Aerialist's Journal - Because life is a circus

Today was the first time that I watched online property auctions. In the past my timing would be off and I would have missed them or they would be taking place in a week or two. Today, I was able to observe multiple auctions that had both online buyers and in-person purchasers. The auctions I observed had both types winning and what I found so interesting was how fast they went (none lasted more than 5 minutes) and how some properties went for less than I expected and others for far more. This experience showed me that perhaps online bidding could be one option for me - it didn't seem nearly as "scary" as I thought it would be.

Soon I'll be traveling to another state for a few days and yesterday I received information on four properties going to Sheriff's Sale later in August down in the same area where I'll be visiting. I looked over the information and all four are quite interesting. The back taxes due on each are not at all overwhelming. I wonder how the properties in this town sell for on average at auction? Since none of these have mortgages, I don't have to worry that the bidding would start at the amount due on a note, if there was one. I plan to visit each of these while I am down there and to speak with the person at the government building who handles the foreclosures so that I can ask her my "average price" question, and to find out how many people on average come to the sales. I know that they don't have these very often in this county. While it's required to have someone on-site for the auction, I do have relatives available who I could have there as my proxy. This pleasure trip has become even more interesting now!

I just have to say how really nice it is to be back involved on this site and beginning to interact again with other DGers, as well as renew some DG friendships. What makes those even more special are the fact we've never met and only communicated through the site, amazing. The encouragement of those and so many others here is wonderful. It's the same with Dean and his staff. Their posts, Dean's video's etc. and just their general involvement with us does indeed make it feel like a family. I promised myself when I began on this site to be involved because I'm usually not a "joiner" - meaning I may join something but I tend to not become involved on committees and such (as clubs and organizations often have) or even write too much on social networking sites. And though I've had to step back from here a few times, when I do come back to the site I find my involvement helps me with my RE focus, education and drive. I find being known and involved as a DG family member is a really nice thing - in fact it's so interesting that early on we somehow began calling ourselves the DG family - that was organic, no one dubbed us that but ourselves. It is my hope that next year I'll finally be able to attend The Edge (something I wanted to do from the beginning) not only because of the amazing knowledge I'll receive but also to meet so many special people who I only now know virtually. I really appreciate this site and those on it.

Spent a lot of quality time this weekend working on my buyer's list, looking at properties, and such. Waiting on some info. on two FL properties we are interested in purchasing - one is a condo for under $10K the other a condo for under $34K (though I'd like to get it for $20); looking ahead to when I get to look in a week or so at four properties I'm interested in at sheriff's auction in a small town (one of them is my primary choice - 7 acres with less than $1,000 owed in back taxes). I do think my first investor deal will happen in August!

What a weekend I have coming up! There will be lots and lots of properties looked at in one particular town (by lots I mean about 7). And I am very much looking forward to it! Spoke with a nice gentleman this weekend - they manage the properties for the person selling them - I had been interested in them all but hadn't realized they were all owned by the same person since I found them listed seperately. Very interesting! After my conversation with the person today I know that two properties are pending for a sale, though he said take a peek at them because nothing is a done deal -- don't we all know that about real estate! LOL

I really don't know what now now if there are deals to be made -- after my phone call I"m beginning to suspect they aren't the deals I thought they were, but I will look and then do my due diligence. After all, nothing ventured nothing gained! And this is just one more good experience. I am getting closer to my first deal, I can feel it. Wait, what was that? Oh, yes. That was opportunity knocking. If you'll excuse me I have to go answer it.

Was just down in North Carolina and was looking at property (a side activity to my visit) - the ones I already had lined up to look at didn't work out. The land I was interested in is located in an area that nothing can be done with it -- I checked around and I asked around and I spoke with an appraiser. The mobile home parks (2) and houses I were interested in turned out to be part of a portfolio (two are almost under contract) but I feel way overpriced and this apparently is not a motivated seller based on the conversation I had. Southern charm was not in my favor in terms of RE. But those mountains sure are beautiful to see!

Spoke today to a seller of a mobile home who is motivated but I was disappointed to find out how much he owes on it and what he must have to sell it. I'm figuring numbers but other factors, including the age of the property and the lot rent don't seem to make this a property worth pursuing.

Found some interesting people today to add to my buyer's list, which is a plus.

Lots more to do!

Some days it feels as though I'm not moving forward but then I'm not moving backwards either. I suppose that the fact I'm doing something every day on my business is a very positive thing but I sometimes feel that I've not advanced one bit. I had a very nice conversation with an investor this evening about a house he's selling so that he can pursue some other interests; however, while the house sounds great, his numbers are way too high -- he's not willing to come down and I don't see how there's money to be made in the deal (he's asking for more than what the market will bear). He bought before the market took it's dip so that seems to be part of it. And, he's not interested in being on my buyer's list. It was a very pleasant conversation; he was quite nice. It's just that I'm no closer to a deal. And while I thought August was "my month" it's half over and I think "my month" may be delayed. But I go on. I'm just feeling a little tired and frustrated tonight, and so I whine for a moment. But that's it - no whining is allowed on Monday's.

There was another conversation with a for sale by owner today -- a really lovely conversation - but that's another story for another day.

So after my little pity party on Sunday (see above post) today I'm feeling much better. I continue on and have found some very interesting things. A couple of houses I plan to make offers on just as soon as I finish a couple of due diligence things on them this week. And, last evening I asked a friend in another state if she'd bird dog for me in her city (which is one of my target interests) and lo and behold not only did she say yes but she said "you can start with the house next door to mine. It's been empty for two years." So what I know so far is that back taxes are owed for 2010 and I have the owners name and address and a possible phone number (if it's still working). Next step: to call the owner!

Ah, another day another property!

I spoke with the owner of the above mentioned home that I'm interested in in another state. As my friend (and new bird-dogger) and I suspected, it's been foreclosed on. However, the bank's website is not showing this particular home as part of their REO inventory nor are they showing any approved realtors in that state that they work with - so now I need to find the right person at this big well known national bank then hope that person will talk with me. This property seems to be part of the so-called "shadow properties" that banks are not yet releasing for sale. I'm also researching, calling and working on other properties but thought I'd update on this one at the moment.

Must get back to it!

Giving up on the aforementioned house - not worth spending any more time on. Will keep an eye out if it shows up in an auction or such by one of the companies that auctions and/or buys from banks in bulk, but too many other houses out there to waste time & energy on this one property.

So today saw a duplex for sale by owner just a short way down the street from me - must have just put the sign out as I hadn't noticed it before. Property sits on a larger than normal piece of land, but on a good road and location, and it does need work. Stopped -- had to work to find the phone number as they had it on the other side of the sign and not on the side facing outwards (?). Called it when I got home and the gentleman seemed confused when I was asking if the entire building was for sale or was it only one side of the duplex. He then said, "Duplex? I don't own the duplex. I own the car." Then it hit me -- there was a car with a for sale sign in the window sitting right behind the For Sale sign stuck in the ground. I thanked him for his time, hung up, and laughed and laughed. Now, moving on to the next For Sale by Owner - hope the next one will actually be a house and not a boat or something else for sale!

Next, have my eye on an REO about 2 miles from my house, located on same busy road as the property mentioned in my immediate previous post. A little over 1,000 sq. just about a straight shot a quarter to half mile down the road to Lake Michigan. Estimated ARV: $89,000 - currently bank-priced at $28K and my rough guesstimation from peeking the in the windows is that it needs around $40K worth of work.

So the other day I drove by with the intention to look at it up close but there was a guy in a pick up truck there doing "something." I couldn't tell what type of work but I wondered "has this been sold?" And the answer is no. I was there yesterday to once again attempt to peek into the windows, signs still up and I think he was there to cut the grass as it looked recently mowed.

Told my husband we'll make an offer on this and be sure to put in an inspection period. Outside is good -- just seems to need a new back gutter. Yard is fine. Could just use some flowers (i.e. minor landscaping). Inside, well, whole other story. Needs painting throughout (but what property we all buy doesn't?), flooring throughout, new kitchen (though cabinets look in decent shape so possible to salvage them - just spruce them), appliances, new bathroom (think everything might be gone or need to be new as I saw the toilet sitting in the doorway!). So while it seems like a lot of work, I think the bones of the structure are good and in many ways it's cosmetic work. We're not planning to move walls or do anything fancy. Or else I'm dreaming and I'm in for a rude awakening. Either way, an offer is going in!

I feel as though so much good stuff is happening right now! I had a bird dog contact me so I'm in process of learning more about her; I also have one in place in another city that I'm interested in and in that city I continue to build my team with another person in place there. I have about 7 offers to prepare over this holiday weekend (wonderful!) and I'm working with a homeowner to see if they want to sell to an investor and be done with the house, or go the traditional real estate agent route -- right now they are leaning toward traditional route but will leave them with me as their backup plan "b." By the way, met them at an estate sale! Oh, and I continue to read and educate myself on this business and all of the wonderful techniques there are in it. And, well, lots of other good RE stuff. So, going into this Labor Day weekend I feel great about the labor I'm putting into RE and the progress I am making!

Building more of that buyer's list too. Forgot to say that before. So important!