OfflineToday I decided to start my journal. Hopefully by doing this it will keep me going in the right direction towards my goal of being financially independent. I have been trying to get into real estate investing for many years but never quite got going. I have been thru several real estate investment courses such as Carlton Sheets "No Money Down" course. Went to "Millionaire U" of the Russ Whitney Success Academy. Nothing has kept me focused. But I can't help believing that Real Estate Investing is the right way to go. I keep thinking ?Get a Job man and do this later". I don't want to put it off any longer.
My fear is really overwhelming me at times. But I will not concede to it. I want to help others get what they want too. I also want to prove that I can make a difference by doing this.
I have been unemployed since May 09 when the company I worked for for 15 years went out of business. What a blow that was for me. It is time to make this happen. I am so afraid of losing everything that I have worked for that I keep looking away from this to find a quick fix to my current financial situation. I still believe real estate is the answer.
So here's where I am. I have no money, bad credit and have found what I believe is a potential deal. It is a 4BD 2bath REO that is being offered for 74k. Comps on properties in the area are approx 170k. It needs about 20k in repairs. I had a home improvement guy look at it with me and said it was a great deal that would surely make money. The realtor says he has a private lender who will finance 70k for the purchase and 40k for the repairs but they need someone who has a 670 credit score. That's not me or my home improvement friend. I want to put in an offer but don't know how nor do I have the money for closing which the realtor claims would be about 16k total including the 4k the private lender is not providing. HOW DO I MAKE THIS DEAL HAPPEN????
Where is the house located??? Do not post address just town
The property is located in Pikesville Maryland
You are right justplain-e and I know this will work. I just need to do my 1st deal. All the help and encouragement I can get will help to enforce that. I must and am determined to survive!! Thank you!
Found out last week that my 1st deal went to someone else. Been feeling kind of down but still know I must move on to the next one. Must keep trying before it's too late.
dwatt23, I just upon your post dated 7/20/10 titled; Didn't make the deal. I read your thread. I'm a little late and new to this site so forgive my asking; R U There? as in continuing towards your goals in this Real Estate venture?
You and I must have sat in on those same seminars of the pass. Please tell me you haven't bailed out. For if you have respectfully consider my note as a type of putting my foot to you where the sun don't shine! Get your bum ass back in the run! We all run the risk of loosing every and boy do I know this oh so well, but the GAINS out ways every lost more and beyond 10 foal. GET UP! Day light is burning!
And for the record I like to think I can count on you to keep me motivate as well.
Sammy C
Are you still there or have you moved forward?
If you are not climbing you are sliding -- there is always movement either forward or back. So keep pushing forward.
The beauty of RE Investing that you don't need your own money nor do you need good credit- YOU CAN WHOLESALE OR DOUBLE CLOSE IT- AND YES YOU CAN WHOLESALE A REO.
If you find a screaming deal like this again you can make the offer(see offer formula in the videos Matt does on this site) lock it up and send it out to your buyers list.
On an REO:EXAMPLE
if you lock it up at 50K, say rehab is 20K and misc closing are ??(closing costs) another $1000- add your "fee" lets say 10K so your end buyer is all in at 86K right?. Lets say the ARV is around 125K- so that's a potential profit of 39K for them! YEAH... I say 10K only to cover any additional closing costs that may be associated and to ensure that you get a good return for your time as well.
Here is how its structured: Mind you this is ONLY an EXAMPLE and you should consult your realtor about this in your area.
You have a purchase contract for 50K with the bank thru your realtor. You can turn around and do a sale contract with your end buyer selling it to him for 65K and you can sell it to them thru a double close-the title company will use his money to fund the entire purchase and you make the $$ in the middle. You can talk to your RE agent about setting this and the REO title company typically can facilitate this as well if they are aware of it. Bottom line You never use your own money(except maybe the down payment but you get that back from the buyer)
Good Luck and PM me if you have any other questions!
You Deserve to be a Success!
Jeff & Melissa
Heflin Properties LLc
NW Indiana