Bimal's Journal

You got this Bimal. Keep pushing forward:)

____________________
TC
Miami, FL

http://www.deangraziosi.com/real-estate-forums/investing-journals/144538...

The realtor sent me the Comps.
The minimum price set by the bank is 105k,
Earnest money set at $2030.
And an additional fee of $299/-
Comps avg. $225k.

Now I will do my home work and see if this worth it.

90 days left to make a deal.

Bimal

My property visit has been postponed it Saturday.

The sold comps in last 60 days are at 106k and 160k, so if their starting is $101,500/-, I do not see much money in this.

Flipping Scenario
Eg Estimated Offer Amount = ARV. - ( 35% of ARV + my assignment fee + closing cost)
= 160,000 - (56,000 + 5000 + 5000)
= 160,000 - 66,000
= 94k ( just imagine I have not yet factor any repair cost).
So my offer would be 94k - estimated repair cost of 10k will be 84k. Also I am not sure how much HUD foreclosure a are selling at to get the lowest comp.

Rental scenario to get 10% Cash on Cash Rate of Return.

Estimated offer Amount = 10 months rent - (property tax + insurance + 10% yearly maintenance)
Rent Avg based on Comps. 1350/pm
= 13500 - ( 4632 + 1000. + 1350)
= 13500 - 6982
= 6518 * 10
= 65180
= 65180 - 10000( estimated repair cost if any)
= 55,000 should be my offer.

If anybody reading my journal has anything more to add, then please do not hesitate to respond.

My goal 1 deal by EOY 2013

Bimal

I went and looked at the property I had mentioned couple of days back.

The property turns out to be 2.5 rooms as opposed to 3 bedrooms,
The realtor also mentioned that If I am looking to flip to pay attention to the active list where there are properties that have not sold for 3 years. meaning the retail market is very slow and will eat up my profit or may not be able to sell the property all.

she also went on to say that the Vacancy period on an average is 40 days. The people who pay are cash payers, I will not be able to pull their credit report or background check as this are mostly skilled laborers. I could also end up bringing eviction notilce against this people as they may not pay rent as they do not have a steady income.

I am amazed at the knowledge I gained today just by visiting the property and talking to the realtor.

I am going to put a low offer of 50k as there is around10k worth of repairs and this house haven't had any offers yet.

My Mantra: Take Action----Take Action----Take Action----Take Action

Be Focused.

I Deal by EOY 2013.

Bimal

I am working on the offers to present to the realtor.
My assignment fee will be 5K, if I am flipping but since houses stay on the market for a long period of time, not sure if I will be able to get any buyer.

For renting it out I will need to hire a property management company to collect the rent as mentioned before the renters will be cash payers and need to collect the money on a monthly bases.

After calculation I arrived at 50,900 if I am flipping the property and
45,680 if I rent out the property and hiring a property manager.

1 Deal BY EOY 2013.

Bimal

Spoke with one my friends who also does buy and hold, and he indicated an offer of 60K should be good enough.
I would rather out an offer of 45,680.

Still I want to do some home work before putting an offer.

daily on way to work I spend about 30 minutes reading about wholesaling.

1 deal by EOY 2013.

Bimal

Not much was done today.

Atleast one deal by EOY 2013.

Bimal

Sent an email to my realtor, indicating I am ready to make any offer.
Did not specify the money, but I will be offering 41,680 to rent it out at
$1250 per month.

At least one Deal by EOY 2013.

I made the offer at 45,680. let see what happens.
Asked the realtor to show me another house too.

at least one deal by EOY 2013.

The subject I have started putting makes me look at my goal, timings and the urgency with which I should pursue my REI journey.
I know this is hard but rewarding.

Will call the realtor today and find out where we are at with the offer I put.

I realized that With REO it is always a cash transaction , becuSe if you tell the bank you are going to flip they will not accept the offer, all red flags will be raised. Either I form an LLC and then sell that LLC but that is little time consuming. I need to educate my self to articulate REO deals.

But. 1 deal by EOY 2013

I haven't heard back from my realtor after making an offer. Will text here tomorrow.

Yesterday I went to see two properties my friend has purchased, he is rehabbing one and the other he already has are tee and one vacant.

Got to see how a rental property looks.

Also called the loan officer of my bank and asked him to send me a list of documents that are required to apply for HELOc. This is to be prepared with funding if My ofer gets accepted.

Just talking to the loan officer I learnt quite a it about when I refinance against the property, how much equity is required in the property. For refinance there is 6 months of seasoning and after that I can get 80% on the purchased value of the house in the first year and in the second year I can refinance against the appraised venue of the house, now I started to think how to make the most of the knowledge I have gained .

Still I haven't gone out and started looking at distressed properties.

More later.

Bimal

Subsequent to putting an offer, my realotor has not heard from the selling agent yet.

Another house that I was looking at got sold. No Worries, I will find some more, as far as I keep the realtor engaged.

1 deal by EOY 2013

Bimal

Keep it up-

We have more than realtor and that helps keep the offer flow going. Keep in mind that the offer you put in has a response time frame- if there is no response by that dead line your realtor should be proactively getting an answer- don't feel bad about asking for them to find you an answer. The work for you.

Do you have a buyers list? If so and if you aren't already doing this- target specific houses for specific buyers. We have great success in this technique.

Good luck and keep up the momentum you will get the deal!

Thanks, Thanks, Thanks for the nugget and for stopping by.

My realtor is actively pursuing with the listing agent to inquire about my offer and has sent out an email yesterday.
I do not have a buyers list yet, but I will follow your advise, couple of buyers I know are looking for 3/2 in counties which are far from where I live.
I am enrolling for a bus tour on November 2, and see some deals the organizer is working on. This can provide wealth of knowledge.

Again Thanks for stopping by.

Bimal

I read about Matts Sacrifice, determination, perseverance and Get it Done attitude. That was a loaded post.

Bimal

Read more on flipping for instant cash.
Have not heard from my realtor yet. Now I will have top fan out to more realtors.

Bimal

I am going to look at a pre foreclosure property in my town.
It has already been 57 days and looking back I notice that the my efforts to REI has been very minimal , compared to the DG stars who braved bad weather, travelled long distance , didn't care about their ill health or fatigue.

I keep trying to get my WHY and I know what it is but not able to clearly visualize and that is the reason I have not achieved the success.
Today I will try to put in words may be that will help
1) My financial situation no savings. Period.
2) If I am out of work will not have money to to take me past two months and will face foreclosure. My family will be left with no medical coverage. I will not be able to pay for my child's education.
3) in event of a job loss it becomes very hard for me to go through the interview process as I have become forgetfully, do not remember what I have studied past few days. Last time when I was out of job. I was home for three months. I claimed unemployment benefits..
4) My Dad is ill and in ICU but I cannot take time off to visit him as that will put me in financial difficulty. because I am self employed if I do not work I do not get paid. My Mom and my sisters are mentally tired due to frequent illness of my father.
5) financial future of my wife and me is bleak.

This all inspite of making decent income.

Hope what I just wrote makes me learn how to make goals and achieve them and empower me to go any lengths to realize my goals.

At least one deal by EOY 2013.

I ordered Deans book 30 Days to.....
Also my realtor sent me comps for a property I inquired about. again it is a REO.
Over the weekend I looked at an abandoned property and will be making inquiries with county clerk.

Hope something works out in next couple of months.

Bimal

Yesterday I got Deans Book, 30 days to.....,= and have already started reading the first chapter and was looking at the videos on this sight as suggessted in this book.

Last week did not make any offers , but tried to call the attorney who was appointed by a lender for the Sheriff sale. The auction was supposed to happen but was cancelled - NO commission. Not sure what that means iut called and left the messages

Next week going for a BUS TOUR to see some deals and also will get an opporunit

One DEAL for sure BY EOY 2013.
Bimal

I am slow and that us somewhat getting in my way to achieve my Goal. But I will keep at it. I need to look back and find out why I have not done ant deals yet.

testing little nervous, but I have to keep going, stay on course of realizing my RE dream, I know it is not easy and the amount of effort I am putting is not enough.

Today after reading the first chapter of Deans book, I have set goal for one year and second year. as I keep progressing I wil add more goals. I will measure my success as I go along. What I need now is a performance boost in my endeavor.

I also did the seven level deep WHY and I have to list my top three WHY's to carry with me all the time.

Bimal

30 days to quick cash is awesome..

Keep it up.. You are destined to win:)

Keep TAKING ACTION + gaining KNOWLEDGE = SUCCESS (Making Money)

________________________
TC
Miami, FL

"If it is important to you, you will find a way. If not, you'll find an excuse."- Karen Ellsworth

"Faith is taking the first step even when you don't see the whole staircase." - Martin Luther King, Jr.

"If you are not making offers on properties you can not make any money" - Success Coach
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Follow me on my road to riches http://www.deangraziosi.com/real-estate-forums/investing-journals/144538...

Thanks TC for your encouragement.

I asked my wife to find out office phone numbers of Keller Williams and Remaxx offices in the areas I am interested.
since then I haven't had daytime time to call these offices. But the idea is to follow Matts script and subsequently build the buyers list.
there are many REOs but the starting bid is too high for me to make a bid, I also visited auction.com and there seems to be an auction for a 3/1 house with a starting bid of 10K. I want to look at the house before bidding, but by the time I get home it gets dark and does not make sense to look at the house in dark and the auction starts tomorrow.

Anyways just trying to keep at it, I need to gain momentum.

I must make a deal before EOY 2013.
Bimal

Bimal, I am enjoying following your progress. Just by staying at it I can see you are making progress. There is a saying: Slow and steady wins the race. You are making slow and steady steps toward your goal. The bus tour should be very educational. IN the 30 Days to Real Estate Cash Dean writes early in the book about your why, which he also calls going seven levels deep. If you have not watched the video and done the exercise, be sure to do it. This will help you to focus better and make you even more awesome and unstoppable. You are building momentum for your first win and from that point on you will know that you really are unstoppable.

Grateful always,
Patrick

Hi Patrick, thanks for your words of encouragement and advice.
I already did the 7 level deep WHY exercise and know what my WHY is. Also what I feel if I succeed and do not succeed.

I went on the bus tour and we saw about 5 properties all except one required rehab in range of 30k to 65k, now as a wholesaler this is not my cup of tea,but came back with a wealth of information and learnt how to structure an offer based on the monthly gross income, projected expense and come up with Debt to service ratio, ROI etc.

Now I am sure acquiring knowledge and now need to work towards my goal to get a deal done before EOY 2013.

Bimal

Over the last week , I attended couple REI meetings and spoke with two buyers and asked them which area they would be interested, size of the property and price range. I will be sending them emails with detail questionnaire.

So now I will pursue to feed their need.

I am very confident that I will be able to code on one deal by EOY 2013.

Something to share, an offer on rental formula

Offer = yearly net rental income/ cap rate.

Let us say if yearly net rental income = 16000 and you want a cap rate of 10%.
Then
offer = 16000/10% = 160,000

Hope this will help some newbie like me.

Bimal

how are you ? hang in there man. we will be so successful one day we can't stand ourselves...... how did you like the reia meetings. pretty cool being around like minded people that get it huh ???

keep up the great work,
WALT

Hi Walt Thanks for stopping by.
The meetings are great and able to pick up some buyers, rental sellers, hard money lenders, private money lenders and since I also looked at some rental properties and get a first hand knowledge of how they look and what to look for in the properties etc.

I think I have enough knowledge to go out there and make offers, I have made and offer on a 3/2 REO but no response from the bank as I was 60% lower thhan what the bank was asking as I calculated it based on the rent ands the monthly debt services + one time repairs

So I am ready to go out there and make offers.
I wish you all the luck too.

We have to keep taking actions and that is the only way out. Once a deal is made the confidence will sky rocket, I am sure about that.

Regards,
Bimal

I sent an email to a cash buyer to inquire about type of properties he is interested, but he said he is not interested in the county I live but he offered to connect me with an investor who would be interested in the my county.

I have read 94 pages of 30 Days... and will be finish it in few days.
But I am ready to look at properties and making offers. I have 47 days to make a deal happen.

I will make one deal happen by EOY 2013.

Bimal

I have identified some properties to visit,I got the list from Sheriff Sale in my county.
Sent out email to all the investors in my REI club, one email for all asking if anybody is interested in investing in my county.
Will put an ad on Craigslist tonight.

Need to contact few more realtors.

I had seen couple of house in the past did not express interest because I did not like the layout of the rooms and wondered who would buy or rent such property,

One Deal by EOY 2013.

Bimal

Today, I sent an email to a buyer who invests in my area. Waiting to hear from him on his requirements.
As I write this I am gathering a list of pre-foreclosure properties in my area.

Now my effort will be to fill the buyers bucket and cater to their needs.

1) for some reason I am scared go putting the bandit sign.
2) I have not yet ordered my cards, do not know which design.
3) I lack planning.
4) I am not disciplined to stick to a plan.
5) I should concentrate on wholesaling and get best at it so within six months I can buy and hold properties.

I want to do the following

A). Bandit Signs
B). Business cards
C) Contact 10 realtors in next 5 days.
D). Contact an RE attorney
E) Contact title company
F) Download all the necessary forms from Deans website that are mentioned in his books.
G) I have to become strong and avoid temptation to watch TV, stop becoming complacent, get a work hard attitude.
H) Be resolute.

I know I will make one deal and gain lots of confidence, one thing in my way is always say die attitude, because I am not mentally strong.

What ever I wrote today is recognizing my weakness and how can I overcome those.

I want to get a deal done before EOY 2013.

Bimal