My Journal in Texas

I found a Condo in the University of Texas area foreclosed asking $26,600. I offered $15K cash today. 800 sf, 2/2 with minimum fixing that I can do pretty quick. Gonna rent it out for $600 per month on 12 mo or $750 on 6 mo. Need to find a good company that pre-screens and qualifies renters and can find me one. We'll see what the counter say's. Wow! 2 days in and I'm gonna be pretty busy soon!

Hope everyone is having a great weekend and look forward to talking to you all soon!

Tell me about the Edge and get together's that yall have. I'm definatley interested in attending and meeting all of you as well as having some of your successes rub off on me!

Well I'm gonna keep this up to date as important things happen.

Me and my family partners had a little get together today at the cemetary. It is the two year anniversery of my fiance's moms death. Could not have asked for a more beautiful day. Not a cloud in the sky and low sixties with perfect sunshine. As if it were meant to be.

Anyway, we all had a late lunch together after that and everyone is excited about this weekends oppotunities. My job in the next few days is to follow up on the offers we made as well as quickly generate new offers on opportunities if these fall through. Also, everyone is on board for the condo rental opportunity. We all have lived here most of our lives and those UT properties are a perfect opportunity for student rental. I have already dug up a few more to look at and make potential offers on should the first fall through.

Number 1 thing I brought up in discussion was this. We WILL give the end consumer the very best in service and product regardless of the profit margins. I am working on a mission statement for our LLP and have set a goal of this week to get that done. Basically, treat people right and fairly and the rest will take care of itself.

One more task for the week. Obtain web domain and look into website. Certainly lock down domain name.

Take care all and lets hit the ground running tomorrow at full speed ahead! I find myself living, eating, breathing, and even sleeping deals, DEALS, DEALS!

Stan

Congratulations for starting your journal it is a great way to keep yourself accountable and share your insight and knowledge with other DG Members. The DG website is packed with information and inspiration. Try to do a little each day to get you closer to your goals and dreams. Good luck with real estate investing. Believe and Achieve! - Joe

Thanks so much my friend! I have read many of your postings and a lot of your own adventure. I am truly honored to have you post here. Appreciate the words of encouragement and yes, I intend to keep posting.

Stan

Well the Condo offer had a response today. They are not taking any investor offers for 15 days from listing. Not my realtors fault. We shoved the offer in pretty quick yesterday. Well 3 days left! Good and bad news. OK, so our offer goes in on Thursday.

No word yet on the two REO properties. Will update.

Looked at a property today that my realtor found. Not crazy about the house. Pier and Beam and I'm always suspect of pier and beam. Realtor has a hard bid for some additional pier foundation work that needs to be done @ 3400. However, comps in the area (one right across the street and 175sf less) are 225-230. Total re-do inside. Most flooring is literally plywood sub-flooring and some of that needs to be redone. Good solid estimate on repairs 50-60K. The REO is steadfast at 135K. Still makes this a winner deal. I just dont like Pier and Beam houses. Have to think about it.

Alright! E-mail confirmation that the books are on the way. If anyone can eloborate on the value of the "automated foreclosure finder" I would love to hear it. Let me know.

Just a quick update.

I looked at a potential opportunity today. My RE agent is the listing agent so you gotta be careful there!! He has told me the owner is just steadfast on 120K but might budge just a little bit. He told me they had turned down several low-ball offers.

Well they better be ready to not only budge, they better be ready to jump off a cliff! This thing is a potential gold mine, but as it sits its a disaster.

A quick run down of repairs comes to somewhere in the neighborhood of 55-60K. Keep in mind an HVAC, roof, plumbing/elec, foundation, and insulation inspection would need to figured on top of that. Any problems there and 80-100K could be the new number.

Having said that the area is great, the neighborhood is good and a comp there would probably be 230 if you undercut the market for a quick sale.

He looked at me like I was crazy when I told him that anyone that would offer 80K was playing with a bucket of rattlesnakes.

Oh well, on to the next one........

Finally got in here to start following your journal.

NICE!!! on the work you've already accomplished! Way to take charge. I would LOVE to see pictures of your work. Sounds awesome.

Hope the books come soon. You're in for a treat (and much more ammo for you REI arsenal. )

Talk soon,

Rina

The books are here.

See you all in two days!

Put in two more offers yesterday. Just waiting for one to go through so I can get started!

Rina,

I'm gonna tell you something you already know. YOU ARE AWESOME! Thanks!

Stan

I found a short sale that the tenants blew out of and didnt trash all to heck and gone!

The bank knows what they have on their hands and the roof is a total re-do so everyday that goes by and it rains.....well you get the picture. They put it up yesterday for 50K. Put in a 40K offer today. Total project rehab solid costs 29K. FMV 119K, a property on the same street sold in 10 days for 106K. This ones a little bigger so we are going for 108K final quick sale.

40K investment
29K rehab
Less fees and closing costs and realtors etc.

Should gross 33K.

One problem. It is a short sale. At least they are aware that they need to get rid of it as quick as possible.

Also, the book is fascinating reading!

Stan

I've enjoyed reading your journal. Obviously rehabs are your thing/expertise! It is always hard for me to imagine a run down property fixed up so seeing the work of good rehabbers always blows my mind I 2nd what Rina said, if you have time it would be wonderful to see some photos of your work.

I saw your comment on Rina's journal and just couldn't stop laughing - you are funny.

I wish you the very best and lots of success in REI.

Lea
SPR Property Solutions, LLC

It sounds like you have a good jumps tart on your new career! You are an inspiration to us all, keep up the good work. I'll keep reading your jornal. How do you plan on financing your deals? Do you have a buyers list?

Keep up the good work. I see you are taking action.

I am a little fortunate here. I have some family ties that are going to help get things going.

Without getting to in depth, I am able to make cash offers with Proof of Funds (Family Provided), then before closing I am returning the funds and using hard money loans that I can get.

I could probably use the family funds, but you know what, I dont want to risk them and I want to be able to stand on my own two feet when all is said and done.

Thanks for the supportive words.

fracarell, Rina and everyone else. As soon as I get started rehab, before, during, and after photos are gonna be posted.

Thanks all

I hope everyone had a great weekend and all is going well.

I have 12 properties to drive tomorrow and Wed. Also, I have established a very good working relationship with a RE agent and he and I are scheduled to get together once or twice per week. We are also going to the next county auctions and he is going to introduce me to all the other players in the field. I am really looking forward to this. I am going to turn on my salesmanship to hopefully pick up one or two properties these guys have that they just cant get to at this time. My RE is confident that as long as these guys like and trust what I intend to do, they will unload some of their properties for a cost of 2-5K. If the dollars make sense to me, then fine.

My priorities are getting some rehabs done, (to my standards, which will ALWAYS make them the best house in the neighborhood), so that I can build a reputation for value and quality.

At this point it is just about finding the right property and getting started. We have the LLC paperwork going and all my licensing should be back in a few days.

Until then I will keep looking and I look forward to meeting and networking with everyone at the auctions early next month. Fortunately I live in a very good tri-county area.

By the way, Deans books are GREAT! I have learned a lot. Right now, the money making opportunity for me is rehabbing houses that make fiscal sense in each individual area to maximize profits.

Stan,
You are doing great! I just read your journal and I think it's terrific with what you've accomplished in so short a time. I have a remodeling company also so I get where you're coming from. I'm in the n.w. Houston area so from one Texan to another, do it BIG!!! Way to go.

EHCO

Thanks, and I really enjoy my fellow Texans! Yes to all of you who might be curious, being a Native Texan is as envious as most of you might figure.

Here is a good one for you echo, I LOVE HOUSTON! How many Austinites say that? My best friend lives in the Cy-Fair 290 Telge area. Beautiful area. He has a great house and more affordable than anything I could get here.

Great restaurants, bars, shopping, access to downtown quickly. I love Houston.

Thanks for the post!

Stan

Well we officially went LLC.

It all came down to Uncle Samuel. This is best as those involved stay in their respective tax brackets, be they up or down due to this. As the managing partner I get hammered as self employment tax. However, the LLC is paying expenses on my truck and mileage as well as benefits starting after 6 months. Its a win win for everyone. YES, INCLUDING YOU UNCLE SAMBO!!

Stan
Signature Investments of Texas LLC

Stan,
Good to see you doing your homework concerning the LLC. I started out with my real estate investing as a branch of my remodeling company's LLC but I'm in the process of setting up a separate one for the RE. Make sure you check with a tax consultant with regards to the different taxing structures for flips, fix & sell, and buy and hold. It will really make a big difference in your bottom line taxes, etc.

By the way, I live just a couple of exits west of your friend. I'm off of the Cypress Rosehill and the Spring Cypres exit. I also have the P90X dvds but I had to go back and get the P90 dvds first. I'm not in good enough shape to go extreme. I'm still pretty active but being 60 years old I just need to take it at a pace that will allow me to at least finish the program.

I didn't want to start a journal until I bought my first property because I didn't want to be a 'non-scoring coach', I wanted to be an example for others. I now realize that it's the desire turned into action that's the example and encouragement for others. I know that I've been motivated by you with your fast start and by others that have not made that first buy but are still working it.

Thanks for joining the DG family and sharing your adventure with us.

Earl Hughes
EHCO
Tri-Hughes Investments, LLC.

Stan,
Good to see you doing your homework concerning the LLC. I started out with my real estate investing as a branch of my remodeling company's LLC but I'm in the process of setting up a separate one for the RE. Make sure you check with a tax consultant with regards to the different taxing structures for flips, fix & sell, and buy and hold. It will really make a big difference in your bottom line taxes, etc.

By the way, I live just a couple of exits west of your friend. I'm off of the Cypress Rosehill and the Spring Cypres exit. I also have the P90X dvds but I had to go back and get the P90 dvds first. I'm not in good enough shape to go extreme. I'm still pretty active but being 60 years old I just need to take it at a pace that will allow me to at least finish the program.

I didn't want to start a journal until I bought my first property because I didn't want to be a 'non-scoring coach', I wanted to be an example for others. I now realize that it's the desire turned into action that's the example and encouragement for others. I know that I've been motivated by you with your fast start and by others that have not made that first buy but are still working it.

Thanks for joining the DG family and sharing your adventure with us.

Earl Hughes
EHCO
Tri-Hughes Investments, LLC.

Thanks my friend. Next time in Houston perhaps we get together for a drink or something.

Thanks,
Stan

Got two houses and close soon. I have two birddogs shaking the bushes every day all day to find me pre-foreclosures. I can see that I am not going to have a lot of free time anymore! Sort of, in all reality its all free time because the only person telling me what to do is me!

Awesome!

The journal is a great way to keep things in order. I look at this and I got Deans books on 3/4/2010. Today is 3/18/2010. I have two houses closing week after next, I drive 12 or so properties per day, I make or tender offers to the tune of 2-3 per day. WOW! The only thing that has me nervous is how many properties I'm gonna wind up with! Geeez!

The fall back plan is I have met other investors and done some networking so if I get overextended quickly I have others that may jump in and take the profits for themselves and I can get a quick little finders fee, or I'll jump into it with them helping with finances and we can work a 60-40 or 75-25 deal or so.

Thing is, dont be scared or afraid. I got plenty of places to go when I make a solid offer.

What fun!

Another property! YeeeHawww! Yes I'm a typical Texan redneck from way back! LOL.

Life is completely new to me right now! Three properties working and I am looking everyday to submit more offers.

One bad note today. I think I need another REA. Mine has had it with the low ball offers and actually refused to make a counter offer back today as well as one offer I told him to make. The house is an investor only property. No OO can ever hope to buy this property. That pretty much puts me and everyone like me in the drivers seat. I could care less what they are asking for the property. It is what it is. I will offer where I can make a reasonable profit margin. If they want to keep it then fine, but refusing to make the offer? What the heck is that about.

I NEED A REALTOR LIKE STAR!

Anyway, it was a good day. He can go home and be miserable.

Congratulations on 3 properties in the works!

Bummer about the agent not putting in your offer but I think that is par for the course sometimes. It's his loss.

You remind me a little of one of our cash investors he knows his bottom line and figures they have to sell the house he doesn't have to buy it, he just moves on to the next one,

Lea
SPR Property Solutions, LLC

You are on the move my friend. You make me feel like I haven't done anything yet. But I also know that as long as you focus on doing the right things everyday, success is inevitable. I have payed my dues in another business venture to know that all success is, is hard work backed by a burning desire. You certainly have that. You truly are an inspiration, and that is coming from a longhorn, you probably never heard that before. Thanks for everything though, I enjoy reading your journals and your success'. Best wishes and Happy hunting.

Best of wishes and let me know if I can help you in any way. And yes, that's from an Aggie! We are all the same my friend and I appreciate my Longhorn family. Fiance, Brother, Sister in-law, Best Friend and most all my Brothers best friends. I am solidly in your corner except one day per year, and on that day the feud is on!

Good for you man, go get em.

Well, another short sale escrow check down the ole drain today. It might go through and if it does then sheeebangg! It is a great deal. That will make 4 if it goes down. Not sure what the REO agent will say back though. I am pretty short on this deal, but the property is a total pig.

btw, Anyone reading this, I don't want to steer anyone down my path unless you know large scale remodel, including all required permits, etc., as well as cost over runs and unaccounted expenses for missed budgeted items. My construction experience gives me an edge in this department. However, it is a 100% for certain that I will miss something down the road. All I can do is try to marginalize that exposure and try to maximize dealing with the issue as it rears it's ugly head.

I bring this up because I want to inspire folks to get up and do something but my approach is buy ugly and rehab to perfection to undercut market for quick sale and profit. I am comfortable doing this and spending 9K on a roof and pulling the trigger on that decision is as easy as buying milk and bread at the store for me. I know that it is not that way for others.

Read DG and do what works for you. I have literally jumped into owning over 250K worth of real estate in 2 weeks. Now I have to go get it done and reap the rewards. I don't want to count my chickens before they hatch. However, I have done all I can do to insure the correct buy/sell point and have thought a few other exit strategies in case a quick sale does not pan out.

As I have said before, rehab flip is clearly for me. The uglier the better. I can see, and estimate, and get done what others can't see or remotely hope to get done for my cost.

Find what works for you!

Stan

Five properties in 3-4 weeks. Now I gotta go get them completed and turned around.

It has been a whirlwind to say the very least. Dean, and Rina, have given me the chance to believe in myself.

Do I stop looking and bidding? I don't think so. I can always find other investors to take some of these. If it does'nt make sense to buy it in the first place I DON'T! PERIOD! I will keep taking the uglies of the uglies and find a way to make them work.

Stan

Seven (7). Yes, Seven.

Holy Flypaper Batman! I'm gonna be swamped! First closing next week. I have a good banker on board, good investors, good credit all the way around. Including myself. This is going to be fun! I want to do 10 or so semi-anually. I think it is possible.

Stan