Keepin' up the pace, 12 deals in 12 months!!

Thats sweet Mark! Anyway for you to list out your 12 deals so we can see how you did them? We hope to close on a house we plan on flipping next Mon. Got a call from a buyer for it this evening, she is a cash buyer, has been renting a place in the area since her husband died and she moved back to the area. Her son found my CL add for the property and she thinks it will be a fit. Now I just need to close and do some upgrades and make sure its how she wants it.

First off good luck on that flip, let me know how it goes.

#1 estate sale purchased through a hml and did a early refi with the bank for the mortgage and the rehab funds.

#2 same as # 1 except we paid cash since we got it for only 13k.

#3 estate sale purchased through a hml and used the hml's funds for rehab then refi'd immediately.

#4 forclosure using 100% financing from the bank, they combined our equity from the others and used that as collateral.

#5 forclosure using a local hml to purchase and a personal loan to rehab then refi'd with a new bank immediately.

#6 forclosure using partners ira for purchase and rehab then refi'd immediately for 10k over combined cost to pay off previous personal loan.

#7 forclosure using local hml and personal loan to rehab, currently on the market to sale.

#8 forclosure using friends dad for purchase and friends heloc loan for rehab, just listed for sale.

#9 forclosure using local hml and friends dad for rehab costs, currently in rehab process.

#10 and #11 the bank we have been working with has a couple of investors that haven't been performing very well with there real estate so they are deeding them over to us.

# 12 just accepted, forclosure being financed 100% by the bank including rehab. they are combining the funds needed along with the mortgages of #10 and 11 for one large interest only loan.

So you all have 6 rentals now, Mama Knucks is not wanting to deal with rentals at this time unless we go for a flip and it does not sell quickly. We feel like we would be tied up if we had rentals but it doesn't seem to be bothering you at all. I was thinking flips puts our money plus the profit back in our pockets now while rentals would tie up some of our funds for each one and then we'd be cash poor and not be able to jump on something big if it came about. You definitely have my mind wondering now about rentals. Jan, he is here on DG also was telling me to get some rentals right away for some nice cash flow, I think I need to do some good thinking about this now. Ran into an investor on my vacation and he said thats what alot of people with $ are doing right now, buying tons of RE and plan on renting them out for 5 years and then selling for the profits. Thanks for getting back to me about the deals!

It just depends on the deal. Flipping will definitely compound your money quicker but if you can buy a rental and refi and pull your money back out, then you still have your money and cashflow, which is what we've done with all our rentals. It make take some time to find a bank to do it put they are out there. I'm negotiating on a deal right now for a rental, trying to buy it at 55k and arv should be around 105k or so, but I know that houses don't sale very well in that area but they rent very well and on top of that it will cashflow 500+ per month. Plus we will have good equity to use later for future deals.

You guys rock! What a year and what a future lies ahead of you. Sincere congratulations!
Be sure to take the time to make a video and enter Dean's "Send me Away" Contest. You should do very well - could win a nice vacation:) and do a deal with Dean.
Are you doing straight rentals or lease options? Take a look at the advantages of lease options if you haven't.
Blessings,
Gena

We are doing straight rentals so far, but we are getting ready to do a couple contract sales which can be similar to lease options. We are really using that option to be able to 1031 exchange up into larger investments without the tax penalty of selling outright. And thank you very much for the kind words. How would I send a video in or who do I contact about that? I was actually thinking about that the other day, now to win a contest but to show my progress and grattitude.

can come true if you know what you're doing. Great job!!

Nice work Mark! How hard was the process of the 100% financing from the bank on Deal #4? Did you request it in your initial offer to them? I am looking at putting in an offer on my first deal and it is an REO. I would have just about enough collateral in the equity in my own house. Thanks for your help.

Brandon

http://www.sendmeawaydean.com/

Gratitude is great! But you can also want to win, it's ok:)

That's FANTASTIC on your 12 deals!!!!! Def take genas advice and enter the contest!!!! Way to go and now you have your wife to work with so you will have even more confidence and a mastermind team!! Good luck on your future deals and stay motivated!!!!!!!!!!! Great job
Jay

Congrats!!! Way to blow it out the water!

I guess you've showed all the naysayers and feet draggers what CAN be done!!

Agree with Gena- make the video and SELL it to DEAN

So impressed with everything you have done so far. I am looking forward to your future deals. Did you join the success academy? Did you get your five deals done? You are really doing it, congratulations and keep em coming.

I did originally sign up with the success team, but I had to quit because I literally couldn't afford the payment at that time. It gets me choked up everytime I think about it but I specificly remember speaking to Jeff Jensen telling him my goals of just wanting to make 50k the first year and to increase my networth by 100k each year till I reach 1 million... Well Jeff thanks for fanning the flame, I'm three years ahead of schedule. My goal is to increase my networth an additional 500k this second year and make at least 100k cash... trying to be modest here, who knows what will actually happen.

we didn't have any cash to be able to buy, so when I contacted the bank, his words were " it shouldn't be a problem". I beleive right now there has to be a very good relationship with the banks to get that kind of stuff done, but a good relationship and a solid deal goes a long way.

Mark, can you comment on what 1031 exchange means exactly pertaining to tax penalty?

Thanks a bunch.

Are you working with a small local bank? Is it the same bank or different ones? HML what percentage are they lending to complete the deal?
I am really impressed with your story!
Barbara

a 1031 exchange is where you take the profits of an investment and roll them into another larger investment tax free. I believe the length you have to hold the investment is 12 months but don't quote me on that.

Yes, they are local banks and/or credit unions. We've only worked with two so far, the first bank stopped us after deal #4... they said we were too highly leveraged, says their auditor working a 9 to 5 job. The rest of the deals have been with a local credit union.

the local hml doesnt really go on a percentage... He's an investor that has been active in my market for 30 years or so and has done very well. He knows the market very well and knows what he could sell each property for quickly if he needed to and that's basically what he goes on.

Just got another rental accepted today. I got this one for 57k, assessed for 106k and only needs about 7k in rehab. It should cashflow approx. 500/month.

Tommorrow I'm going to look at a 4plex, if we get it, according to the numbers ran to this point it should cashflow approx. 650/ month and possibly up to 800 if we can raise the rents and create some more value.

I love this game!

Mark,

congratulations on your accomplishments! your posts inspire many of us!
That is so awesome that your wife is getting on board with you- what is it that they say... two heads think better than one??

Thanks for sharing,

Valerie

I'm new and what is HML? Also, are the majority of your deals REO and financed by the qwner/lender or lenders not related to the properties? In today's economy, are there lenders that will do non owner occupied or commercial properties at or close to 100% financing?

Hml is short for Hard Money Lender. The majority of my deals are forclosures, not reo's. I have only bought a property from one local bank, but it was still listed with an agent. Any of the banks I've talked to that have reo's end up listing with a local agent, not saying that's how it's done everywhere but it is here. Yes some banks will do 100% financing... if they have a deal they need to get off the books and you're a good candidate with a good history then you might have a chance, but chances are if you're just starting out that's not going to happen, the relationship has to be built first.

I say this with all do respect... if you don't know the terminology of the business then it's going to be very hard for you to understand what some agents or bankers are talking about. Please continut to read, listen and self educate. Simply by reading everything you can get your hands on you'll be streets ahead of the others, then will just be putting it into action.

good luck.

I have done four deals in the last year, all flips. When you first contacted the local credit union or bank, did you do it in person, phone or email? Also, your deals 10 and 11, I have never heard that the bank would just sign over the deed to another investor. I assume the non performance on the part of the current owners is for quite some time, so is it basically foreclosing on them and deeding properties to you?

I have been afraid of rentals up to this point, maybe you can build my confidence with answers to these questions:
1 - Are you using a property manager?
2 Do you have a good team put together with property manager, contractor, etc so you can move renters in quickly
3 Have you established an LLC to hold your properties in or do you hold them under your name
4 I see that you are doing a 1031 exchange, I think this is something I need to look into - Did you find most of your tax/business info on this site or??
5. Any tips for finding good renters - are you doing lease options on any of these?

Thanks
judi

I'm getting dizzy

Very inspiring!! THANKS!

When I was first trying to get ahold of banks I made about 30 calls to find the one bank to work with, it would likely be a huge waste of time to go in and meet with each one. Even better, ask around to some of the local investors and find out who they are using cause then you know those bankers are already use to what you want to do.

The bank that is letting us assume the loan is doing so because the investors that previously had them weren't doing very well at real estate, they were getting burnt out at management, rehab, etc. and was easier for the bank to do this then for the other investors to try to sell.

I do all the property management myself, I have wonderful tenants who never bother me and keep the rentals in great condition. There is no such thing as bad tenants just bad management. When I start buying out of town I will hire a property manager, but right now all these properties are in town and it doesn't make sense to hire a manager when I can do it myself or better yet start my own property managemant company for my properties. I advertise for rent as soon as I close on the property and usually by the time I'm done with the rehab I already have a tenant selected.

Yes, I have an LLC, why would anyone work so hard to build an empire just to loose it all to a silly law suit? shortly I will also form a c corp. for my flips. I get my tax info from my CPA. Don't trust free advice!

I'm not doing any lease options right now, mainly because I haven't found a deal where that would be the best option.

Finding good tenants... screen completely. It's really just common sense. Don't put someone in one of your hard earned investments unless you have thoroughly checked them out. Also I advertise with signs and craigslist.com. I take all the calls and show once a week on sat. between 2-4. no exceptions.

Fipping is great, but look at it this way... Most people would love to make 10-20k a month on a flip, but what if you could build up your rentals to where you had 10-20k a month coming in each and every month whether you worked or not. To me that is true financial freedom.

Good Luck!

Mark and Andrea

Thanks so much for all the great info. I just put an offer on a short sale for a large lot (3/4 acre) with four homes on it, all currently rented. I will let you know how it goes.

Judi