Kolby Journal --- Working towards retirement

Congratulations for starting your journal it is a great way to keep yourself accountable and share your insight and knowledge with other DG Members. The DG website is fileld with information and inspiration. Try to do a little each day to get you closer to your goals and dreams. Information and learning will build confidence and confidence will help when taking action. Good luck with real estate investing as you get one step closer to yoru retiurement! You can so it! Believe and Achieve! - Joe

Joe,
Thank you for visiting my journal. It means a lot to me that you took the time to read my journal. I have read your journal from the start to the finish, and I must say that is quite a magnificent feat to accomplish in 10 months. I know you are planning on retiring relatively soon from your day job and do real estate investing full time. You will do a fantastic job at this as you have done on all endevours you have taken on. You have inspired myself and so many others with your knowledge and your willingness to help others with any problems they might encounter. This web site is truely amazing, there our so many members out there that want to help everybody to get that first deal and continue on and become extremely sucessful. This is a family and I am proud an honored to be a part of it. Thank you again for visiting my journal and I will continue to read your journals each day to see what type of tips or knowledge I can learn from it.
Your friend Kolby

Last year I attended a Tax Sale in mid October of 2008. I was the successful bidder on 2 proprties. These sales require you to put your money down, to pay back taxes, penalties,and overbids on these properties and receive interest on your money during the redemption period (in our area that is one year) If the Owner or anyone with interest in the propety pays the back taxes plus the interest on the overbid then the property is considered redeemed. The successful bidder then gets the money he puts down for back taxes plus any penalties, plus interest on the overbid. these are calculated at different rates. One of the properties I was the successful bidder on was redeemed after 11 months. I received my money back plus interest. I received Dean's books at the end of September, if I had gotten it sooner I would have known the strategy that someone else used to get this property out from underneath me. I later saw this property on Craigs List it sold at a nice profit. I received a good interest rate on my investment but I would have liked to have gottten the property instead. What else did I receive other than interest, a $25,0000.00 dollar lesson. As I had said if I used the strategies in Dean's books and the knowledge of all the members on this Web site I would have a nice cash flowing property. The lessoned I learned Priceless!
DG family lets use these strategies and add some nice properties to our Portfolio's. ---Kolby

On saturday I finally received the deed to my other tax sale property. So saturday evening we went over to the property to find out hat we bought. The information I knew about the house amounted to a 2br w/basement house. This house has been sitting empty for a year or more.What I was expecting to find was an empty house with some trash left inside maybe some holes in walls, and a basement full of water that would have to be pumped. Judy and I arrived there and approached the back door, at this time the neighbor across the street yelled out that nobody lived there. We told him that we had bought it, at this time he came oveer with his son. One of the panes in the back door had been broken out so all I had to do was reach in and undo the dead bolt and open the door. Judy, myself, the neighbor and his son went into the house. It wasn't anything that I had expected the previous owner had just walked away He had left everything furniture, Items hanging on the walls and newspapers on the floor approximately 2 feet deep around everything . The front door wouldn't open because of all the news papers. To walk throughout the house you had to walk on top of the news papers. Every room in the house was packed like that even the bath room. We walked though the house and all I could say was I can't believe this. At this time the neighbor offered to buy the house off of me for twice what I had in it. I would not have to clean up anything and double my money. I laughed and declined his offer, but got his information so I could put him on my buyers list. The basement was laid out the same as the main floor with a kitchen and a bath and a space under the front porch that could be used as a pantry. To my surprise the basement was dry. This is truly a GEM in the rough. I need to get busy hauling all the newspapers and trash out of this place to see what I really have.
Wish me luck on my new property. ----Kolby

So thrilling for you! And you'll find that first post keeps you focused since it is on the top of all your journal pages from here on out!

Awesome that you shared your story on your first tax property and the strategy you learned from Dean's book for next time. I'm so glad to have learned from you on that as well. Because you know there will be a "next time" and now you know, and people never make those mistakes twice. It's just a matter of time before that extra $25K is in YOUR pocket

YAY on your new tax property! Interesting...yes, keep us posted on what happens when you take out the trash..this is like a great story that I can see unfolding.

Don't forget ----GET YOUR CAMERA OUT NOW!! (if you haven't already) Take pictures of everything so you can have "BEFORE" and "AFTERS", even if you don't know what strategy you are using yet or what you're doing yet...you'll love to remember this one!

Good for you for not forgetting to put that neighbor on your buyer's list. You're not missing a beat.

I'm excited for you and glad that you're sharing this all with us so we can follow your success.

All the best to you on this one...just the seed for many more!!
Louisa

Thanks for stopping by my journal, it means a lot to see others like yourself who are doing well in real estate taking an interest in what I am doing. I continue to read your journal. I'm addicted to it, I think I will be just as excited as you when you sell your house. About your auction is it going to be one with everyone their so you can see who you are bidding against. If its an on line auction, I have never been to fond of them. I like to see everyone and the active bidders so you can tell if someone is trying to run the bid up. The last auction I attended, the auctioneer did something a little different. He had a timer, when the last bid was made he started the timer and gave everone three minutes to make another bid If no one makes a bid the auction is over. By the way that house sold for 90% of FMV.
Good luck Kolby

The first weekend Judy and I pulled 27 bags of trash out of the house we got from the taz sale. The bags are not small bags they are 33 gallion bagss. We barely made a dent. We cleared an area arond the front door and were able to change the locks. We also cleared out in the dining room and found that the hard wood floors had buckled from humidity.

The second weekend we filled 48 bags of trash. It is finally getting to the point you can walk through the house instead of crawling over it. This is quite an adventure. We are just getting into the second bedroom, you just step into the door. Oh I forgot to say we found some old LIFE magazines, one of them had President Kennedy and Jackie Kennedy on the cover. There are some really interesting things you can find in a house like this. Well I have to go now I will keep everyone posted on what happens with this house.

Kolby

The first weekend Judy and I pulled 27 bags of trash out of the house we got from the taz sale. The bags are not small bags they are 33 gallion bagss. We barely made a dent. We cleared an area arond the front door and were able to change the locks. We also cleared out in the dining room and found that the hard wood floors had buckled from humidity.

The second weekend we filled 48 bags of trash. It is finally getting to the point you can walk through the house instead of crawling over it. This is quite an adventure. We are just getting into the second bedroom, you just step into the door. Oh I forgot to say we found some old LIFE magazines, one of them had President Kennedy and Jackie Kennedy on the cover. There are some really interesting things you can find in a house like this. Well I have to go now I will keep everyone posted on what happens with this house.

Kolby

Thanks for making sure we took pictures. Judy took several pictures before we ever started on the house. Documenting the houses that and deals is a good way to keep us on line of where we are heading and where we want to be in a few years. It is also nice to look back and see the adventure along the way. In about four or five years you will look back at pictures of your first deal, you will see the house that you bought and transform into a really nice and beautiful home. The pictures help to show others what we have accomplished and are capable of doing when we set our minds to it.
Thank you for keeping us on track and be sure to keep us posted on your house and your baby. --- Kolby

Congratulations on taking action and starting a a journal. It sounds like you are on the right path in building a team.

Thank you for visiting my jourmal, I see you all over this site and looks like you are doing well as an investor. I hope to keep learning from you and all the othr DG family.
Kolby

I have spent the last few days clearing snow. I get everything cleared off one day, then the next day it snows again, clear it again, and it snows another time. We finally got a break, time to get back to work on my REI. I went and looked at a fire damaged proerty the other day, to much work to take on at this time. Will keep it on my radar. Removed 48 more bags of trash out my tax property, can see the floor now in several rooms great progress. We found an Indianapolis 500 hat in the house, it had several signatures on it one was A.J. Foyt and another was Poncho Carter. the other signatures I'm not quite sure who they are. Have to go now.
Kolby

Sounds like some ebay opportunities to me.

Cathy

Thank you for stopping by my journal. You are absolutely riight there are excellent ebay oppertunities here. I have never done anything on ebay before, but I have been reading Indiana Joe's ebay journal trying to learn more about it. I see You all over this site and it means a lot to me to have you visit my journal. I hope that all of your REI adventures will be fun and prosperous.

Kolby

Thats right I haven't been working on my tax sale property. I have another house that just went empty. I have to get in there and clean it up and do some repairs and updates. The renter left and didn't even tell me he was leaving. I can see why when I got there. There were three cracked windows, the bath tub faucet was leaking, three sreens out that had been torn, and a broken door jamb. This renter beg me to let him move into this house two years ago. He was an all right renter, late on the rent in the past few months, but everything seemed OK. Last month I had to go over and collect the rent, the house was in good shape then, I don't know what happened but when I went to collect the rent this month he was gone. Some furniture left in the yard some in the house. I don't know why some people, when things go bad in there lives they tear up someone else property. Well things could be a lot worse, next time I will listen to my gut instinct. Now I have to get back to work. Good luck everybody on all your REI adventures.

Kolby

Judy and I spent the weekend cleaning on the houses. Saturday we worked on the rental cleaning it up, washing the walls and floors. Sunday we spent the day on our tax sale property. Amvets is going to be in the area on tuesday, so we cleaned out the closets and got twelve bags of clothes out. We got seventeen bags of trash out. We are slowly getting it cleaned out. It snowed last night I'm going to go out and shovel snow, I'm looking forward to some warm weather. We need a break, it is time for some of this snow to melt. I hope everyone finds a great deal to invest in soon.

Kolby

Yesterday I spent shoveling snow, buying supplies, and trying to locate owners of some vacant houses. The trip to the assesors office showed the taxes were mailed to the same address as the property. I will just have to deepen my search. I hope we are done with this snow for a while I'm ready for spring. Good luck everyone on finding those fantastic deals out there and if you haven't found one yet, Keep looking because you will.

Kolby

Sorry, I've been busy working on both houses and not on this site. I'm trying to find a 100 amp circuit breaker box that is 12 1/2 inches wide instead of the normal 14 1/4 inches. I found a Crouse Hinds box in a house that is 13 inches wide that would work with little modification, but I can't find any one around here that sells it. Painting on one house and boxing stuff up in the other. I'm going by another electrical wholesaler to see if he has anything that might work. Wish me luck. If anyone knows of some circuit breaker boxes that will work in this application, please let me know,
Thanks Kolby

Yesterday, I went out with my friend Rick, we looked at possible investments. Last month we got together and I was telling him about my real estate investing. Rick thought that might be something he might be interested in doing. I gave him my copy of Dean's book {Be a Real Estate Millionaire } and ask him to get back with me. Yesterday we got together and looked at some properties. He is very excited about getting started in real estate. He has some money in the bank that is not making very good interest and wants to do more with it. He contacted me about partnering up with me. I hope we do many deals together. This goes to show you never know what doors will open when you share your goals and your path on how to get there.

Kolby

I spent some time today catching up on the DG website, reading some journals, and looking for some new deals. There is all kinds of information available on this website, I don't know if I will ever be able to absorb it all. The good thing is, if you need to learn something you can look it up or ask someone, because there are so many nice people that are want to help you on this site.

I spent yesterday painting at one house while judy was at the other boxing things up. Hopefully we will get the tax sale propery empty so we can start working on it. It's like preparing to move. there is a lot to do so I better get off the computer and get to work.
Kolby

I hope you realize a great profit!

My mom, sister and I went to an auction where the house was left like that (although there was some mold too so was not as much of a gem)..the buyer still got a good deal though.

Ironically, the party who lost the house ended up renting from my mother who bought a foreclosure and fixed it up in the same time period (my first sale as a Realtor in Ohio) unbeknownst to her..she is a little casual in her business. (I figured it out after the fact..yikes). She's done this for 20 or so years and it has worked for her but I told her she really should be more careful. The twists and turns of REI.

I don't know how I missed your journal but just read all of it. WOW! Congratulations on the tax sale house (and all the interesting finds inside) and congratulations on the 2nd house too! I'll be following your journal.

Did you find a circuit breaker? Wish I had a suggestion for you but am not familiar with this sort of thing. You've probably already thought of it but did you google it to find more info on where to find one? Maybe you can find one on e-bay or CL? (As Joe does so well with.)

Sorry to hear about your renter that took off with no explanatin and also damaged your property. I don't know why people do this either. I've heard about people leaving foreclosed properties where they took hammers to the tile floors, drew a bulls eye on the wall and used it for darts and in some cases poured cement in plumbing areas (toilets, sinks, showers, bath, etc.) I understand people's frustration about their awful situation but do not understand destruction.

I wish you lots of success in REI!

Lea
SPR Property Solutions, LLC

Thank you for stopping by my journal. There are several good deals out there a lot of them are gems in the rough, it is just hard to reconize them.
I'm glad to see your mother was able to rent to those people who lost there house. I hope everything goes well for her. It sounds like you have an excellent mentor in your mother someone who has been doing this for twenty years. Using Deans strategies and your knowledge of real eatate you are sure to go far. Good luck in your new career and your Real Estate Investing.

Kolby

Thank you for stopping by my journal. I see you all ov
er this site, I guess we follow a lot of the same journals. Real estate investing has always been a passion of mine, I just haven't been as successful as some of the others on this site. With the help of everyone on this site I'm sure I will be more successful. It takes Investors like you and me interacting with other investors to help us all succeed. We can all learn from each other, from our success's and our mistakes and I have made many mistakes, each one of them have become a learning experience. About the circuit breaker box, I had to modify a box I got from Menards. I am a sheet metal worker by trade, and have modified several electrical boxes for local electrical contractors. I was just hoping I could just buy one that would fit, rather than spending a day cutting and welding on this box to make it fit. all of the components in the box are in there original positions and the faceplate mounts like it originally did, so theres no problem with it.

What is the name of your journal? I want to follow the journals of everyone that visits mine.
Your friend Kolby

Sunday Judy and I spent the day over at the Tax sale property. The temperture outside was about 50 degrees and around hear thats a heat wave. We spent the day working outside, Judy worked in the garage bagging up trash and boxes. I mounted the weatherhead and cleaned out the gutters and swept off the roofs. The roofs will have to be replacced they are not leaking but they are on there last leg. While we were outside working several of the neighbors stopped by to say hello and to find out what we intended to do with the property. One neighbor does a side business of computer repair. We had several old computers in the house that we found. It was looking like we were going tohave to pay to get rid of these. I asked our new neighbor if he might be interested in these old computers for parts. He was very excited and took all of them. He told me some of the old circuit boards are hard to find. A win/win for both of us, I got rid of the old computers that I didn't even know if they worked and he got several parts that he could use in his business, and made a friend out of one of the neighbors.

It is interedting I didn't notice but judy did, every man that came up thought the house was a good deal, every woman that came up thought we were nuts for buying the house. If only they knew we were able to get this house at fraction of its fair market value.
I have to go will keep you updated on future developements.
Kolby

I attended this years tax sale and there were three times as many properties as the last sale. I started my list with about 120 properties I was interested in, by the time of the sale there were only 18 left. The sale lasted three days. the properties I was wanting to bid on came up on the second day. I was successful on obtaining the winning bid on five tax liens. The owners have up to one year to pay the taxes and penalties to redeem there properties, if they do not they lose there propertty. According to the treasurer there is a 65% redemtion rate. If that holds true I might come away with one or two of the properties I bid on. We will find out in one year. This tax sale is very interesting there are people who show up hoping to get just one property, there are people who show up to represent large financial institutions, there are people who are there working with a group of small investors money. Some of the people have only a few thousand dollars and some havve several million at there disposal. If you start bidding on a property and there is one the big money representatives bidding against you you might as well drop out you will not beat them, they have very deep pockets and are looking for a nice return on the money they spend. Where as I am looking to get a great bargain. Well in one year I will know how well I have done. I will keep you posted.
Kolby

love reading about your deals. i have often wondered about getting into tax sales, but that may have to wait a little while right now. what state are you in? sounds like you are having lots of fun and it's nice that Judy is right there with you.

Thank you for stopping by my journal, I'm in Indiana like you. Yes I am very fortunate that Judy is right there with me helping me. This is kind of new to her, she still at times is a naysayer, but her attitude is changing. She was kind of worried that I bid on five properties at the tax sale. I have a friend that I grew up with that has invested with me for a little over 21% on the five properties. That made her feel a little more confortable.

Real estste is an adventure, it is the only way I see that I or any other person like us can achieve financial freedom. It is a true passion of mine, I like every part of it, from obtaining the deal, to fixing up the property. It sounds like you have the same passion for it as I do. You will do good in real estate you have so many things working for you. Don't get into a big hurry, learn as much as you can and be ready for that deal that comes your way. Then you can snatch it up.

Kolby

I had mentioned earlier about telling my friend Rick about what I was doing in real estate, I gave him my copy of Deans book to read. After reading it He was very excited about getting started, Like so many of us are. Well with limited funds and still not having that confort level to dive right in, He has decided to take some money he would have had invested in a CD, an invest it in the five properties for a little over 21% interest in the five tax liens.

We drove around last week and looked at all the properties. He is just like me, he would rather get the properties rather than get the interest on the money if the properties are redeemed. He is very confortable investing with me, where the least we can make is 6% on our money and stand to make a lot more, and might even get a house in the process. We did this just like any business. We drew up a contract between us so we each know where we stand, if we have any changes in the contract, we can modify it with an addendum. It really feels great helping someone else get started in real estate.

Kolby

Judy and I have been cleaning up the yard on our tax sale property. There are several mature trees on this prpoerty, that means there are many many leaves to rake up. Upon raking up the leaves we found ivy all over the lawn and virtually no grass. So we have been pulling up the ivy and cleaning up the yard. All the neighbors say that we have done a great job on the house and we have done so much, it doesn't seem like we have done a lot to us though. Maybe that is because we know there is so much more to do. We will keep working on it till we get it done. I hope everyone out there finds a deal to invest in this month. Good luck in your Real Estate Investing.

Kolby