Laura J's Journal

I can't believe I missed you starting your journal for 3 days.

Congratulations on your sale and moving onto your next deal! You're doing great!

Keep us posted on how it goes. That was really inspiring to watch as your last one played out!

God bless,
your DG sis,

Rina

Laura,
That's great! You're quite the deal maker now, go get 'em girl!!
Keep us posted on the outcome...

God bless you,

Hey Rina & Elena - how are you? Sure look forward to the day we actually meet! How fun will that be?!?! My closing got delayed yet again...but its on for tomorrow FOR SURE at 11am. Just hung up with my lawyer. FYI to everyone out there....FHA loans have a new requirement that a deed cant change hands within 90 days of any closing. The filing of mine into my LLC name wasnt official until 9/4! It got lost in the shuffle at town hall. So beware of this, and keep on top of your dealings! Luckily my buyers were VERY motivated and were able to find and get a conventinal loan in 2 days. I was sweating it out over the weekend! But I am so relieved and cant wait to walk out with that check in hand! On my newest offer - my realtor was so impressed with my offer package that she called everyone in her office in to see it! I must say I impressed myself too! Nice cover letter, detailed pages of repair needs and costs, and photos to back it up. Now its the waiting game....in the meantime I'm still lookin! Wow - the ups and downs of this business are pretty crazy but I love it! After my closing tomorrow I will run my numbers and let everyone know my final and actual profit on the house. There are a few unknowns to me at this point - like the amount of the realty transfer fee, and how much credit I will get from taxes, etc. So I'll let you know!
Love & Light to everyone!
Laura

Can't wait to meet you, too!
Now you need to go back and gather all your posts and write your new book, Laura's "House-Flipping 101".
But really, I am so impressed with what you've done, especially in the market we're in. Your family must be very proud.

Hey, question. What is your confidence level now going into the second one after successfully completing the first? I imagine there aren't quite so many butterflies. I mean, it's different with each one, but isn't it nice to have that first deal behind you and the confidence, motivation, and experience to move ahead? It just gets easier. Like I said before, you are really an inspiration to everyone on the site. Thank you, Laura.

your Dg sis,

Rina

P.S. Lena and I will take you out to a celebration lunch when we get to meet.

OMG - I just typed a reply so long I got timed out or something and lost it. Darn! Guess its a sign I should keep it shorter ha! I'll try.....
But honestly, without you, Elena and others here I would not even have a story to tell. When everyone around me doubted me, I would come here to reaffirm my faith in myself!
To your question about confidence on my second offer from the first - TREMENDOUS DIFFERENCE. I learned sooooo much on my first house, and where I was faking my way through most of it then, I now have first hand knowledge. (and my hands have blisters to go with that knowledge ) But there is no greater teacher than experience.
Thanks to Deans teachings, I found a house in a great location, and this was paramount to my being able to sell it so quickly. So patience in doing your homework on price and location is imperative and NOT an option to success!
I hope I dont loose this post again, but I really want to share a few of the things I learned that might help someone else:
1. Once you've found a house you want to make an offer on, download or make yourself a good assessment form to take with you. I learned from this house that there are things to look for that may seem small but really add up. I created a form that starts from the sidewalk when I pull up, covers all the exterior, then goes room by room, ceiling to floor. I also take pictures for later reference.
2. Before you buy, visit the town zoning office and find out what is required of you as an owner to obtain a C/O, and the costs of their permits, inspections etc. This is public info and can make a big difference. For example, the town I just worked in did not allow cracked sidewalks or driveway aprons..it cost me 1500.00 to replace it! So do your homework in that respect.
3. Never be afraid to present your offer. The worst that can happen is they counter or say no! But when you figure your costs ALWAYS pad your repair list by 20-25% for unexpected expenses. I did not do that, and went over by nearly 10k! Luckily my holding costs, etc were less than estimated and will help balance that out. Despite my mistakes on this house I'm still coming out ahead!
Truly, if I had only made 1.00 I would be happy. Because now I am moving forward with such greater knowledge and ABSOLUTE confidence in my future success in real estate. If anything I post here helps anyone else get a little closer to making their dreams come true, then I'm the one who feels blessed by that!
With love, thanks and gratitude,
laura

and spoken by a pro!

Do you find that you had all your rehab costs in line, like no surprises that cost extra. ( I know, it's not a perfect world) the reason I ask, is that there is a house 2 blocks down from me that sat and sat, and to top it off I dragged my feet on it. It is a perfect flip for my area. i just found out that the house is back on the market, and I think I would like to get my hands on this one. Won't drag my feet this time....Jan

In my post right above I explained how I went over rehab costs by nearly 10k! You must do a comprehensive estimate, then add 20-25% onto that when you figure your offer as a buffer, which I did not do. I had some big unforseen ticket items - paving required by the town, removing a fishpond that I thought was a nice feature but turned out to have to be removed, hidden termite damage...etc. etc. And dont forget, do your fair market value and comps for the area so you run your numbers from fact, not from what you think it will be worth- the numbers dont lie!
Good luck and keep us posted!
Laura

Hi!! Posted this on an old thread - but posting again here trying to be sure it get shared!!!!!
Just came back from my closing! What a feeling....
I have never felt more proud of myself than at this moment.
Everyone doubted me - (except my DG family )and I DID IT!
Plus - I know I made a sad, ugly house beautiful, and the new, first-time owners are getting a great house at a great price,
and I made a few bucks in the deal too! (21,000 for 6 1/2 weeks of work actually!)
I'm stunned and overwhelmed!!!!!
Thank you to everyone on this site who has encouraged and supported me through this first deal - I couldnt have done it without you guys, my DG family!
And I hope this somehow gets back to the man himself - Dean - so he can know that even though this was my first baby step in real estate - he's changed my life with his generosity of knowledge and time.
Blessings to all!
Laura

wow mrs laura johnson you go girl i was fliping through your journal and it's very inspiring to me as someone who wants to be involved in real estate keep up the good job

yours truly,
Brian

Experience of your first deal, PRICELESS!!!

Way to go, Laura! I know for me the feeling just isn't quite there until it actually CLOSES. Done deal!
Now it's official!
I'm so happy for you.

Rina

P.S. I think Dean knew of your post within minutes.

you're so right Rina...it is PRICELESS- the feeling of picturing myself at this point and the realty of experiencing it is unbelievable! And the thought of Dean knowing of my success is so humbling and thrilling all at once-what an amazing experience this is!
And Brian- thanks for your congrats!
Keep at it and you'll be posting your own success soon!
I actually drove around 2 hours today and found 5 houses that I put out phone calls to!
I feel unstoppable

Ok everybody-once and for all, this is how my deal turned out. I spoke to my accountant this evening and so I've made a few final adjustments-more learning process! First, I had duplicated some expenses from my rehab costs in my holding costs when I paid Lowes/Depot bills, so I adjusted that. Secondly, he said the costs I had included as far as pizzas, coffee, initial appraisal reports, etc. are not included under rehab, but will be deducted as business expenses later in the game. So I made adjustments there. Here are my actual, final numbers:
Sales price of home: 322,500.00
Less Purchase Price: -225,000.00
Less Purchase Closing Costs: - 9,569.84
Less Sales Closing Costs: - 3,738.67
Less Realtor Fee: - 16,125.00
Less Rehab Costs: - 40,711.73 (estimated at 30,000.00)
Less Holding Costs: - 5,658.94 (estimated at 10,000.00)
=My Profit of: 21,695.82!!!

And now, my friends, I am going to bed. In my other life my alarm goes off at 5am haha

It is amazing how fast the money goes. With nearly $100K differance in purchase price and sale price, after it was all done, 3/4s of the differance was gone. This shows how important it is to do the math before you buy. Great job, keep up the good work.

Al

The numbers dont lie! I also must stress the importance of knowing/learning your stuff for rehab - or be sure to have someone who does, look at the house with you to figure rehab costs, and then pad your number for hidden ones. I learned so much this time around, plus I was blessed to have my boyfriend in the home improvement business! He is a very patient teacher. Guess we worked well together cause now he's my fiance ha! (And I must say my overages were not his doing - big unknowns with sidewalk/driveway, termites etc.) But as I'm walking through houses the last few days again I feel so much more confident in knowing what to look for, to take pictures, lots of notes, etc. so back at home we can go over room by room and figure estimates. I also have spent alot of time at Lowes and Depot wandering the aisles and taking notes on costs of items. I am actually creating a book for myself with these, as their catalogs dont state prices. Even though they flucuate a bit with sales, etc., it will be a good base for me to start when making rehab list. Well, gotta run - I snuck on computer at work!
Have a great day everyone!

Laura, If you don't mind saying, how did you finance this deal? I currently have a contract on a flip, that I thought I had 100% private money financing on, including repairs. We were ready to close, and lender pulled out due to current national financial crisis. I am beating the bushes trying to find another private money lender. I have been qualified for a conventional loan, but it will tie up most of my capital, and I will need to finance the repairs myself.

Al

I used my HELOC for down payment and repairs costs, and got a mortgage for the balance. Man did it feel great to pay all that off after closing yesterday! Whew! Good luck with your financing - sure hope it works out for you!

I put together a short sale offer on 9/24, and I just heard from my realtor. She wanted to tell me that the agent working with the bank said my package was the best he's ever seen come across his desk! Boy did that make me feel good Now its a waiting game, she said about a month to hear back - but in the meantime I'm still on the hunt. Oh yes - the agent said he was not put off by my offer at all - I offered 153,500. When I put my package together the listing price was 267,000 but they had actually RAISED it to 281,000 the day before I submitted it!? Sure dont know what they were thinking....but if I pull this off it will be an amazing flip! More to come......

Just spent the day searching my targeted neighborhoods, did walk throughs on three - one with potential depending on how rehab estimates turn out. Found one rental I'm excited about that I hope to get in to see tomorrow. It is in a nice house in a desirable area, but at the moment is the run down, eyesore place on the block. Appears to have three units in it. Lots of homework for me to do to learn how to run all numbers and factors to be sure of positive cash flow in the end. Geez, I love this business - always new and exciting!

Well, the two rentals I went in scared me off! Both had tennants who refused to let us in even with an appointment! So I was dissapointed and have decided I will still consider rental properties, but only if they are vacant when I purchase them - or I buy a house to turn into one myself! Seeing the condition of these properties just from the outside its a little daunting. Still waiting for a response from the short sale offer, and am putting in another one on a different property tomorrow, so I'm just working away waiting for my next deal and I CANT WAIT to get started! Its driving me crazy haha....

Reading your article at top, I just wanted to say, I could feel your excitement.
There is a range of emotions on this site from depression to exhilaration. I look forward to not just experiencing it on this site, but out in the world of actively being involved in investing, desiring & planning for my personal experience to be in the direction of exhilaration. Well wishes to all of you. Pas. Greg

This real estate investing is a roller coaster ride! But its all worth it - excitement, fear, worry, elation, exhilaration.....etc etc! I'm just so grateful to have the opportunity to receive all the information and support and put it in action and take control of my future! What a feeling! I look forward to sharing your journey to the top with you too! As Dean always says: knowledge + action = success!
All the best,
Laura

Went to my first sherrif sale yesterday! Wow! Standing room only - bids flying left and right....most were bought back by the banks. But the ones that were bought by third parties were quite the deals! I drove past them after the sale to see what they got for their money-incredible. But there is alot to learn first - as there were still people living in them -who deals with that issue? Also, you cant get in first to see condition, you are buying sight unseen, and you have to search back taxes, leins, etc......but I am definitely going to explore this angle as another possibilty for finding a killer deal! Also - you have to have 20% of your offer in cash or certified check right then and there! Afterward I spoke to people who were bidding and they showed me that they had bank checks in various denominations to shuffle together to meet their 20%if they won different bids! Really interesting.
I am supposed to get a response on my short sale offer today - finally! Its been over a month....and am going to see 3 places today with my realtor. So I'm' keeping busy but not finding that next deal. Frustrating! But I'm just gonna keep playing the odds and know it will come soon!

Lost bid on my shortsale - which I expected. I went in REALLY low cause it needed so much rehab. Not really crying over that one, but I just lost the best deal I've seen since starting this business - all because one piece of paper didnt make it into my file from the banks mortgage broker! So they never even SAW my full price, 25% down offer, with pre-approval attached! NOW I'm crying. I could have EASILY made 40,000 profit on that place. This really hurts - but just gotta move on......both my realtor and I feel there was something a little fishy about how the whole thing went down, but what are you gonna do? Still have one possible deal on the drawing board - but if that slips through just gotta keep looking. But these were the first ones in months of searching where I knew, without a doubt, they were the best deals in town. sigh, sigh, sigh

Wow - where to start!
Since my 1st flip last summer, I have been actively working real estate every day. Finding it difficult to get a deal I could afford here in Jersey, I opened myself up to the idea of investing outside my area. Well, my friends, when I send a message out to 'the powers that be', I pay close attention when the answer comes knockin on my door! My DG sister for the past year, Rina, contacted me last week to say she had locked up her 1st contract with and/or assigns on a great rental property, and would I be interested? After speaking back and forth, emailing information, checking out the comps, reading the contract and all the amendments and asking at least a million questions - we are moving forward with the deal! We are both so excited about it, and decided together to post our deal so we could share the experience from both sides as assignee and assignor.
Before I go any further, I want to say a public thank you to Rina - not only for her support, knowledge and generosity, but to acknowledge that in doing a long distance assignment (NJ-WI), she is taking on alot more work for me than if I was in the same town and could physically be there to see the house and monitor the rehab progress. Not to mention the fact that she has interested renters waiting for it to be ready, AND is so confident in the house she offers a money back guarantee! I mean DUH, in my opinion I'd be a fool NOT to do this deal. So THANK YOU RINA, for going above and beyond for both of us
I am SO excited, and so empowered as well to allow myself to think outside the box and move forward even though most people think its crazy or dont understand why in the world I would do this (including my fiance & investing partner, who has been playing devils advocate with all the negatives and is NOT going in on it with me!)I have learned so much in the past week, and everyone Rina has referred me to for insurance, title, inspection info etc has been wonderful and helpful.
Right now we have the assignment form completed and signed by Rina, but just discovered that I had it put in the name of my LLC, which can not legally do businness outside the state of NJ without having something filed in Wisconsin - what that is I dont even know at this point- but on Monday I will be jumping over that hurdle with my attorney. Closing is set for end of April, but we are both hoping the work will be done SOON and we can move that earlier! I could go on and on, but will leave off here for now!
Rina, jump in here anytime!

I'm as excited as YOU are!!!! And yes, I think we've got everything covered as far as who's doing what and the numbers and all that. I'll let you fill those in if you want. I just wanted to say that, as we speak, Laura is pursuing some awesome stuff in NJ, too, So I'm thankful that she is jumping in long-distance at the same time! This will be a learning experience for both of us, for sure! So far, the REI victories in this have been: Locking up a great deal (of course), GETTING a contract accepted in this area with the and/or assignees, FINDING an RE attorney and a title company willing to do this even though they haven't before (nobody here had done it before and my regular title company said it COULDN'T be done), and HAVING such an awesome DG sister to share the experience with!

Should we post the actual purchase agreement (24 pages long. LOTS of counters and twists!)and copy of the assignment contract?

Rina

Rina - I think if the site will upload that much info it will be an amazing learning tool for all - the work you have put into locking up this house is incredible under the circumstances of frozen pipes, etc.! I will try to upload one of the pics you sent me too if I can figure out how to do that!

I'll post it in a little while. gotta find some white-out for the sellers info.

Congratulations! I would love to know your package, maybe it will bring me some luck

This is SUCH a great story!
I am so excited for the two of you, very inspirational!
Angela