OfflineNot to waste one more second, I am going through a dramatic change in my family and need to make $10,000 in 30 days for my 2.5 years old and myself. Any suggestions on how to make it happen in real estate will greatly appreciated.
1. Financially I needed to make it happen, so we can stand on our feet and still have our dignity.
2. After 5 months studying and trying, it has to happen so it will be a great boost for my REI as a starting point. I can keep studying and getting ready for ever, but I need it to happen NOW.
So here is what I have done:
1. Almost finish reading Profit from REI right now book, need to reread it over and over when I go through each step in real life.
2. Joined Success Academy, finished online courses, call coaches only on weekly basis.
3. Have 5 buyers on my list, not enough buyers and competition if I find one SFR in one area, I know I should start getting more buyers.
4. Have one realtor willing to work with me putting in low offers in a relative affordable nearby area(meaning possibily positive cashflow which is hard in LA) where I live, we have put in about 30 offers out of 150 we picked according my criteria. Nothing, not even counter offers.
5. Bought and sold 3 primary residence houses, so I know some basics.
5. Bought a REO last year, a great deal, equity and positive cash flow IF we can refinance, stuck with it because self-employed, after 20 loan brokers, still trying. Equity line payment and credit card payment from getting that house is killing us. Still have great credit.
Here is the situation of the RE market where I am at:
1. Southern California, more expensive compared to other parts of the country.
2. I aim at two nearby areas I know, one is expensve( >$500,000, 500k is a fixer), stable, not many REOs, 50% off FMV is extremely hard, financing is hard for buyers in this credit tight time; one more affordable(around $300,000 or some even $100,000 where nobody want to live and get killed, 8 out of 10 are REOs, not ideal for assignments.
I will also put this in my journal when I get a chance.
1. May 30 & June 1: as my day 1, driving around to see 12 preschools to send my 2.5 years old kid so I will have more time to work on RE knowing he is taken care of. Byproduct is I know much more about the neighborhood where I want to invest.
2. Putting up this post and cry for help from my DG family, so fortunate I can do that since my own family can't be supportive in what I want to do for the good of the my family.
I decide to focus on assignment since the payments are piling up. I can't afford the REI club, they charge $299 to join I need that for my kid preschool now. I need to be effective, not just efficient. PLEASE PLEASE PLEASE... NO more trying, I NEED to do this in 30 days, help please?
Are you living in the REO you currently own? If you're not - GET RID OF IT! You say it will cash flow if you refinance but sounds like you can't bc of self-employment issues. Find a buyer, even if you have to firesale it! Get enough to cover your loans and walk away. If you need money now and are having trouble with your REO offers, then you have to lighten the load. I know all too well about this. I've had flips that I've held onto for various reasons bc I knew I got a great deal and had equity and would cashflow but in hindsight, they just weren't right at that time for one reason or another. You already said it's killing you - don't let it continue. There are thousands of deals out there, sharpen your offering skills and zero in.
Tip: On my offers I submit to the banks, I never list any contingencies on the initial PA. This helps bc banks don't want wishy washy buyers looking for excuses not to buy. This will give you leverage over other buyers. In my experience, after the bank accepts my offer they always send an addendum to the PA that includes a 10 day right to inspect the property. This is your way out if you need it. Go back to the offers you submitted that you have buyers for and re-submit in person with the REO agent. Let them know you are serious and make sure they submit your offer. You can't make $10K without an accepted offer. Focus on a couple good deals and get them done. Once you are rolling then try the multiple offers on multiple properties game if you like gambling the numbers game. Me - I like to zero in and let the agents know I'm for real! You're in the people biz, make yourself standout!
Thanks!
Kevin
"Learn and Earn!"
Your advice is greatly appreciated. I am surprised that not only someone even read this lengthy post but also gave me good advice right to the point for my problem. This is a great site, great people here!
It is hard to let go a good deal to other people after you find one, will try see if I can talk my husband into selling it so we can move forward instead of staying stuck here. I even looked up on-line dictionary for "zero in" because English is not my first language. Right, "zero in"!
Thanks for the great tips.
That was great advice from Kevin. Another thought might be to lease/option your REO. You could get some $ upfront to work with, and maybe even raise the rent amount to cash-flow right now (knowing that part of it goes toward their purchase makes people willing to pay more now). Just a thought.
Also, cash buyers are best for assignments, but if you are limited on them another good group to target right now are first-time homebuyers looking to use their tax credit. Find a great FSBO deal and advertise for a first-time homebuyer (pre-approved), that may even be working with an agent, and assign the deal to them. If you don't try to take too much they will be excited to work with you (especially if it's a great deal!). You should have your $10K in no time! Maybe even 1 or 2 deals!
Wishing you all the best!! And knowing you WILL do it,
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Great advice! I love this place!
Thanks!
Kevin
"Learn and Earn!"
Rina: Your encouragement is worth more than any money amount to me!!! So fortunate to have my DG family here to support me! Thank you all! I am checking FSBO right now.