

2) Assignment of Contract. Although my wife calls me a social butterfly, I lack confidence as a negotiator and a contract writer.

How I plan to overcome these fears:

1) Place an ad to attract tenants. This will allow me to identify the need, location, type of property they're interested in and what they can afford.

2) Study, study, study; and practice, practice, practice, practice.

Suggestions welcome.

SPORT, I think most of us have the same fear if we are purchasing.If purchasing; you can add to the contract a contingency clause based on a feasibility study to be performed by a certain date.I have used this in the past for vacant land contracts in order to have time to perform soil tests gather info on drainage, plans on counties records of infrastructure changes, access to elect, cable etc...This was mainly in rural or farmland.
Not to get to far from the topic but ANYTHING can be written into a contract.
If you put this clause into your contract and you give yourself 15 days to complete the the study you will have time to run some ads to verify if your concerns are valid.
Is it feasible your needs ? Cost of repairs/renovations ? Can it be rented for the expected amount ? Is this type dwelling and location in demand ? Positive cash flow ?
Hope this helps.

SPORT, Do not be afraid to put anything in a contract. It can only be accepted ,rejected or counter-offered.Never hurts to try.

Don't worry about nnegotiating.
Thats what the contract does.

AA213,

Thanks for the reassurance, I'll remember your ideas. I know you'd agree, I don't think it as a fear, rather a concern. My concerns revolove around working my way througha contract and locating responsible tenants in need of what I offer.

Nevertheless, a clause that provides time to complete a feesability study would be benificial.

Thanks

I meet with another investor in the morning to look at one of his properties, an agent for lunch to discuss a working relationship, and I just got off the phone with another realtor who seems to know the ways of an investor and would like to offer his services. He too has connections with REO and pre-foreclosures.

Now if I can just shore up the money lenders until I can refi the property...anyone...anyone?

ATTRACT BUYERS
2. Call Ads that say "I buy houses" or "I pay Cash for Houses" or...
4. Run scripted ad for 2 weeks

BEGIN FORMING A BUSSINESS

6. Biz cards
7. Biz Web Page & Email
8. Biz phone message

LOOK FOR MONEY'S
9. Call local bank and discuss my plan

PROPERTIES

11. Meet with wholeseller to view possible investment house 12/11