SUCCESS begins at the end of your comfort zone!

Locking in Chicago and Indianapolis!
Learning tricks from Andrea Weule such as how to calculate net profit and ROI and express it to other investors
Still working toward my FIRST deal but things that were hard are now easy and things I didn't know to do, I"m now figuring out.
One day at a time!

Anyone know a good website to move a SFH near Butler University in Indianapolis RIGHT NOW? Hot property and close date is upon us! Please let me know!!!

Thanks,
Kristin

keep up your momentum, you are doing great! Before you know it, your first deal will be here, and after that the others will just start rolling in, especially if you have your pipeline full...

You can try postlets or kijiji to advertise your properties

Wishing you great success,

It's been a while since posting on the DG.com site but I'm happy and excited to say I've done 5 deals since my last post!!!

A quick snapshot of my progress is as follows:
Deal #1: Wholesale in Indianapolis. Made $1500
Deal #2: Wholesale in Indianapolis. Made $2000
Deal #3: Wholesale in Indianapolis. Made $3000
Deal #4: Buy & Hold in Indianapolis. Expecting 25% return
Deal #5: Wholesale in Indianapolis. Made $2000
Deals #6 & 7: Under contract and ready to wholesale!!! Expected profit between $3000-7000, TBD

To everyone who is new - keep focused, stay active and take action!!! It will happen but it doesn't happen overnight.
To everyone who has been there before - THANK YOU for your encouragement and support. It feels awesome!!!

Congrats on your success! Hope to meet you at the EDGE.
Best of Success!

Who else is attending EDGE this weekend?

At airport
ENERGY on high!
Ready to mingle

...A bird builds a nest one twig at a time!!!

Real Estate investing is like this as well. We drink from the fire hose of new information - wholesaling, double closing, escrow, as-is, buyers list, mindset, yellow letters, bandit signs - all of these terms can make someone say WHAAAA??? Until you connect with your first potential buyer. Until you lock your first property up on contract. Until your first transaction closes. And then.... one step at a time everything becomes a little clearer. Now you're learning terms like no season refi's, lease to own, creative marketing, etc.

So I'm taking lessons from the bird and building my real estate business one step at at time. One phone call at a time. One contract at a time. One transaction at a time.

You can do anything you put your mind to!!

OK - so here's an interesting scenario:

I have a condo under contract in Indianapolis for $3500 that I was going to wholesale for $5k. Pretty sweet, right? But, I had a lady call one of my ghost ads on CL and it turns out she's in a desperate bind and needs a new place to live. She can afford $225/month until she comes into money soon** (lots of doubt about whether the money will come, but I want to help her if I can!!).

So I told her I could be her bank and that we could sign 2 agreements:
1) A lease contract for 2 years paying me $225/month - all nonrefundable. She will be responsible for water & electric whereas I will buy homeowners insurance and hire a property manager.
2) An option to purchase the contract at any time for $5000

Honestly, I don't think she will ever come into the money or execute her purchase to buy so I will be her landlord.

Here's the QUESTION:
Since she has no money down, how should I get the money? One great suggestion from the Advisory Line just now was to build in a few extra bucks for the first few months. Charge her $450 months 1,2 & 3 and then charge her $225 moving forward. I'm open to suggestions...

The other obstacle is - I don't even own this property yet and she needs to move QUICK. So, this might not work anyway. But then another GREAT suggestion from the Advisory Line is to close on the property, place a tenant and then continue to try and sell the property as turn-key with a tenant and property manager already in place. After all, this apartment is Section 8 approved and although the current person doesn't qualify for Section 8, someone else might which means rent is guaranteed.

Thoughts? Suggestions? Advice??

First of all, sorry I missed you guys at the Edge! Just coming home from there myself and it looks like you've done amazing things in the relatively few months you have done this!!!! CONGRATS!!!! I've enjoyed your journal and love the title!

Sounds like an interesting deal!

Not sure this tenant is a good fit, but then again, I don't know a few things:
--How much could this place rent for as-is?
--What repairs need to be made to it, if any? Is it a "hard sell" to another tenant? Could you do a "quick" non-expensive rehab, to reap some more major benefits as far as rental?
--Has this tenant been screened at all? I know you want to help this person. I always want to help people, but not at the expense of my business...a future eviction or dealing with lateness. Remember, you are running a "for profit" business. Your non-profit can be a separate business model. Just trying to protect you!
--Are you prepared with the $$ to close or is that an issue?
---Have you done the math with a property management company as to if they have any minimums or what it would take for them to manage this at these low costs?
--If this tenant is not qualified or does not qualify screening-wise, have you thought about running a "handy man special" so you do no repairs, and actually getting a lease option tenant in there, someone that is handy/contractor that has a little money to put down, and selling it as a turnkey investment to another investor, --splitting the lease option downpayment with that other investor, AND designing the end cost of the house/option agreement to be split among the investor who buys it and yourself as well? So you get money on the front end for doing all the work with getting a new tenant in there, and you get something on the back end if they buy it in 1-2 years (however your contract is designed).

Anyway, just some creativity that you may have heard this weekend from Rina and what she is doing with lease options these days!! AMAZING!!

Hope all goes well with this deal! Keep us posted!
Cheers!
Louisa

If I don't hold myself accountable, how can I expect others to...?

Day 1 Post EDGE event:
- Followed up with each person I met at the EDGE
- Asked my Indy realtor for the HUD foreclosure sale list for last 30-60 days
- Cold called 10 Indy cash buyers & followed up, etc.
- Set up 2 new gmail accounts
- Set up additional google voice account for Indiana market
- Scheduled DGIE life coaching session
- RSVP'd for 2 upcoming "chat" sessions on DGIE
- Downloaded Dean's automated probate finder for review tonight

Thanks so much for your post! Makes me smile ALL Great questions. Not only for me right now, but hopefully for others reading this in the future.

I agree, tenant is kind of lousy...
- The place would rent at $325 to a Section 8 tenant
- No repairs needed - unit has a new hot water heater, furnace, etc.
- Tenant has not been screened. And this was a question I have because if my PM company places the tenant then I'm not sure if they will qualify.
- Yes, I am prepared to close - plus, in Indiana you can put a house on your cc if the sale is less than $10k.
- The math includes: taxes, insurance, maintenance/vacancy, PM, closing, etc

The other thing I'm grappling with is because this is a "community" then I also have to consider un-forseeable future assessments - new roofs, etc.

This suggestion is great!! I'm going to have a think about this....
--If this tenant is not qualified or does not qualify screening-wise, have you thought about running a "handy man special" so you do no repairs, and actually getting a lease option tenant in there, someone that is handy/contractor that has a little money to put down, and selling it as a turnkey investment to another investor, --splitting the lease option downpayment with that other investor, AND designing the end cost of the house/option agreement to be split among the investor who buys it and yourself as well? So you get money on the front end for doing all the work with getting a new tenant in there, and you get something on the back end if they buy it in 1-2 years (however your contract is designed).

THANK YOU!!!!

Have you screened your PM company? Or did you just find one? Is it one that a local REIA recommended? Or is that company already in place over al the condos?

I would find out the top 3 landlords with the most properties in your local REIA. If you have no idea who to go to....ask the President of the REIA for your top landlords and that you are seeking some advice from them. I would ask them who they use, how pleased they are, and what their vacancy rate is. Get a couple to go and interview. You may already feel like you have the best one, and if so, awesome. Just make sure you screen them. Last thing you want to do is sell a turnkey to an investor that flops because of property management....such a critical thing!

If the tenant you find is a contractor/handy man, that would be ideal for future unforseeable repairs, etc....you could place those in the hand of the tenant on that lease option.

Honestly, while I always entertain ANYTHING as far as RE investing goes, for the MOST part, I stay away from someone trying to lease option without a down payment. Although the coaches idea is interesting (and I like it), what if she can't pay the $400+ for the first few months?

There are too many other people who want a rent to own who DO have the money, and yes you have to run ads, and yes, it takes some time, but just call it what it is....a rental if it is a rental, and a lease option if they have a downpayment.

Now, the other creative thing is what people have traded for a downpayment. Gold, diamonds, trailer, etc...make sure appraised first but if you ask, you'd be surprised at what might pop up that may be of higher "quick sell" payment than you would have had if they had cash.... that's if you want to deal with that angle....but you can always see what you can get. You just never know. That's why I love this business! Look forward to seeing what you guys do!!

- you hit the nail on the head on that! For our first buy & hold I didn't do much due diligence and I paid for it for the first month. Things seem to be moving along now and I find out my tenants in a 700 sqft (each side) duplex with NO washer dryer ran a $147 water bill last month - WHAT??? But, I digress because that has nothing to do with the PM... Or does it?

Either way, I need to interview and find a list of other PM's in the Indy area so that I can build a superb power team. I watched Matt's "behind the scenes with Area Managers" video on the DGIE site this afternoon that he posted in Feb and it really struck a chord with me because an "A" player never needs to be told twice.

I talked to my realtor tonight (who is the seller's agent, too in this case) and here is what I'm presenting to the current owner:
1) $825 non-refundable deposit due all at once OR minimum $275 due before move-in and the remainder paid within the first 2 months of the lease.
2) 2 year lease term of $275/month. Tenant pays for water & electricity.
3) Option to buy at any time for $5,000
4) ***In the above scenario seller owes me $500 upfront and that’s it.

Either way, I will advertise this offer on CL and see if I can’t get another tenant/buyer in place but with more favorable terms, such as the following:
1) Non-refundable deposit of $1,500
2) 2 year lease term of $325/month. Tenant pays for water & electricity
3) Option to buy at anytime for $5,000
4) **In the above scenario seller owes me $500 upfront and $1,000 if the option is exercised at any time

My agent said there's a chance he will bite because it's been vacant for a few months which is why he's selling since he's tired of paying for electric, etc when no one is there.

I think one way or another this will work out because if this person can't afford our solution then we tell her it's a no-go, but I can begin to advertise it with better terms for us and see if we can find a L/O tenant and at the same time I can continue to try and wholesale the deal for $1,500 profit.

Stay tuned!

Displaced veteran versed in the RE game looking for a L/O in Indianapolis with the following:
$5,000 - nonrefundable downpayment.
$550/month rent paid by government
$20-25k - future purchase price
3-4 year lease with the assumption that property will be paid off in 2 years
wants a basement and garage 2 beds OK.
Move by June

HERE WE GO!!!

Kristin you go girl ! Do your thing ! I am at a job I HATE and have been trying to decide if I should quit and do the RE FT...your post inspires me to take that step of faith and focus on my passion.

AWESOME!!! I just got chills I loved my job, and it still felt A-M-A-Z-I-N-G to break away, so I can only imagine how awesome you will feel when you break free. We had to live on a very strict budget at first but now that budget is our new norm and it doesn't feel strict at all although nothing has changed. In fact, we just bought our own home last month and are now paying ourselves back instead of paying someone else rent.

If there's one thing that stands out from all the other things i've learned from Dean and his team (and there are MANY) it's MINDSET. No, I can't make $1M fall from the sky just because I'm thinking about it, but the right mindset sets you free and allows you to focus on what's really important.

I learned so much from the EDGE this past weekend. Something Jen Gray said really stuck, "You don't need a co-signor on your dreams; you don't need anyone's approval." We all have naysayers in our lives, even if at times it's me holding myself back.

GO GET WHATS YOURS!

- Called 10 banks in Indy looking for no seasoning cash out refis based on appraisal price. Found one that might be willing to do this and is going to send me a proposal; found another one that said YES to everything - summarized our convo in an email and waiting for him to confirm with his team that it's a GO!
- Called 10 cash buyers from CL
- Found a property for the guy who called me yesterday (referenced above); he's driving by the house tonight and the seller will pay me $1000 referral fee if he signs. Should know more in next day or two
- Made 15 offers
- Attending a Fort Lauderdale REI club event tonight 530-8pm
- Joining the DGIE chat session at 9pm

WHEW!

This was a HUGE lesson for me at the EDGE. In fact, I wrote about it in response to Dean's weekly blog post from Monday. Something that really struck a chord was when he told us to stop wasting time on trying to improve our weaknesses. My weakness is accounting. In fact, I had enrolled in a Finance class that begins this summer so that I could become better at keeping my own books.

NOW I REALIZE HOW RIDICULOUS THAT IS!

I made it a goal to find someone to manage that part of my business for me so I can focus on property acquisition and becoming a FULL SERVICE WHOLESALER!

As of today, I've posted a few ads for both a paid accountant as well as a Marketing intern (because my website and Marketing needs to be revitalized, too!)

30 minutes after posting, I've received 4 responses and set up 2 interviews for Friday. Hopefully I will have more to report on my progress by days' end.

Jeff and I got that same message! Don't focus on what your not good at or don't like doing and be more productive with your time on the things you are.

Now I'm looking forward to not focusing on cleaning my house in the near future too but.....all kidding aside. There were some valuable lessons there for sure and ones we need to keep in the forefront of our minds moving forward.

We called an accountant as well and have an appointment for next week!

Good Time management = More productivity

I feel like I didn’t have that productive of a day, but maybe it’s because I’m raising my expectations…

- Read Chapter 1 – Dean's book Totally Fulfilled - joined the DGIE book club with Gena
- Attended RE webinar on lead generation
- Asked realtor for: MLS search, REO foreclsoures and Comps for SFH, 3/2, 30+ DOM, etc
- Placed ad for Bookkeeper – set up 5 interviews for Friday
- Placed ad for Property Management company – set up 2 interviews for Monday
- Placed ad for Marketing intern – no response yet
- Placed ad for contractors – 1 response
- Reached out to 7 realtors for pocket listing of $400k apartment building
- Followed up with banks from yesterday
- Cold called 10 buyers
- Learned about Subject To’s
- The displaced veteran never called back about the house I had him check out so we'll see if that goes anywhere
- Waiting to hear about one of my assignments so I can make $1,500! I know she talked to my Property Manager today but I called her to follow up and her voice mail is full. We shall see....

Not quite done for the night so I wonder what else I'll get for the day...

That's awesome! You guys rock!!! I just told my fiancee the same thing about the cleaning person LOL

On the accountant note, I have two comments:
1) I have an AWESOME accountant in Colorado that is investor friendly. Message me offline if you want a referral.
2) I keep saying I need an accountant when in reality I need a bookkeeper - someone to manage the everyday stuff and then hand that stuff off to the accountant at year end. I placed an ad on CL today and had some great resumes come across my desk. Here's the ad if you (or anyone) needs it:

-----------
Bookkeeper needed for real estate investor (work from home)
Part-time accountant needed for real estate investor -
$10-40/hour based on experience
Must have experience in corporate business
Must be proficient in Quickbooks
Must be proficient in ACCRUAL accounting method
Must have references
Employment is at-will
Serious inquiries only
Email your cover letter and resume to Kristin

About us and this opportunity:
We have a few LLC's already established with the intent to add more and an Accountant already based in Colorado.

We are employing a bookkeeper for the day to day administrative tasks on a case by case basis to help me manage receipts, financials, plan, project growth, etc. This person will then be responsible for handing off my books to the accountant at years end.

While I cannot guarantee the number of hours this job will require, I'm thinking it's a few hours a week to get started and then tapering off to 1-2 hours/week for a few months as our pipeline continues to grow then hopefully (because business is booming) start to increase.

A+ team player need only apply
------

From some great advice I received this weekend at the EDGE, my goal is to pay someone $40/hour, but I listed the range on my ad so that they would have to work for it on the interview

Also, for your call next week, I found some helpful interview questions online for a Bookkeeper. I'm happy to send them if you want. Send me a PM

Cheers
Kristin

- 1 more bookkeeper interview – all 5 interview slots full
- 1 call back from CL from a tired landlord looking to sell.
- Working on 2 New contract negotiations
- 25 offers on duplexes
- Waiting on realtor to tweak SFH home listings
- Reached out to 3 realtors in Nags Head doing some search for a potential client
- Looked for realtors to help with me a project in Nag’s Head NC
- Strategizing on direct mail and figuring out the best way to pull lists.
- I definitely need a better marketing strategy. My ad to find an intern returned NO results. Trying to think about the next best option as I can't continue to rely on the MLS like I did for the first few deals.
- Need to also figure out how to get materials and pay someone to place bandit signs for me when I'm not in my investment market

***THOUGHTS ON MARKETING & DIRECT MAIL WELCOME****

- Tonight - 9pm covering your assets chat with Carol Stinson

I HAVE THE OPPORTUNITY
I HAVE THE OPPORTUNITY
I HAVE THE OPPORTUNITY
I HAVE THE OPPORTUNITY
I HAVE THE OPPORTUNITY
I HAVE THE OPPORTUNITY
I HAVE THE OPPORTUNITY
I HAVE THE OPPORTUNITY
I HAVE THE OPPORTUNITY
I HAVE THE OPPORTUNITY
I HAVE THE OPPORTUNITY

Glad to see you stepped out of your comfort zone . It is where success truly does begin.. If you want something you 've never had , then do something you have never done ! Simple as that.

Randy

I LOVE your enthusiasm! Jeff said give him a call regarding Marketing

Kristen - just read through your "journal" here. You are doing amazing. Taking so many steps forward everyday! Wonderful to meet you at the EDGE!

LOVE THIS::: If you want something you 've never had , then do something you have never done!
I'm a big motivational-quote-kind-of-person. Consider this quote has officially added to my repertoire
Thank You!

Just texted Jeff about Monday! Thanks! Sounds like we all plan to work this weekend to get a leg up on any slackers out there in good 'ole Indiana.

Talk soon Enjoying every minute of this journey!

I know our encounter was brief but your presentation has had a lasting impression! Thank you! The EDGE was such a BIG DEAL So fun. Most definitely planning to measure my successes from edge to edge. BUT, in the mean time...I will continue to post as much as possible on this site, stay active with various groups on DGIE and take things one day at a time. Had a pretty great week and I hope you did too!

BTW - I called more banks this week and I had 2 "maybe's" meaning they had to talk with someone else to confirm (or not) - but when I followed up I didn't reach them. I'm going to be persistent with them next week and also keep looking for others.... So far I'm at 26. But, speaking of limiting and limitless beliefs - I can also use this opportunity to go knock on other doors and find HML or PML.

One of the coaches also mentioned that there's a master list of current banks offering no season cash out refi's being generated to be shared amongst all...but I'm not sure where they are in that process???

...and it continues to DOWNPOUR in south florida

Here's what I was up to today:
- 4 off-market deals sent to me – verbal agreement on 2 and waiting on signatures!
- Qualified new cash buyer with $10k looking for duplexes without tenants
- New wholesaler relationships: 2
- Bookkeeper interviews – tough competition!! Kindly dismissed 2 candidates and sent a follow up questionnaire to 3 of the candidates. Feel good about my options.
- Marketing!!!! Purchased $5 for free web design off Fiverr.com and put a plan in place to get some fresh stuff on the web. It’s going to take her 8 days to turnaround due to the backlog but I’m feeling good that this was a good use of $5.
- Potential client went to look at 2 wholesale properties - interested in 1
- Finders Fee agreement sent to buyer – might make $1. Interesting story…
- Finders Fee agreement sent to a Seller - might make $1,000 for introducing him to the displaced veteran
- I am starting to gain traction on the off-market listings. Previous 3 deals were under contract off-market, I heard about 4 more today and sandbagging a few others. Still trying to figure out how to manage more volume. But I know everyone says it feels like a lot of pressure at first and then this becomes the new norm.
- Insanity workouts came in the mail today!!! Day 1 workout complete. 68 days until wedding!!!!