OfflineI am playing catch up on this to get everybody up to date. When I started my quest in real estate, we were in a small town of 5000, where I had just sued a nursing home that was privately owned by the county with a million dollar bond that was supported by the wealthier people of the town, so I was known by everyone, but not in a good way. My suit and dealings with the state played a big part in them being bought out by a corporation. Just 2 years before this we were on top of the world, and having a great time. Then dealings from a bad venture with a fortune 50 company and me doing land home deals with them, I lost everything. (bankruptsy) For the first 6 months of my real estate adventure with the DG family, I never closed a deal. Road a bus back & forth from TN to MO trying to get started. I could'nt even afford gas at that time. In the first part of my catch up journal, I closed my first deal June 1st 2009 and had closed 10 deals by Nov. 2009. So here's my story......
The first thing I would like to do is to thank Matt Larson, Drew Moren and my wife Julie. I still can't believe I bought a book off of the TV. I thought it was stupid when my wife ordered things from a catalog. I probably watched Deans infomercial forty times before I ordered his book. The day I got the book, I read it front to back and the next day I read it again. Then I decided to make that crucial call. After talking to the personnel at PMI and filling out a questionnaire, I decided to spend all the money my wife & I had which was $20,000.00 to try to make a better future for us. The crazy part is we had just went though bankruptcy, I was out of a job in a small town where if you were making $10 an hour you were doing good. There were no jobs in our area, and a hundred miles from any city to try to find a job. Until now, I had never bought anything that I could not see or touch. I had really put everything on the line! Drew really kept me motivated the whole time. I did everything that was asked of me. I new deep down this was probably my last chance. I found a good attorney, a good realtor and a good accounting firm. That part took a little time, but it paid off. I had all this lined up when Matt Larson arrived for my three day on site training. From what I learned from Drew, I had a house lined up to look at, and a good realtor to introduce Matt to. The on site training was a God send. It really helped my wife not to be so afraid of what I was risking our money on. It proved to her that someone with no money of their own, can find a way to make this work. Matt was living proof. After a great weekend with Matt, I thought I was off and running. I shotgun 20-30 offers a week, I was finding deals 30-40 cents on the dollar, then I hit a stumbling block. I contacted every small bank in a 40 mile radius, they would only give me 80% of rehab. It took me several meetings with each bank to even get this worked out, due to the economy. Looking back, getting that worked out was pretty good since I had just went through bankruptcy, I had no money, no job and a wife who only made $8.00 an hour. My next move was to talk to the three people that owned 90% of the rental property in Bethany, No luck. So now my last chance was hard money lenders. I did find some who would work with me, but not in Bethany Missouri. It was just too far for them to travel. By now I had 3 months involved and numerous calls to Drew, so we decided to try assignment of contract. I still had all the paper work Matt had given me on assignments. A lady I used to work with, was looking for a house to use as a group home. I got with my realtor, which was 40 miles away, and we went to work. While I was working on this deal, I started travelling to TN. I would spend 5 to 10 days in Clarksville TN then come home for a few days and work on the assignment deal. I chose Clarksville because I new they had survived the recession as good as any where, due to the fact they are a military town. Julie and I went to the bank and borrowed all we could against my pickup truck and we went to work. We started sending out letters from the pre foreclosure list, about 400. The problem was they were $3000 to $10,000 behind in payments. Drew really kept me motivated during this time. While I was in TN, I was staying at my folks house out in the country. No internet, phones that worked half the time and a mother who told me this would never work, several times a day and Julie in MO trying to keep working so we would have some kind of income. Finally I found a deal for the group home in Albany, MO. In northern MO, real estate is a little different. You can have a reality sign, and a for sale by owner sign in the same yard at the same time. I guess it's may the best man win. The realtor that had the house listed didn't want my realtor to come with me to look at the house. Finally we got this hurdle resolved. I made my offer, as you will see in my first deal. Somehow the realtor found out I was doing an assignment of contract. He called my clients and told them that what I was doing was illegal. Finally got that problem resolved. Then I went to the title company with my client and the title company said what I was doing wasn't legal. Got that resolved, then the realtor that listed the house said that we couldn't pick the title company, that he would. Finally got that resolved too. This was a great lesson learned. With Drew's help everything worked just like the book said it would. After all this trouble, I ended up with $1000.00, a lot of knowledge and 3 more deals with the same clients after the first of the year with $5000.00 assignment fee each. Not bad for a country boy. Now I finally had my first deal done.I have been working on some really big deals in Clarksville,TN. Staying in touch with Drew on a regular basis, I feel like I know him personnally. Now I had to swallow my pride and borrow another $5000.00 from my folks, and as always my mother said this would never work. By this time I had spent close to $3000.00 in adds of several different types, with not much response except from investors who wanted to know if I would buy their houses. As always Drew is always there helping me stay motivated. During this time I was talking to raltors, contractors and developers in the Clarksville area trying to figure out the market here. I used to be an inspector for the city and used to know the market pretty well. After a lot of research, I knew I wanted to target the military with VA loans. I started putting out bandit signs, very cheapest way and very plain, saying "We buy houses" and my phone number. What a great response! I would get 20 to 25 calls a week from about 10 to 15 signs I put out. Most of the calls were from people in the military having to transfer. All they wanted was to get what they owed on their house. After doing some brainstorming with Drew, reading Dean's book over and over and reviewing my course work, I came up with "Subject to existing loan". Now I had to put a packet together to make this work, and find buyers for the homes. I needed to cut out all the extra costs that I could. I ran a dummy add in the newspaper reading "no bank qualifying for sale by owner". I got great response from people who had $3000 to $10,000 to put down. I knew the type of homes I wanted were homes bought 2 or 3 years ago and 4 to 10 years old. These houses sold well under market value due to Clarksville being full of new homes. Developers were discounting houses trying just to break even. All the military troops had been deployed. So then I got to working with Drew, realtors, attorneys, property management companies and other investors to come up with the best of everything I could find. For my buyers packet I have the following.. 1. Standard real estate purchase and sale agreement,"subject to existing loan" encumbering the property. 2.Letter to mortgage company telling them to send all information concerning the house to me. 3.Escrow agreement 4.Standard warranty deed. 5.Power of attorney for closing, insurance, mortgage payment and all matters pertaining to property. 6.Letter of agreement and addendum(cover your ass letter). This way the home owner never has to do anything with the house again. In my sellers packet I have a sellers agreement and a renters agreement. Once I got all this together, I was ready to make deals and make money. I have probably turned down some good deals, due to being a little more cautious than I should have. These are the type of deals that I am really targeting right now. I am giving 0 down, sometimes getting the home owner to make up to 3 months of payments. All my homes have at least $10,000.00 in equity and are in excellent shape. I have 8 homes like this. Combined worth in excess of 1 million dollars, with zero down and all of them were gotten in the last four months. When I sell these homes I do a sellers agreement and rental agreement. I have gotten as little as $3000.00 down and up to $8000.00 down. These are non refundable down payments, with over $100.00 a month in positive cash flow per house. All of the people I have bought houses from are very greateful for the service I am providing. All of them have said they can't afford to make 2 house payments, you can close in one day, and I don't charge them. They also say that realtors won't promise thatthey could sell the house. A couple of these houses were listed with realtors when the owner contacted me,but with a little work and no money, I got a release from them. Summary..Motivated seller, transfer and can't make 2 house payments, 0 down, I have deed, I have power of attorney, I have CYA letter, house financed 2 to 4 years ago, all are VA loans with locked interest, sell house $20 to$40,000.00 in profit, $5000.00 average down payment, over $100 positive cash fow per month per house. The clients I buy from are happy, the clients that move in are happy and I make money which makes me happy. I have one more deal I almost forgot about in North Carolina. My nephew is going to NASCAR school there. This is a town where housing is expensive and rent is even higher. I talked my sister, his mother into buying a house there for him to live in while in school and use it as an investment. There are a lot of houses on the market there for $300,000 to $500,000. We found the house that she bought on the pre foreclosure list, but it was already an REO, $158,000.00 was owed on it and we got it for $121,000.00. This deal took four months, even though it was a cash deal the bank kept taking other offers, but the financing would never go through. The bank finally excepted our offer and the deal has been closed. She is renting rooms out to other students and her son lives there free. Summery.. No house payment, free rent for son, and sell in 2 yrs for $40,000.00 profit. Thanks to Deans book and the PMI staff, the following is what I have accomplished in the last 6 months.. I have a knowledge that is priceless, I have closed deals in four states, When I paid the bank off in Bethany, they wanted to talk to me about my deals, Now that I had some under my belt, they wanted to work with me. I own 8 homes with 0 down. I have gotten more aggressive and am getting owners to pay 2 to 3 months of payments. Have clients ready to move in the day the owners move out, doubling profit for 2 to 3 months. Have local bank willing to work with me. I moved 600 miles. Wife owns first home. Everyone paid off. Have local investor to front money for homes and split profit. Proved everyone wrong who said this wouldn't work. Once again I would like to say thank you to Matt Larson. Your trip to Bethany,MO for 3 days really gave my wife the courage to stand behind me. I don't think I would have made it with her being negative about this venture. She was very scared. Matt helped to ease her mind and prove this could really work. Drew, your motivation and endless hours you have spent with me is priceless. I feel like I have a true friend that I have never met. Gross value $1,041,800.00 Net value $229,404.24 Down payments received on 7 homes $37,000.00 Positive monthly cash flow on 7 homes $1,091.99 We live in the 8th home.
Thanks, Randy (sorry this is sooo long!)
Randy's Journal; 1st runner up in Deans send me away contest
Posted on: Sun, 02/28/2010 - 22:28
Randy's Journal; 1st runner up in Deans send me away contest
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I have a lady that has a home payed for,but wants a bigger house. She is willing to use here home as a down payment. I have got it worked out to were she is going into one of my homes that I bought subject to the existing loan. To make all out this work I talked here into letting me Finance her new home for three years. To make all this work its going to cost me about $ 200.00 a month. Upside to all this I will Have a 100 Thousand dollar house Free and clear. My home town bank doesn't require seasoning. So now I will have some cash so I can hit the court house steps. If all this works out I have got another home that's paid for that I am going to try the same thing. I am going to monitor this real close to see how it works. I do know that it will be cheaper than hard money lenders.
Randy
www.adeptpropertiesllc.com
I made myself a promise to myself that I would never mess with mobile homes as long as I live. Reason being they got me into a lot financial trouble. Well I guess I LIED. After being so involved with the success academy an going into my real estate adventure open minding I guess I,m back into Mobile homes. The city of clarksville is really strict on parks and their will be no more in ckarksville. We have a park in clarksville that's a really nice park, But you have to own your home to move in it,This was part of the regs when the city approved it. Due to repo in the park and finance being so hard on mobile homes at this time the park is only at 50% capacity. I have got things work our with the City and owner of the park where I can buy homes and put them in their doing owner finance with me holding the deed. I have also got it worked out to where I don't pay any lot rent till the home is occupied. It just amazes me each day of what a person can get done if you stay with it and just ask. Well now I got to go find me some people with money that wants to make money. WILL NOT GIVE UP>
Randy
www.adeptpropertiesllc.com
You are on FIRE!!! So glad you are posting and sharing your stories....I would love to hear more about how you and carol are teaming up. I just love how people on this site make connections to help each other succeed! Like Jan & Jeremy, Sandra & Lubertha, Rina and myself.....its truly amazing! So happy for your success and thanks again for posting for us all to enjoy and learn along with you!
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
I have been working with my local bank on getting a few people finance. I just want to mention this in case other people are trying to get a person in a home but are waiting on the three credit bureaus to get all the info up to date. I didn't find this out until today by asking a bunch of questions and wanting answers are I would take my business elsewhere. The bank has a accelerated program that they can use that can up someone credit score by as much as 50 points. Basically all they do is take all the info and though a program that's nation wide they get your credit score where it should be. It does have a small cost but they tie it into the loan. All this does is save a lot of time. Sometimes it takes the credit bureau months to get everything updated. I let you know how this goes.
Randy
It amazes me what can happen by just asking.
www.adeptpropertiesllc.com
You Ever had one of those days were you wished you had just stayed at HOME. Well I did, But that's OK, I will get up and start again tomorrow. I have made my mind up that I am going to find me some money to work with. I know somewhere out someone with a little money and great credit score Is just waiting for me to knock on their door so we can make some money. I do know that every no I get I am getting closer to a yes. After so many No's today I got desperate and on the way out of the bank I ask a stranger if he would be interested in investing in real estate. Boy what a look I got. Well I guess if he had said yes I would have gave him a look to. Well tomorrow a new day and I be back at it again.
Randy
PS I think I start keeping up with the no,s to see how many it will take before a yes.
www.adeptpropertiesllc.com
Well I had a few houses to look at today, So I didn't get Around to finding my golden investor today. But upside I probably will get another home Subject too. I am going to have to go I can't miss the conference call
Randy
www.adeptpropertiesllc.com
This is WONDERFUL! I am just at that starting point just setting up the business, and to see that you waited for quite some time to do your deals and the amazing success and methods you're using is just incredible! I am SO glad I read your story, it has inspired me so much! I've been having some bad days and was wondering if my husband's 'you're wasting OUR money' was going to be right. I am so happy I took the time to read your journey! Great work! Happy living from here on out!
I really owe it to the success academy. I just kelp trying anything that was suggest, And I still do that today,
Randy
www.adeptpropertiesllc.com
Randy, Thank you for sharing such an inspirational story!!!
Your determination for success is totally amazing
I wish you & your wife a continued success!!!
Whether You Think You Can or Can't, You Are Right
~ Henry Ford ~
Just got home from closing another deal. This house had a credit line of 22 Thousand owed on it. The people were just tired of renters. their credit line was at my bank. I have got it all work out to were I am going to pay interest on their credit line up to 6 months if need be. I will have to to put about 7 thousand in it but it will appraise for around 80 thousand. I am going to sell it around 60 thousand, so I can move it quick. This will actually be my first flip. But for 30 thousand profit and some more capital to work with all I can say is by by. Maybe the banks want work with me yet the way I want them to, That's OK. Its just making me think outside of the box. Like Matt told me if its a good deal make it work.
Randy
www.adeptpropertiesllc.com
Well I have got a meeting at 3 today on a house I really want. Their is nothing owed on the house and the kids want to get rid of it before their mother goes in the nursing home. I have got several different strategy's that I going to try on them today. This is not my first meeting with them and I have several different family members that's going to be their. I will post later on which strategy works if any.
Randy
www.adeptpropertiesllc.com
What a day, Met with 5 sisters and one son. Think GOD that he knew what I was trying to do. After 4 hours and 8 different ways i could purchase this house from them. Now they have got to see if they can all agree on one. This is a deal that a little compacated, Due to the fact they have to get everything done before their Mother goes into the nursing home. I am really working hard with this family so that they want lose everything and make a win win for all parties involved. I have got 2 more deals to try to get worked out tommorow afternoon.
Randy
www.adeptpropertiesllc.com
way to hustle my friend!! you just keep workin it at every angle!! great job man and love to see the determination!!keep it up and dont stop !!
jay
Click Here For homepage www.jaysthilaire.com
need to sell ? http://www.jayhousebuyers.com
Need me to FINANCE a home ? http://www.jaysrenttoown.com
CHECK OUT MY JOURNAL http://www.deangraziosi.com/real-estate-forums/investing-journals/20063/...
Well I have another meeting with the bank this morning. I still refuse to give up. I am still wanting to take my investing to the next level. It really amazes how a bankruptcy can make things so tuff when it was completely out of my control. I have also got a meeting with the credit bureau trying to get this removed. You would think it wouldn't be so hard seance I went back and payed everyone. this was a moral obligation, Because it wasn't their fault. If nothing else I am sure getting a good education out of this.
Randy
www.adeptpropertiesllc.com
I have really work hard with this Bank. But today I guess I was a little tired and fed up with the lack of respect I deserve. I finally told the president of the Branch I was sick and tired of her not holding up to her end and doing what she told me she would do. I told her I might just me a small needle in a hay stack today, But beware I will be the haystack and I want forget you. I did this in the lobby which probably wasn't appropriate. But after I left I have got two message from the Main Branch Today. I haven't bother calling them back yet. I might in a couple of days. I did close all three of mt accounts out at this Bank.In on account my direct deposit alone was over 8 Thousand a month, Which I know is not much. Banks are like cash Investor's I will find some to work with me. I am going to call and apologize for the way I acted in front of other people, But not for what I said. I meant every word of it. Well tomorrow a new day and I will start on my new adventure of finding a bank an Cash investor to work with me.
Randy
www.adeptpropertiesllc.com
Have you thought about looking for private money? May be a way for you to get the cash you need, and if you are offering a good intereste rate say 7-8percent, they would be earning way more than they are making in the stock market, or in their 401k. Just a thought.
Cathy
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
I am the type that never gives up, Even though I have several homes subject to I am still trying to get in with a home town bank. the main reason I want to do this is they don"t require season. I am always looking and asking for private money. I have even tried some hard money lenders. but like everyone knows their are a lot of scams out their. If they need money up front I just tell them They need to find another sucker and they usually hang up. I know as I move forward in my real-estate journal it will work out. I always keep a positive attitude I set my standards pretty high. My goal is to get ahead of Matt. I like completing with the BEST. And as everyone knows He is at the top. But thinks for your advice.
Randy
www.adeptpropertiesllc.com
I have got another meeting with the President of the Bank. I also have got to meet with another money source over coffee. If one of these work out great and if they don't I will continue searching. I know they are out their waiting to here from me. The bank I am meeting with tomorrow is one that I have never done business with, But the upside is the president is one I use to do business with 25 years ago. Hope he remembers me.
Randy
www.adeptpropertiesllc.com
I just went an met a couple that wanted to see one of my homes. I really thought it would be a waste of time. They are putting 20 Thousand down and I didn't have my numbers together for that, So I hurried home, Got everything work out. I just got of the phone with them and they wanted to know if we could get it done tonight. I bet you can guess what my response was. If I had been prepared I would have closed the deal before they left. They live 70 miles from here. I bet I don't get caught with my pants down again.
Randy
www.adeptpropertiesllc.com
Boy this one was tough to swallow. Met with my couple last night and they had their 20.000 cash. The only problem was they wanted a 30 year contract. I told them the most i would do is three. I am still going to me with them again tomorrow to see if we can get things work out. I am having a little language barrier with them, But that's OK I have a interpreter going with me tomorrow.
Randy
www.adeptpropertiesllc.com
My people just called me back. I think they have agreed to a 3 year contract. But I am not going to count on it untill I have the money in hand and contract signed. This has really been a tough one.I have got 3 couple that do have the $ 5.000 down. I just hope I am not getting to greedy here. I guess i will find out.
PS I can still see that $20.000 they had in their hand last night.
Randy
www.adeptpropertiesllc.com
We haven't met yet but we will in a couple of months which will be great but, watching all your posts I can pretty much figure that you won't give up on the 20k until it is in your hands. Much luck to you.....Jan
Great job. Keep up the good work.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
I am really looking forward to meeting you, Sometimes it seems like time is standing steal waiting for May
Randy
www.adeptpropertiesllc.com
Excellent read. I know many have said it, but your story is really worth the read. Thanks for continuing to share it. Hope the $20k downpayment deal comes through.
Roger
Jaguar Investments, LLC
URL for Journal : http://www.deangraziosi.com/real-estate-forums/investing-journals/43293/...
All things are possible to him who believes! ----- Mark 9:23
In the middle of difficulty lies opportunity ------ Albert Einstein
I know some of you probably have head me say this before. I must give credit were credit is due. I truly believe today if it weren't for the success academy. MY coach Drew Moran and Matt Lawson I wouldn't be were I am at today. I really went into this adventure with a open mind which was pretty tough after what I had been though. I still use the success academy today when need be. I just can"t Think you enough Dean for this amazing program you have put together.
Randy
www.adeptpropertiesllc.com
I love your determination, strength and fortitude. Thanks for your journal. Keep posting. I love reading it. I will be in Memphis next month.
Winni
I am really looking forward to hearing from you, Hope you have a safe trip. I have got to go look at a couple of homes this afternoon. Seen a sign for a estate sale today I stop by and talk to the son. They already had it listed with a realtor. I told him if it didn't sale to call me I would take it off his hands.
Randy
www.adeptpropertiesllc.com
just sitting here going over some of my notes on a raining day. I just can't wait foe the edge event. Because I am sure their are going to be a lot of great people their to network with. That is something that I have learned, To keep an open mind and learn from others. I have set a pretty high gold for myself. That is to catch Matt, So I know I need all the help I can get. Well i guess I better go look at a few more homes today. Hope to see you at the EDGE. I hope if your reading this you have at least joined the success academy. They is know way I would be were I AM AT TODAY WITHOUT THEM.
Randy
www.adeptpropertiesllc.com
I was just wondering if anyone used the credit repair company that Dean has listed on one of his sites, I think they are out of Texas.I am still determined to try to get it removed, I have gone back and got everybody paid off.I guess when I get a little time today I will call the success academy and see what they have to say about it.I have really started going back over my lesson work I received from the success academy. I learn something new every time I do this. Somethings it hard to comprehend that I got all this information for the price I payed. The material is priceless as anyone that's involved with the Success academy would agree.
Randy
www.adeptpropertiesllc.com