Aerialist's Journal - Because life is a circus

Marc, I so appreciate your positive words and energy!

Now back from vacation and it's crazy at work and my "after work activities." Not much time to write this week on the site. But getting soemthing quick in now at lunchtime though so I'm not completely absent!

Hope you are having a great week. I'll be checking with your journal soon!
Nancy

So after leaving multiple messages last week with a couple of the local banks, finally one returned my call yesterday. He asked me a couple of questions, mainly what type properties do I invest in and I told him for now single family and multi-family. He then told me that at this time they have "filled their quota" of the number of investors they work with and aren't working with any new ones at this time. Allegedly, it's because of many of the banking changes that took place after the market crashed last year. I asked about commercial properties and he told me they weren't working with anyone who wasn't already an established customer of the bank.

Interesting.

So I move on to the next.

Talk about stepping out on a limb! I've not yet made my first investor deal yet I responded to a national television reporter inquiry who wants to speak with buyers/renters/sellers who are doing "rent-to-own." Since I pretty well understand it and want to have that as part of my investor mix, I decided to respond and tell him why I want to do it and why it's a good idea for everyone involved in that process. I was upfront in my email saying I was a new investor and hadn't yet done a rent-to-own deal. I also am aware that with the large response I'm sure he'll be receiving from many sources that it's highly unlikely I'll be one that he chooses to interview, but stranger things have happened! And THAT is my real estate action/leap for today!

Nancy

Found out late last week that "the house" with property in the other state I was interested in is still available. An offer was put in and accepted by the bank; however, it was contingent on the buyer being able to sell their home. The bank declined that contingency. It goes back to the bank in mid-November and I'm told at that time they'll put money into it to fix some of its issues and put it up for sale at a significantly higher price.

I got this info. from the agent, who told me the bank accepted the other person's offer at $14k less than the current asking price. My original offer was going to be far lower than that. I've decided to put together my offer this weekend, which I believe has strong reasoning/facts behind it, then have the agent submit it next week. One of my philosophies is that "you don't get if you don't ask" so I'm going to ask!

On another note, I called the REO dept. of the bank that owns the foreclosed home down on my street. They claim their records show they don't own it, and that I need to get a copy of the latest deed to show who does. Apparently, this bank usually just "backs up" mortgages, many of them Fannie Mae and Freddie Mac mortgages, so someone like, say, Wells Fargo would likely be the own who actually owns the home. I got a copy of the last recorded deed and the only one shown on it is the bank I had called. So I left them a message late last week and no one has called me back yet. I'll check in again next week, but clearly this isn't going to be easy to find ownership! Crazy!

still prepping the offer for the short sale house I wrote about in the last entry. I've never been to it and won't have a chance to before the offer submission so just going off what I've learned from my sister when she's visited the site. Based on that, doing my best to estimate repair costs. It goes to the bank in mid-November so planning to get that offer in soon.

My sister called today to discuss a biz idea she had that could involve both me and my husband. Sounded very, very interesting and is in the same area as the house above. Looked at commercial properties for sale, found one that's possible and at a decent price. Going to check more on it.

While searching for the commercial properties came across multiple homes in that same area that have potential for rental. One may need minimal work. Going to check into those as well.

Hadn't before thought about concentrating RE investing in this area, since it's several hours from where I live; however, it's now at the forefront of my mind. We like the area a lot and know it pretty well.

I set up the first monthly conference call for the REI group I began on the DG site. We have 12 members and this is the first real thing we've done together. It's next week and I'm hoping many of the members will be able to be on this first call. I think if we can connect 1-2 weeks a month at least by phone then we can really generate some excitement, support and success.

And, I placed the offer on the short sale house in the other state. I'll write details on it when I have an answer either way. I went in very low, but put in lots of negotiation points. If it's meant to be then it will be.

In the meantime, I haven't had a chance yet to pursue trying to find out who really does own the foreclosure down the street from my house. The bank on the deed claims they don't. Odd. But that's still on my list to look into.

I'm awaiting info. on a 4 unit apartment building in my city that is for sale apparently at least $60K to $70K under market value. I haven't yet had a chance to confirm that as I don't have the address yet (just know the general area) but from what I know, that is likely true. The owner placed it on the market at that price to generate interest. The realtor for the property is sending me details this afternoon. What I do know from them is that an investor needs to sell it so he can focus on some non-real estate things he owes on. I'm told that at the price they have it listed it has an 11% cap rate. He currently owes $139K on the mortgage (which surprised me that the realtor threw that out there in the conversation but I'm glad he did). It has a newer roofer, new electric, new gutters, new sofia (I believe I'm spelling that wrong) and new siding. The units have seperate heat. I haven't really done much yet with multi-unit buildings so I'm looking forward to the information I'll be receiving and educating myself with some real life information. The realtor told me he also had other commercial properties in the area and would send me information on those as well.

I have another 4 unit building to call on too; it's broker owned and the price has been reduced, but I don't know much more about it other than the address and that the units have seperate utilities.

In the meantime, I am involved in a creative brain exercise; I'm contemplating a historic building in another city & state (about 4 1/2 hours away from me), on a couple of acres with out buildings that is next to a protected area containing bats. Yes. Bats. When I find a property that intrigues me then I like to engage in creative ways of thinking to "make it work."

This property is for sale for $1. A dollar! But of course you know there's a reason for that and these are the issues: the fact it's only zoned for commercial use -- though it's actually a big brick house that was turned into use by a company for its offices. The fact that whatever type business goes into the building has to be "quiet" so as to not disturb the protected bats next door to the property (the bats are my favorite part of this whole thing!). It's near -- actually next door I believe--to an airport (and not a regional airport either). And as it's $1 price reflects, apparently needs complete rehabilitation. So I keep thinking of creative solutions for this. Who knows? Maybe I'll hit upon one that would be profitable!

Until the next time...here's to everyone's RE enjoyment and success!
Nancy

I just read about 1/2 way through your journal & then skipped to the end - will read more later. Thanks for sharing your story.

Very interesting about the 'bat house' And fitting for the month of October. Looking forward to hearing more details.

All the best to you.

Lea
SPR Property Solutions, LLC

Thank you for reading, Lea! I just kind of write out my thoughts and let it go at that; skipping to the end is probably best! LOL

I hadn't connected the "bat house" and the month of October. That made me laugh!

I hope all is well with you!
Nancy

I was speaking with a really nice loan officer today and he told me something I wasn't aware of. In a couple of months, Fannie Mae is changing the debt to income ratio required to get a Fannie Mae loan and that means fewer people than today will qualify for loans. I'm not sure of the full details, and perhaps it was written about here on the site and I missed the discussion, but he told me that in about 2 months a person can't have more than 45% total debt to their income, which of course would include the mortgage payment they would be making with a new loan. I'm not sure what the debt ratio is now but he told me story of someone who he recently qualified for a Fannie Mae loan who had a 67% debt to income ratio, who, if he had waited a few month, would no longer qualify for the loan.

There is so much to know, so much to learn, and things with RE seem to be in constant flux. Everyday I learn something new.

Nancy

I just finished some research on the "bat" house, the one I wrote about a couple of entries ago. The internet is so amazing! What a great resources for research. It is amazing what one can find out about almost anything!

So I learned that this house, that is for sale for only $1.00 and needs complete rehabiliation, is apparently also haunted! BOO! A perfect house to be thinking about this month of October, as Lea pointed out earlier here. I found several entries on one site from people writing about how spooky the house is, how it should actually be torn down because of its disrepair and that it's odd it's still there and people think there's some weird force that allows it to be still standing. It supposedly has some sort of historical value, but I'm not yet clear on what it is. People claim to have heard things in the abandoned property (when they've sneaked in), seen faces at the window, etc. There's rumors that a mass murdered once lived there and buried bodies there (though others say that is not true -- but it just adds to the spooky mystic of the place and people love to grab onto something they hear like that and perpetuate it).

So all in all a spooky property. Sound like it would make for a good haunted house for people to pay to go through!

Thanks for sharing that interesting update. Well if nothing else the place has ... character & history.

Take care,

Lea
SPR Property Solutions, LLC

Waiting. Looking. Taking. Reading. Planning.

Waiting on...looking for...taking action...reading about...planning for...

Waiting on an answer on my offer. Looking for new properites. Taking action steps towards my goals. Reading about real estate. Planning for my future.

...the day I'm calling the realtor to see if she's heard anything about my REO offer.

It's also the day of the first ever conference call for members of the RE group I started on this site.

I'm really looking forward to both today! I've already met by phone & email a couple of really nice people that are members of the group and who will be on the call. It's a great start of what is to come!

This past Friday was the first ever conference call for the SE Wisconsin/NE Illinois MasterMind Group that I had started on the DG site. We hadn't really don't anything yet...I wasn't quite sure with so many of us up to 2 hours away from each other how to really get something going. Then I realized that a conference call was a great way to begin. Though we have 15 members, four of us made it onto the first call and it was good. Very nice people, all genuinely motivated and working towards success. More calls will soon be scheduled as we all agreed that the live one-to-one was beneficial.

Yesterday, the mystery of the foreclosure on my street was solved. I could never find the bank that owned it (the one on the deed claimed it wasn't them!?!) nor could I find it for sale. Well, it turns out it went on the market 6 days ago and there is a man who is/has put an offer in on it. I know this because as I drove by the house yesterday I saw a woman there and asked if she was a real estate agent. She was and the man she was showing the property to drove up. She was trying to rush me out of there but I finally got her to take my card and I asked her to call me and told her I'd like to see the house after she was finished with this gentleman. She made it quite clear to me he was VERY interested in the house and I sensed she wouldn't call me. And when I asked her for business card, she said she didn't have one with her. She just gave me her name, but she didn't bother to tell me what realty company she was with so clearly she wasn't intersted in having me call her. I asked her the name of the company and she told me, but based on the way she acted I certaintly didn't plan to follow up. I thought this was all very odd since a potential customer dropped into her lap.

Imagine my surprise when she did call me back within the hour! She said the man was putting in an offer on the home but she'd let me know if it didn't work out. Also, she asked me what I was interested in and I told her my husband and I were intereted in property for investment purposes, particiularly reos & short sales. She sells a lot of those and put me on an automated list to get those immediately as they come out. The initial list that she sent to me had 155 properties on it within a 45 drive from me (all in my state). She's also giving my info. to her Illinois partners so that they can put me on an automated list as well. So this could turn into something very nice and potentially profitable!

Next --- the agent who submitted my offer on the short sale in the other state has not yet heard anything from the bank. At least it's not a no yet!

And, very recently I've met by phone and email some new very nice people on this site (to add to the ones I've already met here)! It's really wonderful to be communcating with others who have the same mindset and are excited and positive.

And that's how I'm starting this week!

I'm in a play and at last night's rehearsal I found myself with a lot of time backstage just sitting around. It was a great time for me to review online a big new batch of listings that a realtor sent to me of commercial foreclosures and reos. I found a couple that look interesting.

I love my phone and how I can be working on real estate even while "just sitting around." It's funny to think back to my first cell phone about 14 years ago and how big it was, it had an analog signal and, well, that was it. And now, they are mini computers with more power in them than early computers had and we can do business anywhere. In fact, I remember the first portable phone that I saw. It was the late 1980s (uh boy. I'm really dating myself now) and the guy who had it was a "player" in town, a developer I believe. I remember eating at this popular restaurant and he was there at the bar. His phone was the size of a shoe box! Ok, ok, I exaggerate, but it certainiy was bigger than a brick. But we all thought he was very cool. Unfortunately, he thought so to!

Hi Nancy,

So I'm doing a little catching up on my DG family journals, and have come across yours. I love your picture...and love the title of your journal. It is fabulous and I love the creative vibe that is so clear from reading your journal...it is so great that we are all passionate and different in our "non real estate" pursuits, and that this love of RE brings us together.

Anyway, just wanted to say congrats for connecting with the bank on that REO property this week. Even though you didn't get it, it sounds like that connection is more important anyway! It inspires me to call a bank and special assets person that works there, that I know is dealing with a particular property that I have been keeping my eye on for over a month! What am I waiting for? (I just discovered his name within the past couple days)

I'll keep following you and your success and know you must be looking forward to hearing back on that other short sale too.

Cheers!
Louisa

Thanks so much for stopping by my journal, Louisa! It's very much appreciated that you took the time to read it. It's funny that since I was a child I have tried but was never able to actually keep a journal. After a week or two, I always stopped writing in it. And here, I just keep creating an entry at least once a week. And this journal is open for anyone to see, YIKES! So it's funny to me that now I can write a journal that is completely open to the public. What was I thinking?! LOL But, it's been a great way to keep me accountable to myself and I can go back and see the progress I've made. I do something every day related to real estate and I learn something every day as well, all of which takes me closer to my goals.

I encourage you to call the bank assets manager you mentioned as soon as possible. I found that I've had to leave messages for people and it's taken some at least a week to get back to me. Some of them have been nice, some have been dismissive, but I'm glad I've picked up the phone and made these calls as I've always received some sort of needed information, even if it's to tell me "we aren't working with any new investors at this time." Which translates to me saying to myself "That's fine, next!" And I move on!

I'm going to step over to your journal after this and catch up with you!

All the best,
Nancy

The realtor I recently met and who signed me up for daily foreclosure/short sale listings has added a commercial daily list as well (as per my request). I received the initial long list of properties yesterday, and I discovered one that particularly interests me. Why you ask? (I'm sure I heard a why or two out there ). This downtown building built in the 1920s has my last name carved in stone at the top of the building! And since I don't have a common last name, this of course caught my attention.

The building looks pretty nice inside, from what I can tell from a few of the photos, though I have no doubt it needs some updating. Right now the two storefronts are empty (it can be used also as one big storefront) and it says it has 4 apartments upstairs as well. I have no idea what condition those are in. I'm not even sure at this point if it's in a somewhat decent part of town as this is in the next town over and I haven't yet had time to do any investigating. But you can bet I will!

I feel that with my name attached to it, I need to at least go look at this building. It's blatantly calling my name, after all.

I was in touch with the realtor today who submitted my offer on the house in another state. She told me she believed we would have an answer from the bank on Monday. Now, I know it will be a huge long shot if they accept the offer, but nothing is impossible so hope reigns! And I must say to this agents credit, she never said one thing about my very low offer with several contingencies. She never tried to talk me out of it or tell me it wouldn't "fly" with the bank, etc. She was very professional. She clarified a couple of points she wasn't sure of, and submitted the offer to the bank VP in charge of the property. I must say I was impressed. Do I believe she thinks it will be accepted? Heck no! But I do appreciate that she didn't say anything about it to me, though I believe I may have heard some laughter in the breeze...

I'll keep good thoughts for you on your offer. That is great about your RE Agent. That's interesting about the building with your name carbed in stone.

Take care,

Lea
SPR Property Solutions, LLC

Thanks for stopping by Lea, to read and comment. It is very much appreciated. I haven't yet had a chance to look at that building that has my name carved in stone but I don't think it's going anywhere anytime soon. I had it confused with another listing I had seen so I actually don't know what the inside looks like at all. The listing I have on it doesn't have photos as I thought it had. It will be a complete surprise! But worth it nonetheless just because I want to see it! I did do a little investigating, and this part of town has tax credits and such attached to it for rehabilitation because it's an area the city has been trying to specifically redo. They've been buying up buildigns themselves and selling them to people who will rehab them with their themed vision in mind. It's all interesting enough to look into.

All the best,
Nancy

Though I continue to think about RE and I continue to look at properties in the paper and some online, I feel the need to step back this week and rest just a bit. I'm feeling a bit burnt out on RE right now; nothing terminal though! Sometimes I get so intense into something that I tire out and don't come back to it for a long time and I don't want to do that here, especially since I've had a love of RE for many, many years. Plus, I keep moving forward and I don't want to lose ground. So this week I'm just easing up a bit to recharge, accept for tonight's call with Dean. I don't want to miss that!

Yesterday was the day the realtor thought we'd hear from the bank on the short sale offer I made on the property in another state. It's interesting. I though for sure they would have laughted my offer right out the door immediately; however, either they just haven't had time to look at it, or, they are waiting until they are almost ready to foreclose to make a final decision to see how they feel, or, though my offer is soooo much lower than what they last said they would accept (I got that figure from the realtor) they may think it's still worthy of review because it we would be a property off their books and no longer a headache for them.

While I wait for an answer, I'll sit back and recharge my batteries a bit. I can be patient. I have nothing to lose and everything to gain so either answer is just fine with me.

Hi Nancy,

Glad you are resting a bit. You have been ACTIVE!!! My past week has been somewhat active, somewhat discouraged and somewhat just needing rest from it. I am with YOU on the intensity factor. And wanting to be in RE for the long haul, not to burn out...I totally relate!

I appreciate your advice and experience (as I read some of your previous posts) on bank asset managers. A lot of changes happening at the federal level are changing up the way banks do business...at least what I'm finding out through my agent. I've gotta get on those bank calls.

I'm ready to go again...just need to re-evaluate my baby steps to my goals to switch it up a bit.

I am loving all your updates here. Once you start this journal process, it really becomes a part of you, doesn't it? (I read your comment above about never being able to keep one as a child, but it seems that once you start publicly here, you kinda make yourself accountable in that way...seems easier!)

Anyway, glad you are taking a little time to step back and re-charge.

Will be thinking of you and this offer you are waiting to hear back on.

Take care of yourself!
I can't wait to hear Dean's call tonight!
Louisa

Thank you for the kind words. I am recharging as its been good to split my focus a bit this week to some things other than real estate, though I still can't seem to turn that part of my brain off either! I have some homes I want to look at with a realtor who has been sending me REO listings. A few of them look promising!

And like you, I need to be making calls to banks. I only made a few calls previously and there certainly are more out there! Oh, and I'm glad you are feeling better by the way.

I'm wishing great things for you and I know you will achieve what you set your mind to! I peek at your journal so I stay up to date with you .

Nancy

I belong to a group of entreprenuers who meet once a month. I'm new there and have only attended two meetings and while it's so far been a very small group it's been a worthwhile hour spent of my time. Last evening a new person came to check out the group and as I introduced myself as a real estate investor she said that's something she's always been intersted in and she was asking me all sorts of questions. "How do you do it? How did you know how to begin?" And of course many more questions followed. I found myself being a cheerleader (but no pom poms on hand) of Dean's books and this site, almost as if I had a stake in the company! But when you know something is great you just have to share the news. I think we may have another who will be soon joining the DG family!

So I just found out from the realtor that my Short Sale offer to the bank on the house in the other state has been declined with no counter offer. I'm not at all surprised by this. I went in really, really, really low with many contigencies that were intented as negotiation points. But I decided that what the heck? They don't know me and who knows what may make them say "yes." You don't know if you don't ask. Now I know!

So here was the deal (as I promised in my journal I would talk about it after the fact).

The home sits on 7 acres in the country in an area where many have second homes. The house, nearly 3500 sq. feet of it, was built in 2005. It has issues -- mostly minor, such as needing new carpet downstairs due to sever pet stains and odors, some minor foundation work where there is a leak. A leak that needs fixing in the bathroom. Concrete to be finished pouring in the garage. It has no landscaping. And a few other minor things. The biggest obstacle is that it shares a well that is on someone else's property and the orignal owner of the other property (when the shared well agreement was made) no longer owns the property. And that shared agreement was a handshake deal. So with no legal claim to the well, it stands to reason that a well has to be dug for the house, which is an obstacle that has faced finding a buyer for the property generally speaking. There was one offer they were willing to accept, however, it was contigent on the buyer selling their home and so the bank declined.

Here's what I know about the value of the house. I don't actually know the FMV but I know the loan still has a balance of $587,000 on it. The house listing price (on the market for a year) started at $550K then dropped a few times down to $399K and then the bank accepted the one buyer's offer of $385K. Now, knowing this area and the land it comes with and the look of the house, that price was well under FMV.

So, knowing I couldnt' afford such a price, I went in much, much lower at $200,000 (the contigencies I'll talk about in a moment). I figured that if we got it we'd (a) could have the agent go back to the person who's offer had originally been accepted by the bank and offer to sell it to them for around $325,000. A great price break for them. Or (b) go back to another couple I know who looked at it and didn't want it at that price but very possibly might have wanted it at that lower price. Or (c) keep it as a second home. Now, I'm not really in the position of owning a second home, but we love the area so I thought about renting it out until such time as we could move there in our retirement, or renting it out as a guest home for wealthier people in the area who might have out of town guests but who would still like their privacy.

So aside from the ridiculous $200K offer, I said I wanted the bank to finance it at 100% with a 30 yr. mortgage at current rate but no higher than 5.6%. I also wanted a HELOC of between $50K-$100K if needed for repairs and for future improvement projects such as installing a pool, and the rate would be at currrent market but no higher than 6.0%. I also asked for the bank to pay all closing costs and to pay me $3,000 back at closing. My husband asked me why I ask for money back and my response was "because I can."

My only contigenies were: the return of a clean title, attorney review and that the home would be in the same condition that we saw it in once we visited it after the banks approval of our offer. We could close as soon as the bank could fund it. I also asked for the banks response in writing.

Well, I am pleased to say that I got at least one of my requests: the bank's response in writing! LOL

I've said all along it was a crazy offer, but crazy things happen in life. I tried for a no money of my own deal at a price I could handle with plans in place to do so. Am I disappointed? I'm surprised to say that I am a tiny bit despite the fact I knew it was the longest of long shots. But am I glad I made the offer? Absolutely I am! I won't go back with an offer later as I have no doubt the bank would say no on this. It's about to revert to the bank in one to two weeks and I know they plan to put money into it to fix a few of the issues and put it back on the market at a higher price than the $399K price tag. I do believe they have a good chance of selling it at a higher price point if they are going to fix some of the issues.

It made me confident to put in this offer. It was difficult to do as I knew I was going to be seen as "crazy," so I ending up dragging my feet on putting in the offer until I finally said to myself "who cares what anyone thinks? All you care about is if they say 'yes!'". So I got over my silly self and submitted the offer, which went far smoother than I ever imagined it would. The agent was professional and did her job and while I'm pretty darn sure she said things to the banker about me (I have some written info. indicating that) it doesn't bother me at all. They don't know me so anything they say about me or the offer doesn't reflect upon me. I don't take it personally.

Submitting this offer proves I can do this and anything else in RE! I don't care what others think because I know everything is a numbers game and you put in enough offers and one day one is accepted. Then, once you have one accepted offer under your belt you will get another and then another one. Action breeds success. Confidence breeds success. Success breeds success! I have no doubt that by next month I'll have another offer in on another property, or maybe two offers, or maybe 25! There's nothing stopping me now!

Been down sick for a week; not the flu and not a cold but something in between. Still looking at properties that come into my email though with an occasional visit to this site to read posts, but that's about all that I felt up to. I've found about three properties I want to see as soon as possible. Going to call the realtor today to set up visits for Saturday as I should be feeling well enough for a "field trip" by then.

That's it. Not much to report today.

just checking in...what the hecks been going on the last week or so???Hopefully not sick still?

any good potentials at all?

Hi Marc!
Thanks so much for checking in with me. Believe it or not, I have still been sick...well, at least until this weekend. I did go to the doctor but as I figured out a few days into my illness, I had a virus that mimicked a lot of the flu symptoms EXCEPT a fever so I did not have the flu, just some icky virus that kept me feeling terrible for nearly a month. Yesterday was the first day I felt pretty good and except for a lingering cough, today it seems I'm all better.

Believe it or not, despite feeling sick, I kept thinking of how much time I was losing in Real Estate since I didn't do anything about that this month; however, I soon realized that real estate will always be there so all will be fine. A handful of times I quickly came to this site, and read a few things posts but didn't feel up to signing in and posting myself. Now the holidays are here. Yikes! So I expect I'll be back in the swing of things after Thanksgiving.

What's up with you? I must know everything! And for anyone else reading this post, catch me up! What are you doing???

All the best,
Nancy

Much to my chagrin I've had to take a break from my RE to a great extend, including visiting this great site. There has been much "unexpected" taking place. No worries though for me in that I am still actively look for and considering properties, albeit not at the pace I was two months ago. I expect things should open up for me by mid-January and I'll be back full-steam ahead.

So with that said, I am wishing all the best to everyone here, and a big hello and great wishes to those special friends on this site (you know who you are ) and hope everyone has a lovely holiday and a wonderful and blessed new year.

Aerialist