Rina's DAILY JOURNAL: Chapter One - The Beginning

Hi Rina,
I just want to thank you for all your posts. I've learned a lot from yours and from many other DG folks. It's great to have this vehicle for information exchange.

I'm a little confused about a part of how you handled the two FSBOs you wrote about yesterday. Can you elaborate - did you ultimately refinance both houses to pay back the private lender?

Thanks,

Ronnie

Rick, it is a little overwhelming, I remember, because you want to learn everything at once! lol. Just give yourself time to absorb it all, and take smaller steps at first. It'll just keep snowballing. Nice thing is, you have the rest of your life to do REI! You're gonna love it!

Hey, Richie, yes I will definitely keep you in mind. (I feel so greedy, but I just want to keep everything I can get my hands on right now. lol.
But there are so many, I know I'll be passing some along. Got a few people on the list. I will add you. )

Hey, Bomber, good to see you! Good luck with Mr. Big!!!!!!!!!!!!! As far as Dean goes, while I may never catch UP with him, he sure is a good one to set my sites on!! What better motivation!! Feel like I'm sitting in a little hotwheels bike with a rope tied to the back of his motorcycle! HAHAHAHA! Hang on!!!!

Hi Ronnie! Thanks for the kind words. Well, to be honest, that deal HAS had a lot of twists and turns; pretty comfortable ones, though, cause the seller has been so easy to work with. I just call and update her on what's happening. lol.
We have not closed on either yet. The gal at the title company is going to let me know today whether it will be yet this week or early next week. It's actually going to be a back-to-back closing, which we all decided would be the smoothest way to go. I divided the purchase price for the two ($70K) into $50K for the first one and $20K for the second. The first transaction will close, giving the seller the $ to close the second transaction (they owe more than we're paying on that one). We will be borrowing $30K from a private lender, who will wire the funds for closing. $10K will be the 20% down on the bank loan for the first property, and the $20K cash will be for the purchase of the second property. When we fix that one up and refinance (probably within 2 weeks, but they really don't need it back til mid-November), we will pay back the private money lender and the contractors. All of this is already in writing and lined up, so hopefully will go very smoothly.
Hope that clarified it a bit. Feel free to ask any other questions and I'd be glad to elaborate.

Thanks again.

Hope everyone is taking their action steps today!

God bless,

Rina

Hey Rina,

So, you financed the second property for $30+ which paid off the private lender and contractors. Most impressive.

I'm unemployed, so I've got big challenges, and they seem overwhelming to ever owning property. Reading your posts keeps me encouraged that something will be possible.

Thanks again.

Ronnie

Girl - I've been absent from the site a long time, but I knew when I logged on I would need at least an hour just to catch up on your journal You are incredible to say the least. A real deal magnet my friend. Good for you! You are my real estate idol and I am always inspired by you to keep hitting the pavement to make those deals happen! Keep up the good work and thanks for taking the time to share your deals with us all.

well, pretty tired but wanted to put in a little update.
Met again with the FSBO gentleman. So sweet, and we came up with a pretty good plan. First we talked about the value of the house, that it was a little high for the market. After we talked it through he said he figured it would appraise at around $100K realistically ($39K less than what he was asking). Then we talked about what he might need, and what I would need to make it cash-flow if I bought it. He's not strapped for money, and wants to start traveling with his little dog. He would just as soon sell now, but I presented him with a few options. We came up with the lease/option as a best route. He said $700 a month would be enough for him (he'll still be responsible for taxes, ins, upkeep, etc), and that he would trust me to get good renters, and anything I wanted to make above that would be mine. Now, this house has been immaculately kept and is beautiful, along with a lovely yard and additional 70ft lot. All new appliances, even new riding lawn mower. I will have no trouble finding a couple (or small family) to rent it out for $875 or more a month. He knows that and is 100% ok with whatever I can do. I will then find a buyer/tenant to do a sandwich lease/option with and collect a deposit and add a little to the purchase price, therefore making some money up front, each month, and at the sale.
He is going to have a realtor do a market analysis (already had that lined up, and which I encouraged also), and we'll go from there. Even if he decides to list it, that's ok. I have built the relationship, and I would wish the best for him. Will be nice if that includes me. I suspect that it will.

Been actively working on the 6-deal package. Will put more details in later. Got almost all my ducks in a row for the bank, and it looks like a go, so excited about that. Will fill you in on the NMD part when I make it happen. Should be fun to structure.

that's the way to be! There is no obstacle you cannot overcome! And so right you are about encouragement. I find all that I need in this site, and I appreciate the uplifting words you have left. Matter of fact, when I started writing tonight, I was so tired (been up since 5:30am yesterday!), but now just thinking about all of the exciting REI going on and seeing other people excited and out there taking action, it gives me a second wind and I feel like shouting! So, keep on pushing forward! can't wait to hear great things!

Rina

Laura.. my dear friend. I've missed you.
I am so glad you made it through the week, and thank you for stopping in to leave such a kind note. You already know that you are one of my best heroes too, and I am so glad you are a friend and REI partner. You keep me in check and always provide encouragement and inspiration. I am so proud of all that you have accomplished and are accomplishing!! you are an amazing person, through and through!
Love ya and talk to you soon,

Rina

P.S. Seeing it sold.

FSBO gentleman called this morning to say the agent would have the MA done for next Wednesday. In the meantime wants see a copy of a lease/option document to look over. I told him I would get him that, and asked if he minds if I run a ghost ad on Craigslist to see what response I get and get a jumpstart on finding a good tenant, that the worst that could happen is we find a buyer. He said go for it.

So here is the ad I just put in Craigslist. Even though I do have people that have responded to other ads I've done for other properties in the past, this one is a little higher in price and I wanted to write in some specifics to the property and "test the waters" at this time. It will help me determine if I even want to pursue this property.

*****************************************************************

$875 / 2br - Lease/option newer 2Bdrm Home (Superior)
Date: 2009-09-25, 10:06AM CDT
Reply to: hous-pehbz-1391729250@craigslist.org [Errors when replying to ads?]

Newer 2-Bdrm home for rent, or lease with option to buy. This home is just 10 years old. It is immaculate and has been perfectly maintained. Beautiful kitchen, wood floors throughout, gas and electric heat, super energy-efficient with very low heating costs, all newer appliances including stack-able washer&dryer. Heated attached 2-stall garage with garage door opener. Dry, 4-ft crawlspace with concrete slab, for extra storage. Also a nice shed out back. Beautiful backyard with an additional 70-ft lot. This is a perfect place for the retiree or a family starting out that needs a little time to build up credit/get financing. Looking for someone who wants a nice, low-maintenance home and will treat it well.
$875mo rent + utilities. references/deposit.
OR $975mo w lease/option (with $200mo going toward down-payment if option to purchase is exercised). If lease/option is chosen, an additional non-refundable deposit will be required, but this also will go toward the purchase price.
(If you are pre-approved and want to purchase now to take advantage of the tax credit, of course that is an option as well!)
Please respond by email and leave contact info. Thank you.

Sometimes it can be very educational to answer other ads that you see. Respond as a potential tenant or buyer. The responses you get back can "teach" you how it feels to be on tenant/buyer end, and can help you to tweak your own ads. I am always "watching", observing other investors/people. I think you can learn from EVERYONE.

Rina

Rina,

You are truly inspiring! Always watching, learning, and sharing .....respond to ads to see how the buyers/tenants feel, to "tweak" your own ! Of course, but who else thought of it? You keep on goin girl, its so fun to see what you accomplish! I wanna be like you when I grow up !

God Bless You and your family
(and all of your endeavors)

lol. I think we all keep growing til the day we die. I love it.
Thank you for the kind words, and I too wish you all the success you deserve!

God bless you, and keep on pressing forward!

Rina

Good add Rina, sounds like a good deal, what is cash flow on a rental like that in that area if im not being too nosy?
thanks for stopping by my page, And you never come across pushy or anything with me, I value my friends opinions very much. listen, since your so busy would it be possible for you to message me on FB with the changes you thought might help my letter? I can't get on there anymore from work as the site was blocked from our computers because someone was caught on there. But i check it when i get home. talk to ya soon, If i hook up with Laura for lunch some day we'll take a pic and post it . can you believe the investor i was to call today never left a number, i realized it when i opened the e-mail to call him. I just sent him another e-mail asking for his number, can you believe my luck lol, good thing im stubborn;)

hmm.. I thought I had messaged you on that in FB last week. I'll look. Sometimes that site does goofy things.

About the rent for the area, that is what I'm researching with my ad. My WA investor has a house just down the block and gets $850mo for it. But that house is much older and pretty much no yard. However, it does have 3+ bedrooms and more sq footage, and we only paid about half of what this guy wants. I will be very curious as to what number the RE agent/broker comes up with. The thing about this deal is I am really out nothing. The seller will be making some money every month, I will be making money every month ($175-$275)for a little bit of my time. I will get a couple thousand dollars up front, and will make money at the end. If no sale ever takes place, I have still made easy money and have gone through another learning experience. For all I know we may end up seller-financing or something. Just playing it by ear. Remember, contracts can be re-written at any time if both parties agree.

wait.. were you talking about my area in general?? Different neighborhoods command different rents. If you mean what could one cash-flow for if you bought one up here, that just depends on the deal I get. I have several in great neighborhoods that cash-flow for me at $300-$400 month (rents $750-$850)with purchase prices as low as $50K. I know there will be a ton of those coming up this fall. If I have cash investors (or pre-approved loans) the sky is the limit. I am also trying to acquire as many of these as I can.

I have to run now, and might not be back on tonight. But I will try to check on FB to see what happened to my note to you.

Oh, btw, that stinks about your investor having no contact info. Backtrack and find it again. Always be persistent. (yep, I know you're stubborn. lol)

Rina

Looks like your busier than every. It's all good though and nothing is more exciting than making money in real estate and helping others at the same time. Speaking of helping people, instead of spending time with the paint brush in my hand, i've decided to hire someone else to do the painting for me. It's gives them an opporunity to make money, thus help them provide for them and their family. The plan was for me to do the painting to save some money from having the contractor doing the work, but instead, i've given the work to someone else. She's a lady that struggle to find work to provide for her family, so i've given her the work. I'm very impress with the work she's done so far and now I just found me a painter

Anyway, I'm so happy for you and all the success you've had. I can't believe it's been over a year since we first had that conference call between you, me Anita and Sully. Speaking of Sully, where is Sully? I haven't seen him on the site lately. Anyway, just stopping by to send some love on your end and let you know that i'm blessed to have known you, Anita and Laura as my friends. Well, actually i'm blessed to have been part of Dean's team. Good luck girl and keeping the train moving, mahalo.

Lloyd

Hey, friend, thanks for stopping in! ALways good to hear from you.
Yes, that is such a good feeling to know you are helping someone. You did a good thing and found a great resource by giving someone a chance.
I had a friend help me paint this week, too. A lady from our church who is not currently employed. We had a really nice visit, and it took just one day to do everything we needed to do for the renters to move in. I do enjoy painting, but just did not have the time this week and was more tired than usual (I am taking overnight shifts right now helping care for a family member who is in the last stages of a terminal illness.)

The 6-deal package is moving along. And I've had a lot of response to my lease/option ad for the other property. Would like to get these under my belt because there are a number of vacant houses that I want to look into.

Just found out a friend/relative of mine is jumping gung-ho into REI and will be flying up next weekend to check out the props up here! Will be fun to get together and make something happen for her!

The sale of the country ranch I have pending is moving right along (been MONTHS in the process for their financing), and HOPING to close in October. This will be a big boost because we have no mortgage on this property. Will be nice to have a liquid cushion.

Had a great time helping with a fundraiser on Saturday. Worked with some dear friends that I haven't seen since our youngest graduated this spring. Even got to ride horse at the event (briefly)! lol

Well, I guess that's my update for today. This will be an extremely busy week. LOTS going on, and hubby out of town working, so got to take advantage of it.

Love ya, Lloyd! Thanks again for checking up on me, and for all that you do. I treasure my friendships with all the DG family. You guys are the best and without the blessing of coming here everyday for that love and measure of inspiration, I would most certainly not have the success I've had. Dean did a good thing "creating" this family.
And just look at our friends, Sandra and Lubertha! That was SOOO exciting seeing them on the blog this morning!!! Woohoo!!

God bless,

Rina

Hello,

I need some help. I am constantly around negative people. Since I was a little girl this is all I have known. I have also had a passion for real estate at a young age as well. I am more determined now to change my current situation because I have children now. The problem is I don't have anyone around getting excited with me about wanting to change our life, and make things better so this causes me to give up and stay STUCK. I am becoming someone I do not like, I am more angry and frustrated, don't never take vacations, etc. It is effecting my marriage, my husband shoots down everything that I do to help our situation. He is more negative than my family. I NEED HELP and SUPPORT!!! I am keeping secrets from him now, and that bothers me. But since I bought Deans books, I have opened a savings account, and started doing little things that my husband don't know about to help better our situation. Is this wrong? He tell me all the time how everyone on the Internet, and TV just want my money and won't teach me nothing. I have believed that for years until I saw Dean. It was something about his spirit, I believe he is original. You don't get that alot. So, if anyone can help encourage me please do so, because I am trying, but I feel like giving up once again.

Thanks,
yhurtado

Welcome to the DG family. You have found a "safe place" here, free from negativity and fear. I would like to encourage you in your situation. Know that you are not alone. I, too, had (have) a huge obstacle of negativity around me. If you learn to ignore it and exude a positive attitude no matter what (even if you have to keep some details to yourself), you always win. Nobody can take your joy and hope from you unless you give it away. So hold onto it. You deserve it! Just like you deserve to succeed in REI!

You are right, Dean is the real thing. Take the tools you have found here, keep your focus, stay motivated, take action, and you WILL succeed. You will.

Hoping to hear great things from you!

Rina

I'm tired just reading about your day you posted on 9/28 haha! I know you have the biggest heart of anyone I know, but be careful my friend and dont forget to take care of YOU in there somewhere Love ya, me

Thank You,

I have a report. Actually, I have always had opportunities to invest, but because of the negativity, and being taught the traditional way of purchasing a home, I have really never tried any other methods until NOW. I was touched by your story in Profit From Real Estate, and although I have no current properties I feel you (and the DG family) can help me think outside the box. So, here is the situation. I found this FSBO. I took a chance and made the call, talking to people is the problem, rejection is what causes a little fear. I am getting more confidence, and stronger. Too go on, the owner basically told me to come up with 30k and she would finance the other 49k. I am at a stand still b/c I don't know what to do. I have let sooooooooooooooooo many properties go because I didn't know what the next step was. This is happening so fast, and I haven't gotten through the books. What I am thinking about doing is my FMV, and find out what it is worth and go from there. So, if you or anyone have any pointers please let me know. Visit my journal (On My Way)! I am positive and excited.

God Bless You!!
Yasiah

"Faith Without Works Is DEAD!"

just sitting here waiting for the "call". thought i'd say hi. 'Hi'. wao you realy have busy days. i soon will have these. positive thinking. i'm starting to get my ducks in a row. thanks for all your posts.

Congratulations on stepping out! That is great that you are getting over your fear and out there talking to people!
You are right in your thoughts for your next step. For sure you want to figure out what the property is worth, and if it is a great deal. THEN you would start creatively structuring the financing. You can get comps from a realtor, or try using Dean's Total View Tool.
If the owner still owes the $30K, that may be why they are asking for that amount down. If not, you can build rapport and see if they will lower that amount. Depending on what exit strategy you have (what you plan to do with the property) you will either look into financing for yourself, or pass the deal on to someone else.

Hope all is going well for you, and I am excited to hear more as you go forward.

God bless,

Rina

Thanks for stopping in to say hi! That call was fantastic!
I wish you all the best on your REI! And busy days just seem like fun when you get to do what you love (although it can make you sleep well at night, too! lol)

God bless,

Rina

Thank you for dropping in, and thank you for looking out for me.
Yes, I am making sure I don't overdo it. lol. I did sign the 6 purchase agreements today. We had agreed upon a price of $500K for the 6 properties (5 duplexes and 1 SFR), but then broke them down by property. Not quite sure how this will all work out, but I staggered the closing dates to give me time: 2 on Nov 15th, 2 Nov 30th, and 2 Jan 5th. I have signed all of them and/or assignees so I can do whatever I like with them. I had the appraiser come through the first 2 last Friday. I should get those appraisals by this coming Friday. Then I will know if I want to seek financing or go a different route. The current FMV is around $700K.
The gross rents right now are $6250mo. I can raise them in the spring to about $6600, which will be $2450mo cash flow. (Some are more profitable than others, but some will definitely gain equity faster). This is not as high of a percentage as I usually want, but this will be a very "comfortable" deal because the sellers are being more than cooperative, and the buildings have already had most of the rehab done to them, all in good neighborhoods and no vacancies in the last year.

Laura, I'm so excited for you and the great news on your flip! We'll need to catch up one of these days, and maybe do another deal together soon. Hope all is well with you. Tell Steve I said Hi!

Love ya,

Rina

Thanks a Bunch,

I am getting more and more confident and exciting day by day. Had a rough weekend. Husband is working a 14 day strecth at 15 to 17 hours a day. And on top of that my ADHD child has started stealing. This is a rough time for me, but I am determined to make life better, and get myself at a place where he knows I can be there for him when ever he needs me. It is all going to work together for my good. There is a saying when God bless, the Devil mess. But I am still holding on to that positive energy. I spoke with the Academy today, and I decided I am just going to do it. I know that they can fill in some of the missing pieces that I need. As far as the house. I would like to purchase the home myself, however I wouldn't know where to begin with my poor credit. The reason I want it is because it has an acre of land with it and part of it is zoned commercial. This is potential for growth, because right across the street is a minny apt. complex. And right down the street is a huge apt. complex and both have less than a 20% turnover. I know this because I live close by. I am taking it one day at a time. I appreciate your encouraging words and I will update as much as possible. I'M ON MY WAY!!

God Bless You!!
Yasiah

"Faith Without Works Is DEAD!"
"It is working together for my good!"

Working together for our good. YES! Nice to be able to count on that.
Sorry to hear about the obstacles. I know how you feel. My husband is out of town working right now, too. In some ways that makes it easier, other ways not. And I feel for you on the “child” issue. We’ve been through our share of the teenage stuff. I’m glad I had friends to remind me that they would come back around to what they were taught and God was watching out for His little ones, and He gives us the strength and wisdom to “train up” each one. (gotta say it’s nice to be done now, though. lol)

Hey, CONGRATULATIONS on joining the Academy! That will set your mind at ease about all the questions. Nice to have them available nearly 24/7 for direction. You are definitely “on your way”!
Keep us posted on the properties. Would love to see you work out something creative to get that house for yourself. I am going to PM you a list of ways to find funding that a coach gave me a long time ago when I was in the Success Academy. You may want to speak to him directly once you join. He’s one of my favorites.

God bless!

Rina

Hey, Cathy!

If you're reading this, I am looking forward to meeting you tonight! (and attending my first REI Club meeting!!) Thanks for the connection. It will be worth the 3-hr drive! Expecting to learn a LOT. Will be nice to meet up with the other DG members too.

Thanks again,

Rina

Got to attend my first REI Club meeting in the twin cities last night and all I can say is WOW! There were a couple hundred people in attendance and yet there was so much interaction! They had a fantastic nationally-known speaker who covered TONS about rehabbing and shared an hour of her secrets. There was networking like I couldn't believe, it was amazing! Second only to the DG site, I feel like this would be a source of inspiration and resources that could eliminate the final "fear factors" for anyone still on the fence about their REI in that area.
In the haves/wants segment at the beginning of the meeting the whole 45 minutes or so was allotted to people taking the mike. There were wholesalers with amazing deals for sale, there were realtors stating that they were not afraid to put in any and all offers, there were flippers asking for wholesalers/birddoggers to leave their name and number, there were Hard Money Lenders offering money, there were rehabbers offering services and some great flips at deep discounts, estates represented, etc, etc.
And the great time we had talking on the 2 1/2 hr trip down and back just got the creative juices flowing. My friend from NC flew in and after a whole day of flight delays and re-doing the plan ended up able to meet us in MSP and go straight to the REI meeting. She had just decided last week she was going to just DO THIS (overcome her fears and 5 year hesitation, and even lack of funds) and jump on a plane to come and spend a week DOING. Well, her husband called just before the meeting, and she told him where she was (he didn't even know she has left NC! She was afraid to tell him!). He didn't believe her until she handed me the phone. LOL. After a moment of disbelief and silence, he said quietly "I am so proud of her. I can't wait for her to "knock my socks off"". We were SHOCKED because he had been the main one trying to squash the dream. By taking this extreme step she had broken through HIS fear too! Yay! He had seen a real change and was ready to back her! What a release. She was so excited the rest of the night and is ready to make something happen!
Anyway, it was a very good night. Thank you so much Cathy for starting the ball rolling! It was so nice to meet you.
And it was great seeing Vaughn again. I'm sure I'll be going back down.

Now on to more deals!

Rina

Rina,

I know you get so many messages from your well-deserved "fan club" here and I LOVE IT! I just wanted to thank you for sharing your journal with us and your inspirational stories and deals.

I have been waiting to comment until I read all 27 pages of your journal (to catch up with the last year of your real estate life!), and I haven't gotten there YET, but your latest post inspired me to write you.

Thank you for sharing about this incredible REI meeting!!!! YAY!!! And that woman and her husband...what he said just made me cry (I know I'm pretty emotional anyway), and while my husband is super-supportive of my efforts, I know how difficult it is when those you love (i.e. for me, my Mom) are having difficulties with letting go and being a support rather than someone who brings you down....so I know this woman must have felt such EXTREME joy when hearing her husband say that!!!! WOW! What a great story!

Thanks so much for starting this journal sharing...it has been a real support to me to start mine! So encouraging of action and more action!!

Best to you and the deals you have going now! I'll complete the reading of your journal in this next week! I'm enjoying it so far!

Cheers,
Louisa

Rina, wow! What a great and inspiring story. Talking about taking action. Now, that a risk taker right there, and i've always believe that if you don't take the risk, then your just dreaming. Talking about getting on the plane to head to another state and not telling your spouse about it, now, that takes guts and glory. I guess i can do that because i aint married, but way to go Cathy! Congratulation for taking a major leap to get on the plane and head out of state and meet up with Rina, and the best part of it all is her husband is now finally believing in her. Great job ladies and sound like a great REI meeting club too! Thanks again for sharing!

Lloyd

Thank you so much for the kind words! And thank you for taking the time to leave such a nice note. I am so happy to be able to share stories with the DG family, people of the same mindset. And I get so excited hearing other people's stories! Trying to tell them to the everyday person in your life sometimes leads to a blank stare or a "that's nice". I forget that everyone is not seeing things through the same eyes, and it makes me appreciate all the people here. haha

I hope all is going well for you! I will have to catch up on your journal as well.

I'm so glad you have the support of your husband. Like you said, that makes a HUGE difference. Hopefully your mom will lose the fear and be one of your biggest supporters.

Wishing you all the success you deserve,

Rina

P.S. I love the quotes in your signature line.