The Next Chapter: Onward and Upward

That was 2.5x1 FEET of tarpaper, not inches...either way...sheesh!

I did not see what the house will SELL for. As is and after fix up. You will have to determine which way to go. You said you thought the payoff was $71,000.
Tax assessments really are meaningless. Talk to a realtor if you do not know the current market in your area. What you can SELL the house for.
How much would the rehab/remodel cost if you were to go that way?
How much could you sell the fixed up house for? Will you make back more than you put into it? If no, how much will it sell for as is?
When you can answer these questions then you will know what to do. Are houses selling in the area? You have some research to do. Like you said, it's numbers time!

Good luck and keep us posted,

Michael Mangham
MD Home Acquisitions LLC

Hey Michael, thanks for the comment. I've read some of your posts elsewhere in the forum, really appreciate your input!

Working on getting some numbers together to determine my next step; in the meantime, continuing to read Dean's books and surf around here taking in as much info as my brain can hold.

Also spending a bit of time looking online for possibilities in my chosen area. For now Zillow seems to be my friend; However, I noticed something that puzzles me - there are a few homes I've been watching, and in some cases a couple of them recently sold (in the last 3-6 months) but now are back on the market for a price less than they sold for a few months ago? Anyone have any idea why that is? Just wondering where the profit in those deals might be.

Considering ripping out the horrible carpet downstairs, and painting the subfloor for the interim. Anyone have any thoughts on that?

Project for this week: grab daughter to help take interior measurements and work on getting a repair estimate.

I hate it when I can't sleep because I have so much stuff on my mind.. I just can't do the all-nighters like I did 20 years ago! I was tossing and turning, pondering the latest developments, and then I had an idea. It's RE-related, warning I might vent a little too. Wait, let me backtrack; on the 10th the ex filed paperwork that I received on the 14th, with 20 days to respond, granting me the house, but asking for the other property in return.

First I have to tell you, I just today discovered the he quit paying the mortgage in April, so the house is in pre-forclosure. Why he chose this route, I'll never know.

Well, the other property is a 2.5 acre remote parcel with a river bisecting 1/3 of it. My grandfather acquired it in the 80's, and gave it to me in 96. I'm more sentimentally attached to it than anything else, because it came from my grandfather. It's an outdoorsman's dream, it's 35 miles from the nearest city, has fish in the river, accessible by road, great location for fishing, 4-wheeling, snowmachines, or x-country skiing in winter; there's a gravel airstrip 5 miles down the road for pilot types. To top it off there are no taxes. There is also the remains of a cabin on the property, and electric and phone to the corner of the lot. Have no idea what the value is but he valued it on the paperwork at 40k.

Originally in Feb, he asked (demanded) that I sell the property and split it with him. I refused, on the basis that I had been led to believe it was not considered part of our joint assets, so it wasn't on the bargaining table. Well he's pushing the issue, and since he's trying to pawn off a distressed property in pre-forclosure as my reward for the 15 years I put in, I decided to respond with this: I will agree to sell the property and split it, (not saying when at this point LOL) and in the meantime, grant him full recreational access; upon sale I would contact him with his check; this all contingent on him bringing the mortgage on the house current and refinancing it so I can take over payments. Is there such thing as an assumable refi? Or he could refi and L/O to me? Hmm how could I work that...my mind is going ninety miles an hour...

I'm nervous because I'm going to be moving this summer, and excited 'cause one way or another I'm going to be doing a deal of some sort! A little over an hour before my lawyer's office opens, can't fall asleep now.

Months and months ago, I had signed up for the state energy rebate program, where they come do an energy rating on your home, recommend upgrades and then reimburse most of the costs after improvements. (It takes so long because there's only 2-3 inspectors covering this area and the list is longggg.) Well just found out yesterday that I'm now #68 on the list, should be getting an appointment in the next 4-6 weeks! Yay! I think when I signed up I was like #260-something. One of my girlfriends is having her energy rating done on Friday and she said I could come tag along. Should be interesting!

the best news this week?! (Yes, still awake..)

Copies of both YTYREP and PFRERN finally arrived, YES! They took a long time to get here, and finally arrived the same day PMI did the follow-up call asking if I'd received them yet. Then, surfing around my computer I discovered I had the digital version of Totally Fulfilled...wow I REALLY dropped the ball a few years ago!! Now I have a massive amount of reading to do to catch up, and it's a little overwhelming coupled with my domestic drama. I don't know which direction to go first.

...not really enough sleep but I'm too keyed up and my mind is racing. Now that it's not the middle of the night I started making dreaded phone calls.
So far I talked to a local realtor, who gave me the name of a broker to talk to for a BOV (Broker's Opinion of Value). I was hesitant to call, knowing I don't have the finances to pay him, not sure what to say and wasn't sure if he would be able to help me. What the heck, I just bit the bullet and called him. That just may have been divine intervention!

Turns out he's a really nice guy, fairly easy to talk to, and after giving him a little information about the property, he is willing to come take a look at the house as a courtesy, considering my situation. (Hmm, possible future team member here?) I have an appointment with him for tomorrow afternoon. Excited! Between the hardcopy BOV and the rehab estimate I hope to have by the end of the week, the wheels are in motion FINALLY. Just having rough numbers to show the courts gives me a little more bargaining power.

Been dealing with kidney stones for the last week. Let me just say, apple cider vinegar is amazing stuff!

Well, the broker has been and gone. His words to me, as he was leaving were, "This is my personal opinion, not professional... but if you were my sister or my girlfriend, I would strongly advise you to just walk away." What a load off my mind, with just a few words. He's right, the numbers just don't add up. Suffice it to say, my direction has changed from worrying about this house, to... going with the flow. And what a load off my mind that is. Now I can concentrate on more important things, like sorting through 15 years of ... just junk really. I really do want to simplify and streamline my life, but it's easier said than done! Maybe it's an ongoing process?

Here's an interesting thing: I was surfing around craigslist for Florida and came across an ad titled 'talented craftsman for hire' Something prompted me to take a chance and email him. I told him I was a new investor looking to network, and could I keep his contact info for possible future projects? Got his reply and he even offered to scout properties for me. Possible connection for my team! Yay! Sometimes you find what you're looking for, where you're least looking for it. I just acted on a gut feeling.

Another note.. I've found that in the 'materials' section of craigslist, there's often leftover materials from construction projects advertised. You can get some good deals on tile, carpet remnants, lighting fixtures, just about anything. I used to watch my local CL for stuff just in case I ended up having to fix this house LOL

sounds like you are headed in the right direction. i follow something called www.flylady.net and it helps me alot, especially with overwhelming "jobs". she talks about just setting a timer for 15 minutes per day and working on your clutter, whatever, for that amount of time. you'd be surprised what you can accomplish in that amount of time and not feel overwhelmed. i look forward to hearing about your future deals.

Karen,

you have so much get up and go do it energy, its great. Following your gut is the best thing you can do, and getting butterflies in your stomach before you do, is better because after do take action and it seems to go well, you can tell yourself the next action item will be better. It that conquering your fear thing, and you've got it going on. Keep up the great work, and let us know what happens.

Wow! A lot to take in here!

First, read, or listen to 'TOTALLY FULFILLED' first. It really is the best and will do amazing things! Do the exercises he gives and you are on your way to total fulfillment, REALLY!

Next, I would not take the opinion of just 1 realtor. Did he let you know what the After repair value is on the property? (ARV) Have you had a couple of contractors come out and give you estimates on the WHOLE job? (They will usually come out for free.) Next, find out what the value of the home is AFTER the repairs. As your realtor friend, just for kicks, if this was all fixed up, what would the realistic ARV of the property be. This will give you a better idea. I have found that some people can not envision the property looking in a prime condition and walk away from properties because they can't see its potential. So, word it to the realtor in the way of; IF this was complete and I got it looking beautiful, what would it sell for? Ask him to give you specific comps within the last 3 months, preferably within a mile of the property; even better in the same neighborhood (if there are enough).

Are you a member of a church? Our church helps people in need by doing 'service projects' for the community. Many of them have been rehabbing a fellow church member's house who just doesn't have the means. Volunteers do the work. You can give back a sizable donation to the church after the sale to show appreciation for getting you out of a bad situation.

It sounds like you and your ex are not really communicating? Is he open to having a neutral party take the property 'subject to' the existing financing so his credit is saved, and he has no more obligation to pay the mortgage, and deed himself off the property?

Lots of ?s, I know; but the first one is finding out that number and getting some idea if the value is there.

Hope those kidney stones get better. I know how AWFUL those are! Worse than childbirth! Feel better soon!

Thanks for the encouragement guys! Linda, I used to be a member of flylady.net, seems like it was a hundred years ago but it was really more like 10-12. The shine-your-sink before you go to bed theory has stuck with me though; nothing starts my day off on the wrong foot like a sink-full of dirty dishes first thing; I need a clean canvas!

Tammy, I spent a few all-nighters back in April reading your journal from start to finish, before I started mine - now THAT was a lot to take in! I identified with a lot of your challenges and you motivated me, so thank you!

I know I didn't include hard numbers for the house I'm currently living in, and there is possibly a small profit to be made, but I have decided to focus my energy elsewhere; somewhere that holds less negativity and emotional ties for me, a clean slate - sort of mental sink-shining, if you will.

I'm still partway through 2 of Dean's books (re-reading 1), and have 2 others that I haven't even started yet, sheesh! It's difficult to read at work because I'm taking calls, but some nights when it's slow I can get in a paragraph or two - makes it difficult to retain info reading that way, but I carry them around with me everywhere I go.

Surfing around last night I came across a link referencing the 'double-dip housing market', of course had to go see what that was all about. Seems to me that would be good news for investors http://www.moneycontrol.com/news/worldnews/ushomepricesindoubledip_55364...

A second link I found was more doom-and-gloom and I had to shake my head; the gist was that there's no good investments left in the US and everyone should start looking at Canada! My thoughts was: "Whatever, dude!" LOL (Not to say there's not great deals in Canada, but there's plenty of great deals right here if you do your homework right!)
If you want to read that one, it's at http://www.investingdaily.com/id/18668/us-housing-market-is-in-a-double-...

It all reminds me of a t-shirt I had back in high school, it had a school of fish and right in the middle of the school was one of a different color, swimming the opposite direction. Underneath it said "Go against the flow"

OK gotta get ready to go to work, I might not be posting every day but I'm still reading and learning all I can!

I haven't posted an update in awhile, had a few other pressing matters that required my attention. I had to put my dog down in July and that was really ... not enjoyable. Packing the last little bit to move, working full time, and somewhere in there working on putting my team together.

I saw a post in the forums recently where the poster mentioned their REA or a friend asked them why they just didn't just get their REA license. I have a friend that keeps pushing it too... I told her I didn't want to be an agent, I wanted to wholesale rehabs for cash. She pretty much tuned out with that, but I am predicting that down the road when she sees how it works and sees my results, she'll change her tune! Have decided to begin with bird dog deals, then move on to rehabs and estate sales.

In case you haven't been following the 30-Day Quick Cash Formula Thread in the forums, there's some GREAT info there as new investors work out the details. The thread is a long read, but well worth your time if you're just getting started. http://www.deangraziosi.com/real-estate-forums/everything-else/86517/30-...

-Karen

...just spend a bit of time in the forums!

The momentum going on over in the 30DQCF thread has got me fired up!

I got a few things accomplished today, some packing done, furniture moved, lawn partly mowed, decided on name for my business, got a GVoice #, ordered business cards, registered at connectedinvestor.com, made followup contact with a possible REA team member ...and hosted a dear friend overnight, in town for a wedding, she lives overseas now.

Must sleep now!

Karen, Just read your journal. Good tip about craigslist materials! Keep up the good work.

Andrew S

I know my journal is huge! Its 1 1/2 years of reading in there! Thanks for taking the time to read it, and I hope it goes to show that even though there will be obstacles, giving up is not an option!

I'm sorry about your dog; I know I've lost a few dogs and it is very difficult; they are definitely part of the family!

Well I've been in Florida for three weeks today, I'm really liking the area, the weather etc. I've found an ideal job that will allow me enough freedom to persue REI and still have a weekly paycheck, although I do need to get my own wheels soon, borrowing a friend's car for the time being. I even found what looks to be a great deal on a property and exactly what I'm looking for as far as a personal residence; a 3/2 prefab REO on half an acre, close to my job, it's been listed on and off for over a year and a reasonable-to-cheap asking price. I contacted the realtor for a showing, the appointment is for tomorrow. She emailed me this morning to say that there was another inquiry on it yesterday as well, and apparently a low offer was submitted. Sheesh, I didn't even get a chance to see it! I'm pretty bummed at the moment, mostly because I'm not in a position to be able to submit an offer of my own. I didn't have my heart set on it or anything, but I was doing a bit of daydreaming about possibilities regarding maybe a lease option that would allow me to rent it for a few months until my divorce is finalized and I could have paid cash at that time, so feeling a bit deflated today. Not even sure if a lease-option on an REO is something that would be feasible.

Hi,
saw your posts re kidney problems. Had them real bad earlier,w 7 attacks. was in mil in Germany and German Dr. told me to drink (you will love this) warm beer. Followed his advise: 2 bottles warmed and drank them sitting on my bed.
Passed the stones, 1 every month! Best Wishes, Kalam