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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Yes he knows what I am offering, He just had a few normal question like who is responsible if someone gets hurt during that a year. This is just a few of the questions in which he was asking are all legit if you re a good business person. I really think we will get it all work out I just don't count on anything till all paper work is sing.
Randy
www.adeptpropertiesllc.com
Well I got my yes. We have been on the phone getting all the details work out. I am giving him 95.000 with no payments for a year. I am going to put about 10.000 into the house. This one I am going to flip. I will make somewhere between 40 and 45 K. It just amazes me what you can get done if you just ask. If things just hold together a little longer I want have to worry about a bank. I guess I shouldn't complain I mean i am doing this full time paying for a house and making a living. I have 3 house that should close in June that will give another 90.000 and I should make around 75.000 on my two flips. In the back of my mind I still wonder were I would be if it hadn't been for my bankruptcy. But then at the same time I might not have work as hard on all my 0 Down strategies. I still have to take a few minutes and let all this sink in. I sill have to make another call to carol and gt started on my whole selling. this is going to be julie's full time job. I don't want all my eggs in one basket. I have been working on a group deal of 10 REO. If I just keep plugging away I know I will find my cash investor, He want be able to refuse. Thanks Dean, Matt, Drew, and all the wonderful coaches at the success acamady I got a couple of other things working that i will share later I have to wait on these. I sent them in for Matt's challenge.
Randy
www.adeptpropertiesllc.com
I must admit, I really didn't think it would make that much difference in keeping up with and doing the star system like Dean talked about. But as always he was right again. Well this going to another long day I have a lot of stars, but that's OK at least I will feel good when I sate down tonight and see what all I got done.
Randy
www.adeptpropertiesllc.com
Well I guess I will try to get caught up on everything sat, This yellow pad is kicking my but, At least it in a good way. I didn,t have posting on my pad for today so i am taking a break.
Randy
www.adeptpropertiesllc.com
Randy
And it is this quote that will make me join the success academy. I have read your journal, and I can tell the success academy has played a great part in your success. The ability to call them up and ask them a ton of questions is crucial. Man you are rocking. 8 houses with a gross value of $1Million WOW! Keep pushing, never stop, you have the success that I want. I am still trying to understand how you made some of your deal, but I guess it will come to me later. It is just the " no money down part" that always confuses me. What about closing cost, real estate agent commisions, earnest money, home insurance, attorney fees, and title fees?
As Of today, In less than 9 Months I now have 15 homes, But have closed over 20 deals, and like I said I owe it all to the Success acamady. I wish you the best of luck. They will give you all the tools all you have to do is act and not let fear stand in the way.
Randy
www.adeptpropertiesllc.com
Randy
All I can say is double WWWOOOOOWWW! What you have accomplished seems unreal! Very Very impressive! I will call the success academy to determine what will work best in my area(Florence, South Carolina).
The one thing I really like about the success acamady is if they didn't know the answer they would get together and brainstorm and fine the best solution. Drew was my coach that did my lesson work with me and he was unbelievably. Good luck and if I can ever help out let me know.
Randy
www.adeptpropertiesllc.com
well i had a 3 day weekend with the city inspectors getting good Friday of. So i decided to put out some more bandit signs. I haven,t done it fer about 6 weeks. I still receive calls were people wrote my number down and it just takes them a while to respond. My goal is to have 25 deals done by the edge event. I know it will be tough to get it done but I like a challenge.
Randy
www.adeptpropertiesllc.com
I was just looking to see if Dean might have his weekly blog out yet, I couldn't find it so i guess he hasn't got to it yet are maybe he is out tying to find a Easter Bunnie to be in it with him. I always look forward to his BLOGS, Bunnie are not.
Randy
www.adeptpropertiesllc.com
This week end I am really working on my game plan to attack this avenue hard nest week. I am even getting more aggressive with them. I am not going to throw my money away on scams, That's the reason I do so much research. Bottom line is I am making them money and they work for me. I truly believe I will find what I need and will have a win win situation for all parties that are involved. And for the ones that want work with me today but somewhere in the near future will wish they had jump on board will just have to wait. I not saying I want work with them they will just be at the bottom of my list.
Randy
www.adeptpropertiesllc.com
Randy you are awesome. I just read your entire journal and it took about an hour. I just couldn't stop reading your journey. I am amazed at your perceverance and determination. You are certainly an inspiration to me and all the others on this website who are new to REI and on the fence. The best thing I got from your journal was to take action and everything will fall into place. Not to mention how much you believe in the success academy. I will be joining this month, it was on my list of short term goals to join by the end of april and I will certainly make that happen. Thanks Randy for your inspirational words and your story. Best wishes and happy hunting.
The only place success comes before work is in the dictionary! Author Unknown
Success is my only option, failures not! Eminem
Winning isn't everything, it's the only thing! Vince Lombardi
Glad you like, and I hope it helps, and yes it is all about action.And like I said early the success academy gave me all the tools to work with and then I TOOK ACTION AND NEVER GAVE UP. This is the reason I do know this program will work any were for anybody. Wish you the best of luck. and if i can every help just let me know.
Randy
www.adeptpropertiesllc.com
Well I put out a few bandit signs over the weekend seance it was a three day weekend. I actually got a call today. Was surprised it been Easter and all. The call was really was a good one . we are meeting tomorrow to try and get the deal work out, He is really motivated and wants to leave Clarksville in the next two weeks. Fill you in on the details tomorrow. See the Easter Bunny does exist.
Randy
www.adeptpropertiesllc.com
I just watch dean's new blog what a way to start a week off. I just found out over the weekend i made a big mistake. I sent out 26 checks and didn't sign them. I have to set down and get this matter resolved today. I sure don't want no mortgage payments late, I have also got to finish up the dreaded tax season. well I better get to work so I can get this accomplished.
Randy
www.adeptpropertiesllc.com
The gentleman I met with last night is really a motivated seller. he just retired out of the Army and wants to move to minnesota. They have already bought them a house and payed cash for it due to a lawsuit. I may not be able to get this one subject to, He really wants out of the house, He is afraid the loan will stay in his name to long. His payments are 528.00 a month which includes everything. IT's a VA loan And He owes 82.000. He said if i made him a cash offer he could bring some money to the table to get out of it. I also thou out doing a lease option for 2 years at 500.00 a month and 0 down. But with this i would responsible for the upkeep of the house. I told I would need a couple of days to pull some comps on the house, Which I have already done. it worth about 135.000 the way it sets. I just didn't want to seam to excited about the house. It still amazes me what you can get done if you just ask. I will feel you in on how this goes in a couple of days.
Randy
www.adeptpropertiesllc.com
I have been under the weather and have got way behind. I did set down and realize I have closed 25 deals. i hope to close a couple of more before the edge. I have got to set down and figure out how much I have received in down payments and what my cash flow really is. And With the tax season coming to a end i will find what my net worth really is. I do no everything is higher than what I have posted. I always stay on the short side so i don't mislead anyone. And i guess the good part about all of this i don't have to watch it as close anymore Because i have the money in the bank to make my payments. I have got to try to get caught up on all my phone calls tonight and tomorrow.
Randy
www.adeptpropertiesllc.com
AWESOME JOB man!!! you have got determination !! way to keep rolling and it is so exciting to read what someone with focus has done and learn from them!!
i would like to ask if you use a cpa or book keeper or software to keep all these deals seperate for tax season? book keeping is very important part for taxes as taxes can either put $ in your pocket or take it out!! just wanted to see how other investors are handling it.want to learn more about this.any info will be grateful
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/...
All I can say is WOW....I was without internet for a while after my move and it took me almost an hour to catch up with your journal! You are on fire both in making deals and in posting them all here to share and inspire us all. The closer it gets to the EDGE the worse i feel about not being able to be there this year and meet all of you amazing people face to face...but at least the bright side is there will always be next year for all of us :)and the next, and the next and the next!!!! Looking forward to keeping up with your amazing journey!
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
I actually use a CPA for my homes in TN, I am also involved with another one for my homes in KY. The laws are a little different their. And that's the reason I set up a Property management company, I Didn't want to have to pay excise tax. Hope this helps.
Randy
www.adeptpropertiesllc.com
I actually use a CPA for my homes in TN, I am also involved with another one for my homes in KY. The laws are a little different their. And that's the reason I set up a Property management company, I Didn't want to have to pay excise tax. Hope this helps.
Randy
www.adeptpropertiesllc.com
I actually use a CPA for my homes in TN, I am also involved with another one for my homes in KY. The laws are a little different their. And that's the reason I set up a Property management company, I Didn't want to have to pay excise tax. Hope this helps.
Randy
www.adeptpropertiesllc.com
I actually use a CPA for my homes in TN, I am also involved with another one for my homes in KY. The laws are a little different their. And that's the reason I set up a Property management company, I Didn't want to have to pay excise tax. Hope this helps.
Randy
www.adeptpropertiesllc.com
I always love hearing from you. I am really going to miss not getting to meet you at the EDGE. And by the way what have you done with Rina, Did you push her in one of your ponds. I haven't heard from her seance you showed up in her world. Hope things keep going well for you.
Randy
www.adeptpropertiesllc.com
Randy, you are the extreme motivator for me. I've just finished reading your journal and, like you've been hearing, you are an inspiration! I intend to join the academy once I get a deal done...it's kinda hard to join when you are living check to check with no savings. But I believe I am in the right space to succeed. Just wanted to wish you and your wife continued success!
Ogal
"Only those who can see the invisible can accomplish the impossible"
Patrick Snow
"Instead of using your words to describe your situation, use your words to change your situation" Joel Osteen
I glad to see your thinking about joining the success academy, The only thing I know for sure is that I could never have closed this many deals without them. It really amazes me how much time they spent with me. Like i said early what ever they suggest I tried. Thy really kelpt me accountable. I really like hearing from someone like you that has a positive attitude and are motivated. GOOD LUCK.
Randy
www.adeptpropertiesllc.com
Well I can't stay long. I have a man that wants to meet em at 10 tonight to try to close a deal on one that I am trying to flip. He ask me if that was to late. I told him if you got cash I will meet you anytime. fill you in tomorrow on how it goes.
Randy
www.adeptpropertiesllc.com
Well I just walked in the door. I just got another $5.000 Down with a$226.00 A month positive cash flow. IF they do refi I will make $32.000 at closing. Well I better get something to eat. Sure wish the Edge would hurry up and get here.
Randy
www.adeptpropertiesllc.com
Well I guess I am going have to use Greg's Lease option on this one. They just want do a subject too. The only reason I am doing this one I just don't want to loose the deal. It is still going to be A 0 down and i am still getting the deed. I am going to make his payments for two years. My then I will be able to REFI. Julie and I are going to move in this one even though I promise I wouldn't move for two years. This house will have about $50.000 Equity without repairs.
Randy
www.adeptpropertiesllc.com
Just got me another subject to existing loan, The owner lives in North Carolina, Fort Brag. He has a buddy house sitting for him at this time. When I went and look at the house today I actually took my buyer with me. First time i have every done that but it work out. I am only going to make about 15.000 k on this one. I am still getting my $5.000 down, My cash flow on this one is only going to be 125.00 month but that's OK. He is coming to Clarksville one weekend this month, The military gives them a 4 day weekend. I have done fax him the contracts just so he would know what I AM doing. My goal is Have 30 deals by the EDGE. I can get this done if I just keep fear out of the way.
Randy
www.adeptpropertiesllc.com