Rina's DAILY JOURNAL: Chapter One - The Beginning

"Whatever the mind can conceive,and believe,it can Achieve" I wrote those word out in front of me on a big sign so I see them everyday. Just to keep me focused and my mind on the big picture 24/7. And I do mean 24/7 because if I'm not awake thinking about it I'm dreaming of it. The awesome future.

I sure hope so. I would love to get another deal done soon. I did some more research this morning and there really are some amazing properties upstate. Thank you again for the support Rina! This site is the best and the people here are great.

Thank you for the comments. I’ll have to read that book now.
I guess I’ll never be able to separate my heart from whatever I do in life. That’s just me… And I’ve proven to myself that I don’t have to become a different person to succeed. Just the best “me” I can be, with a bunch more knowledge and a lot more courage than I had. And of course everyone here as a support system!

Thanks again,

Rina

Neil,

Thank you, too, for the uplifting words. I think with each time we choose to conquer an obstacle, we move forward to another level. And no one can take that accomplishment away from us. So I am thankful for the opportunity for challenges.

For your answer:

I HAVE had trouble with the REO banks. And I agree with your realtor, they do make crazy, stupid decisions based on NOTHING as far as I’m concerned. I sometimes wonder if the individuals in charge just see it as a game. I would love to get inside the head of one of these guys in their office to see what they’re thinking. I wonder if it’s a very stressful job that they have to deal with each day. Do they become numb to the process of dealing with homeowners walking away from their homes and being kicked out in despair? Do they then have to deal with higher authorities saying “Get the price we want. PERIOD.” and pass the frustration onto potential buyers? More than likely it’s a systematic process whereby a BPO is done, a price is set. A certain time elapses, the price is lowered, etc., etc. until the price a buyer is willing to pay and the bank’s expectations meet in the middle.
SO, with that being said, try to play by their rules if you can with the pre-approval letter, which you can get from a number of places and use over and over again, and try a number of offers signing your name and/or assigns. If you find it a dead-end, you’ll have to do double-closings, like Jason just did. Which means you’ll need an excellent buyers list to draw from, or another exit strategy in mind.

It’s been awhile now since I tried the and/or assigns on a REO offer, just because I missed out on a couple of places by doing that. But I should start again just to see if there’s been a change.
You might want to ask others here if they are having any luck with that.

Definitely be seeking out FSBO opportunities where the “rules” are a lot more flexible. You basically create your own for each individual transaction.

God bless,

Rina

David, that’s a great quote. Puts it all in a nutshell. Thank you and congrats on the “big picture” you’ve set for yourself!!

Rina

You are welcome, and thanks for the HUGE!!!! support you’ve already been to the DG family.
You have a lot of wisdom for someone your age (geez, for someone of any age for that matter!). I know you’ll use good judgment in each situation. I wish for you the best of everything in your REI.
Looking forward to hearing great things!

Rina

hi rina

i am having a slump of a day. i am wondering if i can really get deals done at this pace. maybe i should ask sully. i saw one of his posts with his schedule and thought, i'm not alone, there's another turtle in the family L.O.L. and he's doing it. just not feeling the progress. although, i remember when my goal was if i could only get the book. then it was if i could only get a job and make enough money to join the academy. then a friend shows up and finances it for me. then i had a goal of interacting with the Dg family to give and receive support. all have come to pass. so what's the deal?
anyway, my enthusiasm didn't show up today.
on the bright side i am in touch with a potential babysitter to free me up for few hours a day. i can then get back to taking showers and doing rei...woohoo
thanks for listening.

still living the dream
cynthia

hi rina

i am having a slump of a day. i am wondering if i can really get deals done at this pace. maybe i should ask sully. i saw one of his posts with his schedule and thought, i'm not alone, there's another turtle in the family L.O.L. and he's doing it. just not feeling the progress. although, i remember when my goal was if i could only get the book. then it was if i could only get a job and make enough money to join the academy. then a friend shows up and finances it for me. then i had a goal of interacting with the Dg family to give and receive support. all have come to pass. so what's the deal?
anyway, my enthusiasm didn't show up today.
on the bright side i am in touch with a potential babysitter to free me up for few hours a day. i can then get back to taking showers and doing rei...woohoo
thanks for listening.

still living the dream
cynthia

You're just having "one of those days". Don't take it to heart.
Like you said, look at what you've already accomplished! Slow but sure wins the race. Yes, as you move ahead you'll probably gain momentum... but for now, enjoy what you're learning and just don't fizzle out, OK? I think there's a lot of people that start gung-ho, and that's great, but not that many can keep going at that pace (CBR obviously is the exception. LOL keeps us ALL on our toes!). SO, just remember that it's a whole new way of looking at things, a different life-style.

I listened to a webinar by another guru last night and I wished I could have reached out and slapped him right there. He was one of these " YA YA YA YA, I'm a LAZY millionaire (he actually said that), ANYBODY can use my automated system from their couch. OTHER people will do ALL the work for you!" kind of guys. The thing that made me so mad was, without using Dean's name he was slamming him and all the stuff the WE KNOW works! AND I know for a FACT that all he was out to do was get people's money from selling his program which was ALL fluff. I SO much appreciate Dean TEACHING us how to use our skills and, YES, our own effort (as little or as much as we want to do) to MAKE REI work for us. MAN, I appreciate him!!!

Anyway, that's MY gripe for the day. Bet ya weren't expecting THAT? haha

So, chin up, sister. Tomorrow's another day. Oh, and congrats on the babysitter.

Luv ya,

Rina

If you can't handle all those extra properties, I may have to move up there to help you out!!!! Just kidding, I KNOW you can do it. (I am SO proud of YOU!!) Good Luck & keep us posted.

Yeah, when is that little pumpkin arriving anyway? Should be any day, right?
I hope all goes well, don't forget to send pictures, it's your right to brag ya know!

You're fellow (REALLY YOUNG)grandma,

Dawn

Hey Rina,

Thanks again for your reply and comments re: REOs. And I understand what you are saying that FSBOs have different "rules". I ask questions such as why would a seller sign a contract with a buyer if I can't assure him that I have pre-approved financing or cash in the bank. I am not here to make negative comments by any means (as this can be construed), I am just playing devil's advocate........and with this being said I realize that I have to think outside the box and EVERY situation is different!

I guess the best way I will learn is buy knocking on doors, leaving notes/biz cards on FSBOs doors, etc. After I finally get my foot in the door and sit with a homeowner that is polite enough to hear what I have to say, the worst thing they can do is say "NO". Then just move onto the next potential deal. I've read some of your earlier comments in your journal and it is amazing to hear about your initial "frustrations" and now look at where you are today!

I realize their will be roadblocks along the way, that just means I will have to buy a bigger tank and knock them down

Again, thanks for youe words of advise and constant inspirations.

Speak with you soon.

Neil

wow... now that was a pick me up. i got all worked up. i'm ready to go do some rounds. i'm from the streets of nyc... in my house u don't want to mess with the mama L.O.L. i really laughed out loud. u definitely caught me off guard. that was grrreat! your right, i've barely gotten started, i can't be losing my mojo. jeez.
oh and i don't know who came up with "slow wins the race" because i don't know any slow gold medalists who won any races haha...

i appreciate you too. truly do.

here's to living the dream, sister

luv,
cynthia

I realize there will be roadblocks along the way, that just means I will have to buy a bigger tank and knock them down - Neilkim24

Loving your attitude Neil!
This is a GREAT quote!

Thanks for the kind words. I am just so new to this stuff that I feel the only way to make this happen is to learn as much as you can and don't be scared to approach anyone....the worst thing they can say is no (maybe with an added expletive . It won't hurt my feelings! Just move on.....

Neil

One or two of them are in WI..... Thought you might be interested, Rina!

Best,
Conny
connywolfram@****

NOT fire sales, but distressed ($4K each):
Dayton, OH 45405
Cleveland, OH 44112
Monongahela, PA 15063

FIRE Sales ($4K each):
Milwaukee, WI 53206
Highland Park, MI 48203
Detroit, MI 48209

Cash Sale, NOT fire sales (OR possible owner
financing, at slightly higher price):
Pittsburgh, PA 15208 $12k
Kansas City, KS 66104 $7k
Monessen, PA 15062 $12k
Battle Creek, MI 49017 $7k
Wes Laco, TX 78596 $6k
Knoxville, TN 37914 $12k

Detroit Package, $10k TOTAL for all three (NOT fire
sale I think, but have to wait for paperwork):
Detroit, MI 48205 or $4K each
Detroit, MI 48212
Detroit, MI 48205

There will be some more coming, but I don't have any
idea where those will be.

Thanks Conny.
Dawn, did you see the one in Milwaukee?
Conny, do you have any pictures?

Rina

I love your quote, too.

Hey...
I know the feeling about talking to the FSBOs. I spent about an hour with one today. Motivated, but we'll see if realistic. Either way, it was nice to talk with him and it's one more experience to draw upon. Really, the more you do it, the more comfortable you'll feel with it. I haven't talked to all that many homeowners. So got to build up my courage and strengths in that area.

So, let's just keep moving ahead. I'm going to borrow your tank analogy if you don't mind. I like that.

Thanks,

Rina

Hi Rina,

no pics yet. And I honestly doubt that I will even get pictures. Because one of these properties is already sold (or better, under contract) - sight unseen and all. And I don't even have the paperwork yet on my desk from the seller! LOL

So, I can't promise that there will be any.... I blasted them out about an hour ago, and since then my phone is ringing....

Gonna be out of the office for an hour, if you are interested in one let me know... and I'll send you the address (if I have it already) later this afternoon.

Conny
connywolfram@****

ACTUALLY...I have an investor that LIKES fire sales... PM me & let me know what you have Conny! I'll ask him if he would consider the location.

That's about an hour or more away, don't know much about the area either. I see the MLS plastered with homes for under $60,000...REO's. All I know is there are a lot of rough neighborhoods I wouldn't want to get caught in!

There is a site called realtybid.com that auctions homes off too. (I actually wanted to offer on one, got pimped, remember?) Anyway, just click on the map for your state & it's broken down by county. Fun to look at!

Has anyone else be getting their CL ads solisited? I've gotten email resposes to post my ads on ilist.com, Azizzleauctions.com and usliveads3 or live Simon. It's kind of annoying. I'm looking for Investors NOT Marketing!

Keep on Keepin' on!

Dawn

Hi Dawn,

please, email me direct (connywolfram@****). I'm so swamped that I don't have the time to check here on the site in the next few days. When I get your email, I will email you the address for that WI property (and a one page agreement between the two of us).

Thx.
Conny

Hi Rina, Angela et al,

I know I have seen threads in the forums about this topic but forget where I have seen them.....I am losing my eyesight (and my mind So I am asking for your help.

Here are some of the questions I believe I should ask:

1. What type of product are you looking SFHs, mutifamily (duplexes, 4 plexes), short sales, REOs, etc.

2. What kind of finders fee do you pay (flat or % of purchase price).

3. After deal is locked up, how long will it take to purchase the prop from me?

4. What are the parameters? What I mean by this question is what is the investors expectations (50% ARV/FMV). I suppose this is something I need to understand better so I know what price I have to buy the prop for. If the investor says that they will buy the prop at 50% of FMV, that would mean that I would have to buy the prop at say 40 to 45% of ARV/FMV, correct?

Regarding item 4, this is what confuses the hell out of me. Say a SFH had a FMV of $700K a year ago and now due to market conditions it is now worth $550K (with comps in that area being similar to this). Would that mean that I would have to puchase this prop for say $250K (because the investor wants it for 50% = $275K, so there would be a $25K spread?) If comps in the area are running at $550K, what would motivate a seller so badly that I could buy their prop for 50 cents on the dollar?

I know I am asking a very rudimentary question, but I would have to believe that the motivtaed seller in this case would have to have ALOT of equity in their home and for a multitude of reasons have to sell.

Please forgive me if I am saying this incorrectly, just trying to understand these concepts b4 I can move forward with asking the correct questions to my investors/end buyers.

Thanks all,

Neil

I will be so happy to answer any questions I can, and if anyone else has answers jump in here! My brain feels so taxed after today, I need to read your post a little more closely later, ok?

God bless, (I love your enthusiasm!)

Rina

Thanks for taking time getting back to me ( I can fully relate to being burnt out). There are just so many directions to take and I am trying to "focus" on wholesaling/assigning properties as my first steps (as many newbies do) so we can build up our bank accounts and then contend with more sophisticated and creative deals later.

But the key is asking the right questions to your sellers and end buyers first, such as I am asking above. It seems to me that once you get the answers as to what the end buyer is looking for as far as product that is half the battle. Then I know what ads to place/homes to look at that are within each end buyer's parameters.

Also curious, in anyone's experience, have you ever dealt with end buyers out of state of where the properties you are locking up or do you always deal with end buyers that you are assigning your deals to within your area because they want to inspect the property b4 giving you the thumbs up. Just wondering if there are any out of state end buyers that will buy props just based on pics and an inspection report. Just wanted to get some of your experiences.

Look forward to your answers/comments.

Thx,

Neil

These are the same questions I have so believe when I say Rina and the group are helping more people than they know. You're a step ahead of me with all your questions.

Rina and etc... I would just like to say you're doing such a wonderful job helping all of us. PS where in Wis are you from?

hi rina and DG family

i need help and i am going to call the academy about this but i wanted to ask you guys too... a friend called who has an investment property he is upside down on..so he told me this could be your first deal... like andrea and chip did, go find an investor for it (Birddog)... any suggestions on what to do to help him and possibly have my first deal? where to begin? i don't have abuyer's list built yet?

here's to living the dream!
cytnhia

If he is upside down, its a problem. If rent would cover the mortgage (I assume it wont) then you could take it subject to.

Otherwise, you are looking at a short sale.

THis is a VERY common problem in today's market.

Anita and CBR, if you are looking on, I have to credit you (and I know there are others, but you MADE me keep trying!). You know how many months I’ve been struggling to get and/or assigns accepted on offers up here! Well, I’ve been putting in so many offers, the realtors are not even questioning anymore. I did change it a teeny bit after seeing Dean’s blog the week he told us to put and/or assignees (that word made more sense to me). Well, today I locked up my first assignment property. YAY!! And it was one that had to go before the court. The two sisters that own it (I think their father had passed) both signed now, so it’s official. They’re sure the judge will pass it through. THAT itself is a HUGE victory for me! Yahoo!!!

And that’s not the only one! I also signed a counter-offer today on a short sale that I had put and/or assignees. The seller has signed, now it goes to the bank. It’s with a realtor that specializes in short sales, so I trust he knows what he’s doing. He called my realtor Thursday while we were going through the 9 houses (turned into 9 SFRs plus 3 apt buildings)and asked if I was willing to go through the rigors of a short sale. I said "Sure!" This house has been on the market a long time, but dropped significantly this week. I offered 70% of the lower price. He must be ready to get rid of it, because he accepted. Now I’m just crossing my fingers on the bank’s OK. I will believe that they’ll say yes.

Both of these places are 3bdrm/1-1.5 bath in one of the most loved neighborhoods in our town. I have a list of great families that are waiting for me to find them a place in this neighborhood. NOW I just have to figure out if there’s a way to keep them myself (financing) so I can rent or lease/option, or if I need a partner or end buyer.

Here‘s some of the info.

1st house:
3bdrm/1.5bath, very solid, beautiful woodwork, new aluminum siding, wonderful neighborhood, 1½ blocks from elementary school
Full basement
1460 sq ft above grade (basement doesn’t count)
1-stall solid garage
Very nice yard

Tax office 2008 FMV $98,000
Asking dropped to $75,000
Final accepted counter-offer $68,000

Rent will be around $800mo + all utilities
Taxes $150mo
Insurance approx. $50mo

2nd house: Same neighborhood, a few blocks away
3Bdrm/1bath, solid
Big yard
2-stall garage

Tax office 2008 FMV $87,300
Asking dropped to $69,900
Accepted offer $50,000

Rent will be around $750mo + all utilities
Taxes $120mo
Insurance approx. $40mo

Neither one needs much work to rent out. An owner-occupied might want to update a little.

Have some other ones in the works. Hope to have some good news to put in soon.
Looked at 3 more SFRs today , 2 scheduled and one bonus. The couple showing me the 2nd house for their friend said “Hey, we want to sell our house too. Do you want to see it? We just want what we owe on it so we can move closer to town” Of course I said I would love to. It's a huge farm with a bautiful, newer double-wide. I would have to research the value. My gut says it's a good deal, but that's just a guess. I don't think I'll look further because I don't think it would back-up as a cash-flow (and too much on my plate already), but it was nice visiting with them.

Well, this was a long entry...

Just saw my 17-year-old daughter and my husband off to the annual Father/Daughter Ball. She looked so beautiful and he so handsome. It's really special. Hundreds of girls and their dads (all ages) dressed in gowns and tuxes, having a wonderful time together! (which happens not often enough).

So I sit here in the quiet, thanking the Lord for all the blessings in my life. He's so good to me...

Rina

You are SOOOOO amazing! Best of luck with these deals - just goes to prove that we just have to keep on keeping on and our action, determination and faith will prevail! I learn so much reading your experiences just cant thank you enough!
xoxooxxo
Laura

WOW!
What a posting!
This is awesome pay back for your hard work!
Congratulations!
Good Luck!
Enjoy the quiet ... you deserve it ... shhh ...
Angela

Thank you so much... You are truly an inspiration to me, too! Isn't it fun to be able to pass along the "fire" to other people? That is the biggest honor one can have.

I was just reading your post about the new property on the ocean!! That sounds absolutely breathtaking. Both the view and the potential deal!

I will be believing that it is yours! Congrats on the find and not giving up the faith that it would come.

love ya,

Rina