Lauri's Journ(ey)al

Lauri,
I just got through reading your whole journal. It's funny how much we have in common. I'll PM you later. Congratulations on so much forward progress. I'm so excited for you! I was reading on the DG site about someone buying apts. Did you do a search in the upper left corner of the DG site to see if there's anything in the forums?
Later,
Dawn

They relisted the 112 unit complex for $500,000 MORE than what it failed to sell for before! What!?
They were tired of answering calls offering only 1.2 or 1.1 mil.
Even if you got it for an even million you would have to budget carefully on the repairs.
That thing will never sell at that price.
I was trying to get answers to questions for the guy who is interested in it. The listing agent sent me a gruff email. He said his client had just informed him that I called them directly. LIE. I told him myself on the phone.
He also said I should have had my RE agent handle everything. I told him where I found the property and that I was not going through an agent.
After I got his email I sent him a polite but firm 'don't you bully me' email right back. I may be small now but I won't be for long.
So, on to the next one.
Lauri

Thanks for reading my journal and the kind comments.
Your pm's are kind and encouraging as well.
I did not search for apt. buyers because the one I was looking into was for someone. I don't like that one anymore. Reasons above in my last post.There are several out by you that are very good buys so far. Gotta see 'um in person.
Are you up for it? I'll go by myself but it would be great to have someone along who knows the area. We can look at some properties that you have found, too.
Good suggestion on the search box.
Can't wait to get started.
Lauri

On encouragement from someone on this site I am venturing in to a new town to look for properties. I do hope she will join me.
I have an appointment to see five properties!
They are plex's and apartment buildings in Birmingham, Alabama. Some low income, some higher end. One of them is twelve units and the owner will finance. Asking price is $119,000.
If anyone is at all interested pm me!
Lauri

I am going to Birmingham tomorrow to look at about eight properties.
SingleFamily, Multifamily.
Priced really well.
I have this agent there sending me these incredible properties.
That's the good news.
The bad news is that she knows nothing about assigning contracts. I think she is willing to learn.
Here's the problem, I don't feel confident either. I need a company that will give a proof of funds letter to me even if I don't yet have an end buyer. Some of these properties I know I can pass right on to someone but a couple may take more time. I won't have an immediate end buyer in place.
Should I bring any contracts with me? If so, what ones?
Any suggestions?

Lauri

Hey whats going on Lauri. I know just how you feel. I remember going through similar emotions when I first went to view a house with agents and brokers. Sh** sometimes I still get those anxious emotions to arise. I did not write to tell you what to do but all I am going to say is that whatever you decide to do, Do it the best way that you can because no matter what you cannot loose. Whatever happens you will gain. So go ahead out there and Make it Happen and I will be waiting to see how it turns out.

Best Regards,
Shane

What a day!!
I looked at so many properties my head is spinning.
The first five were all great. Great.
The very first one is listed for $12,900. 3/2/1 the one is on the end is for the garage. On the outside it kinda looks like that's what they would pay you to take it. Awful. However, on the inside it's not so bad. Really in very good shape. It needs a new roof including soffits and facia but the joists and decking for the roof are in great shape. I know this because of multiple holes in the ceiling. Oh,it needs sheetrock on the ceilings.The main living space is on the top floor with a full basement and garage below. The cinder blocks are in great shape down there. No moisture, no cracks. It was assessed for $96,900 in 2009. The neighborhood is very nice. Lawns cut, houses maintained, etc.
The next two are both under $50,000 and they are both assessed in the $100,000 dollar range. These two need very little in terms of rehab.
The next two after that were multi family. One that is two four plexs and one that is a four plex. An excellent property management company is taking care of them. They don't need rehab and are almost full. They just redid some units and that is why they are not full. One is priced at $57 per square foot and the other is $64 per square foot.
I'll say it again Oh My Gravy!
I will start advertising for investors but please if you know anyone willing to invest in this area put them in touch with me!
These are asking prices. I will not put them under contract or negotiate for a lower price until I have an end buyer or partner. I will see them through to the end if someone wants to invest but not be hands on.
Wow, Wow, Wow.
bye
Lauri

I posted in financing and credit. The post was a plea for the DG family to help me think a little differently. I have decided to go after the house for $12,900 on my own. I don't have any down payment but we do own a lot in a partly finished subdivision. I was thinking of applying for a line of credit with the lot as collateral. I have pretty good credit but technically no job. I am a mobile groomer but we are new to the area so we are not as booked up as we could be. There is probably not enough income from that to look good on an application. My husband is in construction so that has been sporadic.
This house was assessed at $96,000 in 2009. If I get it for $10k put $30k into it I would sell it quick for $80k and gross $40k!
There has to be a way.
Lauri

I spoke to a guy last night who can fund my deal.
However, these are the terms;
They give 100% of the purchase price
They give 100% of the rehab cost
I have enough rolled into my request amount for closing
No payments for six months.
They get $750 plus one point up front
either 6 points and 15% interest
or 8 points and 10% interest, I choose which one
They get the appraisal and inspection (rolled in)

I know, I know everyone is jumping up and down yelling about how much money that is. I have no other choice. I have nothing to put down and technically no income to speak of. Less than a grand a month from grooming. My husband works sporadically in construction. Sometimes great money then lean times.

So if anyone knows of a better lender, who is still in business, who does not require me to have any percentage down, who does not require me to have much other income, PLEASE let me know.
Thanks!
Lauri

they are well worth remembering.

from Mike Spillman:
"Even if you're on the right track you'll get hit by a train if you just sit there!"

from Anja Dikeman
I believe that if people don't laugh at your dreams then you are not dreaming big enough.

Love these!
Lauri

Yeah those are nice ones that you picked out Lauri. I especially like the one from Mike "Even if you are on the right track you'll get hit my a train if you sit there!"
I think I would rather jump on this DG train to success instead of sitting there. Besides if I do that I will have all of my wonderful Family like you to ride with.

Keep up the great work and I will see you at the TOP!

Regards,
Shane

I wish there didn't have to be a subject line. Sometimes it's hard to think of something because I am thinking about the post.

So, I don't know where to begin. This will not be in order I just need to get it down.
I went to an REIC meeting in the other town I have decided to work in. I went with someone from this site. Best thing I ever did.
The meeting was so productive I can't believe it. We met a cash buyer who is legit not a wanna be. He gave us a property of his to assign. We gave him a property we got from a lady who arrived early like us and it was her first time there,too.
I also gave him three other properties that I already had. He is going to look at two of them this weekend.
All of that occured because of a one hour lunch meeting .
FIND AN REIC AND GO TO THEIR MEETINGS!

I went to this different town because of this site.
I met a great person who will always be my friend whether we are in RE or not.
I can hold an intelligent conversation on the subject because of the books and this site and my two REIC's.
I have two buyers because of this site.
One of our members on this site is a transactional funder and she will also be a private money lender at some point.
I have the confidence to move forward because of the books and the site.
The site is not just for info but also for support.

Gotta clean the birdcage and the bathroom then get back to searching and researching.

Lauri

I have an appointment with a foundation specialist company. They are coming to give me a free estimate on the first house that I wrote about in this journal.
Most of these companies wanted $550-750 for the estimate. This company is larger and has more offices so it is not as far for them to come.
It's beginning to smell like the 'ole pastor deal' of Shane's.

This is a new Shane-ism

"in order for me to fall, it must mean that I had gained some type of altitude."
Shane Gore

I asked him in his journal if he does it on purpose or if it just happens. We'll see what he says.

it just happens. The Shane-isms. He says he just writes in his journal and what comes out is just what comes out. I'm para phrasing.
He should have been a writer.
Lauri

I LOVE my REIC. It is such a great group and a real battery charger. A couple of weeks ago we had an all day Saturday workshop. They called it REI 101. It was very good. At the workshop I met some people that I had not talked to before. They are all anxious to get started and have all decided on property locating. They seem to want me to help. Funny since I haven't done a deal yet! They were asking for guidance. How to find and research properties, how to find buyers, etc. Of course I directed then right here. So if any of us find properties we will confer. Cool.
I have been sending letters to expired listings. So far the only people who have called are at or near FMV. One lady is 10 months behind. I feel like I can help her but not sure how. It sounds like a lease purchase but how do I do this?
Any ideas are appreciated.
Lauri

Its been a while so I thought I would stop by and check out your REI progress. Its a pleasure to read about the actions that you are taking.
When I come across leads that are asking at about the FMV, I would think you would definately want to see how motivated they are. If they are not willing to drop their price 40%-60% below FMV, maybe it could be a deal for an end buyer, especially since we know an investor will not spend CASH for a property at the FMV. I just came across a deal like this last week. I simply put in my offer which was turned down.
Ive never done a lease option but this could also be something worth checking out especially if they do not want to come down with the prices.

Well none the less you keep on doing the damn thang and all of the answers you seek will be answered by the REI Gods. lol Cant wait to meet you at the TOP!!

Best Regards,
Shane

The one lady I really am concerned about can't come down on her price. She owes 93k and has an 11k equity line. The sold comps run 108-120k. No room for equity.
She is 10 months behind. At my club the main idea was short sale but she is not there mentally yet. I think a lease purchase would work but I don't know enough about them.
Roasted veggies for stock are ready. Be right back...

OK. I got some redneck cappuccino too. A big spoon of instant coffee and three big spoons of instant hot chocolate.

So I am going to one of the threads on this lease purchase thing. Is that what Randy does? I know Greg Murphy is the king but I am not ready to be the sandwich. If I do the sandwich and I get a down payment big enough to cover the back payments and then some, do I get the remainder? What does the homeowner get besides out?
No money right?
ugh
Lauri

A subject to is what Randy does, he takes over the mortgage and starts making payments. He makes up what is owed with the option consideration money from the incoming tenant buyer. You could do a sanwich lease option as well, like you were saying, it's like what Greg Murphy does.

I have been sending letters to expired listings. Amazingly I have over a six percent return rate. I say over because I counted in the letters that came back to me. I did not remove them from the total. Just going by the number of the ones I had sent when I figured out it was six percent return. Unfortunately all of the people who called want at or near what their house is worth. Understandable but they were not motivated to take less. Despite the fact that their houses did not sell at their asking price. One lady is 10 months behind on her payments and was not open to anything other than selling for every penny she owes. Again understandable but not realistic.
So I was discouraged but still plugging along.
One night at our monthly REIC meeting I got to talking to one of the members about pre foreclosures. He really likes that niche. So, my Huntsville partner and I sent letters to some pre foreclosures in that area. We got a call!
We only sent about ten letters so that is a ten percent return. Great!
Anyway the man who called is so nice and feels so bad about his situation. He lost his job but was lucky enough, at age 57, to find not only another job but a better one. Only trouble is it is two hundred miles away. So they bought another house near his new job and have been paying two mortgages for two years. He is drained. Mentally and financially drained. The house appraised for $224K in 2008 and he owes $167K. Bank says he needs $5500 to bring his account current. This house is immaculate and meticulously maintained top to bottom inside and out.
So along comes my letter in his mailbox which sounds like the answer to his prayers. What he doesn't know is that I have no clue how to proceed. OK maybe not clueless but clue deficient.
For instance, the guy from my club says get it under contract. Am I making an offer to the homeowner or his lender? Do I make a lowball offer? Do I offer just what we need to have 30% equity? Do I take the arrears and lawyer fees and closing cost into account?
I can't buy this house myself so I will need to pass it on. I don't mind if it is as a locator or an assignment. I have never done either but if it is an assignment the we get into the whole transactional funding thing. ugh
I have sent a pm to Indiana Joe since this seemed like his thing.
What else should I do? What contracts should I bring when I go in the house on Saturday and to whom are they submitted?
Help!
Thanks DG family.
Lauri

What is the difference between Dean Graziosi and you? or you and I? Carol Stinson and you, other than money? absolutely nothing. We all have the same 24 hours a day to make the best life we can.

by mlaurita

I love it.
I know a young man who is what I call my Huntsville partner.
We have a fish on the hook. I have been marketing the property. Earlier today I said I sure hope someone calls. He said 'Don't say that! Say someone will call. You gotta know it and feel it.' He's right of course.
Between him and the above quote I always get the push I need.
Thanks.
Lauri

We went to see the Decatur house. It is very nice. No equity though. I'm thinking subject to like Cathy said. The home owner said his bank won't talk to him and hasn't accepted a payment from him since May. Has anyone heard of that? They wouldn't even talk about bringing the mortgage up to date.
Well if he is telling the truth then that will make this even more difficult.
So, lease/purchase - subject to - short sale bird dogged to another investor.
Don't know what to do.
Lauri

You are doing great things in REI and really moving along!

I've 'heard' that banks won't accept a payment that is not the full mortgage amount because than they are agreeing to accept the lower amount as a monthly payment. I've spoken to plenty of people who have tried to reach their banks and never reached anyone or had calls returned. So this gentleman could very well be telling you the truth.

Much success to you!

Lea

The Decatur house got snapped up by an unscrupulous company. They are known for screwing both the homeowner and the lender. Don't know details on how. I will find out Thursday night.
Why Thursday you ask?
Well, I have been invited to the home of the President of our REIC for a meeting with her and some other people in the industry!
It's like being invited to the White House for me. I can't believe my luck!
We're having appetizers don't know for sure if it's dinner too. Years ago people did cocktail parties where there were drinks and snacks and then that's it.
It is fine if that is the case I am just happy to have been invited.

There are three houses in Birmingham (Irondale) that I think I will make an offer on. They will be assignments as I have no money. Two are scheduled to be torn down at the end of the month. I have presented them to some buyers but have not gotten a bite yet.
One is a foreclosure in good shape. Needs appliances but other than that is rentable.
The other two are GUT JOBS!
I mean it. To the studs. One of them has a giant holly bush covering the front. Sounds nice, right?
Well, here's the thing, there is no wall behind the bush.
There is no front wall of the house behind the bush.
My B'ham partner and I just laughed. What should we put in the ad?
Unique open air design. How's that?
The owner wants $55k for both but the city is going to charge her $20k to tear them down so I figure that is my offer. Ten thousand each purchase price, thirty two thousand each to rehab is forty two thousand each. Seventy thousand minus forty two thousand is a gross profit of twenty eight thousand each. A local realtor said she would list them for $89k and expect to get $70-75k. That is ARV of course.
I will need to assign them if anyone here is interested just pm me.
The neighborhood is nice. Small houses being cared for by working people. It was peaceful. The realtor used to live in the neighborhood and now rents that house out.

Now in Decatur we are going to see another house that has a foreclosure date of 12/01/10. For once the owner owes less than it is worth. YAY!
I may do an assignment or a sandwich lease. We will see what he is open to.

Oh and the lady who was ten months behind last month called again. I talked it over with the REIC Pres and she said it should be re listed as a short sale. So I passed it back to the realtor who sends me the expired's every Friday since I got it from him.
I can't get over how much help I get. From all sides. From this site, from the club, from the realtors from all the towns I am trying to work in.
I will have lots of paying back to do but it is worth it.

" Don't retreat, just reload."
Sarah Palin

Lauri

OK.
This is my third try. I wrote a post two other times and I guess I neglected to hit 'post comment' if you can believe that.
Anyway it's time to get caught up.
I put three houses under contract. Since I do not have any money the idea was to assign them or just bird dog them. I had broken one of the rules though. Two of the houses are only two bedrooms.
The other was billed as a four bedroom one bath but since that makes it functionally obsolete I billed it as a three bedroom one bath with a large family room. The 4/1 does not have a lot of personality so there was not as much interest in that one. The two 2/1's are very cute BUT they need lots of work. Lots. One of them has a giant bush in front of it and the entire front wall behind the bush has rotted away. If you look at the roof line however it is easy to see that if the wall is repaired the house will be fine. Both houses, they are side by side, have solid foundations. No sagging or creaking floors, no cracks over windows or doors. They need new bathrooms and new kitchens and the electric and plumbing need updating then paint and carpet. These would make great rentals.
I did the whole craigslist, newspaper ads, REIC meetings, networking, flyers, you name it. Rinse and repeat as they say.
No buyers. My contracts expired on December 20th and no sooner did they expire than I get calls from people who had been interested but didn't follow through and purchase. So they may still get sold in the end.
I put them under contract because they were scheduled to be torn down. A local realtor, who knows and owns in the neighborhood, called me to see if I could help. This was supposed to be my first deal. I will keep plugging along. I have to go to night court in Birmingham to explain to a judge what is going on with the house. Should be loads of fun.

I also took a real estate course and have taken and passed my state exam!
Seems like a dream.
Now I have to find a broker. When I started the course I did not intend to be an agent. I just wanted more RE knowledge for the investing side. Somewhere along the way I decided that if RE is all I think about then maybe it would a good idea to WORK IN THE FIELD.
I know, sometimes I'm a little slow on the uptake.

Sorry for the dry post but after three times I sorta lost the fire.

Happy New Year!

Thought I would drop in to say hello. Haven't heard from you since sometime in September and not seen you active on site for some time.

That's tough luck on the contract for the Irondale houses! Just continue to push (as I know you will) and the tide will turn. I now have a somewhat small, but decent local investor/buyers list. Next time you have something in the area, hit me up and I maybe able to help.

Congrats on passing the state exam...a great accomplishment and something well worthwhile.

Have a Happy and Prosperous New Year!

As I wrote before I passed my state RE exam on the 27th of December.
I let the New Year come and go. It seems like people sort of stop working after Thanksgiving and I needed brokers to be in work mode.
I went on the internet and made a list of all of the RE agencies in Dekalb County in the Fort Payne area.
Yesterday I took my list and got in the car in the rain and set out.
Stop number one closed.
Stop number two closed.
Stop number three
'Hi my name is Lauri new salesperson. I recently took and passed my state exam. I am going around to all of the agencies in the area to see if anyone needs another agent.'
The broker looked up at me from her desk and said 'I would love to talk to you.'
Ya coulda knocked me right over!
She is basically looking for someone to whom she can pass the torch.
There is one other agent right now. They do a lot of foreclosures through Freddie Mac. It is very time consuming and she needs someone to learn and help with that as well as service new listings.

OMG! as the kids say these days.
She wants to groom me to take my brokers exam in two years so I can step in and allow her to operate as a consultant.
Wow.
So, even though I do not have my license yet she wants me to come in today and start training.
Lauri

So I will be going today to start learning how things work. I haven't sent the papers for my license yet. It's $235 and it will be a little tight. That's not the end, there's NAR and MLS dues as far as I know.
I still have going to 'the Edge event' as a goal but this year might be too soon. I will have just barely started. Keeping it in mind though.
Well, wish me luck!
Lauri

Well I went in from 10-4 pm yesterday.
I fielded a few calls. Looked at every one of their listings and then began to get familiar with all of the inventory in the area.
I also assisted in putting in an offer to Freddie Mac. They are very touchy so you have to walk on eggshells when submitting an offer.
Good first day.
Lauri

(truly don't like the subject line)
ugh
Anyway, I sent the packet for my license. My broker loaned me the money and she said to wait on paying her back until I have my other dues taken care of.
So nice!
I went to the Dekalb County Association of Realtors monthly lunch meeting.
Like a mini REIC meeting. Thankfully I already knew several people and everyone else was very welcoming. We had a very good speaker and I learned a lot about local industry. My broker used to work in the speakers office so I will feel very comfortable calling on him when needed.
That's all for now.
I'm really enjoying the other journals. It's my favorite part of this site.
Thanks everyone.
Lauri

I got a listing!! It was a referral from another agency!
It's is extra extra rural on a nearly inaccessible 'road' with no driveway, crazy neighbors and possibly no septic. Sounds great, right?!
However, it is on a bluff. If the trees at the edge are trimmed you could see forever.
The house itself is not in bad shape.
It could be really nice up there just needs work now.
It is a sideways trip into the world of investing but I feel like it will support my family and allow me to start investing which is where my heart really is.
Lauri