First Assignment-DG Assignor to DG Assignee!

I am learning so much here. I thought I had a good experience in investing, but now I realize it is all one-sided.
Thanks to all of you guys!

You both deserve it. But dont forget about me out here in lil ole California

I've missed you! Where have you been - busy buying up real estate? Cant wait till next month!

First, Rina found the property and locked the house up under contract for 67,500.00. She is now assigning the contract over to me for an assignment fee of $2000.00. So at closing, I pay 67,500 for the house and 2000.00 to Rina. Now if we were both in the same town, once the assignment is done, I would then take over completely and Rina would be out of the picture until she was paid at closing. But since I am so far away she is generously doing alot of extra work keeping her eye on things and providing me with contacts needed for work, insurance , etc. As far as my numbers I ran from the investor point of view, they go like this:
Purchase & Assignment: 69,500.00
Est. closing costs: 2000.00
Est. holding costs: 1200.00
Est. Misc paint/etc 2000.00
Total Invested: 74,500.00

Monthly Expenses:
Taxes- 150.00, managment 100.00, insurance, 100.00, repairs, 50.00
Total monthly expenses: 400.00

Anticipated Rent: 825.00/mo (less 5% vacancy) = 783.75/mo
Less my monthly expenses of 400.00 gives me 383.75/mo positive cash flow
A very sweet deal indeed!

This is awesome ladies. Way to work together. Again, congrats!

Congrats......Hope all goes well girls......

We are now playing the waiting game. But at least we are enjoying the ride (sunday afternoon type) together, right Laura?
Seller received their insurance check last week finally, so the contractors can get to work with the rest of the rehab. Laura will have final say after all rehab is done, when inspector goes through, as to whether the job is satisfactory to the purchase of the house (sounds like the owner gets to call all the shots DURING the rehab, being it is still in their name). Another GREAT thing about this deal is the amount of equity that was ALREADY built in when the purchase price was first accepted. I am SO excited to see what the place appraises at after the rehab! Plus I personally know at least 2 of the main contractors who will be doing the project. EXCELLENT quality workmanship and have been in business for YEARS!
This is definitely a win/win. Nice to have a reliable REI "partner" to help MAKE things happen.

Rina

P.S. And ANITA, you are NOT forgotten! Looking forward to our hot air balloon trip in Phoenix next month! Woohoo! Anyone else up for an early-morning flight??

Congratulation to you both! I'm so proud to see you two working together to make things happen. I wish you both much success. Anita, good to see you in here. I miss you girl!

LL

It is exciting for Rina and I to share this with everyone - thanks for all your good wishes!
Things are moving forward - as Rina said above the rehab can begin now - yeah! My Wisc. attorney finally emailed me the confict waiver (since both our attorneys are in the same office), which I signed and returned immediately. I am having a teleconference with her Wed morning which will be just formalities reviewing the contract Rina negotiated. I will then be returning the signed assignment form to Rina and the hand off of the contract will be official! I actually realize I didnt need to wait for my attorney to review the assignment form since Rinas had approved it, but once I engaged her to look everything over I felt I should wait as a professional courtesy. Now I know that as long as there are the normal escape clauses in the contract being assigned, there doesnt need to be an attorney review of that part of deal. So in my/our future deals I will take over the assignment immediately and then engage my attorney for contract review and closing. (Bet that sounds good to you, right Rina )
Today I also made contact with a great home insurance agent so that will be in place for closing as well. So as long as the rehab moves smoothly a closing date can be better determined. Right now it is the end of April. Hope to have this deal closed before the live event!
Rina - hot air balloon trip! Wow!!!! You guys are so courageous!

The contract is now officially mine - thank you Rina
After all the waiting, things are picking up and moving along.
Owners insurance company came through with money and rehab is underway.
I have put out calls to the inspector, management companies and home insurer.
Interesting point there - she did a driveby to take pictures and said it looked like the electric service might not be enough for them to ensure the house. Hmmmm..Rina is assisting with finding out exactly what we have there.
Once rehab done - I have seven days to get inspector in and decide if house is up to standards for closing and then - DONE!
Thanks to Rina sending me movies and pics I know the house pretty well - and cant wait to see it after the work is done!
Yahoo! Sure feels good for things to get accomplished!
I have also done 8 walkthroughs and am putting in 2 offers here in Jersey as well! On a roll - hope it keeps up. Sure feels fine!

I just got off the phone with Rina - and had to post asap. She was in the house today to see how the work was going, and found that just about the entire interior is going to be new! Upstairs bathroom gutted down to studs (this was the point of flood), downstairs the walls are new, hardwood floors being redone, kitchen being redone - oh my gosh - its amazing! And all of this is being done by the sellers insurance carrier! Even more amazing, the people Rina has who may want to rent the home is also interested in a lease/purchase option...another new adventure!Just keeps getting better and better

Thanks for keeping us posted every step of the way.

Rina, I remember your posting about the burst pipes and the sellers insurance taking responsibility for the repairs ...

Laura, you have been looking for deal #2 for so long ... who would have thought a few weeks ago that this would turn out to be such a great deal for the two of you! (Love the new pic!)

Rina, Laura was mentioning that you may have someone willing to lease/purchase option her new property. I was just wondering, is this someone who answered your ad a few weeks ago? Did you re-post it or are you still getting mileage off the first one?

I am so happy for you guys!
So inspiring!
CONGRATULATIONS!

Angela

Hi Laura, Im new to the DG family and also from New Jersey. I was looking at your numbers above and don't understand something. If the monthly expenses are around $400 and rent is around $783 how do you pay the mortgage? I didn't see any mortgage in the monthly expenses. Or did you buy ir cash?

Hi, I'm new at this but, I feel ready to start making some $$. I live in Reading PA (boring), has anyone done any business in Berks County? So far I have finished deans books (both of them)but, still feel stuck. I am only interested in assigning contracts now. I don't have any money, I'm on Unemployment (which will run out soon) and my credit is really really bad, so I have NO MONEY to invest in anything big and I can't afford lawyers. I do have a list of several properties in my area and some of them need lots of work, if not a complete overhaul. I'm stuck on what to do next, I don't know why..FEAR? I have the addresses of the owner and would like to help them get out of the Pre-foreclosure. I don't have a buyers/investors list and I don't want to tell people I can help them or have properties they want when I don't. I want to be helpful and truthful in everything I do. I hope I'm not overwhelming anyone (sorry ) In Deans book it said to contact the Trustee's office/Lawyer but, I don't have the address. Should I just contact the owner? I was thinking of sending them a letter explaining exactly what I do and how I can help, should I do that? I feel so lost If anyone has alot of experience in assigning contracts please let me know, I greatly appreciate ANY help.

Thanks

Hi! First, Mildred, welcome to the DG family - its the best in the world. I would suggest you take a wander through the forums (use the link at the top left of the page) There is an absolute wealth of information that addresses all your concerns and can help guide you along your journey. Dont despair. Every one of us started right where you are my friend,and by studying, coming here for support and taking action you will succeed! After you read through, you might want to start your own topic so your questions are not lost here.
Angela - I will respond for Rina since I'm here: the people are a family she already has in place in one of her own rentals, who need a larger home closer to a certain school and my house fits the criteria. Amazing right? And Rina is so generous she is only thinking of their best interests by referring her own good tenants to me. (glad you like the new pic, thanks ) Oh, and yes, I have been searching for my next deal for so long. This business is highs and lows for sure - but keeping my sights set on the highs gets me through the frustrations! And having spent so much time on this site over the last year - I had the confidence to do a long distance deal with Rina based strictly on knowing her over the web! Its really exhilarating to step outside my comfort zone and just go for it when my instincts tell me. Thats how I got Deans book in the first place. The first time I saw him on TV something clicked with me that he was the real deal - and THAT instinct sure was right!
Paul - the answer is yes - I bought the house cash. Thats what allowed it to work out to be a great deal with such positive cash flow. Believe me, when I'm looking here in Jersey its real hard to find one where the numbers work when you add in a mortgage.
I am going this morning to walk through 6 more that actually will work and already have tenants in place. So fingers crossed on their condition. I seem to have crossed some line in my mind by doing this deal with Rina that now I have this new found perspective on investing and really feel like things are going to move along. So all i can say to everyone is keep going! Once you get that first deal done its incredible - and then the more you do the more you learn and the better it gets!

Sorry I didn't get in here yesterday. Laura, you know how busy I was. Thank you for answering.

Angela, yes, like Laura said it is one of my own families that want to move in. But the other part of your question's answer is "Yes" too, because the reason I even found out they were looking is because she WAS one of the ones that answered my ad! Isn't that funny? She's been looking for a bigger house for them, and when I locked up THIS house I e-mailed her right away. She was excited because she has a handicapped son who goes to the elementary school just 1/2 block away, and this house is bigger and more suited than the one they're in. The only thing is the rent will be a bit higher than what they pay right now ($850 vs $795), so she is making sure of their budget. We are waiting to see what the "finished" house looks like (ALL of us, right Laura??) to decide on when it will actually be available and up to par for renting. If they do indeed become the tenants and/or buyers, I will fill in more of this story because the beginning of when they first became one of MY families is a very touching story too.

Numbers on the house. Paul, Laura is being conservative with her numbers, which is good. I had originally asked her if she would be happy with $250-$300month cash flow, according to my numbers, which would include a mortgage. That is what I figure this house would generate. She is able to pay cash, which was what "I" needed on MY end to be able to assign this contract with confidence (along with trust I have in her), and which also gives her better cash-flow of course. The FMV at THAT time was on the LOWEST end $93K?*(I have to go back and find this number and come back and fill it in)* with the comps we had. NOW, with most of the wiring and plumbing being brand new, BRAND new kitchen and bath, refinished floors, new walls, light fixtures, etc. the new FMV will of course blow that out of the water. So equity is a HUGE factor here. We'll see what the seller chooses for cabinets, lighting etc. We have no control over that, and I'm sure the insurance bid will have a factor in the price range, but it sure is an exciting adventure for me and Laura to be a part of.

Oh, and Laura had people asking her early on (which happened to me, too, last summer when I first started working with investors on this site that I'd never met in person) WHYYYYYYY would she be trusting someone she only knew off the internet? And there was the question why wasn't "I" keeping this house? My honest answer was that I couldn't care less what I was giving up on this deal. What "I" needed was someone to help me get an "assignment of contract" through the system in my area to work out the kinks with my team on how to do one, and also prove with confidence that it COULD be done. I just LOVE Laura and the trust and confidence we can have with each other. I think it was a God thing how this worked out, because we were just a few days from closing, with me disappointingly being the buyer on my and/or assignees contract. THEN the flood happened, which postponed everything, and in the meantime I thought of asking Laura. Honestly, I have met other investors in my area and we love to talk and get along great, but of course we are all kind of in competition behind the scenes, so working with someone that our mutual goal is to help each other is an awesome feeling!
It's funny because I didn't realize 'til yesterday that my agent was still a little confused. We were signing some other stuff when she brought up the issue of representing Laura as the buyer. She said "I can't represent Laura because I represent YOU. And you're buying it and then selling to her, right?"
I said "no, no, no... she IS the buyer now. You're thinking of the OTHER house that I'm double-closing on." So I had to go through it with her again and show that now, instead of MY name on the closing documents, they will all show Laura (her company). My name is now out of the picture because Laura was my "assignee" See? I THINK she got it then. So, hopefully Laura she'll be contacting you. lol

Laura, I am so glad to hear that this may have helped you break a barrier. I know sometimes that's all it takes is just to SEE something happening to push us back into "CHARGE!!" mode. I needed this, too, to give me and my team the confidence to move forward with more assignments! So I thank you from the bottom of my heart. Each new thing I MAKE happen gives my realtor the confidence to convince OTHER realtors too that when I say something will work, it will! LOL

enjoying it all!

Rina

Thats so funny about your realtor. I was wondering why she hadnt contacted me even after I sent her a copy of the assignment form! We are truly groundbreaking warriors haha - while we are learning ourselves we are teaching those already in the business some new skills!
All I can say is you're the best Rina, and I cant wait to meet you in person next month
Sorry about the other house - but thats part of the highs and lows, right?!
I put in three offers today - no high hopes - we'll see......
Oh yes - any indication of how long the work is going to be in progress out there? Cant wait to see the new video!
Love,
me

Laura, I forgot to put the video up! Sorry! I'm uploading it to Facebook right now for you.
And thanks you so much for your kind words. I CANNOT WAIT to meet you next month, either! I am SO excited to meet EVERYONE! Yeah!!

I don't know how long the work will be. We are uninformed as far as through the RE channels. I'll see if I can talk to someone behind the scenes. Do a little investigating.

Rina

Rina - heres an update!!! Just spoke to Gail - the sellers agent told her rehab will be completed (all but floors) by end of week and closing will be going ahead as planned for April 30th! I am SO excited! She is going in on Monday to see the work, and I just spoke to Inspector Jim and got that lined up for Tuesday. Only hold up is determining if it has 100amp service in order to get the homeowners coverage I want that includes water damage. That should be my last bridge to cross for a smooth closing. And to top it off - I just got a deal finalized here in Jersey! Will post that in a different thread....so I have to say this was a VERY good day for me

Good job Laura!! Can't wait to hear about your Jersey deal, too!
Any way you can come visit after Dean's EVENT and close in person?? Just a wishful thought. lol

See ya soon!!

love,

Rina

I was thinking the SAME thing...
gotta investigate how much to change my flights....they really hit you up when you do that!
If only I had known before....
well - seeing as I DO believe in miracles and the power of positive thinking I'm going to try!
xoxoxoxox

we'll talk. I'm actually gonna be in Phoenix a few extra days with Elena and Anita, so let's make a plan if you think you'll come here after. That would be so cool!

Rina