New Forum Idea - New Investors: How to get started, how we got started, a Mentor for everyone, etc.

Hi Everyone, I enjoy reading everyone's comments. I am new here. I have read all three books. I am not really afraid so much, but I am trying to contact banks and mortgage companies to talk about REO's. I cannot seem to find a lot of the phone numbers, websites don't seem to have the links I need, and in general, I just am having trouble getting in contact with the right people on most of the properties I want to make offers on. I have not found a real estate agent yet. Should I do that and have him/her do the contacting, or is there someone out there who can tell me how to get these phone numbers etc... I have a buyers list of about 70 people so far...I'm ready to "do it". Help me...

my favorite quote..."Life is not about the number of breaths you take...but about the number of times life takes your breath away".

I think is is an excellent idea. I have been reading, studying, etc since last June, but my fear of failure still holds me back. I have just suggested to Dean (in reply to his request for input on this year's EDGE event) that the students from last year should tell the story of how they got started with "My First Deal" and explain what fears/obstacles they had to overcome, as well as how they found that first deal, the technique they used, how it was financed, and how they felt afterward. I think hearing that everything did/did not go smoothly with the first deal will give me more confidence. I sometimes think that the successful students have some inner talent that I lack.

And can I just add that Joe and Stacey are a real inspiration to me and keep me coming back to DG.com

hi everyone,
i'm new ,i just got the book, i have a guestion,there is 2 4plex for sale,the asking price is 133,000.my question is how can i purchase these properties with no money down and bad credit,by the way owner maybe willing to do land contract.thank you,i apprecaite the help

Thank you for sharing your thougths and insight. It is very true that the best way to learn to to overcome what might be holding people back whether thats just getting started or taking action. The more we can try to apply the more confidence and knowledge we will gain. The best way to learn is try to apply some new found knowledge each day. Good luck with real estate investing. Believe and Achieve! - Joe

One of the keys to dealing with REOs at banks is try to deal with the small local community banks and credit unions. Usually the ones with under 10 branches are the best to work with. If there are limited types of these institutions in your area, try to widen your net of coverage to other nearby areas. Also, another post I did a few months back may help and provide some additional insight - "Indiana Joe's Guidemap to finding REO Gems...let the adventure begin!" The link is as follows:

http://www.deangraziosi.com/real-estate-forums/buying-foreclosures-reos-...

Good luck with real estate investing. You can do it! Believe and Achieve! - Joe

Thanks for the additional insight and nice comments. Whenever people try something new there is a certain level of fear of the unknown. The more we learn about a subject the more confidence we gain. Try to network with more real estate professionals, maybe through real estate investing clubs and really tap their minds for any and all questions you have for your local area.

You may even might make a few friends that let you attend a real estate closing, accompany them when dealing with a real estate agent or even a bank, etc. Whatever you may have a fear with such as dealing with real estate agents, bankers, etc. see if you can tag along with a friend when they talk to these people. The knowledge and comfort you can gain will help tremendously. You can do it, just keep doing a little each day to move you closer to your goals. I hope this helps. I look forward to reading about your progress. Believe and Achieve! - Joe

Congratulations for taking action. Try to determine the fair market value of the properties as well as the total monthly expenbse compare to the rents they generate. If you have a positive cash flow, (more cash than expenses each month), this could be a no money down deal if the owner is willing to do 100% financing. If the reveneue supports 100% financing by the owner and you have positive cash flow this could be an option. If the owner wants a cash deposit try to find an equity partner in your area. If the numbers are good from a postive cash flowing deal it will make it easier to find an equity partner. The better the deal the more options you will have. Good luck with these potential deals. Believe and Achieve! - Joe

Hello my name is Andrew Mehlich i am in the pittsburgh area and im tryn to start in real estate. I have bought Dean's book a week or so ago and read in it in the first 2 days i had it.Which is amazing since i havent read a book since high school cause i am a better learner hands on.Since reading the book i have been searchn for REAs that will be willing to work with me.I used the Matt Lawson method to finding REAs.Currently im still waiting for response.I decided not to wait til i got a REA and started myself since i ran a ad on craigslist for buyers and got a dozen return emails in just a day.I have been looking in the area for properties that are steals or great deals.I have been VERY successful in doin so. Pittsburgh used to be a booming town in the steel days so there are so many huge beautiful solid brick homes on the market for way lower than FMV.Now our casino has just opened up and that is great for our city!"FMV" i love it i would have never known what that is or meant before Dean. Back to the subject, i have been setting up walk throughs of the properties im interested in and if i liked what i seen and could make a profit i would put in a bid. Currently i have several bids in on properties 2 of which are estate properties and were left to people out of town!Just like it said in the book!But heres my problem i feel the book left out some details that r going to be important to me in the couple steps i will have to take to close the deal.In the book it talks about the IEE stategy to be used if ur working with the seller directly.But what if ur workn with the sellers agent do the same rules apply and how should i go about using this stategy.Also after purchasing the home what r my options about refinacing and when to do it.One last thing, if i get the property under contract can i go to the bank as a buisness proposal to apply for the loan with bad credit since i will have equity now instead of just tryn to get a morgage?I will be very grateful for anyones help because im steps away from completing a dream i always had! Thank You for your time,since i read the book i cant stop thinking about real estate!

Obviously, you are willing to put in some work which is great. What we would recommend doing right now is research smaller/private banks. See find out if any of the banks will loan based on cashflow or will loan on value of the property not the purchase price. Right now all the larger national and even state banks have pretty strict rules regarding only loaning on the purchase price and will not let you refinance for 6 months to a year.

Once you have a bank that will work with you that will help you know better what your criteria needs to be for these houses. For example here in Denver we found a bank that will loan on Cash Flow. We can buy a house with cash and than refinance it within the first month for the full purchase and repair amount as long as the total loan amount works with the Cash Flow numbers they want. Our bank wants us to cashflow 1.35% of all the expenses. So if we find a house that's expenses are $1000/month we have to be able to rent it for $1350. So now we have our equation and make sure any properties we buy to hold fit that model.

Nathan Biggar has a whole Topic on talking and finding a bank to work with you. Matt Larsen has also had great experience with this too.

I too am a newbie, and have been asking myself the same questions. I have read two of Deans books BARM and PFREN. I found a Birddog contact thru Craigslist and working on possibilities. But one thing I see now is that this is like a lot of other professions and that it is a continuing education deal. We must be gaining education all of the time in order to grow and SHARE our Knowdledge with others. I was given a motto to use in my other jobs of life...... LEARN ONE, DO ONE, TEACH ONE. I go to this website daily now for the past 2 1/2 months and learn everyday!!!!!!!

Bruce.......

Chip and Andrea have provided some great advice on dealing with banks. The key is finding the right players that are part of your team whether they are real estte agents, contractors or bankers. Once you put together that team and create your niche and system, it gets easier from there. I have read each of Dean's books several times and I often go back to read for any of the tidbits that I missed. I also found that some of the tips, strategies and concepts made more sense to me the more I got out and started applying the concepts. A real estate investment club is a great way to learn and network as well. You may want to look into one in your area. Often more seasoned investors can make great mentors as you start the business. Good luck with real estate investing. Believe and Achieve! - Joe

Thanks for the insight and information. I had Nathan's forum post bookmarked for "Roadmap to raise 100% financing for a rehab/refi" The link is as follows:

http://www.deangraziosi.com/real-estate-forums/financing-and-credit/2048...

I believe this is the forum post you were referencing. We wish you continued success on all your future real estate deals. Believe and Achieve! - Joe

Thanks for sharing your insight. The DG website is packed with so much knowledge and information. It is so true that we learn everyday and this creates more opportunties for things we may see in the future. Knowledge does create power and action will lead to experience. Believe and Achieve! - Joe

“Tell me and I forget. Teach me and I remember. Involve me and I learn.” ~ Benjamin Franklin

Yes, like everything else you must keep learning. Just because you read it before doesn't mean is has sunk in. Often times points in Deans books seem so much more important the second time around because you've got more experience to relate to once you've done or even tried a deal or two.

Another key is not to get discouraged. We invest hours of time in deals that fall through or do not meet our goals after we've already invested the time. Make sure to not let it get you down when it doesn't happen. Take each deal/experience as a learning tool and guide.

Dean talks about how you will know a good deal when you see it. Well, not right away and each time you thought it may be and didn't turn out to be remember what those key factors were and you'll be that much more prepared and ready for the next great deal!

Hello,

Just got Dean's book, only read a couple of chapter's. Was telling a co-worker that I was getting into real estate investing and he replies that he needs a place within two weeks. His current landlord needs to move back into the house my co-worker is renting. I asked him what he was looking to do, he really likes the idea of renting to own (lease/option). He has a $1000 down and can pay upto a $900 monthly payment. Couple of things I have to overcome now, I have no money and my debt load is to much to qualify for a mortgage loan. Now for the challenging part I only have two weeks to help get him in something. What's my course of action? Thanks in advance for all the advice.

viken

Thank you for your response i helped me some but still im wondering does the IEE strategy work when a buyer is rep by a agent? I would really like to see if this strategy can work in this case because im not working with buyer directly since they live out of town. Also another question i have is will bank loan money just on cash flow and equity with out having credit to get a loan. So say i take to the bank a property i wish to purchase to make profit off of and get a loan?

The best option is try to find a motivated seller that would ofer owner financing or try to find a selelr to do a sandwich lease option. Greg Murphy's Chapter (Chapter # 4) in Dean' New Book "Your Town" covers this in great detail. The real challenges here may be the 2 week time constraint you are faced with amnd the $1,000 down. One of the keys is continue to build a list of buyers and sellers and this may help you do future assignments or lease options. Good luck with real estate investing. Believe and Achieve! - Joe

The IEE strategy works best when you work directly with the buyer. The buyer's agent has not found the buyer the home so I fo not know why they would use the RE agent. If the buyer wants to have advice on the deal, the buyer could have a real estate attorney review it. Either way the buyer would need to pay his attorney or agent. In regards to a bank, most banks would not loan on cash flow of the property especially in this economic environment. Banks may consider a refinance on a home you already own or purchased for cash but a loan based on a purchase with equity would be difficult. An option for you may be to find a partner with cash or good credit and this could assist you. Believe and Achieve! - Joe

Thanks for your wealth of knowdledge! I continue to read and learn everyday. I want to get that FIRST Deal! I'm always here....

Bruce....

Thank you Joe i have only been doing this for a couple weeks and have made so much progress! Thank you for all your info! I am beginning to understand how and when to use certain strategies! I talked to good friend of mine and sat down with him and explained everything and what my goals were in the next year. He liked everything and his eyes lit up to the possibility of being one of the biggest real estate investors in the city. So we went to his father and told him our strategies. His father was instantly impressed by the amount of research i did and is willing to back us on our first 2 deals! Both homes are valued at $60000 to $65000 as is and i plan on bidding them at $20000 simply because both are owned by out of state people and they inherited the property and have been paying taxes on them for years!. Neither of them have been looked at or bid on. They both need minor work and one is fully furnished! The furniture is antique and can provide more funding for the homes minor repairs.My one last question for you "super" joe lol is, since we will be paying cash for them how long before we can go to the bank for a refinance and does credit play a major role in the refinancing. I would think the homes equity would be enough to get the refinance loan. Then once that happens we can pay back the lender(his father) and now have money of our own to invest and be on our way to success! Sorry to keep bothering you but this will get me over my hump! you have a great day and a prosperous life!

Keep inspiring us Joe and keep up the great work.

Thanks for stopping by the forum. I appreciate the kind words. I am sure if you keep working your action plan that first deal is right around the corner! I look forward to reading about it and your future deals. You can do it! Believe and Achieve! - Joe

No problem joe an thank you! Still the refinance question is will the bank refinance on equity alone after paying cash even if credit is not good?

Thanks for sharing the details of your potential deals. It sounds like you are on the right track with these out of town owners. Another idea is send pictures along with you offer if there is overgrown landscape, anything that needs repairs like a roof, rotted areas, broken widnow, falling gutter, etc.

I have a saying that goes:

"potent pictures of property problems equal potential profits"!

Each bank is a little different with "seasoning" requirements. As you probably know seasoning is holding the property for a certain time before you can refinance it. The small local community banks are the best to work with. You can start looking at your options for what banks offer, that way when you are ready you know your options. Most banks may look at the deal but credit could be an issue. Bad credit is more of an issue than no credit. If it came down to it, your Dad might be able to co-sign a loan for the first one to get you going. Keep up the good work and keep us posted. Believe and Achieve! - Joe

It depends on the bank and the property. Each local bank can make set or bend their own rules. I have seen this countless times with banks that own REOs. They offer or do things you normally would not think they could do. A few years ago it was not a problem to do a fast refinance. Now there are some banks that don't care about your credit but will only loan 50% to 60% of appraised value based on comps within 3-6 months. Thus, it depends on the bank. Another tip would be to find a local community bank or two you may want to work with in the future and cultivate a business relationship at the bank. Meet some of the people and you may even want to open a checking or savings account too. I hope this helps. Good luck. Believe and Achieve! - Joe

Here is a little tip that helped us find a small bank to work with us. We went to the yellow pages online. Put "Bank" in the subject line and searched the greater Denver area.

We received around 80 pages and about 10 listings a page - yes, that's right 800 banks. We just started sorting through them. If it said Chase, Wells Fargo, etc than we moved on. We also moved on if is sounded like a larger bank or one we've definitely heard of before. We worked until we had a list of 20 banks. We called them and asked about working with investers based on Cashflow rather than purchase price.

We called another 20 etc until we found around 5 that may work then we set up appointments to visit them and discuss our plans. We did even up with 1 that will work with us for sure and even a potential second.

It takes time, but once the machine is running it is amazing how much easier it is!!!

Wow THANK YOU Chip,Andrea,and Joe! You guys and ladies are SUPER! The info you provided is priceless and i wil keep in touch and let you know how these first 2 deals go!

Chip & Andrea:
You guys seems to know what you are doing. Can you tell me a little bit about how you got started and what you have bought/sold/rented so far. I am very new to real estate. I have read BARM and I am ordering Profit From Real Estate Right Now. I want to start off with assigning contracts on condos or single family homes. Any advice you can give would be appreciated.
Thanks
Colleen

We actually saw Dean's Infomercial about 2.5 years ago while we were on our honeymoon ...one year prior to that while we were dating we wanted to do some real estate and got wrapped into a "get rich quick" "sounds too good to be true" deal. We took out several lines of credit and went in to debt by about $150k (luckly we had good credit and good jobs). Well if it sounds too good to be true it is. We lost all that money... We are still making payments on it (granted we've made over $150k with Dean's program) due to interest we are still not out from under it....but we have a good attitude and are powering through. By 2011 we will be free from our debt and moving toward financial freedom!

Anyways, on to the positive news and experience we've had with Dean and his Success Academy!!! While reading the book we started telling everyone we knew, that we are now Real Estate Investors. We had a friend going through Foreclosure and said we'd help (we really had no idea how to, but wanted to give it a try). We found another investor, by networking and attending other investment club meetings, that specialized in Short Sales. We asked him if he thought he could help our friends and if he could would he pay us a referral fee. He said he'd give us a couple thousand if it worked out. I then asked back if he'd give us 20% of whatever he made on the deal. He agreed - we wrote up a bird dog contract and introduced him to our friends.

It turned out to be a win win. The investor was able to negociate a lower price with the bank and sell it to another person. Our friends were able to get out with just a Short Sale on their Credit rather than a Foreclosure. The best news was we made $4400 by just introducing two parties (using none of our own money) and helping a friend out. Yes, That's right we made $4400 while still reading Dean's first book! It turned the bad taste we had previously about real estate into a more positive light.

I'll write more about our other deals a little later....

Hey Everybody

My name is Dan and I am also a newbie REI in So. Calif.
I was laid off last year and right now have no credit.
Still learning Dean's NMD techniques and trying to figure out
where to start. I did attend a free RE forum meeting a few weeks ago.
I have gotten in contact with a short sale advisor and hope he will
mentor me. Also I am trying to get more comfortable talking to people.
Any help or input is greatly appreciated.

God Bless

Dan Jentes-New Investor
jentesd@****