Rina's DAILY JOURNAL: Chapter One - The Beginning

Rina,
when you buy an investment property to rent out, do you employ your real estate agent to take care of them? How much do they take? Or do you manage it yourself?
Thanks again

You know what, I'm weird, but that's one of my favorite parts of having rentals; dealing with the people. I manage everything myself. It's not hard. BUT you might need a certain personality. If my husband had to do it, we'd probably have a nightmare on our hands! lol: Evictions, disgruntled renters, etc. He has no patience with people. If/when we get too many, I'm sure I'll have to go with a property management company, but for now it's just lil' ol me.

Rina

Property managers here take from 7% gross rent collected to $75 mo per SFR.

Things are starting to relax a bit.
The guy who wanted the sheriff's sale house for $850 didn't call back, so I called him. They weren't sure, so I said that's OK. I advertised in the paper at $895 and had it rented out in 2 days, check in hand. The people moved in on Friday. They're SO excited. Can watch the fireworks over the harbor right out their front door.

We're closing on the business loan within the next 2 weeks, and on the Brule house on July 25th or before (depends on Fanniemae).

I found another Fanniemae 3bdrm/2bath right across from one of the best elementary schools in town. Gonna look at it this week. I've got my offer amount ready. Got to get creative in my financing now. We've reached the limit for mortgages we can get personally, and going the business route is a new world to me, we'll see what happens. Like I told my realtor, I will MAKE work whatever I set my mind to.

I've got to get a buyer's list going, so I can have them lined up for any deals I can't let pass.

I was thinking about an ad. I'm sure I saw something of Dean's in here about screening buyers. I have to look. I was hoping to organize them into who's looking for what neighborhood, and I HAVE to figure out what rent is going for in each. Don't want to be charging TOO much lower than the median (is that the right word?).

Made a final, final offer yesterday on the Missouri house. Can't offer cash now, unfortunately. Found out today they took another offer. Cash, of course. I'll find out later how much it went for. Oh, well. Looked at another house (on the same street, ironically) right across from I think the best elementary school in town. I think it's the only smaller one left. (They've combined the others.) Put an offer in tonight. It's another Fanniemae.

Something funny that happened today:

We will be closing on the house in Brule on July 25th. I get a phone call yesterday from my realtor. She said that the listing agent for the house got a call from someone who wants to rent it from us. So I called and left a message for him. He must have gotten in touch with the family, because the wife called me today and said they want it. They had driven by and it's just what they need, where they need to be (their kids go to that country school and her husband works out there), so I'll be signing a contract with them tomorrow, and they'll start moving in the day we own it.

Purchase price $85,000. I'll fill in closing costs later (FNMA is paying $1200). Paint & carpet cleaning $1,000 max. Taxes $1800 ($150mo). Insurance around $480 ($40mo). Plus the mortgage payment is already wrapped into another house we own. So I'll divvy it and say $300mo.

$850mo rent
-$300
-$150
-$40
____no vacancy ____
$360mo cash flow

PLUS I told them if they're interested in buying at any time during the year they can purchase it for $125,000. $40,000 profit.

Or they can keep renting, and the price I'll get at sale time will just improve (our market is turning as we speak).

Another plus, her husband is an electrician. (mine is not) and she said she does interior design, and would be happy to show the house for us next spring if we decide to sell at that time and they haven't already bought it. Normally, I am pretty strict on references, but they know the listing agent and he is someone I respect very much, so I trust his judgement. (He is also an investor and property manager) Plus I got a good "first impression" talking to her on the phone.

Pretty excited,

Rina

they take 9% of the monthly rent in my neck of the woods.

That's pretty steep. So if rent was $1,000 mo they would get $90 bucks? Boy, you'd have to make some pretty good cash flow to feel like that was worth it, wouldn't you? Mark has talked a lot about that.

Rina

but it is for full service, so I think it is worth it. I mean I would rather have someone else do the work....

Ran across a FSBO 14-unit apartment building in the paper yesterday asking $389,000. Called the owner and got info e-mailed. He has owned the building for 20 years and wants to sell & try something different. Also said "possible 1031 exchange". I went to look at it today, and ended up talking with him for about 1/2 hr, asking a ton of questions. This would be an awesome deal. Cash flow on the property would be $22,700yr with keeping rents where they are now. And they could easily be raised. The only catch is he already has a sale pending. Purchase agreement signed with closing date tentatively set for August 12th. He wants to take back-up offers just in case, so I'd really like to come up with something creative to offer him. I definitely don't have $75,000 down payment (20%) but he did sound like he'd take a piece of property instead. Now I have to call the bank tomorrow to see if there's any possibility of getting a $300,000 loan. I can give the fact sheet he e-mailed me. Boy, this would be something really new for me, but SO COOL.

I also have not heard back yet on the 3/2 REO offered on last week. Realtor said it's odd to be taking so long.

Good luck with both invetments. You are awesome!

I just came in to post an update and saw that you had been here yesterday! lol
Sorry I missed you! (That's how much I've been ignoring my journal. bad me) Thank you for the kind words. Hope you are doing well.

Well, the 3/2 offer was rejected. The weird thing is there were multiple offers and they were ALL rejected, not even one counter-offer. The realtor said she doesn't know WHAT the bank (Fannie Mae) is up to.

The 14-unit, THAT would have been an awesome opportunity! The guy said he wanted to take back-up offers so I called my banker, and when I started to tell him about it, he seemed to know exactly what property I was talking about. Here it turns out he is the one writing the loan for the person buying the property already. And he said that everything looks good as far as their closing, but definitely properties like that are the ones to be looking for as far as the business loans go. So I called the seller and told him to just let me know if that HAPPENS to fall through. Good learning experience, though. Got a lot of good insight and info from the investor/seller and from the banker.

Got leads on 2 properties (one is a relative) where I can use NMD approaches, one possibly an assignment or short sale (would be my first of either).
(btw, thanks for the help CBR, Drew, & Lena.)

Called 3 more FSBOs that I saw on my way home today.

The closing for the Brule house should still be next week. Got a call from my realtor yesterday saying she got an interesting e-mail. Apparently a family member signed the name of a deceased owner of the property on the paperwork. They'd been dealing with that since March and were worried that things might not be resolved by the 25th. Could be indefinite! But today she got another e-mail saying it looks like it'll be OK.
The family that wanted to rent it deperately, changed their mind when they looked inside last week with me. It's a really nice house but the one they're losing is 4,000 sq ft and worth $350,000 (that's a LOT up here) and the mom just couldn't see them "cramped" into the 1900 sq ft. Plus it is a little outdated (fixtures, appliances, etc.)and needs painting (which I can't do until we own it. ergggg) Oh well.
I have another guy that is VERY interested in buying it, so maybe that's the route we will go now. There have also been others interested in renting, but unless someone needed it badly, I think I'd rather flip it.

Let's see, what else. Oh, JUST in case anyone was wondering what is happening with wedding plans, THAT has been postponed. Maybe 'til Spring. (That's a good thing, in my opinion)

Ok, what did I miss?? Oh ok, I had to go back to the first page. So what's going on with the wedding? Not in August now? Sorry, don't mean to hijack here... LOL!

What, didn't you know I was getting married again? Don't tell my husband. LOL

No, I thought my whole summer was going to be getting ready for my daughter's wedding. Didn't quite turn out that way. BUT I'd much rather have them wait than start off on the wrong foot! (She's only 21)

(OK, now I've gotta throw a little REI in here to make my post legit. )

I'm hoping to buy my grandparent's old farm this summer. My mom & dad own it now. (grandparents are gone. This is gonna get sentimental) There's like 80 or 100 acres. My mom & dad made the old barn into a house, which they live in. They rent out the farmhouse (which is in great shape) to a friend of ours. But I found out this week that they kind of need the money and were thinking about selling the house with 5 acres, including a fenced-in pasture in the back. I told Jon (my husband), and he said "Boy, that would be a shame to see the farm separated." He remembers it as a kid, too. My Grandpa actually cleared the land with a team of oxen (no kidding), and my mom and her brothers were raised there. (Actually, my uncle was born there.)
Anyway, I called my dad and told him we would buy it if the price is right. He is ECSTATIC! (We're thinking maybe one of our kids might want to live there in the future. Our daughter's horse is still there with my mom & dad's.)
My realtor is going there on Monday to do a market analysis for them. (yes, she'll be fair. lol) So I called my mom today and said "Hi neighbor." She's so happy. And we'll be able to rent it out with actual cash flow, so it won't cost anything to hold it.
As you may have seen by now, all REI is emotional to me. But I LO-O-O-VE it!!
I hope I can make enough in REI to do something really special for both of our parents this coming year. Wait, I rephrase that. I WILL make enough in REI to do something WONDERFUL for them.

Rina

Say it with conviction, like it has already happened. I have every confidence you will... How wonderful! I'm tellin ya I'm on the wrong side of the country... LOL! I'm going to keep workin it though, I know things are going to happen soon, I just got to keep the faith... ;D

Things ARE going to happen soon! You're in the lull before the storm, my dear!
Hmmmm. Maybe that means you're moving to Wisconsin. That makes sense, doesn't it? lol

Luv ya!

Be careful what you ask for! I might take you up on that sister... LOL! I've already told the twins once they graduate high school I don't think I'll be staying in Phoenix, I don't have anything keeping me here besides my j.o.b. and it's too darn HOT! I'd like to move where the climate is cooler. So I don't know where I'm going yet... ;D

Seriously.

LOTS of REI to do, too! We'd make a good team!

I have NO doubt about that... We keep each other motivated! I like that quote from Dean... Boy is that the gospel. Ha, good one. I gotta read that again... LOL!

Well i haven't been on the site very long but I've spent countless hours reading posts and journals and boy I'm really taking a liking to this REI boom
Rina I'm telling ya when i DO succeed in "Becoming a Real Estate Millionaire" you will definitely be in my posts. You are such an inspiration to many. Along with Anita, Sully, Deb, Elena and so many more people. Keep up the awesome work! Wish that 14 unit would of worked out for ya. There's still time!

I'm getting my "Think a Little Different" kit later today by FedEx! *ecstatic*

Pretty soon I'm gonna start a journal about my endeavors in RE.

Have an awesome day everyone and keep up the Good Work!

David

Welcome to the site. It's great to have you here!

Thank you for your words of encouragement. After that little 14-unit teaser, I'm REALLY gonna be expanding my REI scoping. Prime example of someone limiting themselves. What if I would have been actively WATCHING for something like that? Maybe I'd have seen it sooner and gotten opportunity. Of course you never know, like you said, it STILL could happen. I won't say "closed door" until I see the new owner moving in. lol

Can't wait to start reading your journal David. You're sure starting out right, reading everything you can. You're gonna love Dean's course and the book! Read it, absorb it, and then take action and put it to work for you!

Best wishes on your REI,

Rina

We're all so happy to have you here with us. It's so great to see all the ambitious young people on here looking for a better life than working a job. You're going to love the book, let us know if you have any questions. We look forward to seeing you succeed and achieve your dreams!
God bless,

So glad to hear your wonderful enthusiasm for the site and especially for REI!
Keep up that great attitude, and you cannot lose.

You are right, not only are there some very supportive people on this site, but there is a wealth of knowledge as well. I take advantage of that all the time and it is invaluable.

Keep it going and keep us informed of your success. I am sure there will be plenty of that to talk about.

Hey girl, heard you on the call last night --- that WAS you, right? So now I'm thinking it's time for you to have an autograph signing event!!

It was cool to hear you talk with Dean about your deals and your thoughts. It was really fun to hear you soooo nervous at the beginning and then, once you started talking about the deals hearing the confidence begin to flow right along with your excitement!

Awesome! Congratulations!

Make it an awesome day!
Mike

You don't KNOW how nervous I was. But I just wanted so bad to share how excited I am about finding Dean's program and this site and the freedom it can bring. (or I NEVER would have done that!) I hope a little bit of that came across. lol
I appreciate you guys so much!

And I WILL make this day an awesome one.lol

Thanks again,

Rina

Last night was my first conference call to actually be on the phone. I have listened to a few of the previous calls especially the one with Anita as the guest speaker. Anita was awesome and her words of inspiration were priceless. Of course it seemed easier on her because she's been in the biz for a long time. When i got in on the call last night i didn't know what to expect but I'm telling ya..... Rina you blew me away with the confidence you showed... It was great to hear that you were nervous in a odd kind of way but I know i can speak for myself and probably a few of the 2000 people on that call. That's exactly how a lot of us feel until we actually get our feet in the water..... You really got going girl and man you just didn't stop! You really inspired me to just DIVE right in! I'm already looking into some Tax Sales properties to start out ya know and get a feel of everything... Sorry this is so long.... i tend to blab.... Well Kudos to you Rina! It was priceless! I only wish we had a weekly conference call but you know we all gotta keep on keepin on! Well i better post this comment before i accidentally erase it.... Have an incredible day! I am almost finished with the program and Dean's book is on the way... i can't wait... more info = more success.... Thanks for the comments you guys it really made my night!

Take care everyone!

David

P.S added a little avatar picture just to have something there. I felt naked without one lol

Last night was my first conference call to actually be on the phone. I have listened to a few of the previous calls especially the one with Anita as the guest speaker. Anita was awesome and her words of inspiration were priceless. Of course it seemed easier on her because she's been in the biz for a long time. When i got in on the call last night i didn't know what to expect but I'm telling ya..... Rina you blew me away with the confidence you showed... It was great to hear that you were nervous in a odd kind of way but I know i can speak for myself and probably a few of the 2000 people on that call. That's exactly how a lot of us feel until we actually get our feet in the water..... You really got going girl and man you just didn't stop! You really inspired me to just DIVE right in! I'm already looking into some Tax Sales properties to start out ya know and get a feel of everything... Sorry this is so long.... i tend to blab.... Well Kudos to you Rina! It was priceless! I only wish we had a weekly conference call but you know we all gotta keep on keepin on! Well i better post this comment before i accidentally erase it.... Have an incredible day! I am almost finished with the program and Dean's book is on the way... i can't wait... more info = more success.... Thanks for the comments you guys it really made my night!

Take care everyone!

David

P.S added a little avatar picture just to have something there. I felt naked without one lol

Sorry about the double post there guys... forgot to add my smileys.... can a mod delete the top one? thanks!

Wow, I'm overwhelmed! I have just started reading your journal and all I can say is "I wanna be like Rina!" Loved your live call Tues. night, too. You did a great job and I am definitely inspired. I really like the tip about getting the MLS "flash" updates from the realtor. I called mine today and she sent me one right away.

I'm reading the book, doing the courses and lessons and trying to keep up with the assignments. I have to admit I am still a little scared. I don't have a problem speaking in front of large groups, I do it regularly. But making all of these real estate connections scares the "beejeebies" out me. I'm looking forward to the day when my journal will have the same activity as yours.

Thanks for all of your honest and transparent sharing!

First off i would like to welcome you to the DG Family Jan. It's truly a wonderful environment and a great family to be apart of. Sounds awesome that you were on the conference call on Tuesday. Yup you will soon love to read and hear from Rina as the days pass.

Great job on taking notes. Yes the MLS "flash" updates is a great method. My aunt is a realtor so i have a definite hook-up there. Kudos again to you Rina. The Book and Courses are very awe inspiring. We all are scared at one point and time but i can assure that you will find the confidence not only in Dean's book and courses but you can also get great help from the coaches and also from this website.

I'm sure i can speak on behalf of the DG regulars/superstars that I not only look forward to your journal but they do as well. Keep up the great work! Again Welcome to the DG family! Best wishes on becoming a "Real Estate Millionaire".

If you have any questions regarding the Book or the courses feel free to create a topic or find the forums where you can seek answers and wisdom. Take care!

David

Thank you so much for your kind words. Welcome to the DG family! As you can see, it is a VERY supportive place to be! You're going to find that making all the "real estate" connections is fun and exciting, and you'll become an old pro in no time. And, like Dean said, there is honestly no better way to gain financial freedom that in Real Estate. Stick with your DG family, and continue with your courses. We'll be here to celebrate your first success with you!

Very best wishes to you,

Rina

P.S. Hope I can learn some "bravery" skills from you if you don't mind chatting.