Rina's DAILY JOURNAL: Chapter One - The Beginning

that's a LOT to have come through! I'm so glad to see you still here and excited for what your future holds! for you and your little one...
Congrats on starting the Success Academy. You deserve ALL the wonderful things He has in store for you. Your miracle is just waiting for you! Just give it your all!

Looking forward to hearing more good things from you!

your Dg sis,

Rina

hi Rina

the gift is that you r not only here but that u along with others r so amazingly generous with yor support. thank u.
could u tell me what to do to set up a journal. i think it will be neat for me to have one to share. i think it would help me keep in touch. i so enjoy talking to those that are in on "this".

sincerely
cynthia

Click on "member journals" at the top left of the page. Then under "Investing Journals" you will see a box that says "Post new Forum topic". Click on that and start a new topic, which will be your journal.
I look forward to reading yours!
It is a gift to have you here, too, Cynthia. I wish you well in your REI and blessings on your family.

Rina

thanks so much Rina. i'll set one up tonight after gabriella goes to bed.

sincerely
cynthia

rina,

is that also how u start any new forum topic? i don't know my way around forum sites too well.

thanks again
cynthia

same way.
And you are very welcome.

Rina

Well, I continue to get repsonses to the Craigslist ads. Following up on all of them is important, I know. I had to determine BEFORE I placed them if I was ready for this. I am.

Spent 6 hours with my realtor today. We drove to see a bunch of properties. Very interesting, learned much about a new taget area, plus we spent all the driving time talking/planning. I had e-mailed her a copy of Star's letter (Matt Larson's agent) that dgadmin put on the site. I never mentioned anything more about it, but I can tell her wheels have been turning (and she's very competitive so I knew it would spark something. lol). Today she was asking me a bunch of questions about assigning and double closings and such. These are not done around here, so she wants to be prepared to answer any questions other agents/title companies might ask her about my offers. I had gotten 10 BARMs a couple weeks ago to give to people, so I said I would get her one to read. She was very glad.

The short sale house I have an offer in on froze this week and the pipes broke, so when we went to see the damage today, there was literally 12 inches of water in the basement. They are supposed to be pumping that out now and putting in a new furnace. They'd better hurry before it's an ice-skating rink. I don't know if I'll continue with the deal, but it's in such a great location. I dropped my offer by $10K to $40K, and since the owner doesn't even have the money to pay his deductible for the insurance to cover the damage, I thought I'd offer to "buy" the old kitchen appliances from him for $1,000 cash. That might help out a little and seal the deal in his mind. Then it's on to the bank.

Called a "basement saver" to give an estimate on another house we saw today. Another REO. I'll offer either way (great house/great location), but this will give my end buyer an idea of what it will need.

I'm going to get back to the retiring investors this week. We'll see how that goes. (I will remember the "don't get lazy" speech, B.C. lol)

Am thinking more about the trip to Phoenix. I am VERY excited about that! Can't wait to see what the DG team has in store for us.

Rina

OMG Rina you truly inspired me to go for it, I truly love reading your journal entry and all of your commits. I just recently sent you a PM based on a post to another thread....but right here I found some many of my answers. I thank you...Keep doing what you do and don't stop.

I do have one question, when you started was it difficult to bring your husband in and did you two start out together right off the back.

One more thing, if you are starting with no money or credit, and your point start is assignments and/or wholesaling. What would your ad on CL/other sites or in the paper say. Could you please give me somewhere to start. I think this is what is holding me back.

It's been inspiring to ME to read your journal and to see a person with such heart.

I'll have to think about the ad drawing investors. I know there are examples on the site and in the Academy course, but I have not yet used one myself except for my "tired landlord" ad (but of course they would be selling, not buying). I'll try to come up with one that has a little of my own personality.

Hey!!... Challenge!!!

Whoever wants to, see if you can come up with a unique, killer ad to draw investors and leave it here in my journal or start a new thread for it. Let's see how many awesome ones we can come up with to share! Even if you find one on Craigslist that you like, put it in here. It'll be just one more resource to tweak a little for ourselves.

Rina

P.S. Erika, often my husband and I are not on the same page with the REI. So, I started an LLC (at his suggestion) which I am the sole owner and member of. Now I make all my offers to purchase on my own and don't have to bother him with the stress of thinking about ANY of it until it comes to the actual financing part and/or figuring repair costs. And that only happens on accepted offers. keeps the peace. LOL

Rina you rock, thank you so much for your insight. I am researching the ads on CL in my state and others as well. I keep reading about getting a list of investors together right now I have 5 on my list d/t my REI Club.

I will be starting the Success Academy soon, I can't wait to draw all of that knowledge from my Coach. That on top of all of the knowledge from this site I know I will be a Successful REI>

You most DEFINITELY are a successful REI! You can already SEE it so you will MAKE it happen.
You'll love the Success Academy. Congratulations on that decision!
And thank you for all the kind words. I love it when family builds each other up. Talk about support!

Rina

Waiting on an answer to the $40K short sale offer. The owner is scrambling to get the insurance company to deal with the frozen pipes/flooded basement mess before something else goes wrong.. Once that is taken care of, we can continue negotiating. After he accepts, then it goes to Countrywide for approval. They’d be wise to expedite the sale if they don’t want to end up with just a lot (which is beautiful) and a garage to sell.
Really hope to get that one.

Looked at and made an offer on a nice older 3bdrm/1.5 bath in a GREAT neighborhood today. Asking $75K, ARV about $110K. I couldn’t see anything noticeably wring with it, but put in an inspection contingency. Offered $65K.
Two sisters own it. Offer has to go before the court (I don’t know why). 3 other offers have been turned away. Of course I don’t know what they were, but I offered cash (I don’t HAVE the cash, mind you, but it will be there if I need it), so we’ll see if that makes a difference. I also signed it and/or assignees, because I might have an end buyer for this one and it’s not bank-owned.

I haven’t heard back yet from the retiring investor with all the props for sale (seller-finance). I left 2 messages today. I’ll assume he’s just busy and hasn’t had a chance to call back yet. It’s hard to know sometimes where the line between persistent and annoying is. LOL People’s emotions play SUCH a big part in this game.

Speaking of…
I passed a FSBO as I was driving by a couple other props on my list today. VERY nice house. So I stopped and called on my cell phone. 71-yr old gentleman wanting to sell and move West to a Navy friend’s house. Wife passed away a few years ago. Had a REALLY hard time with it, but is now getting back on track. Asking $140K. Doesn’t have a whole lot of room to budge, but I asked anyway. He said that he’s had 2 realtors that wanted to list it. One he didn’t like, so he gave her the boot. The other he told that if he didn’t sell it by Spring he’d call her. I have a specific family in mind for this house. When I told him about them, he said “Well, I would want to meet them. But I WOULD really like to see a young couple come in and raise a family here and take care of the place (which is basically what I described). So we talked for awhile and I think we could work out some creative financing in this situation.
I’m enjoying all of this homework. And I think, even though it’s time-consuming, it will equip me more and more for “feeling out” great deal opportunities. Plus there is always a positive in putting a little joy in someone else’s day, even if it just means talking to someone who’s feeling a little lonely.

Well, I could add a lot more but I suppose I should just create a “real” journal for myself somewhere in my computer. I forget that I’m not the only one looking at this sometimes. Could get ABSOLUTELY boring.

Rina

Hi Kiddo, It is funny you mention frozen pipes. I just got back from looking at an REO with my realtor guy, and what a mess we walked in to. Up here in good old upstate NY we have been getting hammered (sp) with below zero weather and today is no exception. Wind chill at -5 below. Anyway it is a duplex side by side with 3br and 4 br's. It has a FMV of 80k and the bank is looking for 62k. After we walked thru the water and ice in the house, I told mmy realtor to ask the bank about a real short sale of 31k. He just looked at me and said your crazy. I said crazy is good, and crazy makes money. So lets see what happens. Films at 11!!, and you thought I had run away. I've been busy kiddo. Watch my posts and you will see, I HOPE...Jan

Hi Kiddo, It is funny you mention frozen pipes. I just got back from looking at an REO with my realtor guy, and what a mess we walked in to. Up here in good old upstate NY we have been getting hammered (sp) with below zero weather and today is no exception. Wind chill at -5 below. Anyway it is a duplex side by side with 3br and 4 br's. It has a FMV of 80k and the bank is looking for 62k. After we walked thru the water and ice in the house, I told mmy realtor to ask the bank about a real short sale of 31k. He just looked at me and said your crazy. I said crazy is good, and crazy makes money. So lets see what happens. Films at 11!!, and you thought I had run away. I've been busy kiddo. Watch my posts and you will see, I HOPE...Jan

Yep, sounds familiar. -5 is cold (try -50 here! I think I lose...)
Those banks just don't realize what happens to these houses in cold weather. You'd think the loss mitigation people would have a clue by now (if they're the ones in charge of them).

Hope it works out for you. Keep us posted, you crazy man.

Rina

P.S. What does "Films at 11" mean? (I know I'm gonna feel really dumb when you answer. lol)

What part of upstate NY is this duplex? Are any of the units currently renting? What condition is the place in, does it need work? My uncle lives in the Catskills, exit 21, I'm in Brooklyn and I am looking into buying upstate. Let me know if the bank accepts your offer. -Jeremy

Hi Rina,

I am a newbie and have 2 quick questions re: assignments

1. I see that a lot of people in these forums always say make sure that you add the words "and/or assigns" after your name, but I see on both of these contracts that this wording is already there where the Buyer puts his/her name. Is everyone talking about after your signature? Also, is 1 agreement better to use than the other? Why?

2. In the agreement to purchase (page 2), it talks about the amount of the down payment. Do we as buyers/assignors leave this blank? Is the contract binding with only the earnest money deposited? What is typical amount of earnest money put down?

Anyone's help would be greatly appreciated.

Thx,

Neil

Ladies first---you crazy girl!! Have you never heard of a news reporter saying films at 11.That means here is the story and the films will be a l1 pm. It must be real cold up there, or it's just a New York thing!!!!! That's why I luv you!!! Jeremy, The house is vacant. A bunch of clean up though. Nothing that a huge dumpster can't take care of though. I am in upstate NY in the Utica area. Many, many houses to deal on, some good, some bad. Way more than I can handle. Send me a pm, let me know your thoughts...Jan

Do I feel another deal coming on?? Jeremy, you're on a roll! and only 18... you do us all proud.

Jan, OK i never heard of that. NOW I know. LOL
Looking forward to the breaking news story!

Rina

Hey, welcome to the DG family. Good to have you here.

1. Yes, you would sign your name with and/or assigns (or assignees). I haven't looked thoroughly through both agreements because I use my state's standard purchase agreement, but I think they're pretty much the same thing.

2. I typically put down $500 WHEN the offer has been accepted. Nothing before. But this amount is because I generally deal with REOs (bank-owned properties) and that is how much they require. You can put down as little as $100 earnest money, or even $10 I think, to have a binding agreement. This money IS applied toward the purchase price at closing, so if you are assigning your end buyer would reimburse you this money.

Don't hesitate to ask other questions. I appreciate your persistence, because I see that you had asked this out in the forum as well. Shows me you'll go after what you want. Good sign.

Rina

Rina,

Thanks for the the great info! Wasn't sure if I posted correctly or not because I didn't see the word "new" after my post (Boy am I new And yes, I am very persistant (I guess it's the ex-New Yorker in me) and thx for noting my other post.

I ordered Dean's book the other day but have been poking around the website for the past week or so.........I am very excited to dive in to this unbelievable market. I'm in the bay area in CA and there are lots of pre-foreclosures and foreclosures all over the place.

Gonna start locking up investors first so I have the money to work with on these deals (I think that's the best way to go?). I am starting out using the finder fee strategy since it will help me build up my bank account so then I can be the investor on these deals!

Another question if you don't mind......say I do get get an offer accepted, to make sure that no one can grab this deal, is it my job to file papers with the title company?

Thanks so much,

Neil

always a pleasure to help a newbie. lol

Are you using a realtor or a RE attorney? If so, they would file the paperwork. Otherwise, yes talk to your title company and find out what you have to do.

If anyone wants to put their 2 cents in here, go ahead.

Good luck, Neil.

Rina

P.S. Whenever YOU make a post it won't show as "new" to you, because you already saw it. To everyone else, it's new. (At least that's the conclusion I came up with before. lol)

Hi Rina,

Think I will begin by using a realtor since I am so "green" at this. I have the confidence but want to do a couple of deals with someone else first mainly so I know what papers need to be signed and filed so I don't screw up the deal. Will 1st begin looking for investors and then look for a good realtor that "understands" investors and not just bringing sellers and buyers together.

Just a comment.....

I can tell that you are one of the "gurus" in this forum by seeing your history of questions and replies.......where do you find the time to stay on the web and close deals....do you have a twin

Thanks again,

Neil

Neil,
Believe me, I'm no guru. I'm a fellow student that started here lasted Spring after getting Dean's book, and have grown so much in knowledge and confidence from learning from everyone here that this is like my home within my home. (my computer is right in the living room)
The nice thing about the forums is that you can pop in and out and ask/answer questions at your convenience. Sometimes my convenience is while making supper, or while the kids are online too (we each have a window open), or late at night when I can't sleep anyway, or early in the morning after I see my husband off to work. Often I'm online anyway researching props or keeping in touch with potential buyers/sellers. During the days that I'm busy I just don't come on. Maybe at the year-end of my journal I'll tone it down a bit. But for now, I'm still learning, thank God.

You wouldn't believe how much you learn just by ANSWERING questions. You'll have to try it. And ask LOTS, too. If you look back in the posts, you'll see I was an annoying non-stop question machine. (ask some of the people that were here before me. lol) Then you make it sink in by answering others that have the same questions.

So, good luck to you and I wish you much success with your REI. You can start a journal, too, to keep track of your progress or just put in what's on your mind. It's kind of fun having people "visit", too.

God bless,

Rina

Rina
I must be way behind on things here BUT..what is the letter you are talking about here? Star's letter? I guess I am lost here. Do you have a copy of the letter?
Sissy

I bookmarked it for myself, too.
Here's a link. It's awesome.
http://www.deangraziosi.com/agentletter

BTW, Sissy, your SHORT SALE SPECIALIST post was amazing! I learned SO much just from that ONE post! Thank you!

Rina

You the BIG sister that I never had. Just wanted to give you a shout out.

Wayne

Thank you, Wayne!
And I wanted to tell you that I LOVE your new screen name. And the reason behind it! I know you'll live up to it.

your DG sis,
Rina

sensational sunday ( can B so corny)

anyway, wanted to voice the appreciation for the post on the FSBO w/ the elderly man. there's nothing like bringing light into another's day. it made me think of Tuesday's with Morrie by Mitch Albom. it's one of my favorite books.

here's to livng the dream,
cynthia

Hi Rina,

FIRSTLY, I was just reading earlier posts you had written and came across your #327 posting! WOW! I think we ALL at 1 time (if not more often) feel STRONG anxiety as you mention. I've been there done that! I am so glad to hear that it was a false alarm!

And....Sorry in advance for the length of this posting, just had a lot on my mind about this topic.

You mention that you deal alot with REOs so I thought I would throw this question to you. I just exchanged emails with a realtor that says that you need to have pre-approved financing b4 a bank will sell you their REOs.

Has this been a roadblock for you or should I just keep looking for other realtors that deal with REOs? Are you able to work with realtors (or for that matter with banks directly) that understand that you will be assigning these REOs to 3rd party investors and they will either pay in cash or other resources available to them.
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Here is the realtor's reply to me:

Hi Neil:

First of all, let me tell you that every bank operates in a different way and one common denominator I have found so far is that they all do lots of things that seem illogical.

Now on the subject of pre-approved financing, they all require this and I actually agree with them. And not just banks either! If anybody is offering a home for sale, why would they consider an offer from somebody who was unable to show that they had the means to buy it? It makes no sense.

More and more of the banks that are offering REOs for sale, now require a potential buyer to be pre-approved by them or by a designated lender. The buyer does not have to use that lender of course (that would be a RESPA violation) but this is how the bank ensures that an offer is real.

Why do you think this is unreasonable? It makes perfect sense to me.

All The Best

Bernard
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Is this guy making a good point that the banks will not deal with buyers that can't show proof of pre-approved financing or cash in the bank? Would I have to have the investor that I am assigning to PRIOR to purchasing REOs so I would be able to show proof that I have the funds?

And for that matter, a fundamental question that I have always been thinking about, if I am the SELLER of say FSBOs, pre-foreclosures,etc. wouldn't the seller want the same assurances that the buyer can afford to buy their prop b4 they would even consider signing a contract?

I'm sorry if I am asking a real beginner's question (REI 101), but if I was the SELLER, I would want assurances that the buyer I am dealing with has the means to buy my home b4 I sign the contract?

Just trying to put myself in the seller's shoes and think of the questions I would need answered b4 I would be willing to sign a contract. Is it possibly because the owners have been trying to sell their home and can't find a buyer so they are so motivated to at least get someone to sign a contract to buy even if it takes 30 to 60 days....I know this may be REI 101.......but that is the level I am at.

Thx,

Your student Neil

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