Regina's Journal

I was supposed to hear from the owner on the probate property yesterday to see if we could come to an agreement on the price, it didn't happen. If he doesn't call me tomorrow I'll call to see where we are. I may have to pass on that one but I am not emotional about it, there are more deals to be made!

When I ran the number on the multi-unit in Northern California, I was considerably lower than the asking price (almost $200,000). I contacted a realtor in that area who works with investors and asked him to gather more information to see if maybe I'm way off. He gave me a better idea of the rents so it helps in my decision. He seems very knowledgable but a little discouraging. He told me that hard money lenders are making it more difficult to get money by charging fees up front and prepayment penalties. I'm so glad I'm on this site because I see by the deals others are making that this is not the case and that HMLs are lending in a way that makes sense for investors with no money (thanks family!!). I also found another multi unit that doesn't need any work at all because it was built in 2009. I'll run those numbers and see how that one looks.

I mailed letters to home owners today and will mail more tomorrow as well as place some ads.

I'm so close to making my first deal I can taste it! ONWARD

I got a call last night from someone who needs help with their home and two others that I didn't get a chance to speak with. It would be a short sale, which I have never done (obviously). Coincidentally, I was speaking with a co-worker who is also an investor. It just so happens he is focused on short sales!! He said that he is willing to partner with me so I can be as efficient as he is at doing short sales (he has 35 deals going right now). His first lesson was don't get greedy when reselling the property after a successful short sale. If I make $5000 that's money I didn't have before. I don't believe it's a coincidence that I found out about what he's doing by accident. I look forward to this "on the job training".

Congratulations for starting your journal and good luck with the potential short sale deal. Sometimes we do not know what we are looking for, but when we start looking we tend to find it. The more people that know you are into real estate the more deals that may begin to come your way. So, keep up the good work. Good luck on all your future deals! Believe and Achieve! - Joe

I really enjoy reading your posts and all the great information you give.

I finally did it!! My first offer went in on an property in Sacramento, north of me (my brother lives there). I recieved an email on this property which isn't listed on the MLS because I sent an email to the broker on another property two months ago. It's a 6 unit multi family in downtown Sacramento across from the courthouse. It needs to be finished and my brother took a contractor into the property to see exactly what that would entail.

It looks like the owner started renovations at the height of the market then, when the market dropped, they didn't have the money to finish. The outside is completely done except for landscaping but the inside needs about $150,000 to complete. It's listed at $485,000 (the owner is about $900,000 into it) and FMV, according to the recent comps, is $700,000-$750,000. If I can lock it up for between $400,000 and $410,000 I have an investor I can flip the contract to for 65% FMV (about $450,000) and he would complete the renovations. I was a little concerned though because the realtor asked me if I had a down payment even after I told him I would be flipping the contract to another investor.

I did what Nate Street suggested in one of his posts and asked that the contract show the earnest money ($5000) being paid at closing. The realtor is going to ask the seller to pay all closing costs and escrow fees. They have not recieved any offers and are very motivated to get rid of the property.

I'll keep you posted

I can't believe it's been this long since my last post. Well, the property in Sacramento didn't work out but I found a great contractor up there for future rehabs. My co-worker is still willing to help me whenever I get my act together enough to do anything. I have asked to become one of the volunteers to homeless_in_MD. It sounds exciting! We'll see what happens with that. I don't have the money for the EDGE event this year but I will most definitely be there next year (with my husband).

2010 GOALS

1. Have my first property under contract before the end of March 2010.
2. Have 5-8 deals under contract or completed by June 2020.
3. Buy and hold my first rental by October 2010.
4. Have at least 5 rentals with cash flow of $850-$1000 monthly.
5. Help my boys (ages 24 and 17) begin on the road to financial freedom
through real estate investing.

These goals seem almost impossible from where I stand right now. My hope stems from belief in a GOD who tells me "I can do all things through Christ who strengthens me." Philipians 4:13 and by the successes I have seen with other DG students. I am very excited to get going in 2010 and to see what comes next.

I went to church this morning and was told to be ready for changes over the next 5 weeks. I'm signed up to attend the meeting with homeless_in_MD today and intend to take away and apply as much knowledge as I can.

I received another copy of Dean's newest book, "Your Town Your Real Estate Profits" and called the office to let them know. I was told that if there was someone I knew who I wanted to give it to that I could do so. There is a young man I work with that I had been talking to about real estate and I gave the book to him yesterday. I hope he chooses to start investing in real estate because he would be getting started early (he's about 23 or 24 years old). I'd love to see him achieve financial freedom at such a young age.

I real Matt Larson's post about closing his 97th and 98th deals. Wow!! It really get me thinking that I am really dragging my feet in getting started. I am going to pick up my feet and accelerate my game to get that first property under contract before the end of this month.

I'm still educating myself so I will know what I'm doing when I make an offer. I have a realtor sending me expired listings and I'm still building my buyer's list. I put ads on Craig's List looking for buyers as well as sellers.

I've received two responses to my Craig's List postings. That's really exciting except now I need to get some properties under contract. I'll be sending out some letters to expired listings and to people facing foreclosure. I think some postings on Craig's list may help here as well, we'll see.

I recieved another call from someone looking to do a leae option. I just need to get some properties under contract now. That first deal is just around the corner!

You are really bursting out of the seams with intensity and I encourage you to keep up the good work. You remind me of myself with that burning desire you have to be successful in the REI world. Ok just wanted to let you know that the DG Family is rooting for you and we got your back. I will see you at the TOP!

Best Regards,
Shane Gore

My journal is anemic compared to yours but different people work in different ways. I get so much encouragement from your journal so keep it up. Thanks for stopping by mine. Keep moving forward!

I have just read through your journal and .... WOW! You are doing awesome. I know this fire that you have all to well and believe me if you keep kindling it( with deals and buyers)the fire will grow even brighter.

I am so glad that you created this journal. It is so exciting to watch someone grow and succeed as they go along. Keep up the great work. I look forward to your next post

I haven't posted for a while but sometimes things move slowly.
I was interested in a vacant house near me and spoke with the neighbors. I learned that the owners moved to Italy and left everything in the house, including a car in the garage! I was able to locate an address for the owners (an APO address) and sent them a letter asking to purchase the property. I told them I would take care of cleaning up the property as well as disposing of the car. That was just a few days ago, we'll see.
I sent out letters to people in pre-foreclosure but haven't heard anything yet.
I'm thinking of going to a family reunion in September (my father's side). I've never been but am looking forward to meeting family I've never met before. I'm thinking I'll do some REI while I'm there. I have time to research and get an agent to show me properties. If I have to, I can stay a couple of days after the reunion is over. I'm really starting to get more excited about this life and my future.

Regina

Keep moving forward

Thanks Carol,
As with so many other people, you really inspire me. I won't be at the E.D.G.E. even this year but will NOT miss it next year. I saw that you achieved your goal of $50,000 in profit. That is so cool, especially in such a short time. Thanks for stopping my journal and thanks for the encouragement.

Regina

Keep moving forward

It is so motivating to see you going out there and keep trying! The deal from the family in Italy seems very encouraging! I wish you the best! You can do it! Go Regina! Yeah!

Thank you so much. You don't know how your post lifted my spirits today. It was one of those down days we all experience. You've really encouraged me with a few short sentences.

I haven't posted for a while. I'll try and consistently post at least every other day. Well, I got the letter returned from the APO that the people are no longer at that address (it was the most recent one I could find). This is the vacant house in my neighborhood where the owners moved to Italy. I'm going to contact relatives to see what information I can find out.

I started reading a book that Carol Stinson recommended by Michele Gorman and Marc Halpern (We Buy Houses, Sometimes!). It takes a very different approach to your mindset and goal setting. I am reading it every free moment because it really makes me thing.

I have also been sending letters to people who have received notice of defaults. Hopefully I can get some people who are ready to have their debt taken over so they can move on.

Regina

Keep pushing forward.

At least you are taking action, That is 90% of the game. Good luck and keep us posted.

Randy

I've been reading your journal and I absolutely love that you know exactly what you want and stick to that. You seem very determined in your decisions and actions. Thanks for the encouragement.

Nice to see that you back in to posting in your journal. I like to read your journal and keep up with your progress. Trust me the deeper you get into this world of REI the more your engine will start turning. Just let yourself go and submerge in this love/hate relationship of REI. Hate ny knowing what it takes to make it but not taking action, Love by dealing with the pain, sweat, and tears knowing that your efforts will propell you into a world that you could only dream of. Keep doing what you are doing because if you are nice to REI it will be nice to you!

Best Regards,
Shane

Thanks for checking my posts. I love reading your journal too because you are so enthusiastic that I get motivated all over again. You're right, REI is a love/hate relationship but I am ready to take what ever action is necessary to see my dreams realized. Coming in I really didn't know what was involved for success, now that I know I am even more determined to see my vision become my reality. I wish you much success and I'll be reading your posts to follow your progress.

Regina

Keep pushing forward.

Well, I got the letter returned from the APO that the owners of the abandoned property are no longer at that address. That's not the end, though. I can contact some of his relatives, hopefully they can help me locate them.

I contacted a real estate agent on DG.com who lives in Northern California where my brother lives. She responded to my PM and hopefully we can get something going. I checked my credit score to get an idea of where I was and was presently surprised to find out my score was in the 740s!

I'm developing a flier to generate some leads of people looking to either buy a property or sell a property. I'm going to put them on cars in the parking lots at Sams Club, Costco, Walmart, Target and any where else I can think of.

Regina

Keep pushing forward

In my last post I talked about the letter I sent on that abandoned property. I sent out letters yesterday to possible relatives of the owners. Hopefully one of them will have information that will lead me to the owners.

I called a FSBO from an ad I found on Craig's List and it is a great property. The owners live out of the area and their son showed me the property. It was built in 1929 and needs a lot of updating (practically everything). The great thing is it's zoned for multi-family and the main house, which is 1630sf, has 300sf additional space in the attic that can be remodeled to living space without the roof line being altered. The bad thing is that as I was leaving the biggest real estate agent in this area walked up to speak with the son (wouldn't you know it!).

The valuable thing that I got from going to talk with the property owner's son was courage. As everyone has been saying, they are all just people. All they can do is say "no" (and maybe yes). I think I'm past my fear of talking with owners and that's huge!

Regina

Keep pushing forward

Well, I faxed my agent 10 offers to submit today. I put in offers that embarrassed me, but I was told that they should embarrass you. All they can tell me is no and hopefully some will counter. Either way, another 10 offers will go in next week.

I'm continuing to read and made a new commitment to do Some thing related to REI every day. NO MORE SLACKING OFF, I want to see results to I will put in the work.

I finally did it, I had my realtor submit offers on some properties yesterday (turned out to be 14 offers). I really thought he would tell me that they were too low and he didn't feel comfortable putting them in but he didn't. He seems to be on board for any strategy I want to use and that helps a lot. I'm looking for properties through different sources and having more than one strategy I'm looking in to getting private money so I can hold about half the proprties I get under contract. I find that the fear I had is finally gone, it just doesn't affect me any more.

Regina

Keep pushing forward

Good Job, And you will find that as long as you keep taking action the fear will stay gone. Good Luck.

Randy

Thank you for the encouragement. It's amazing to me how it's no longer there, almost over night!

Enjoyed catching up on your journal, and I relate 1000% to how taking small action steps wipes out the fears we have. That is the whole point of everyone continually saying you have to step out of your comfort zone! And each time you do you learn more and things get easier! Everything about REI was outside of my comfort zone when I started, and I'm completely amazed at where its taken me! So congrats to you for doing what it takes - you are just going to keep going up from here