Rina's DAILY JOURNAL: Chapter One - The Beginning

I thought my computer was bugging out!! When i opened the page and saw your post heading upside down lol.
That is awsome on the refi Rina! The home Laura and I were waiting on is gone, I called the agent today to see what was going on because today was the 1-wk dead line. But good news I just got off the phone with Laura (who is prowling the neighborhoods as i write) looking for properties. I located a possible buy and hold and spoke to Laura about partnering on that, So I just set up an appt to look at it Tuesday with my agent, I am going to take pics and calculate repairs and send them to Laura to look at. If she likes it she will make the trip to come look at it with me. My numbers look good but I need to see what the inside looks like. Its a 3 family in a so so neighborhood,but rent roll should be in the 2500 per month range if the numbers come close to what i think repairs and purchase will be.
talk to ya soon my friend.
Richie.

Congrats on ordering Dean's books! Will mostly likely bring one of the biggest positive changes in your life. Keep us posted on what you think/learn. And welcome to the DG Family, greatest place on earth for support in your REI!

God bless,

Rina

Silly me, I saw your 1st post, 5-2008, and I thought, this needs updating, then I went to the bottom page and realized I need to go to the last page for your current journal, duh me. I wish they could switch the Posts so the last post is listed 1st, not last.

Anyway, HI Rina, I'm disappointed and excited this week, I had a house under contract and one of my 2 buyers was interested, he did some 'due diligence' then Mon told me NO. I was so sad. But it was a big old house for a 1st flip as he is a new investor too. So I'm wondering, when doing 'assignment of contracts' is it best to have your buyers look at the house BEFORE you get it under contract so you know whether they're interested? It seems like such a waste of time, to get a house under contract after all the negotiating, then your Buyer looking at it and saying NO. Such a let down, yet it had all the criteria he wanted.

Good news is I had 2 people, Retail Buyers, call me from my Flyers I posted in Laundry Mats, that want to buy within the next 6 months. YES! That will be SO wonderful to help people become first time home owners. I'm doing 'assignment of contracts' right now, to build my capital, then I'll work towards buying and holding for rentals. But I think that Retail Buyers will be the ones that actually follow thru a deal for me, I haven't had much luck with my investors/wholesale Buyers thus far. But I will continue to look for them too.

My Daily Work: 1) Continue posting ADS on Craigslist every 3-4 days
2) Thinking about an Amer Classified AD in Denver + Colorado Springs for Investor Buyers
3) Post more Flyers in Laundry Mats, Churches, Grocery Stores, anywhere else you'd suggest?
4) Checking the MLS listings and asking Agent to make offers of 25-35% off the asking price. Lower than 35% just won't happen in Durango, CO, the housing is so expensive here, nothing under $150K, nothing. Condo's go for $110K, but that is outside the city, most 1st time buyers want to me in the city and need public transportation.
5) Call my Academy Team, ask them the questions I just asked you, I'm still silly, I don't want to BOTHER them by calling, but I'm working on it.

Hey, Richie! LOL. Yeah, I just learned that little trick on Facebook, very entertaining (short-term.lol).

NOW, as far as REI events today, I just got back from meeting with another investor on the place we just bought for $25K last week. Remember I said we are closing on the refi at $35K this week? Well, I threw it out there at $45K on Craigslist(we've had to do NOTHING to it), and this investor, (knowing all that) wants to pick it up for the $45K. He is the same one that I am interested in picking up several of HIS properties. We might just do something of an exchange. He has 2 side-by-side that he will take $96K for together, that's the lowest he can go.
Now you may ask WHY he would be interested in mine and I in his, why not just each keep what they have? WELL, even though he has his leased for some great cash-flow, his need a little bit of work and he doesn't have the experience or the time to put into them (he's a school teacher and hires EVERYTHING out). he likes tha fact that ours is completely move-in ready, and he knows the area/market well enough to know that it will cash-flow enough to make the $45K worth his while. Plus he can pull some $ out of the 2 he has (maybe he doesn't have such desirable terms on his mortgage anymore, I don't know).

SOOO, here's my dilemma, KEEP ours and collect the cash-flow OR lease/option it to a tenant-buyer OR sell to him (maybe do a 1031) and take the extra profit now. I would love to hear anyone's thoughts/opinions on this.

btw, I love talking to this guy. We sure think alike, and have fun running the scenarios. Helps grow the RE brain cells I think. lol. All the more reason ALL investors should join a REI Club, in my opinion.

OH, here's another thought. The places he has (5 or 6) he is willing to sell, with about 25% equity, and real nice cash-flow, if anyone here is interested. Wish I had more cash to work with right now. BTW, I have to find Buildasset's (Jason's) thread from awhile back and change my answer about the $million! NOW I say if I would have as little of it as possible invested, use the whole thing for my own HML, and refi back EVERYTHING, leaving equity and cash-flow! (Use ONLY OPM!)

Well, I guess this post is pretty scattered, but those are my thoughts.

Richie, congrats on finding the new props to look at! I know you and Laura are having so much fun out there, and you are DEFINITELY going to be hitting some big profits the way you guys are going. Sure wish I was closer to be able to enjoy it with you guys! (Trying to talk Laura into moving HERE! )

Rina

Just saw that you posted. I was busy writing the previous. lol
I'll read through yours and then update this one accordingly!

That is un-heard-of here, a HOUSE for $15K?? No wonder you can buy several properties, fix then rent them. WOW!! The cheapest here in Durango, CO, is $150K, they just do not exist any cheaper. That is amazing! But...I can still make it here, just with less profit with higher priced houses. Sigh. Oh well, we'll keep plugging along.

When you get to mine, thank you! I really enjoy reading your posts and others on your Journal, it inspires me to keep going FORWARD! Thank you!

Sheri, just read through your post. Yes, props here are VERY cheap! Of course most not THAT cheap. I am only taking the ones that are awesome deals!
Which leads me to say, you can probably do great in your own area, but never exclude yourself from finding deals elsewhere either. You are not bound by geographical borders as an investor.

There is a property in another state right now that the out-of-town owner is asking $49K on (and willing to negotiate) which brings in $1500 mo rents. I am waiting on an answer from someone on this property, but am about ready to fly out there and get at some of these leads myself I am so chomping at the bit.

Just know that you CAN find great deals, create great deals no matter where you look. You just have to find a void, a need. and be the one to fill it. WE make ourselves become our best asset. To me, it's all about learning and growing.

Well, I am off on a tangent, thinking, here. Not all that was directed at you of course. LOL I am just thinking "out loud" HAHA. Hopefully someone can benefit from my ramblings.

Sheri, do you have a journal yet?

Rina

No journal yet, how do I start one? And why would anyone want to read about someone who has NOT made their 1st deal, what do "I" know? Hummmm... Thanks for your comments. I want to focus intown for now, then, after I build my confidence, I may venture outside my limits. Scary thought. Well, I also invest in Farmington, NM, 50 miles south, I'm a LITTLE adventurous. I need to make my 1st deal, then "LOOK OUT WORLD!" Hee-hee.

That's awesome. Just what you wrote in here and in the thread I just read through of yours I KNOW have helped people already. Remember there are absolute newbies that join the site every day (every minute), and YOU are already somewhat of a veteran to them. I will love to follow your journal. I bet if you really think about it, and compare where you are now to the very first day you started (even in just your knowledge/thinking, BESIDES the action), you will be amazed! It just sort of "happens" without you even realizing it. You have that and so much more to share.
Go to "Member Journals" and start a new forum topic. name it whatever you like, bookmark it for easy reference, and you're off!
Thanks for the great dialogue, Sheri. I LOVE talking REI with the DG Family. I learn something every single time, this one being no exception.

God bless, and I wish you much, MUCH success!

Rina

Have you considered contacting local banks and asking for the ASSET MANAGER? This is the person who buys and sells bank owned, REO, short sales, etc and if you tell them you are interested in purchasing several homes for under $100,000 you are sure to find some goldmines. You HAVE to sound confident, knowledgable and say you work with a group of investors who frequently buy nation wide properties with buyers lined up.

Hope this helps.

A few of the guys on the site have started an "official"(?) friendly competition to see who makes their 5 deals first. They have all joined Dean's Success Academy and are off and running. So far there are three that have jumped in the game. I thought I would make a note here for anyone who is a "sports fan" and maybe create a link to their journals (where the games are taking place!) if they want.
I think there are a few other people who are thinking about joining the race (from what I've read). This will be a test of endurance as well as the sprint they started out in. They will each reach their goals (they're very motivated and determined), but WHO will get there first? We will be watching... the continuing AMAZING DG RACE!

Here they are:

1) The instigator, Dave: dpuzo , his journal: dpuzo's journal
http://www.deangraziosi.com/real-estate-forums/investing-journals/34709/...

2) The Academy scholarship winner and acceptor of the challenge, Alex (A-ROD): Arodriguez3322 , his journal: A-ROD'S JOURNAL - Day 1
http://www.deangraziosi.com/real-estate-forums/investing-journals/35587/...

3) 3rd to join the race, Rick: SPORT , his journal: Success Academy Journal
http://www.deangraziosi.com/real-estate-forums/investing-journals/35813/...

Cheer them on!!!

Rina

P.S. If there is anyone else who is joining in, let me know and I'll put the link here, and maybe we'll create a main link for everyone to get at. btw, I am keeping a certain person informed of the competition and gave him links to the journals. He thought it was pretty cool!

good stuff Rina, now your sponsoring a race! lol, I hope its a 3 way tie
But seriously, that is a great motivational tool for them to use.
How is the out of state property coming along? what made you go out of state? did you buy up all the local property already soon it will be known as Lorinaville
good luck and god bless friend
Richie.

Funny guy.
Well, the property I was last talking about actually is a local home, but the owners are out-of-town. I literally just got off the phone with her now, funny you should have mentioned it. She had talked to her husband, and he wasn't quite willing to go with the $15K cash, but said how about $20K. Partly because the assessor's FMV says $42,300 and a realtor told them $30K. I don't really want to pay that much (even though I could refi at much higher), so I asked if they would be open to other options such as seller-financing or lease/option. (I love talking to her, btw, she is such a sweetheart, older lady). Anyway, I asked her for an email address, and I am going to come up with several scenarios and shoot them to her to have her husband look over. I am thinking that if I give them several choices that work for me, they will pick one and we'll be on our way to a sale. Sure of it, actually. SO, I should know by the weekend which way I'll be buying it. Which brings me to my most common dilemma. Do I want to re-sell it or hold it for cash-flow. I seem to always choose the latter. I think as long as I am able to keep refinancing these 100% on my own I can't stand to give them away. We'll see...

I HAVE been looking at out-of-state too. VERY interesting and fun, some great opportunities, but I haven't brought myself to lock anything up yet.

Here's an interesting situation that came up this morning. I had two closings this morning. One was a refi on the property purchased last week, and one was a purchase. Well, after closing on the second one, the sellers and I sat in the conference room at the title company and chatted for like 1/2 hr (might have been almost an hour!). They have a couple other places they're not sure what they want to do with (I ran and looked at one later). But there is also a situation causing a relative to want/need to sell soon. The property is in Duluth, which is across the bridge from Superior and actually in another state (MN). Neither one of us have bought there yet. There is a reason that they may not be able to purchase the property outright, but they think they might want it. So I told them if "I" could lock it up for a certain price, and they want it I could assign the contract to them or double-close. That way we would both win. I could see all three of our wheels turning. LOL. We also talked about other investors in town that have properties they want to get rid of, and ways to make the financing work. All-in-all I feel like each of us walked away with WAY more than a check or keys in the hand, and we will definitely be doing some stuff together. I tell ya, each interaction a person has with someone in the field brings such growth. I love it!

I am in the middle of a couple other REI projects and getting ready for Christmas (we did gingerbread houses and a cookie exchange last night. ).

Oh, and I was contacted last evening by a gentleman who got my number from my parents. He has lost his house to foreclosure and has gone through a bankruptcy, but has a couple months left before he actually has to be out. I am meeting with him next week to formulate a plan to possibly buy the house from the lender who foreclosed (it's already gone to auction and back to the bank), and maybe he can stay as a renter, or maybe we'll find him something else, you never know.. Whew.. It seems like a lot going on when I write it down. Think I'll just keep the rest in my head. Then it just seems fun.

So, that's my update for the day.

And as far as the race, it's been really fun to watch those guys. You're right, it DOES seem to be great motivation! Might turn into a great tool for many people to use.

Well, gotta run for now. Delivering a signed contract for a vacation rental in FL (FEB & MARCH! YAY!), picking up some rent checks, and doing some touch-up paint on a rental property. Then finishing the gingerbread houses with the girls tonight. OH, and I have to pick up my share of the cookies too. MMMMMmmmmm...... (spent half the day making rosettes yesterday, I'd better get SOMETHING out of the deal! LOL!)

I will check into your journal tonight to check on Richieville, to see what you and Laura have been up to! Looks like Laura is closing on Monday in NJ, and then can finally close on her one here! Yay!!!

Rina
signing off from Lorinaville. haha, I like that..

I forgot to say thank you for sharing the great tips for Sheri! It's nice to have so many willing to share what they have learned.

God bless,

Rina

Rina,

I have stumbled across several Bulk REO's. Most cross state lines. Any thoughts on locating buyers?

Unfortunately, my buyers list is still WAY small, but I did email one investment company who at this point has not responded.

Rick.

I have not dealt with bulk REOs myself, so I don't have any personal references for you. but try Googling "buyers for bulk REOs". Here's the first result that caught my attention:
Bulk REO Buyers Wanted! Must be direct to Buyers Mandate. - Topix
http://www.topix.com/forum/business/real-estate/TCITUILKAGKPP44D2

There are a bunch of others that say they are looking for bulk REOs. Might be good connections.

Anyway, that would be an awesome niche to fill. Let us know how it goes!

Rina

Hi Rina,

When I grow up I want to be just like you!

I'm looking forward to the day when I can talk about all my deals too. You are my inspiration and I wish you continued success. It is well deserved.

Verna (newage8767)

That is very sweet of you to say.
I look forward to HEARING about your REI deals! I think it is so exciting to share news with people who can appreciate it on the same level as yourself! Of course, that's what makes the DG Family so special.
Hope to meet you at Dean's next event!

God bless,

Rina

Got a call back from the owner of the little SFR. She is very excited and said this is the first she has seen her husband smile in a long time. They looked over the 3 choices I emailed and chose #1. (she also found her dentures today, so was double-excited! )
Here was my email:

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

Hi *** and ********.

It was nice speaking with you. Glad we connected.
I was thinking about options for the house and came up with these. Let me know what you think.

1) $15,000 Buy for quick cash

2) $17,500 Lease/option with $1,000 non-refundable deposit and $400mo for a year, with option to buy at $17,500 ($1000 dep. and $200mo would go toward purchase price) (Seller is responsible for taxes, insurance, general maintenance)

3) $20,000 Land contract for $20,000 w/ payments of $400mo for 24 months, with balloon payment of $8,000 due at that time. (Buyer is responsible for all taxes, insurance, maintenance)

I am looking at several different places and hope to acquire before Christmas. If you are interested, I would love to look at the property as soon as you are able to let me. It's been below freezing for at least a week now. I know you said the water is shut off, but has the house been winterized (water blown out of pipes?). I've seen too many houses with broken pipes from this not being done, even when the water is shut off. Hope to speak to you soon.

Thank you!

Rina Krisak
(phone#)

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

I also had a surprise today when I went to pick up my cookies finally from the cookie exchange. The owner had a list of their properties and asked if I would be interested in buying any (or all) of them. We talked about financing options (which sounded good), and I will check them out to see if they would be something I will be interested in.

I also connected with a serious investor that innvests in my area, and will be driving the 2 1/2 hrs to meet with him tomorrow (and attend a sheriff's sale in his town with him). Get to visit a fellow DGer too. Very excited about that!

I feel very blessed, but I know this is what happens the more you network, and put your time in. People are so awesome!

So that's my update for today.

Rina

While the bank was letting me double-close (simultaneous, actually) for awhile on purchase/refi combinations, now they want to have the deed recorded in my name before they release the refi funds (which means 1-3 days). (Matt, if you're reading this, yep, they just changed it. Pooey. Time to adjust again.), SO I need actual cash to purchase them to start with (might look into subject-to route, didn't think of that. hmm..).
Anyway, I only have so much cash to work with. I do have some private money guys, but with doing lots of these, I sure could use more. I would already have the commitment from the bank on the refi prior to purchase, so there would be no question whether the money would be coming back, or even a question of when. I need to find private or hard money for VERY short-term loans. So I guess I'd better do some calling so I can stay in the game.

PDCA - always (I'll never forget Matt telling me that!)

Plan
Do
Check
Adjust

Wow Rina im impressed!! nice letter. sounds like things worked out the way you hoped. stinks about the banks stance on the refi procedures. I am sure you will figure a way around it. good luck on al those deals you have in the works. I hope to read about you and Laura closing on those twins soon.
Richie.

In life, you draw to you, people who are like you!

Which is why YOU find awesome people all around you.

Those of us who know you, just love and appreciate you to pieces! We know that your RE career involves helping and improving the life of those you come into contact with. You benefit, they benefit and then you give them pie!!! What's not to love?

New members who are cruising this site and reading this journal for the first or second time will soon come to realize how amazing and supportive you are.

'I feel very blessed' to have you as a friend. You are truly a unique, amazing woman!

Love Angela

Yes, Laura is definitely ready for her NJ prop to close so she can close here (on her twin). The NJ prop IS set to close now tomorrow, but I'll let her fill in the details on that one. The sellers here are just waiting (somewhat patiently) to close with her. I closed on my twin last week, so now she just has to have hers. LOL

Yes, I was VERY happy how it turned out on the little house. Now I decide whether to keep it ($600mo rent), or assign it, flip it, or lease/option it.

Here's another YAY tonight. I just got off the phone with a new contact. Local investor, guy with some bucks! We talked for about an hour about all sorts of REI stuff. I happened to bring up the subject of the purchase/refi situation, and he said he'd be game to cover me with transitional funding. How cool is THAT!
I say this just to encourage those starting out. The more you do, the more you learn, the more you grow, the more confident you become, the more others are willing to jump on board with you. So keep taking action!

Richie, I read about the lady accepting your terms for a $2,000 bird-dog fee. That is incredible! Good job on asking for what you wanted and getting a "YES"!!

Dean's blog from this morning was great, with Jeff Jensen's tips. I think each person should put that on their to-do list for this week (and attend the very next auction there is in their town).

Well, goodnight and God bless.

Rina

btw, I am thinking that when my journal gets to post #1,000 I will close it (if I can). Not sure what after that, but it is getting a little long, and I think something new is in order.

Oh my, you are too, too kind friend.. If I am drawing people like you into my circle, then I will say, yes, I must be doing something right. You have a special gift of encouraging people and making them feel like they can conquer ANYTHING! Thank you for that my friend. I hope you are as kind to yourself, because you deserve everything life has to offer!

Love, your DG Sister,

Rina

It will be sad to close your journal I would think - you have inspired so many members to start one! It is one of the highlights on this site!

No matter what you decide to do next though, I look forward to it.

Angela

Hello Rina, Just wanted to take this time to Thank you for your journal. I have read it from the beginning and have learned so much from it. Even though I just started reading it, I have seen you change from an Investor who was asking a lot of questions and trying to figure out which strategies to use, to a master Investor who is helping anyone and everyone by teaching us through your examples. As a newbie I have truly enjoyed your journal, it has been motivational, informational, and inspirational for me. I feel as if I know everybody that has visited your journal. I realize you are extremely busy with your REI and will miss your journal, but it is time for you to move on to bigger and better things, maybe an Instructor at the success academy. Even though I am not a member of the succes academy, I beleive I speak for everyone when I say it would be an honor to have you as an Instructor. I will continue to watch for any new posts from you , knowing I will learn from them. Keep up the good work and may all your REI adventures be prosperous.-------Kolby

Rina wrote:

Oh my, you are too, too kind friend.. If I am drawing people like you into my circle, then I will say, yes, I must be doing something right. You have a special gift of encouraging people and making them feel like they can conquer ANYTHING! Thank you for that my friend. I hope you are as kind to yourself, because you deserve everything life has to offer!

Love, your DG Sister,

Rina

Rina,
I cannot thank you enough for the kind things you've said here, your words have crossed my mind more times than I can tell you today and every time I found myself smiling! I am smiling at this very moment!

Talk to you soon!

Angela

Angela,
There are many people that cross my mind every time I think of my REI journey. You are one of my most thought-of, one of the biggest supporters, and one of the most-deserving of success! You keep smiling, and taking action! I'll be expecting a call sometime this week to catch up (or else I'm gonna text you! ), and hope to keep in touch with all your progress . God bless you, sister.

Kolby, I was writing a response earlier to your post. You and Angela had me choked up, so it was getting pretty mushy. Anyway, I accidentally hit a key and lost the whole thing. (must have been meant to write something else )
Thank you so much for taking the time to write. That really meant a lot. I am amazed to look back myself and see where I am now because of Dean, the coaches, and especially the DG.com Family. My life is so intertwined with everybody now, I know that it's permanent. Every new person here just adds to that awesome feeling, and I hope everyone can experience the same success and feeling of empowerment that I have had the blessing of receiving. AND I hope that EVERYONE who has the desire can make it to the next EDGE event! I cannot WAIT to see all the faces behind the posts and hear the excited chatter of voices talking about their deals! I believe 2010 is going to explode with DG success stories, and I am so excited to be able to watch them in the making right here! Woohoo!
Hope to hear good things happening in your life as you pursue your REI career! I'll be watching! Thank you again, Kolby for the very kind words. you guys really made my day.

Rina

OK what is Edge? And when is it?