Donna's road to Success

Just one of those things I have to figure out. I will be focusing on a few rent to own senarios..

We Listed one of our 2 rehabs We purchased it on 9/18/10 and listed it 11/12/10!! That is the quickest one we have done yet. I hope I priced it right. It is about 20% under value. We will see what happens. Our other rehab is more of a job so it will take about 3 more weeks.
So far we purchase it for 47500 and put about 5 k into it so we have approx 54k with holding cost at this time. It really turned out cute!
Our management company is growing slowly. We officially start marketing Monday. I am very excited about this too. I truly believe in developing multiple streams of income and it is better when they are related. My goals is to have 50 accounts by 1/1/11. I am going to try me hardest to make this happen.
Have a great week everyone

you have big goals but i believe you will reach them. you are a go-getter and you get the job done.

concerning your management company - are you required to have a real estate license in your state? it's required here in IN but i know that in MD it isn't. just curious. i'll be looking into getting my broker's license after the holidays because i want to do my own thing and property management is something i've been thinking about. i tend to be very independent.

hey Donna

I will be out of school for the quarter around the tenth of Dec I will be calling on you and Dan to see if theres anything we could do together or some dirty work that perhaps needs done
Talk soon
Happy Thanksgiving

Yes I am required in washington state ot have a real estate license. It is fun but a lot of hand holding. But I still will strive to acheive my goal and good luck to you!
It is good that you are indenpendent. We have to be. Go get em!!!

"concerning your management company - are you required to have a real estate license in your state? it's required here in IN but i know that in MD it isn't. just curious. i'll be looking into getting my broker's license after the holidays because i want to do my own thing and property management is something i've been thinking about. i tend to be very independent."

Have a great Holiday

I have a deal I am putting together and need spme advice about "Quit Claims"
While back I found a house and assignied to a buddy of mine. Once he finishes it I will management for him. Well the house next door has been vacant the whole time. I had been trying to contact the owner. by sending post card. Anyway, my buddy was working at the house and saw the owner. So my buddy being a newby investor goes and speaks to her. He found out the she wants to sale really bad. He got her contact info and gave it to me. I called her today. She feels she is really upside down in the deal and is considering bankruptcy.... Oh nooo!! I say. She owes about 10k more than the house is worth in todays market. She has a first and a second on the house. Worse than that the second is through the credit union that she works at and if she defaults she loses her job.
So I tell her if I could make you payments until we have a buyer for the house would you be ok with that??? The whole time I am thinking this is a Greg Murphy deal.. She said that would be great.. I would just like to wash my hands of it and never see it again.
So she want to quit claim the house to me. I haven't ever done that before.. Anyone out there that could give me thier thoughts would be so appreciated.

Right now here is the deal. LO for 5 years.
She owes 96k on the first and 22k on the second
she has agree to pay the second off herself. And mail me the payments of 211.00 a month to cover the second. the payments on the first are 730 PITI
purchase price will be to pay off the loan balance in 5 years approximately 109k.
I will find a tenant buyer with 3-5k down, monthly payments of 850. Sale price to my tenant buyer will be 120k in 4 years.
I will collect 3-5k upfront
130.00 a month cash flow and about 10k on the back of the deals.
The deal is a little slim but not too bad...Please let me now what you think of quit claiming the house

You can do a quit claim or have her sign over the deed, I think either would work. You are going to have to get an Authorization for release of info on the 1st mortgage, so that you can contact the bank on her behalf AND change the address of where the bank sends the coupons, you want them sent to you now. You are right it is a slim deal but can still work, and won't really cost you much out of pocket. Are you giving the other guy a finders fee?
Best of luck on this one.

cathyb

Thanks, Yes I have offered him a finders fee, he says he just wants to be with me and have me show him how. Which is fine I want him to succeed. I will probably give him one anyway. For DAn and I even if we make 5-10k that is fine. My plan is to do all of the LO paper work and then a quite claim deed. Thanks again

I finally got to see inside of the house. The owner has owned if for about 5 years. she tried renting it but totally hates that whole process. She wants out and will probably do whatever I suggest. She owes a total 110k the 1st of 92k and the rest on a 2nd. She is willing to pay the second off herself, by sending me the payments. not quite sure how to write that in. She also suggested I did not prompt her at all, that she would pay extra money every month to help with the repairs. She offered 100 a month right off the bat!
So that would bring the payment down for my tenant buyer and that was going to be the hardest part. I think I can get a TB in there for 725 a month. PITI It will have positive cash flow of 50.00 a month.So, 3-5k nonrefundable consideration money with an end price of 120k in 5 years to the TB. end profits should be about 12-15k. She just met me and she handed over the keys.

A great thing happened. the house next door, the one I assigned to Jason, had a recent appraisal. he had his house refinanced after rehabbing it and appraisal came back higher than expected. His appraisal came back at 120k! I had told him 90k.

The house in this deal has a better floor plan and more square footage.
So Great! Now I have to find a TB.

Back to Jason, so his rehab is refinanced. He took our only what he put in 60K, and now he is ready to buy another house and od it all over again.

Dan got a call from a son of an elderly lady. We had sent her a postcard some months before. It is a similar house as the other 2 I have written about today. A 2 bedroom 1 bath with a new garage and a fenced yard. it needs new carpets and some cleaning. Dan got is under contract for 60k. Jason wants it. We plan to assign it to him for 2k... DAn has about 2 hours in this deal.
We will close in 2 weeks.
Seems funny, sometimes I feel like we are not doing anything. But when I write it down, I realize things are going on.

Our rehab is going slow. Cabinets went in this week. Probably about 2 weeks behind schedule.
Have a great weekend everyone!

you just amaze me! way to go!

thank you for your support.

I just finished reading your journal. Whew! I can see you are very busy with working (even part time), rehabbing and putting together more deals. I love that you take on more than one rehab at a time, that's my goal. I also want to pull in deals with one hand and flip them with the other. Please keep posting, I get encouragement readng about your deals.

Keep pushing forward

I would like to wish everyone a prosperous New Year. I hope that everyone is healthy and happy.
I love my family and am planning to spend as much of it as possible with them.

I had to go back to work full time this month. I do not like it but it was necessary.

So As this year is wrapping up I realize that we have been very busy. And I love it! Dan and I have done 12 deal this year! We have done pretty well but we still have a ways to go to be finacially free. We have 2 more in the works and 2 on the market to sell. So that will be 4 in 2011. Great. I am eagerly looking for 2 more rehabs.
So to add to my last entry, the owner of the house, next to Jasons, has excepted my deal. So now have to draw up the paper work and get it signed. She is agreeable to everything and I will not take over the payments until March or April.
On Dan's deal, he assigned the contract for 2k no questions asked to Jason. We close next week. If that happenswe will have completed 13 deals in 2010!!!!
We have a new deal in the works it is another 2 bed 1 bath. We really don't like 2 bedrooms because they aren't as easy to rent or sell.But we will do it. This house needs work. An old lady owns it and her last tenant tore the place up. She is tire of the whole mess. If we do not buy or assign it I will pick it up as a management acct. We will try to get it for under 50k. It is very similar to the other 2 houses we have recently done. So, we know FMV is around 90-100k. nice!
I have picked 5 management acct this week. I am far from my goal for the year but we are growing. It is a lot of work and management does get in the way of strickly investing, but like I have said before we must have multiple streams of income.
Looking back over then year I like what I see. We have grown and learned a lot. Of coarse we have made mistakes but, each mistake is a lesson. I love this business and don't plan on stopping. Merry Christmas to all.
Love,

If you ran or run out supply due to the mass offerings. Who says you can not offer again. They may accept the 2nd time around.

Congratulations on moving forward into 2011.
Happy Holidays!!

unbelievable!!! you have accomplished so much. i would love to know more about your property management business. i have been asked to become a property manager for an investor friend here, but he wants me to get my broker's license first since it will make it much easier all the way around. he is talking about paying me 10% of gross collected rents. how does that sound? it is a lot of work and he's given me the list of duties. that's almost scary!!

KingJussin,
thank you for the encouragement. I will keep offering!

And may you have a Healthy and happy New Year

Happy New year!

Happy New Year Everyone. I wish for all of you a prosporous year.

My New years Resolution for 2011
1. double my income.
2. Get to 100 managed units
3. Fix and Flip 6 houses
It is a short list But I Like the challenge hahahahaha!!!

It has been a while since I have posted anything. I have been every busy in my everyday life.
As far as RE goes we continue to invest and learn daily. This week we did 2 Rent to Owns!
The last time I wrote I was discussing a possible deal on the house next to jasons house. Well we finally finished the deal. What we ended up doing was getting a finders fee for my trouble. The deal is very skinny so I figure it was a win win if we did it that way. All is good and everyone is happy. The seller couldn't thank me enough. Tha feels realy good for me. Karma

The second Rent to Own is a property that we own. The house needed some repair. We were figuring that the house needed least 2 k to get it rent ready. I told my partners that we should rent to own it without putting any money into it. Of coarse my husband/partner was sure that it was impossible to "rent to own it like that!" Well the second person we started working with signed up 4000.00 up front a payment of 975.00 a month, no rent credits, an additional 1000.00 due April 1st and a end price of 145k We purchased the house for 130k on a 3 year contract. This is so much better that a tenant because they are going to make improvements to my property! Wooohooo!

For those new people in marketing this property I had it on Craigs list for 2 days and put one sign out on a busy intersection about a 1/2 a mile away. they called on the sign! Signs and Craigs list work. Believe it!
We are working on Rent to Owning 2 more properties.

I am putting a flip house on the market tomorrow. We have held it too long but we should still make about 25k on the deal.. Wish me luck!

Dan and I met with a private money person yesterday. He like our area and has some rental here himself. His terms are a little steep. He can close in 5 days. This is help speed up the deal for sure. He want 3 pts, and 16% no prepayoff penalty, for 6 months.
The other lenders we have dealt with don't have funds right now. So, we are looking for more. We have an accepted offer on a bank owned property. a little skinny, we will be getting bid on the repair tomorrow.
It is a 4 bed 1.75 bath 1600sqft house 3 levels with a small attached garage. and a large fenced back yard what we can see in repars is mostly cosmetic. I am thinking it will take about 20k ARV is 165k We would plan to put it back on the market for 149k. We have it under contract for 95k at this time. Thoughts?

Congrats on everything. you are doing such a great job and sure staying busy.

Congrats on your hard work you have certainly have got me fired up I've yet to make a deal but plan on making one in the next 2 months, my question is how did you go about finding Private money lenders, I'm going to my local REI club this week will ask around there.

Anyway well done and keep up the hard work, I know I'll be in the same boat as you this time next year thanks for the inspiration.

Huw

Thank you for your words of encouragement. And congrats to you for joining the academy.
Yes Dan and I stay busy, for sure. But sometimes this is like raising children there isn't any manual. Just keep going:)

Thank you so much.
You ask about private money. Well,it is out there. I place ads in the Nickel Ads mostly. but is is really about relationships. Let people know what you are doing. I place a ad this time on the Reia web site explaining the deal, repair cost, ARV and the amount of rent it could collect. I received 5 responses. One was the offer I spoke about and one was a man with 15k to invest and the other seemed legitimate also. Just keep looking!

Thanks Donna I appreciate the advice, I am looking at 2 vacant properties. Found the owners address going to do some more digging before I contact the owners.

Will keep you posted,

Thanks again Huw

I have been asked what would my ad say for private money; An ad that I would put in the Nickle ads paper or "thrifty shopper" is
-Investor looking for private money
secured by 1st postion in real estate- Something like that. I have secured one loan so far this way. which was 110k
I hope that helps

Like most weeks this one has been busy for me, which is great for me.
I work full time, 6 12 hour shifts every 2 weeks this leaves me 8 days for real estate, But really 7, I do take every other Sunday off. But in reality I never stop think about or focusing on real estate. I talk real estate at work and have gotten some good deals too and private money! So I couldn't ever totally give up my JOB. I need the contacts. And when I am home I am reading something or online looking for deals. So why am I writing this down? I don't know.

The past week has been good. I picked up 4 new management accts that makes 20 total now. So with our existing properties we own, we are managing 60+ units. I am the property manager. I have a full time assistant who really does all of my leg work I just over see her. she has been working for us for 6 months now. What a blessing it has freed up some of my time. Awwhhhh!! We resent secured a big management deal. In April we will assume 40 more units! We will be half way to our goal. To explain how we obtained these units; A fellow agent, that Dan and I have known for 6 years is wanting to focus on commercial RE. In order to do that she will be coming to work in my office. Since our broker will not allow two property management companies in the same office she has to let go of her units. This is really a positive move for us because this will generate about 2000.00 cash flow a month! Of coarse we may lose some contracts but I think it will go well because she will be helping me and advising me for 9 months.

I have put out some flyers and signs this week also. We are getting a lot of interest in LO houses right now and we have finalized our LOs that I discussed a month ago. that was great because it provide 6k cash flow to help meet our costs

We have 2 houses on the market that are not moving. The average days on market here is 6 months. I have recently figured out how to figure out the hot spots as far and sale activity goes and will be marketing to those area.

I have made 2 offers this week that is all. Seems I am not sure what I am doing. We are wanting quick flips but we aren't really finding anything. Our ads are working I think we have to go back to the basics as far as finding deals to flip and /or LO.

Have a great week everyone