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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AWESOME job man!! LOVE TO HEAR HOW YOUR EVERYDAY DEALS R GOING! you are right the academy is one great tool and what more can u ask for than to pick up a phone and have a coach GUIDE u through a deal or give you multiple ways or strategies to use!! how can u NOT learn? hope u get that 20 000 SOON !!
PULLING FOR YA!!!
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/...
Like you said. People just don't realize what they are missing out on by not being a member Of the Success Acamady, They have been great for me. I am going to actuary get to meet some of them at the EDGE this year, CAN"T WATE. But I guess I'll have to. Good hearing from you.
Randy
www.adeptpropertiesllc.com
I have set here the last couple of days and watch then videos Dean sent out several times. The more I watch the more I wish I had been their last year. I sometimes wonder were I would be at today if I attended last year. The more I watch Dean's material and the more I take the time to study just amazes me of all the wonderful materials he offers. I sure hope Matt is putting as much time as I am. Like I said before He has set the bar pretty High. But all records are meant to be broken. When I stared my journey into real-estate the odds were stack against me. NO money, bankruptcy and no job. My bankruptcy is coming up on two years which will really help with the banks. But when I think about it, Will I really need them. I do have 20 deals under my belt with no money down, I guess in reality that's pretty good. But not for me. At my age I have to really get with it. I don"t want mine are Julie's Children to go though what we went through. Well in closing I am going to keep learning. And yes I have lost some good deals because of bad Credit. But then at the same time its made me think out side of the box. Guess were I got that one at.Dean and his success academy.
Randy
www.adeptpropertiesllc.com
Well I have a couple of house's to look at today.But my main gold today is finding Matt. I responded to his new challenge but for some reason I can't find him. I not sure if my computer is on the blink or at this time he don't exist. Its kinda had to tell. You have to remember he was trained by the best and he trained me. If I need to find out who owns a home i always succeed. I have a few strategies under my belt to find Him. I will let you know how they work out. Bird dogging fee for a way of getting in touch with Matt Free meal at this years edge event. If you read this Matt you can collect to.
Randy
www.adeptpropertiesllc.com
when i stop to get gas today i found a lady that needs a house but has to have it within the next two weeks. She has 110 thousand she can spend, Downside to all this she is in a area that I don't have any homes and don't really target. Well I have 14 days to make something work I love a challenge. What I like about all of this i got her by word of mouth. She is working with a realtor but hasn't had much luck which is a positive for me. will stay posted on details.
Randy
www.adeptpropertiesllc.com
Just caught up on all going on with you. You are the definition of determination! Love reading all you do and all you accomplish. I relate to your experience at the bank - you know sometimes they need to be shaken up a bit to remember us 'small' people who keep them going.
Wondering if you got that deal done with the 20k cash couple?
Thanks for sharing your journey with us!
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
Yes and no, She ended up in the hospital. I was going to paint the house for them, But they told me if I would hold the house for them they would take care of it. I talk to them everyday. She hopes to get out sometime Friday and wants me to drive to Nashville to give me my money and get the contracts sign. This one has really been tough. I turned down 3 offers of 5.000 down telling them I had it under contract. As far as business this was probably not a real smart move. But sometimes you have to go with your gut feeling.
Randy
www.adeptpropertiesllc.com
I just met with a gentleman and his wife. When I left to go meet them I really thought it was going to be a wast of time. Twice in a row I was wrong. this family has 15.000 to put down and doesn't care if it's a fixer upper. He wants to spend about 60.000 and have it payed of in 3 years. He also said it could be a 1 bath in the country. Well i know that I am going to have to work this deal a little different but that's OK. I just love thinking outside the box. He giving me me 6 weeks to get something work out. It does take a while to get the word out,But once you do an get some deals under you belt its amazing what happens. Thinks Dean, Matt and Drew and The great team at the success acamady.
Randy
www.adeptpropertiesllc.com
After watching deans video and keeping my Pad with me I think its time I change a few things. Sometimes I don't listen to good. In my real estate adventure I have only used a real estate agent for two deals. I didn't want to pay the commission. If their is any-work to be done I do it myself no-matter what it is. I manage all 15 of my homes, Don't want to Pay another company to do what I can do. When I went to work on my pad I seen were I was not following though on deals the way I should, and seen some i could have got if i had stayed with it. So I think if I start passing some of this stuff off I can get a lot more accomplished and quite burning the candles at both ends and make more money. See Deans materials even makes a person think about more than just real estate. They teach you how to live. I'm sure glad I stared this journey with a open mind, See you can teach a old dog new tricks.
Randy
www.adeptpropertiesllc.com
I have to Thank Rina for telling me to find your journal--it is truly an inspiration. This got my mind racing and I am very anxious to get back to my "home" market and try your subject to strategy except that I don't really want to hold them. When you buy subject to..does the bank have to approve you? Have you flipped any of the subject to's that you bought?
Thanks so much for sharing and congratulations on your success!!
Kate
"Whether you think you can or can't, you are probably right" Henry Ford
No The bank does not get involved with me. On the subject to I am using their credit. the loan stays in their name. I have not flipped any of my homes as of yet. I do have some that will finally get the loan put in their names this summer. I am turning around and doing leases to own. I average $5.000 to &8.000 Down payment and all my homes cash flow for 125.00 to 300.00 a month.Hope this answer some of your questions.
Randy
www.adeptpropertiesllc.com
I have been Pm'ing you, I'm sure you are very busy. I have a distressed seller who just wants to get out from under owes 82k plus back payments. House is probably worth 150k. Tax value 224k. I told him about taking over payments and getting him current etc. Need to know what a subject to contract looks like. Can you help me?
Cathy
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
I sent you my phone number,Not sure what happen. On my standard Real-estate agreement I have a spot that says Subject to Existing loan, This is were the amount goes. I also have them to sign the deed over to me. I also do a limit power of attorney that gives the power to take care of anything pertaining to the mortgage, Insurance and closing. I have another form that they sign ,I send to the mortgage company that states that I am the agent and I will be taking care of the account and I want all information sent to me taking care of the account and i want all information, Instructions and anything to do with the house or any business concerning the house to be direct to me. I also tell them that they will be receiving a corrected insurance policy showing the above named management as an additional loss payee. I also do another letter saying at the time of closing any remaining balance in escrow will be sent to me. The owners also sign this. The most important part of my packet is my letter of agreement and addendum. It states that the loan will stay in his name until it's payed off or assumed by future buyer. and that i have no intentions of assuming said loan and that no promises have been made to me that the loan will be assumed or paid off. i agree to hold harmless buyer or assignees shown on the attached agreement, or any future buyer in the event the loan is called due or goes into default for any reason. Hope this helps out.
Randy
www.adeptpropertiesllc.com
Maybe you sent it to Cathy instead of cathyb? When i talked with acadamy they didn't say anything about the power of attorney, good to know. So you go to the actual closing table with this right? I would like to see your CYA letter. That sounds like an important piece to the puzzle.
Cathy
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
This way the owner never sees what I make on the house. I just call them up after its done and let them know the loan is not in their name anymore. Even though I turned around and do a lease to own, I make all the payments to the mortgage company to be sure they get paid so I don't get someone else credit messed up. My CYA letter is to protect me in case something does go wrong I don't get burnt.
Randy
www.adeptpropertiesllc.com
Hey Randy, I read some of your journal and plan on reading the rest when I have time. Let me just say congratulations on your deals and actions taken,I really admire what you have done.
I am going to make it a point to seek you out at the EDGE event in May. I may buy you dinner
good luck
Richie.
I'll make sure to keep a eye out for you. Wish May would hurry up and get here. Thanks for the cong.
Thanks Randy
www.adeptpropertiesllc.com
I just wanted to share this with everyone. Sometimes I push the envelope to the end. When I stared putting my packet together, I did it on my own. I did call the Success Acamady several times. I did A lot of research with attorney's Property management companies, banks ,Realtors and other investors to put it all together. I had know choice. I had given all my money to the success acamady at this time. The point I getting to is you never know how strong your contracts are till something goes wrong. I bought a house subject to, And did a lease to own on it. Both parties involved somehow got together and decided to cut me out. They actuary went to a attorney together. In the end they told them both that they had better walk with kid gloves around me or I would sue them both and win. That made me rest a little easy after it happen. My main goal when I got this stared was to make sure I was protected, Remember I had just filed Bankruptcy with dealing's from a Fortune 50 company. So know matter what contract you use. Target it for the-state your working in. I would advise anyone to check with a attorney. It might save you alot of sleepless night, You have to remember my back was against the wall and failure was not a option. And I will say it again Thanks Dean For putting all this together and Matt for the weekend in Bethany, And Drew my coach. And all the wonderful coaches at the success acamady. And No I am not getting payed to say this .I am just like the ones that's reading this . I wanted to get ahead, But I have to give thinks were thinks is due
Randy
www.adeptpropertiesllc.com
I got a call last night from a man in Alabama. He is retired military and has a house here in Clarksville tn. I ask him how he got my number, He said he wasn't really sure. But who cares it just shows me the word is getting out. He left last night after we talked for over a hour. I didn't want to waste his time and i didn't want my time wasted either. We are getting together this morning to try to putt the deal together. I keep you posted on how this goes. I guess the fish will have to wait a little longer with this and the Matt's challenge going own. They will still be their when I retire. Thinks to real estate investing.
Randy
www.adeptpropertiesllc.com
Randy I have just finished catching up on your journal and I must say I am impressed. You are truly an encouragement to me. I know that we have not spoken in a while I have been so busy. I am still researching all that we spoke about and plan on getting back into the military market as soon as I wrap up my flips for the month.
Truth is that you are fishing already just not for fish. Your fishing for deals...lol! And it seems like they are biting well
Do not fear, for I am with you; do not be dismayed, for I am your God.I will strengthen you and help you; I will uphold you with my righteous right hand. Isaiah 41:10
http://realwholesaling.com FREE wholesaling tips and resources!
To your success,
Carol Stinson
Like I said early. Feal free to give me a call anytime. I hope to slow down so I can get Julie involved here Pareto quick. I give you a call later.
Randy
www.adeptpropertiesllc.com
You are the man, but behind every successful man their is a great woman. I commend you guys. I was stationed in Fort Campbell back in the early 80's, that shall tell you my age
. So, I know Clarksville, the best four years o my military career. You are an inspiration to me. If is okay with you I will liked to implement some of your strategies due to the fact that I live in a military community here in Fort Sill Oklahoma. Iam going to target my fellow soldiers and it will be nice to help them with their situation. We have an amazing market here, but you just opened my eyes to VA properties and we have a bunch. Will you explain how to use the power of attornys i more details. I hope to hear from you.
max
oklahoma
Commit to the Lord whatever you do, and your plans will succeed.
Prov. 16:3
"I am talented. I am creative. I am greatley favor by God. I am equipped. I am
well able. I will see my dreams come to pass."
Joel Austin
I will send you a PM with my phone number. What I do works great around a military town, As you well know they have to up and leave and don,t need to house payments. And plus you have to remember they have the cheapest interest in the country and they are all fix with taxes and insurance coming out.
Randy
www.adeptpropertiesllc.com
I forgot to ask you, Are you going to the edge event in May.
Randy
www.adeptpropertiesllc.com
Met with the owner on his house yesterday. I have to get me a few prices to gather and pull a few comps.I am pretty sure I AM going to get this to work.we are getting together Tue. I am doing some more of my creative finance on this one. it really makes me wonder if I would have tried the different stuff if my back hadn't been against the wall and my credit screw up. I have lost a few good deals due not to having the finance backing i need. I know it will come when the time is right.When I do find my cash investor that wants to invest in real-estate That the sky will be the limit for all parties involved.
Randy
www.adeptpropertiesllc.com
I will try to get everybody caught up tonite. I have got way to many stars on my pad today, but that's OK I am going to get it done. If you don't know what i am talking about when I said yellow pad check out dean's last 3 video's and you will. And it really helps alot.
Randy
www.adeptpropertiesllc.com
For got to say glad your back it's kinda been lonely on here, Hope you enjoyed your trip.
Randy
www.adeptpropertiesllc.com
I am going to call my guy back from AL tonight. I am going to offer him 95.000 Balance due in one year, No payments, I will have to put about 10.000 in the house, It will appraise somewhere around 150.000, I guess with a offer like this I will find out how motivate he really is. The most he can say is no and if I get a yes it will be another deal just a little different.
Randy
www.adeptpropertiesllc.com
Well I didn't have to call him he called me. He is driving up tomorrow to see if we can get all the finale details work out to make sure we are both safe. Well after the call I guess I am closer to a yes than a no will have to wait 24 hours and see.
Randy
www.adeptpropertiesllc.com
You pitched him the 95k deal and his repsonse was, I'll drive up and talk? Or you haven't pitched it yet?
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...