A.N.S.U.N. REIC JOURNAL

Advertise a REO property to get a response to a property I've been eyeing. (this is an reo that with a FMV of $155K... the bank is asking $119,900) This property is in Texas. I sent my dad (who is a general contractor) to view the property. He told me it was going to be about $40K - $50K in repairs/upgrades - (mostly cosmetic being that the home was built in the early 70's)...

These numbers are not acceptable!! I plan to make a bid with detailed run-down of all repairs/upgrades needed to bring this property to turn-key condition. (I know the bank knows that it will not sell in the current state - which is reflected in the two (2) reductions in pricing in the 30 days it's been on the market)

My plan is to offer $50K with the itemized details of fixes and their costs... In the meantime, I will advertise it. (I'll supply a link when it's done)

It seems like you are already taking care of business...Thats what I like to see...Thats Exciting!!!

Hopefully Carolyn, Angela, and myself gave you some out of the box ideas that will help you head in the right direction...My whole idea is, you have nothing to lose...

I know, if nothing at all, our meeting was very positive, which i needed and enjoyed...

Great job getting our group's Journal up and running!

Thank you for doing it

One task you can check off your list as accomplished!

Accountability is key. I never had a journal here before, I really know it makes a difference.

Angela

Loved getting together again, it was another really positive meeting. No denying that it makes a difference to have friends to do this with.

Is Carolyn going to join the site and get her own account?

Angela

Marc - You guys absolutely gave me some great ideas!! Angela - having you guys to motivate and bounce ideas around is priceless - for sure.

I will post my craigslist ad this evening and see where it goes from there. I am still waiting for an itemized "report" from my dad so I can go at the bank. (Loved that idea to ask the bank for reno funds!!) Let's see how it goes.

Marc - I think Carolyn would be a great asset to our group. (Officially) How about it?

I don't know if I could get her to join the site, but I know she is interested in real estate and I think it would be great if she does eventually get her license like she had mentioned...I think meeting with you guys periodically will help motivate her and keep her moving in that direction...

She is just like everyone else...needs motivation, needs positivity and really enjoys that like all of us...

I know that we both agreed that the meeting was positive...And in my book, you can't beat that...

Rasheem - Def let us know what happens during the process...Especially when you make the offer to the bank...I can't wait for that...

Any progress on getting the estimates for the work that is needed on that property?

Marc,

I rec'd the estimates last night. I'm going over them now. I'll be putting in the offer tomorrow. (cross your fingers)

Btw: I sent you the email WITHOUT the actual text from the ad. (go figure) It seems like I lost the text also. I'll reproduce it and send it to you. I should've posted it and edited it where needed. (learning as we go along - ay?)

http://houston.craigslist.org/reo/2450662883.html

Check it out... Let me know what you guys think. I'll be putting in the offer tomorrow. I don't have funding yet, but let's see how it goes.

Hi,

I have been SO looking forward to finally reading your ad.

I have had some email issues as you know, use the second email address that I gave you or send me a PM here anytime.

I am really interested to know what kind of response you receive to your ad, please let us know.

Angela

Angela.......

I am looking forward to this as well..... I hope this HAPPENS!!

What do you think of the ad?

one suggestion i might make because we have a tendency to do this ourselves: make sure your dad is estimating the rehab according to the neighborhood. my significant other is a GC as well, but he tends to want to make things nicer than the neighborhood calls for, and that can really eat away at your profits. a lot of rehabbers here in my area do really cheap work and we won't do that, but we need to be sure we don't overdo it either. in case i'm being confusing here: don't take a $50,000 property and do a big rehab that would be more fitting for a $100,000 property. when the rehab is mostly cosmetic, $40,00-50,000 is a lot. around here a major rehab is usually $25,000 at the most (unless you have foundation problems) and i don't think TX is that much different from my area. just thoughts and suggestions that i hope might be useful.

I still didn't get your ad. Can you please send it to me in a PM here.

Angela

Hi,
Excellent point about the cost of rehab. thank you for taking the time to post.

Angela

Thanks for the "heads up"... but I wouldn't have to save myself from my father. I would have to save myself from MYSELF.

Being a real estate agent in NYC, you see high-end finishes ALL THE TIME, and [for me] envisioning a rehab will alway mean reaching to set my property apart from the rest. You pointing this out I'm sure will put a curb on my vision of grandure. (sometimes you just have to hear it from someone else - huh?) The $ amount I think has mostly to do with how big/old the house is. It is mostly cosmetic, but my dad said it would be a good idea to upgrade plumbing/electric. We'll give the final determination when we get the inspection. (hopefully we'll get to that point)

Angela,

I posted the link of the CL ad above. I've been trying to find the ad on my own, but I can't seem to find it HELP!!

FMV = $155k

Bank asking = $119,900

Sorry

Awesome progress...I didn't get your craiglist email, but im glad you posted it on here...it looks really good I think...you are doing pretty well...

forgive me if you answered this already, but I had to scan the journal cause of time right now so didn't get to read everything...When are you planning on making the offer to the bank? and set time as far as that?

Marc,

I'm planning to make an offer by Thursday. I'm having my dad revise the invoice estimate... and he's suggesting (cost permitted) that we replace the windows with energy efficient windows... I told him "As long as it falls into the $50K max budget for repairs/upgrades and the bottom line matches up, I'll be all for it."

What do you mean by set time?

Can someone look for the ad on CL without using the link? I am having a HORRIBLE time finding it. (as if I was searching in general)

I am pretty good when it comes to finding things on CL. Couldn't find your ad though.

I like your ad but my advice is to try and post it again. There are literally 1000s of listings in the Houston housing section since Sunday. If you and I can't find the ad and we are actively looking for it, it is a pretty safe bet that potential buyers will not find it either.

Something was confusing to me though:

$140000 / 5br Asking $30,000 BELOW FMV + $30,000 IN YOUR UPGRADES

I am not sure what you mean by '+ $30,000 in your upgrades' means. (Does it mean $30,000 worth of upgrades are included in the price?) I think you should re-word that part.

Angela

"What do you mean by set time?"

Sorry...I meant do you have a time to make the offer by...

When most people say, Im going to do this and do that on such and such day, its more likely to get done when you set a goal...

rather than saying, ill do that when such and such happens...

so, all i meant was make sure you have a goal of when you are going to make the offer by, and STICK to it...Make it happen...

im terrible at explaining things...hope that helped

i agree with Angela...I also couldn't find your ad...

Also, I would reword the part of the ad "+ $30,000 IN YOUR UPGRADES"

I like the idea of you adding that in, but I would def reword it somehow...I wish I had more time or Id try to think of some other options for you...

I am not exactly sure either what Marc means by 'and set time as far as that', but knowing Marc I think it is his way of getting you to commit a deadline/goal for making the offer to the bank.

Angela

Marc,

While I was writing my response about what did you mean(above)you had already explained it.

I was right, love that!

Angela

Angela,

I absolutely meant the $30,000 is included in the price. I'll make it clear in the ad itself. I really don't know why the ad isn't posting. I followed the directions... and NOTHING. They provided the link and everything. Idk...

I'll try to repost it and see what happens.

I DID have plans to make the offer YESTERDAY!! However, I want to submit the estimate on the repairs/upgrades at the time I submit the offer. My dad told me he would have it for me by Wednesday, so although I agree, my actions shouldn't be contingent on someone else's actions, it's part of the strategy in getting my low offer accepted. (also asking the bank for reno $ - THANKS THANKS THANKS THANKS THANKS for that idea!!!!)

Hope it works!

I agree with waiting till you get the repair estimate...Just make sure your priority is as soon as you get the estimates, get that offer to the bank...no procrastinating...

You are too good!!! Commit, and Do it!!!

I was reading and singing your post at the same time! Love it.....you just remotivated yourself. Stay tuned to the DG Family.

Blessings,
Sheila

Thanks for your post, we are 'singing our post' all the time too ...

For you, smile along with us: http://www.youtube.com/watch?v=fVKjC_simy8

Angela