Rina's DAILY JOURNAL: Chapter One - The Beginning

Today, I got my 1st call from a buyer!!! I met this guy on the train and what spurred from a pessimistic outlook on "Why Dean would teach anyone how to make millions of dollars?" "Why wouldn't he make all the money himself..?" "He's just making money off of selling you books - without any real knowledge.." Blah blah blah...

Anyway - After I told him (in a very gentleman-like, yet stern manner that Dean has been making MILLIONS of dollars in real estate for the past 20yrs and he's sharing the knowledge... and he's teaching ways in which he himself has done it... and telling him, not ONE single person will be able to buy EVERY SINGLE LAST PIECE OF property in America...

...he came around. As he got off the train, I gave him my card and offered to discuss things further.

He called me to say he's interested in investing 20-30K. Now all I have to do is find him what he's looking for.

In NYC, that's going to be a HARD find, but I'll get right on researching some options for him.

WISH ME LUCK / GIVE ME GUIDANCE / I'M KINDA NERVOUS

Congratulations on another step!
Hey, maybe look for a seller-finance deal where the seller would take a portion of his money down and finance the rest. With $20K-$30K you should be able to get a pretty nice property under contract and you could propose this to many a seller right now. It would be great incentive for them, especially knowing they would recieve a good amount up front. Try using a lower down to start with though. You and this new ""investor" could end up partnering on several flips. Talk to your RE attorney, though, about how to use structure the deal using his funds.

Have fun!

Rina

Okay, I'm sure someone has already told you this, since it was posted so long ago, but I'll answer anyway. Almost anytime the writing style and grammar is as poor as this, it's spam from another country. They will probably ask you for your information to send their payment via moneygram or something similar. I could be wrong, but I really don't think so. Craigslist is FULL of these kinds of replies. Very time-wasting.

Jamesn, you are correct, I received an e-mail like the one you spoke off and I immediately deleted it. Even though Craigslist is an excellent venue to transact business, it could also be a dangerous place, since it is also used by scam artists. DG family, beware, if it does not feel right, do not do it.

Sandra

Rina - The investor is stating that he wants to own the property out-right with his 20-30K investment. That's not going to happen in New York City. Unless it's a tax-sale (in a neighboring county) that's not going to happen. I think I'll be able to convince him of other options.

Thanks for the heads-up. You are right. ANYTHING can be used for good or for bad. Just being aware of that can prevent some really hard lessons. Thanks again.

Rina

Rasheem,

I guess he's given you a challenge.. Either to find him a property for that price (which may be NEARLY unheard of), OR educate him enough to believe in you for alternatives (I think he'll come around). It's cool that he's willing, though, and it will be a good (and maybe very profitable) learning experience.

Wishing you the best,

Rina

Been away from the arena for a few days. (Got 3 wisdom teeth pulled - handling like a champ though)

I'll be looking for neighboring counties.

I'll keep you posted.

Hey, Rasheem. Hope you're feeling better.(Oral surgery is NOT fun!)

Glad to see you're still in the REI arena! Keep us posted.

Rina

Another story with a little twist. (Twists can be your friend. )

I have a house that was a "listed" short sale that I'll be closing on April 8th. When I went to the sheriff's sale on Tuesday, lo and behold it was one of the properties on the chopping block, but the sale had been cancelled because.. well, they didn't give a reason there but it's because i had it under contract. Now the hearing is the 9th, which is why it MUST close on the 8th. But this confused me a little. NOW I'm thinking there is still a redemption period for properties AFTER the sale (if the sale takes place and they go back to the bank.) And BEFORE it can go on the MLS. BTW, the judgement amount was for $68K, plus whatever else was owed for taxes, etc. This is the least a bidder would have had to bid (and is still under FMV). I am getting it for $50K on the short sale, plus they are giving me the keys today to start repairs and marketing, 2 weeks before close. You might be able to watch those sheriff's sales and then get some good props off the banks' books for a lot less than bidding.

I actually caught this property, too, from the direct MLS e-mails that come to me automatically. The agent (not sure if the bank hired him or he is just a short-sale specialist) had it listed for $70K and I offered $50K. The seller accepted right away, and it took weeks for the bank to accept, but they did! THEN I had my inspection to make sure there was nothing big. I did decide to take it, but the water heater wasn't vented right or turned on so I could have passed on it after the inspection. Instead I told them yesterday that I will take it, but ONLY if I can get in there NOW to work on it and market it. I'm meeting the agent later today to sign that part of the agreement, which they agreed to (and get the keys. ).

Also, I was moving forward without knowing WHERE I was necessarily getting the cash to buy. The time frame didn't allow me enough time to refinance anything, plus we just bought a truck last week that took a huge amount of our cash (husband didn't want a payment). Anyway, TODAY one of my investors said he would front the $50K. Yahoo!!!! I will take care of the repairs and the marketing. If I flip it, we'll split the profit. If I keep it as a rental I'll pay him back plus interest in the time frame we've agreed upon. Another WIN/WIN!!!!

So I will say again, just get out there and take action! If you have your escape clauses in place YOU HAVE NOTHING TO LOSE! You would be surprised at what you can come up with to MAKE DEALS HAPPEN!

Rina

Looking at it (probably offering) tomorrow afternoon.
Just came across my e-mail this morning. 3/2, basement, garage, plus an old bunkhouse, and 10.9 acres!! Built 1975. In a school district I have buyers wanting to stay/get into. The township has one of the lowest taxes around, 2009 is only $650!! Asking $45K, bank-owned. NO idea what's up with the price because the tax value on the land alone is $42,000!!! I guess I'll find out tomorrow. SHOOT! if only I had unlimited cash for these REOs! I know, I know, think outside the box!

1768 AG sq ft = $25.45 sq ft
(plus the basement)
I'm excited..

Rina

Hi Rina, I am excited for you! Let us know how it goes. I'm sure it'll be a success story, you're a diva at this! You are awesome!!!

shiela

thank you so much! It's sort of embarassing, knowing that the props I'm WOWing over are a mere fraction ($) of what you deal with every day, but I thank you for your enthusiasm and encouragement!! And yes, REI is exciting no matter WHAT the level! Hoping to follow in your footsteps!

Rina

You are awesome! I actually learned and continue to follow your footsteps because your enthusiasm and negotiation skills with REI is just phenomenal! I actually spoke about you last week in our corporate team leadership meeting -- i think started a Rina Fan Club last week because they are now looking forward to subscribing to this site to read about your success stories!

Please keep it coming, because I am a fan!

Shiela, I will definitely take that compliment and eat it up coming from you! you are too, too kind.

I would love to speak with you sometime concerning short-sales. I've had some indirect experience now with them through purchasing "listed" short-sales and I think I'm ready to head straight to the homeowners/banks. I know you have helped many, many people in that situation, plus you have an awesome heart and attitude that I greatly admire (and I'm sure it is a HUGE part of your success!). I'll do some more reading up on it in Dean's books and hopefullly give you a call in the near future, if the offer still stands.
Enjoy the week with your hubby! You deserve some R&R.

Rina

Rina,

As I mentioned in my PM this morning, I had every intention on making an offer/attempt to view a house in my neighborhood this morning. It seems that you need a direct extension to CITIBANK's division that handles REO's. It just kept booting me out/hanging up. I'll make a bank rep get through for me tomorrow. I'm sure they have a way to get through to that dept.

It's a small thing. I'll get 'em.

WELL, THAT SETTLES IT RINA....I'M PACKING UP THE 'OL MAN AND MOVING UP THERE BY YOU!!!

Seriously, congratulations on another great find! You are soooooo awesome &
I am definetly a member of the RINA FAN CLUB too!!!

Love ya Sis,
Dawn

When you completed the P&S agreement,
Did you show buyer as your company name and/or assigns?
Did you have to send in a earnest money check with package?
In the contract did you have to show any financing information (how you are going to buy prop) or did you leave it blank?
Did you prepare your own shortsale package or did you have any agent do it for you?
How much under FMV did you get it for?
What is the FMV on prop?
How much repair budget do you put into this prop?
What do you plan to sell it for?
I just lost out on a short sale prop listed at $250, because i was willing to offer $180 for it and RE Agent dragged feet too long saying my offer would not be accepted. They say they just got an offer yesterday for prop of $240!
Thanks Rina,

Mati

When you completed the P&S agreement,
Did you show buyer as your company name and/or assigns?
***1) I did, but after the counter-offer they asked me to sign an addendum (in order to proceed with the sale) that the contract was NOT assignable. Looking back, I should have refused and seen what would really have happened.

Did you have to send in a earnest money check with package?
***2)No, only earnest money after it was accepted.

In the contract did you have to show any financing information (how you are going to buy prop) or did you leave it blank?
***3)I offered "cash". This could come from anywhere, essentially.

Did you prepare your own shortsale package or did you have any agent do it for you?
***4) The short-sale was already under way and was a listed MLS property. Any offer just had to be accepted by the owner and then approved by the bank (which took weeks)

How much under FMV did you get it for?
***5) FMV about $87K, asking $69,900, I got it for $50K

What is the FMV on prop?
***6) I will re-figure FMV. It could have fluctuated since the offer was first accepted. and there are more buyers out there now. (Yahoo!!)

How much repair budget do you put into this prop?
***7) Less than $2K, if that.

What do you plan to sell it for?
***8) I am marketing on Craigslist starting yesterday for $69,500 and have had 7 responses so far. Which makes me wonder how to respond since I don't own it yet. oops. We moved the closing up now to next week. I have the keys already and can do what I want. I think I might do and open house next weekend. wish me luck!
Here's my CL ad heading, right out of Dean's new book:
"$69500 House for sale, Must sell, Great area, $20,000 below value"

"I just lost out on a short sale prop listed at $250, because i was willing to offer $180 for it and RE Agent dragged feet too long saying my offer would not be accepted. They say they just got an offer yesterday for prop of $240!" Mati

****Sorry to hear that, Mati. Disappointing, but on to the next!!
Rina

Well, we looked at this yesterday. I think the listing agent is VERY good with a camera lol(according to the pictures on the MLS) and also forgot to include a few "tiny" details about some of the issues in the listing. Of course, it's reflected in the price. If that house was built in 1975, I have no idea HOW a roof could be SO bad in that amount of time. And it apparently has been vacant for about 4 years (except for critters. LOTS of squirrel activity. I even found a squirrel skull on the basement floor...) So, besides the land, which IS a nice piece of property on a dead-end road with 3 new houses but not enough high land to divide into 2 parcels, it is not a go. Too bad.

On to the next.

Rina

Dawn_Dean wrote:

WELL, THAT SETTLES IT RINA....I'M PACKING UP THE 'OL MAN AND MOVING UP THERE BY YOU!!!

OK, Dawn! There's plenty of room! Should I start looking for a house for you??

Rina

I see you had posted about wanting a mentor. Have you thought of joining the Success Academy? You get one-on-one not just with ONE mentor, but a number of skilled and knowledgeable coaches! And they are available at almost any time. Plus you get all the training tools you would need. Just a thought.

Rina

I'm sure you could find me THE BEST DEAL IN TOWN if I did!

I'll tell you what...I'm about ready to move with all the deals falling through my fingers!! No, I haven't given up! IT WILL HAPPEN! I don't know about you, but I'm getting all these people contacting me for RTO/Lease options. That would be ok if I had a property and they wanted to pay more than $700-$850/mo for it! I need CASH buyers...Hellooooooooo! UGH!

Are you ready for the AZ trip? You high roller you!

Love ya,
Dawn

I received an email about one-on-one training, but I grew skeptical because the guy in the long-run tried to sell me. He wanted some monthly fee. (which I did/but didn't have to shell out in the first place) Plus, something about it just didn't feel right.

Is this the same type of situation?

Try this number
1-800-315-7782 Ext. 235

or this page
http://www.deansacademy.com/

to find out more about the Success Academy, and to see if you qualify.
I would highly recommend it to anyone!!
Let me know what you think.

Rina

I know what you mean about the max people SEEM willing to pay. Try finding some FSBOs that are willing to do a lease/option with you, and then see if some of your L/O buyers will go a little higher monthly for the option to buy. They might be willing to stretch it a little for the chance to own a home. Listen to the last conference call again and go over Greg Murphy's section in the book (and Student Secrets) if you want to know more about this technique.

And, YES, I am SO excited for the EDGE next month!! Did you and Dean decide to go??

love you too sis,

Rina

Rina, we can't go but I sure wish we could! If only we had the $$!!!
I guess you'll have to fill me in when you get back...I'm green with jealousy!

I will read that over again, I'm kinda skidish about doing this though there are a couple FSBO's I COULD do this with if the buyers weren't so STINGY!

We'll talk soon!

Dawn

Rina and DG FAMILY,
Thank you for all of your answers. So let me confirm, did you have to end up buying the prop? Is this the one that you got an investor to caught up payment and when you sell you are going to 50/50 profit? When you indicated CASH in the P&S contract, you didn't actually have intentions on paying for it yourself, did you? Don't they still want to see a POF even if you do indicate cash?
HAS ANYONE HAD SUCCESS WITH SHORTSALES DOING "YOUR COMPANY NAME AND/OR ASSIGNS"??????????????
I am ready to put some offers on REOs, but it seems that when reading all the blogs online i'm seeing just about every scenario on do's and don'ts ...
Put Purchase contract under your own name and / or assigns
Put it under LLC, put it under a Land Trust
Put it under your company name then do a quit claim deed to transfer deed
Form an LLC for the purchase
on and on and on ....
Has anyone COMPLETED a BANK OWNED PURCHASE (SHORT SALE OR REO)"from beginning to end" WITH THE INTENTION OF ASSIGNING IT BEFORE ESCROW/CLOSING???
Please, shower me with your knowledge and techniques.
Thank you so much all for putting up with my endless blogs on this topic.
Mati

Yes, I am buying the property. Yes, in my offer I put and/or assignee. HOWEVER after my counteroffer the bank wanted an addendum signed saying the contract could NOT be assigned or the sale could not continue. (Next time this happens I will try refusing.) I usually put "cash" for offers on bank-owned properties. However I have had them be accepted with the financing contingency. They do ask for a POF within so many days of acceptance.

I think Shiela may have found the best way around this so far, at least that has gone through to closing? I'm sure there are many ways that will work. Try them each in your area. See what you find.

Rina

Question? When contacting an owner that is in danger of losing his/her property, is it best to not leave a message with details of your call? Or to be upfront? I left a message and I'm wondering how long should I take to call back (if she doesn't call me)