My Deals

Hello everyone, I met with the first member of my "newly" formed team.... The meeting with the RE agent went very well. I was not too surprised because this same agent continues to send me via email all the MLS listings on Foreclosures and REO properties.

She (the agent) appeared very excited to join the team as we pursue building wealth via RE. She provided me with names of an Escrow officer, RE attorney, Contract attorney, Appraiser and Inspector. I explained to her I would begin working on my funding sources via HML, private lending and cash buyers.

Hi DG Family,

I have a property, which list for $314,000 .... comps via Zillow.com show between $275,000 - $350,000 over the last 6 mos.. I maybe able to secure the property for approx. $275,000, after listing on the market for nearly a year!!!

Q.#1.... Is there enough margin to wholesale the property, if the owners owe less than the purchase price? Q.#2... how should I approach the listing agent on the property and should I offer less than $275,000?

I saw a developer that has some homes on craigslist and she is advertising 0 down. I have emailed and they say that they have some investor homes. I told her that they had to cash flow or at least break even. for me to consider them and she said that we should talk.

They are all NEW homes, and it is sounding like they will carry them....Even though this seems like an easier proposition....I still intend to try to get them at a discount.

I am hoping that they are desperate....I plan on testing the water with a Multi Unit question like.....

We got our very first deal! It was not a very smooth transaction but applying all the things I've learned we were able to get through our very first property.

We made about over 10 properties in October and 1 got accepted in the 3rd week of Nov. Tooo many obstacles happened before we finally closed the deal:

It was an REO property, 2 bedrooms 1 bath condo listed at $55,000. I offered $45k, got a counter offer of $52k. I offered back at $48k (with higher earnest money).

November 25th : They accepted $48k and then now the challenges came!

OK, so I admit that I have been holding back a bit. I buy real estate really, really fast. I push my self very hard even though I don't have to. I could just take it easy and enjoy the good life. My problem is I love figuring out new things that other people don't know yet. The way I do that is I push beyond my limits almost everyday. Once I am beyond my own limitations and I am doing deals that I can't afford I get backed into a corner and I go into survival mode. Survival mode is a very painful,scary place to be, but it is also very satisfying once the problem is solved.

I have been looking at a lot of 6 family properties and it seems that a lot of them are cash flow positive (not small amount either). My question is this: why aren't investors snatching these up as I see that they are usually on the market for a while? In addition, they seem pretty affordable and are priced well compared to say a 1-3 family. Also, can you please list some of the cons associated with a mult-family property pertaining to 6 or more units?

Many thanks!

As I sit here at almost Midnight ....I am contemplating my phone call to the success academy in the morning. Why? Because I just scheduled to meet a seller in the morning for brunch to sign my FIRST DEAL,and I don't know how to fill out my first PURCHASE AND SALES agreement.

Here is the email I received from the gentleman in response to my Craig's List ad.

"Hi Sam,

Ok - my frustration has reached an all-time high. I have not posted for a while, but while I've been gone I have been working real estate EVERY DAY. I actually have money for a down payment as well as pre-approved financing and cant find a deal!

Okay, I found this listing, and it sure sounds interesting, but I am not understanding all the terms and numbers. This is a coastal property:

"Nestled up the hills in the trees rests 18 cheap condo conversion ready apartments for sale, 2 buildings consisting of 6-2 bd and 12-1 bd all with blacony and views of the bay, airport, sunsets. and mall. High school and JR high walking distance. Alway 100% occupied. Private carports, storage and on-site laundry. OWC with $400K down, current 1st is 3.8% and assumable. $120K GSI. 7.5% current CAP rate. 2 daily flights to and from Portland and SF. "