Success Academy Journal

Thanks for all that info regarding 100% financing. I'll be sure to use it when the time is right.

Hey Rick, Your fears about finding renters are valid and that's why they talk so much about knowing what your exit strategy will be. If I figure out what exit is best before you I'll be sure to let you know. Until then I'm just as biffed. I just keep thinking that taking any action on a daily basis is better than standing still. I believe that at some point and time it will all make sense and we'll look back and say why did I try to make it so hard. That's my sincere hope! KEEP MOVING the way you are my friend.

From my experience, an Exit Strategy is nothing more than a back-up plan. That is, if I can't rent it, can I lease is? If I can't lease it, can I sell it? What are my options for selling the property? What is the quickest, or what means would yeild the most from a sale?

When someone mentions an exit plan, that's what I think of. As long as there's enough equity, it shouldn't be too hard to unload in a pinch, but...

Unknowns are what create risk. Understanding factors help limit risk, so how do I limit the risk of buying a property in a given location? By knowing the market.

I've asked a realtor about the economic situation of a specific location, (I think it is shrinking) he could not answer that question. Properties are pretty cheap outside of my town, but why? If people are moving out of town, should I buy in that town...I wouldn't think so. So then, how do I assess the economic trend of a geographic location?

Things that make you go, Hmmmmmmmmm?

If you buy a property to hold, don't worry too much about finding renters. They will come in droves. And if you don't get enough response "for rent", offer a lease/option and you will have more response than you know what to do with. If you get a property in a decent neighborhood for a great deal, you will already have your cash-flow figured and have LOTS of wiggle room.
I guess I can't speak personally for every part of the country, but I think that is true in general.

One thing you can do NOW (you might already be doing this) is to watch your local "for rent" ads (especially Craigslist) to see what places are going for in what areas. Maybe even call some of them if you want more detailed info for your research. You could even run a ghost ad to start "collecting" leads. Just post what you think you'll be picking up for a property and tell any responders that you are going to be buying other properties and can put them on a "watch for" list.

Most important things (in my opinion) to guarantee a good landlord experience and good cash-flow are:
neighborhood
purchase price
market rent
qualifying your tenants

Just some thoughts.

Rina

Rina,

I plan to start a ghost ad tomorrow in two, maybe three locations.

Items for good landlord experience are dully noted. THANKS!!!!

Rick and Rina, Thanks for all that awesome advise and knowledge. Rick, you are one smart dude. I have no doubt that your going to get over those fears very quickly.

Just reviewed approx 60+ listings from a local agent and identified roughly 30 to make offers on.

Having lunch with one realtor today to share my property criteria and approach to buying. At this point, my goal is to make extremely low offers; once accepted, I'll lock it up and present it/them to buyers (Assignment of Contract). I will also advertise in the local paper for rent/lease to own options as a back up.

Too early for aSaturday morning, but I have my coffee

Recap on yesterday;
Met a property manager who showed an inner city property. Although it has been rehabbed and the asking price in only $33k, the front yard view is a RR tack and is in part of the worst neighborhood. Two other units on either side are vacant as well. Say's it belongs to a friend and is trying to help. Nevertheless this manager want's to venture in REI on his own and asked to sit down and share ideas, maybe even begin to network. We plan to meet up some time next week. He also introduced me to another investment company. This Co. buys, and sales to investors using 100% Hard Money to get in, rehab and gives 1 year till the balloon payment is due. The HML fee is 10%; pretty standard. However, the total price of the investment property would be more than the FMV. Here's what it is, the total cost to me, $45,000; FMV, $33,000; the appraised value is said to be around $70,000...Yeah, right!
The irony to this particular deal is that even at their price, the property would turn $170 positive cashflow each month...even after paying for Management fees. The problem is, I personally refuse to pay more than FMV for ANY property.

For lunch I met an aggressive Realtor who shows MUCH promise. As we drove to a potential property we discussed our ideas and what we can offer each other. Seems he's worked with many investors (could this be a conflict of interest?). He also he owns a contracting business and dabbles in investing himself. Nevertheless, he portrayed himself very knowledgable and willing to work with us. The property we walked through was untouchable (gutted). So we returned and he set me up with a wizzard of a mortgage broker. I'll find out next week what I'm worth. Preliminary numbers looked promising! Meanwhile, this realtor is sending me listings daily to view. I'm hoping to send him my list of properties to make offer on sometime Monday.

Overall, not a bad day. Now if I can just locate the right property at the right price and find the right tenants.

Have a great weekend

Hello DG FaMILY members I really enjoyed reding your postings. SPORT you have
a way of coming off as a well seasoned RE professional, your well organized.
Albeit I am along way off from where you are today.I will have to try and
immulate what you are doing, First and foremost for me it is critical that I
build a data base for Motivated investors list and a data base for Motivated buyers list. I will keep tracking these postings. lots of great stuff from
my DG FAMILY members.

Paul: Austin, Texas

Hi Sport -

You probably set up this posting so that you could get ideas and help from others but do you also realize what an inspiration you are to those of us who are "stuck"? Thanks so much for starting this blog. I bought the books, started a networking group which is taking time to get off the ground, bought the edge, bought the DVDs and all we've done is set up an LLC. You are a perfect example of what Dean always says and that is to just take one step at a time but keep moving - just practice the steps and see what works for you. I am looking forward to taking the next steps and making 2010 an action year. We will be following your progress but please know that you will have a few of us along the path with you.

Wishing you the best as we know you will be successful!

Dee & Ed

http://www.deangraziosi.com/real-estate-forums/rental-and-cashflow-prope...

Dee & Ed,

Thanks for the encouragement, they definately keep me motivated. It's ironic to have read several posts regarding my 'professional' mentallity. Oh, if you only knew me...lol .

Now if my power team would only buy into these ideas...

Six Success Academy lessons complete.

1. Basics overview
2. Marketing overview
3. Buyers List - Fast Cash
4. Assignment of Contract
5. Networking & your Power Team
6. Marketing yourself on the web

Most of these are common sense, but all of it is VERY good info. It will be difficult to impliment all of it now as there is so much to do.
The program is currently set up to assist me in Assignment of Contracts; however, I find my desire to be in buying and holding. My goal is to create a portfolio of Leased properties, perhaps even utilize Luiz's model (link in previous post). I will probably focus on those lessens that can help meto that end. Of course, much of it is dependant upon me securing finances to purchase.

made 5 offers this AM. Each offer is roughly 50% below FMV and nearly 60% or more below the asking price.

Now I'll sit and wait...

After a busy week with other priorities, I think it's time to focus back on my goals.

Today:
1. Print Business cards
2. Cancel Foreclosure subscription with CRN (waste of money)
4. Confirm Pre-Qual letter (this has postponed all offers)
5. Attend meeting with REIClub tonight @ 7pm
6. Complete the 'What to Look For' lesson from the Academy
7. Record Voice greeting for ghost ad
8. Finalize and pay for ghost ad

hello my friend

sounds like we are both in the acedemy I have been struggling with all the action items and feel very overwelmed. I slept all day today and tonight when i went to work I was fired

More time for real estate

I am working towards having a very successful 2010 hopefully the termination wont detain me

Letz work towards the common goal and be supportive of everyone

Thanks again

Fred E

Fred,

I'm sorry to hear of your current job situation; however, I've learned that it can also serve as a great motivator to make change.

Just remember, every obsticle presents us with more choices.

Continual encouragement is what we're about here.

Had planned on attending the local REI club, but...

There was some confusion (on my part) that led me to not go to the first meeting. Now I gotta wait another month .

Hello Rick

I have had a hard time even finding a REI group

I know there has to be dome investors left in my area
I have tried to contact some of them to no avail NO one wants to return a call

I guess I just keep trying

Later Fred E

I`m still following your posts. I attended my first auction in many years & made contact with 1 buyer and plan to attend more auctions next week.

I`m trying to understand that whole foreclosure auction process and build a buyers list.

Also running some ads to attract buyers and sellers for my list.
( not getting that expected responce i expected;4 ads 4 days 2 replies )

Have not put forth any offers yet.

Just trying to build that buyers list in advance.

I got my fingers crossed 4 u & those 5 offers u made.

I've located a Bank owned home that is roughly $70,000 below market value.
We have spoken to the broker who represents the bank to find a few more details, it is vacant and has MANY ammenities.

I decided to advertise on craigslist yesterday and just received a response this AM from an investor who seems very interested in acquiring the property.

My question is:

How should I proceed? Assignment of contract is probably out of the question due to being Bank Owned. So, should I be a bird Dog and tell the broker of my buyer? Or, should I approach the buyer?

Thoughts?

I would think it best to contact buyer and be transparent of my position with a contract in hand to protect that position.
A contract with the buyer that states a fixed amount or percent to be paid to you at closing.This is to be made part of the contract.
As far as the Realtor that represents the seller (bank)I would disclose the buyers interest in the purchase and provide my contract between myself and the buyer.
I hope this helps. PLEASE also consider others advise. There are always more than one way to do things.

I`m looking into a bulk deal of 12 residential properties in Pa.
The area codes are :
15110, 15104, 15136, 15212 and 15132.
Are you near any of these zip codes ?

I am still in the beginning stages with the seller. These properties are part of a bulk deal that include over 50 properties in 5 states.I already have an interested buyer that will want to flip all properties if he makes the purchase.
Would you have any interest in being any part of this ???

Those properties are around Pittsburgh.

I'm just below Harrisburg (ZIP 17347), which is approx 2 hours east of you.
Hope those all work out for you!

Although it sounds intriguing, I don't think I'm ready to venture beyond my own proverbial backyard...yet.

Thanks for asking though!

Rick

Regarding your suggestions with the buyer. That's where I'm leaning too. I've created a thread elsewhere on the forum and have received similar responses. Just trying to figure out how to practically protect my potential investment.

Thanks

Rick

Hey Sport , Yea , I also wanted to work in my backyard.This seems a very sweet deal so if I can do anything,,,ANYTHING;I`m up for the challenge. I am in Florida by Disney !!!

5 Offers huh? Wow! Hope one comes through for you! I've been trying hard to find an agent that will work best for me. I think I may have found one who really has his ducks in line this time around, but time will tell. I've already gone through 3 agents who said alot of the right things but did none of them. So I'm fireing each of them because of a lack of work ethics. A bit discouraging but not at all detrimental in my endeavor to succeed. You would think these people would take notice to someone who says he's very serious about investing, who has already been pre-approved and who wants to move quickly....right? NO! I think they got scared because they believed me. LOL.
Not really kidding though.

Good luck my friend!

Hey Sport

Hows it all goin?? I was browsing through your "Success Academy Journal" and it looks like you're on the right path towards financial freedom.I noticed on your agenda that it said call up banks to ask about REOs.

We generally know banks aren't that fond of "and/assigns" and tend to decline offers that include such a clause. So my question is since you're not planning on buying and holding at this time, what's your strategy when you call the bank and ask about the REOs?? Has your Success Academy coach given you a way to get around the issue of assigning Bank owned homes??

Jordan

good to see you are moving right along

I have decided to go back and do all the courses again with this time focusing more on the action items I attended the buyers list webinar this eve what a eye opener I think with all the right people in place along with Dean and Jeff things can get rolling rather rapidly I mad approximately 24000 this year at the job I just lost and with apprx 1 fourth of the effort in think I can double this in real estate and hopefully double this again in 2011 and so on Am looking forward too the challenge will be thinking a bit differently now that I have NO job butreal estate has been my chosen field since I was about 8 or 9 years old

Thanks for all the input I follow your journal almost daily

Take care and Merry Christmas and aprosperous 2010

Later Fred E