Laura J's Journal

Finally got that 2nd deal!
Yeah!

Hope this works!

http://www.deangraziosi.com/ufiles/wisconsinhouse.jpg

The house looks great! Congratulations to you and Rina!

Dawn

What a great family willing to share with us all to grow! Way to go Laura and Rina! And especially real life experience, and/or assign. Thank you very much for sharing!!!

Well, I am still trying to figure out how to get the purchse agreement in here without having to scan each of the 24 pages over again, but here is the assignment contract my RE attorney drew up for the deal between us, Laura. (I sent him the one from the DG site and he just tweaked it for us. I've whited out all the specific info except my name) We'll see what your attorney says today.

http://www.deangraziosi.com/ufiles/assignment%20contract%20with%20white-...

Rina

P.S. Thanks everyone for the encouragement. You'll be watching us make our moves (hopefully without any glitches!) in real-time now. So bear with us.

Hi Laura! First off, CONGRATS! I'm just catching up on posts this morning. How cool that you and Rina are doing this deal - and that house looks awesome!

I was wondering if there's any chance you could share your offer packages that you used last fall? If they're the best that the realtors had seen, I would LOVE to copy your format for my offers!!

Thanks so much for continuing to share your knowledge and excitement!!

Tracey

Here is what I do in my short sale offer packages:
1. Put a cover letter in which include my numbers showing how I arrived at my offer amount. (FMV -rehab-holding costs=my offer) (of course i pad the rehab to also cover realtor fee on resale.)
2. Attach a list of all repairs along with pictures I take to justify them. I think this is the most impressive part because the banks have no idea of the condition of the homes.
3. Attach a spread of comps for the area (as low as you can find)
Two of the deals I lost had been verbally accepted but were then lost to cash buyers coming in - and cash of course is king. There are still two on the market where the banks are holding firm at an unrealistic price, but my offers are still on the table with them. So who knows?

What a learning experience this is! First, we had the and/or assigns drawn up in my LLC name, which is registered here in NJ. It was brought to my attention that it will probably have to be registered in Wisconsin. So I have my accountant/advisor checking into that. Also, my NJ real estate attorney told me he cant represent me for a deal out of state, and even if he could - he had never done an assignment before and actually seemed a bit puzzled by it! So, I contacted Rina's attorneys office, and spoke with one of the associates. She called me back today, and is happy to represent me as long as we both sign a conflict waiver release, which she is drawing up and will fax to us. So I now have a Wisconsin attorney She is also checking into the LLC question. With both being in the same office the sharing of documents and communication should go very smoothly. I am anxiously awaiting the day (maybe tomorrow) that Rina can get back in the house and see how the work has progressed! The completion of the contract is hinging on the satisfactory repair of the damage caused by a broken pipe while Rina was in negotiation and the house had not yet been winterized. I will have 7 days for inspection once the work is complete. (Rina-we havent covered that-do you have a good inspector I can call?) Amazingly - for those of you who didnt read about it in Rinas journal, the repairs are being completed and paid for by the sellers insurance company. So I am essentially purchasing a home with most of the rehab done! With Rinas help I have a list of every contact I need to be ready to close - homeowners insurance company, attorney, & management company. Once the assignment form is complete - I will be able to work directly with Rinas real estate agent to complete the deal. This is all just so exciting! But I must admit that while the pictures are great, its torture not to physically be able to be there!
Guess that enough update for today....

Inspector. yep, have one of the best in the area ready to go. Actually he was scheduled to do the inspection just a short time before we were supposed to close in February. A few days before, the listing agent went to the house and found that the pilot had gone out on the gas boiler, and the temps had been below zero. Therefore the pipes upstairs had frozen and burst. Water was gushing through the house and did that tremendous amount of damage. The whole downstairs has been gutted and is being re-done. And the whole heating system upstairs is being replaced. Also the upstairs bathroom. I even got a call one day asking if I wanted the hardwood floors re-finished or new carpet downstairs. I figured you can always add carpet, so I said refinish the original hardwood. (Hope that worked out for what you would have said Laura. )
So we're kind of in limbo.
This is very exciting learning all the new stuff together. We're working with a new RE attorney (not new to RE law, but new to me) and title company that I had found just prior to connecting with Laura on this deal. I had asked him a whole bunch of questions about what they were willing to do and how it would work. Little did he know he'd get to practice it within two weeks of my inquiry. LOL. They have been awesome so far. It's a good thing Gail, my (our) agent had already been with me through working with my other out-of-town investor. She about had a cow when I first did that. Thought it was a scam! Well, at least she's there to go to bat for me and Laura, knowing that I'm crazy enough to try anything and determined enough to make it work. Laura, you are the same way, so watch out world! haha!

This is SOOOO fun!

Rina

Hey everyone - please post any future comments about this assignment in the thread titled "First Assignment -DG Assignor to DG Assignee"
THANKS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

http://www.deangraziosi.com/real-estate-forums/everything-else/16902/fir...

I guess you are able to use the homeowners insurance, fix any problems
pior to the acceptance of contract.
Thank-you for the information and if i am wrong!Please say so.

Great networking!!!!!!!

Randy
MAKE YOUR ACTIONS COUNT

If I understand your question correctly, I dont make any repairs until I take possession of the home. I present a list of whats necessary to justify a low offer. As far as homeowners insurance, that is put in place to take effect day of closing.
I'm thinking you are getting my short sale package info mixed up with my assignment story from Rina.
That is why we moved the assignment thread to its own place.
Hope this clarifies things - if not - ask again
Laura

Yikes - I post in threads all over the place but dont keep up my own journal. I am going to try do that regulary now, so when I look back its a great way to remember where I started from. Aaaanyway....since my last post heres whats been happening with me:
-made a ton of offers - got a few then lost them for various reasons.
-continuing to wait to close on my Wisconsin assignment from Rina. Rehab still in the works. Closing delayed from 4/30/09 to on or before 5/30/09.
-went to E.D.G.E. conference. Amazing, exhilirating, enlightening...changed my life forever!
-came home from conference and had deal waiting! Closing on 19th, (was 15th, now delayed a bit-seems to be a pattern with my deals haha) Hoping to do a lease/purchase when rehab done. In the meantime starting to gather estimates for various parts of the job - tree work, sheetrocking, got kitchen design layout done today (kitchen & bath will be totally redone). I really love rehabing - its fun as heck. I'll put some pics up and update as I go.
-doing alot of studying on lease purchases. The mentor program info on this is awesome!
-waiting to hear from bank on second deal. Was told I'd hear today but no word. No surprise there.
Hmmmmm - other than working regular job in between that about does it for me.
Gonna try to upload a pic or two.

Here are a few pics of my latest acquisition here in Jersey. As you can see it needs alot of work - but I love the challenge!

http://s618.photobucket.com/albums/tt267/laurajohnson49/UnionAveHouse/

I will follow with updates once rehab begins....

Was at site this morning meeting tree guys and took a few more pics

http://s618.photobucket.com/albums/tt267/laurajohnson49/UnionAveHouse/?a...

Now I am going to town records to research if gas was ever run from street to house, because right now its all electric and we are going to convert it over.
Then meeting another tree guy at 2:00
Going to call Paramount Funding about no-season refi
Meeting with contractor to go over expansion of front of house.
Well, those are my plans for the day!

Hi Laura!

Thanks for updating your journal! Congrats on your purchase!!

Congrats on the new purchase! The pics are great (loved the titles too)!
It looks like a keeper! Keep us posted on your progress ok?

Dawn

Congratulations, Laura! That looks like a great project (like you love!), hidden treasure. One question, how did you ever get in the door? lol jk

Keep the pics coming as you work on it. I love that! We should all try to post more of those.

Great job on NOT giving up!

Rina

Thanks for reading! I'm flattered to have you guys check out my journal!
Rina - photobucket is a great, easy tool to share pics - I love it!
What I did today:
I met with two tree guys - what a drastic difference in quotes! One was $600.00, and the other was $2000.00! Crazy. I called two others who never even called me back. Thats why its so important to get multiple estimates. I just saved alot on my budget
Arranged for gas company to run line from the street to the house, which I was happy to find out only costs $150.00 fee!
Got the new kitchen laid out at the discount cabinet company. They have an amazing program for this.
Spoke to Paramount Funding. They do no-season refi here in Jersey - yeah! But the home has to be complete and finished before they will get appraisal and process loan. Once appraised - approval takes 72 hours, 3-4 weeks to secure the loan. Good info! Just forgot to ask rates - duh. Left a message but no call back yet.
Lastly I finalized home owners insurance.
I also made contact with the potential lease/option tenant in Wisconsin (thanks Rina )and we are starting to work on some terms, but of course she is waiting to see the house when its done - and so am I!!!!
So this has been a busy but very productive day.
Happy hour time haha - free food - yum!

On my first flip I went over on rehab by nearly 10,000 - but when I first estimated them I added 25% so I was safe. Plus I sold it quickly so my holding costs were less than budgeted so it all worked out. You just need to go through the house carefully with someone who knows how to check the core items like furnace, ac, plumbing etc. There will always be some unknowns but you can come pretty close as long as you take your time and are careful. There are many helpful checklists for both the outside and inside you can take along with you. Its also helpful if you notice things like cracked sidewalks or driveway to check with the town. Mine made me replace the cement apron on the driveway and 1/2 the sidewalk! That was an unforseen cost of $1000.00 right there. Live and learn! Just do your due diligence and run your numbers. They will tell you if its a good deal or not - good luck!

A bit of a lull since my last entry....now waiting to close on the 19th so the action can start.
STILL waiting on the bank on the second deal. They act interested then you dont hear from them for days/weeks!
When I log off here I am meeting with the contractor who is going to expand the front of the house and go over those plans.
Also am going to go to several discount appliance stores and see if I cant knock some bucks off that part of my budget.
ALso plan to get a financial calculator to make life easier.
Hmmmmm-guess thats about it for today so far.
Hope all mothers out there have a wonderful day tomorrow!
xoxoxo
Laura

I've done just about all I can do prepare for the rehab on the house. Now I just need the closing to go off on the 19th. I did learn that its a 30 day process to apply/receive permit for the addition before I can start that work. That was a little disconcerting. But lots of other work to be done in the meantime. Also found out it takes 5-6 weeks from the time I apply for the gas to be run from the street until it actually gets done. So I'll be learning how to schedule all the other rehab and get everything in place and ready to go when they do come.
Oh - I pulled my offer on the second deal. Turns out after they gave a deadline for 'highest and best' offer - they continued to show it! Then they came back and tried to get me to go higher! So I said bye bye. Then I find out today all offers were pulled and house is off the market. There is a title problem. Geez - dont you think the bank would have checked that out before they even listed it????? Or discovered that in the foreclosure process? Anyway, as I've learned to say when deals fall through.....NEXT PLEASE

Counting down the days to close on the 19th! yahoo!
I have everything in place and my realtor actually thinks she has the perfect buyer before I even start!
She knows my house will be everything and more that they are looking for. She already discussed it with them and they dont seem to be in a hurry. So she has a meeting with them on Sunday and is going to start to show them the comps around the area (which wont compare at all to mine haha ) So how cool will that be to have a buyer before I even start rehab?!?!?!
Got a call from Rina yesterday with a question about the trim in the Wisconsin house - so to me trim going up means work should be pretty much done! Hallelujah! Cant wait to get out there and see it, get it occupied and have some fun with Rina!
Sounds like you are going to be quite the hostess this month girlfriend.
Oh yes - my realtor called me last with a killer deal, but since all my $ is tied up in my current cash purchase I contacted someone I spoke with only once from Craigs list and he is VERY interested. So I might have just found my first bird dog deal. Just keeps getting better and better!

deleting duplicate post - sorry

this was a triple post -sorry again!

Thanks for sharing your deals and insight with us. I am always interested to hear about how other deals are going. Good luck with your current and future deals. Believe and Achieve

Congrats Laura! I remember when you were frustrated, now look at ya, You have deals coming out of the wood work! Your hard work and tireless efforts are paying off.

I wish you many more.
Richie.

For your comments and support. I wish the best of everything for all of us!
xoxoxoxo
Laura

Geez - I dont know why my previous post came onsite 3 times. Does anyone know a way of deleting duplicates?