Beth's Journal (Austin, TX)

Hi, I actually signed up for the academy today. I will speak with someone tomorrow for the run down, and then I will start the program on Tuesday. I live in NY, but we can all still support each other. Good luck, we can do this! Jeremy

Beth, congratulations on joining the Success Academy! (You, too, Jeremy!)
And on starting a journal. I know exactly how you feel, being hesitant and nervous, but believe me you will learn to overcome that. Each time you feel that queasy feeling coming up inside, you just keep going with what you're doing and push through it. I HATE that feeling and it was always easier to avoid it than have to FEEL it, but you gro-o-owww and learn to say NO by making yourself get past it. SO, again CONGRATS on taking action, and don't let anything stop you! Just start practicing. And know that you will have little blips along the way. That's ok. Nothing will be perfect the first time you do it.
Looking forward to following your success.

HAVE FUN and God bless,

Rina

Welcome aboard Jeremy and thank you Rina.

I know this can be done. I know this is not hype. I got interested in RE back in 1998 and now here I am in 2009 still desiring to do this and my financial health no better (or rather significantly better) than in 1998. Desire is not enough. ACTION is what will win. Other people are successfully doing this business. I want to be in the other people group

I just have to get out of my way, be coachable and just DO it.

Jeremy, let me know when you have taken your first course. Hopefully it will not have your head spinning the way it had mine.

There is a book I had read and I should read it again. It is called Feel the fear and do it anyway by Susan Jeffers http://www.amazon.com/Feel-Fear-Anyway-Susan-Jeffers/dp/0449902927

Have a good day all.

B

Phew....this was some week. I feel as if I have been doing this for months...it's amazing.

Well my status based on the action items of last week are as follows:

Completed action items:
1. Writing my goals for 3mths, 6mths, 12mths, 3 yrs, 5 yrs. - I went ahead and did the 3/6/12 months goals. This was a lot easier for me to tackle because the these goals I believe are achievable. I have printed the 3mth goals out and stuck it on the wall which I look at often to keep me on track with what I am suppose to be doing.

2. Join a local real estate investment club. - I did a dry one to one of the clubs last week. They meet once a month. The other meets weekly so I plan to be there this Thursday.

3. Select a handful of quality Realtors to work with. - As I thought this was really tricky. Realtors with a investor mindset is a tricky combination. Creative ways to do the deal is not what they do and in most cases is an alien concept. I made the mistake of trying to explain a technique I was proposing on using only to be told that it sounded illegal. That promptly lead me to solicit free consultation advice from TX real estate lawyers. Lesson learnt here is not to say too much to your realtor about intended ways to do a deal if it does not follow the 'traditional' method that realtors are taught to do. That said I have identified 3 realtors who are knowledgeable about the areas to invest in with additional tools to determine ROI for a property (that's nice!!!). I did full disclosure to the realtors about contacting more than one realtor. Two out of the three did not like the idea but are going along with it. I will ultimately focus on utilizing the services of one and have the others on the back burner or rotate them on each deal I do. The specialties vary between them, e.g. short sale experience, broker with private money access etc.

4. Identify some possible properties - from the listings provided to me by the realtors I have a good number of properties to select from

5. Bonus Item - Start building a buyer's list - I had gathered as many 'We Buy House' contacts and started calling them today. I have successfully got one investor who gave me his requirements. It sounds so silly but I was so proud of my self and went screaming to my husband..'I HAVE ONE BUYER ON MY LIST'...pathetic I will continue calling the other numbers.

6. Bonus Item - Contacting Mortgage Brokers - I have been able to find out what the new requirements are for investment properties and their access to private lenders and/or hard money lenders. Fannie Mae in Dec 2008 put in the requirement for properties to be seasoned I believe for 1 year so you can not just buy a property and immediately refinance it the traditional way...bummer!!!!! Also the stipulation that an investor who is now acquiring properties can only have 4 properties (including their primary residence) in his/her portfolio.....double bummer!!!! However, according to my realtor that stipulation may be relaxed if not removed all together. She got that update from her Mortgage Broker.

In progress
1.Determine the areas I want to invest in based on specific research - based on the conversations with realtors I have identified 6 target areas but will focus on 4. I still need to gather the demographics/community characteristics so that I would know how to determine what area is worth investing in rather than going with what I have been told.

I will do the next success academy course tomorrow and post my action items for the week. Hopefully I can speed up on the completion of action items.

I think I had a good first week. I most definitely did more than 10 hours..it certainly felt like 15hrs+ but I have enjoyed it.

B

What a week you had in 4 days!
Looking forward to how it progresses.
How did your husband respond to your 'I HAVE ONE BUYER ON MY LIST' outburst?
Nothing pathetic about it at all - Congratulations!
Angela

Hello Angela,

Well he was proud. He said congratulations and asked how I located him.

My husband knows that I am a little shy and that I do not want to talk to anybody. It's as much laziness as shyness. I don't want to be bother with anyone. I am not a sales person etc etc, so he knows me just picking up the phone and contacting someone is a big deal.

Being a 'sales person' are dirty words to a lot of people BUT it is what we have to grow into to become good at this career. Asking the right questions, listening to the answers, and knowing what all is in your arsenal to do the deal is key!!!! Whether I like it or not I have to grow and develop.

Beth

Things I need to accomplish this week are:
1. Call identified properties to determine seller motivation
2. Schedule an appointment to visit top 5 properties
3. Determine the repair costs needed for each property
4. Calculate the fair market value and offer amount
5. Determine investment strategy

In order for me to do this I must select some properties. Even though realtors had provided me with MLS properties I think it would be better to locate FSBO properties so that I can contact them myself immediately. Therefore, I must finish off last weeks to-do list.

Beth

You are on the move. I am so excited for you. I am working now to start the academy. I am so excited just reading your post. Keep it going don't give up.

You have inspired me to take a step, I see house all the time and write down there info I just don't call that is FEAR getting in my way but no more I am going to call one right now just b/c of reading your post. Thank you for your inspiration.

Keep it up, don't give up.

I am very proud of you. I can tell you are an action taker. You are starting out just like me, by just doing the assignments that are given. Most people don't even do that part! Great job. By the way I was down in Austin 3 weeks ago. Just so you know you are smack dab in the middle of the hottest real estate market in the country! I found lots of killer deals so go get it done!

I appreciate your words of encouragement.

Right now I feel that I am going through the motions believing that it will make sense and fall into place. I went to bed last night feeling anxious wondering if what I was doing was correct..anxious because I want to do my first deal. Of course a big pay day would alleviate some financial concerns but even if my first deal was $2000 or even $500 it would be fantastic!!! I know that I have to commit to following the process in order to acquire the knowledge so that I can think on my feet!!!

Being new at something is such an uncomfortable feeling. I really don't like it. It is sooooo much easier to go back to what is familiar. I like the feeling of being competent at what I do. I do not feel competent right now. I feel anything but competent.

But as you said cbrpower, I know here in Austin is hot. From my understanding from reading articles although sales compared to last year is down a few percentages, sales are still happening.... 'for sale' signs are every where you turn it is ridiculous!! And what about the ones that are not so obvious with a 'for sale' sign....craigslist has multiple postings daily for Austin.

I got another another investor added to my list (that now makes 2). In addition to that, I had a message on my phone when I got home yesterday evening. It was in response to a message I must of left so it must be one of my 'We Buy Houses' calling me back. I'll speak with him later today. That potentially makes 3.

I can't give up..I can't give up..I can't give up!!!!

B

Well my status based on the action items of last week are as follows:

Completed action items:
1. Join a local real estate investment club. - I went to a REIC meeting last Thursday. Wasn't quite what I expected but it was good nevertheless. Meet with a few investors who are actually doing deals....cooooool. I will be attending this club for their Cashflow game night. My goal is to attend a different REIC this Thursday.

In Progress
1. Determine the areas I want to invest in based on specific research - based on the conversations with realtors I have identified 6 target areas but will focus on 4. I have this information but I need to put it down on my worksheets in order to keep myself organized. Right now, paper is flowing everywhere which is not good!

2. I now have 4 buyers on my buyer list. YIPEEE!! One of them wants me to sign a wholesaler agreement. Should I sign such a document?

3. Call identified properties to determine seller motivation (from coursework 2). I must being picking the wrong properties because I have left a few messages and no one is calling back. I must be selecting properties that are already lockedup by investors or I am saying something wrong. Anyway, I will continue to select target properties and contact sellers.

4. Bonus Items - started contacting HML. Gathered a long list of lenders and have been calling each one to see what the requirements are and what I would need to do to get their money. If I had extra cash I would be a private lender too. The ROI is excellent, e.g. anywhere between 13% to 18% interest.

Pending Action Items (from coursework 2)
1. Schedule an appointment to visit top 5 properties
2. Determine the repair costs needed for each property
3. Calculate the fair market value and offer amount
4. Determine investment strategy

Summary
Does not appear as if I accomplished much of my action items compared to the previous week but I feel as if I worked just as hard. My focus remains doing a cash deal so I am coming into contact with people who are wholesaling, doing short sales, REOs, foreclosures etc. My take on last week was that I was getting a lot of exposure into the various strategies of investing, which in turn was cause me to jump from one thing to another. That was becoming a bit confusing and almost like chasing my own tail. However, I have to absorb what I can but I still have to accomplish my assignments to keep me moving forward.

Anyway, I will report next week on my progress.

B

I just joined the academy today and can't wait to get started. It sounds like you are really working on a good plan there. Keep it up, I am sure you will get your deals.

Lonnie...

A little late in updating my journal but this is what I achieved based on previous week's to-do list.

Completed
1. Determine the areas I want to invest in based on specific research

2. I now have 5 buyers on my buyer list.

3. Call identified properties to determine seller motivation (from coursework 2). I was feeling somewhat nervous for some reason, so I just decided to contact the sellers regardless of outcome. The intent was to get comfortable about the whole process of following leads. Anyway, I submitted low offers i.e. ridiculous offers to see what would happen. Anyway, as I result I have locked up a deal and assuming no red flags we close probably this Friday if not next week Monday. I decided to partner with an investor who will fund the rehab. He has properties in the same area so he is very familiar with what will be required. When the property sells we split the profit 50/50 after all expenses are paid. For me the bonus will be that I get to learn up close and personal from an experienced investor. I have since come to learn that he is very well respected and/or know in local investing circles. I will be required to oversee the project. So my expectation will be that in mid spring, property goes on the market. Watch this space!!!

In Progress Action Items (from coursework 2):
I want to repeat this course again and identify 10 additional properties.

1. Schedule an appointment to visit top 5 properties
2. Determine the repair costs needed for each property
3. Calculate the fair market value and offer amount
4. Determine investment strategy

This is clearly a numbers game and I lose nothing by submitting offers. All the seller can say is 'NO'. I'm still having a challenge identifying FMV based on comps I pull from zillow, trulia and homepage because in some cases
1. there are not many sold properties in 3-6 mths or less
2. comp property may be more than 1 mile away
3. the configuration of comp property is different from the subject property

Bonus Item - I am working on (or rather my husband is) getting a website up and running so that I can send my leads to it, to obtain all the pertain information regarding them/property. This way I will have a better idea in order to know the best deal to present. As I come across useful info, I past it to my hubby who will be adding it to the website.

Summary
Last week felt like a crazy week. The adrenalin was truly flowing. Even my husband is now keeping an eye out for FSBO for me. I have never felt so exhilarated and had so much fun.

Focus remains cash deals.

Take care all

It has been two weeks since my last post. I have been making my offers. A couple of weeks back I found this deal:

http://www.deangraziosi.com/real-estate-forums/my-deals/15909/deal-under...

I was certainly nervous as to what to do. I ended up deciding to partner with the investor however as time past I was presented with doing an assignment on the deal. On 3/10/09 the closing occurred, funding happened today and I picked up my $3K assignment fee and proudly deposited it into my bank account.

This deal had so many twists and turns I will not go into but I am grateful that I went through the experience, I learnt a ton of stuff that you can not appreciate from a book and have made some fantastic connections.

THIS STUFF REALLLY REALLLLLY WORKS! And it took 6 weeks from joining the success academy. WHOW!!

I am well on my way to completing my 3 month goals which were to:
1. Do 1-2 cash deals (either equity conversion, assignment of contract etc)
2. Pay off mentoring program
3. Establish LLC and get business cards

Goal #3 has changed because I will be doing a S-Corp instead because I have decided that I want to focus on wholesaling....that is so much fun, and as such I will be making profit and not holding properties.

So, 1 down......thousands to go!!!!!

I am so silly - I took several copies of my check (in full color) and went and deposited it into my bank account. The funds according to the bank clerk should clear Monday midnight.

This is so good I feel giddy!!!!!!

When someone ask you to write down your goals they are trying to get you
outside yourself.The idea is you know what you think but when you put it on paper.There is no more hiding!The truth is it is there for everybody to see
,especially for your eyes. (what we think can be opposite of what we truly
can do)

Randy

I have my 3 month goals on my wall just above my computer, therefore I saw them every single minute of the day.

Therefore, with this assignment check I will pay off the mentoring program. I will also initiate some directing marketing campaigns. My husband is working on a website for me to draw buyer and seller leads. I will go ahead and order business cards from vistaprint. And with the next assignment fee I will go start the S-Corp.

I believe having the goals visible definitely kept me on track to my target. My goal is to close another deal before the end of the month

... and thank you SO much for sharing your journey with us. As a newbie (who has yet to join the academy), I truly appreciate the ability to watch you stop outside of the ark of safety and into the waves, in an attempt to see the miraculous.

I, like you first became interested in real estate in the '90s ... and like you my financial position wasn't the strongest then, nor is it now - but I too am determined to make this work this time.

After having purchased several other RE programs, I appreciate God for sending Dean Graziosi - he's opened up more doors for me with several of his programs than he may ever know. (Well, I'm sure I'll tell him some day.)

Please keep 'em coming ... you have folks ahead of you pulling you forward, and those of use behind ya, are pushing you ahead ... all routing for your success!

Continued blessings and I look forward to much more!

Jacqui Worthy

This is the reason I believe these journals/forums are so wonderful. I can't tell you how great it was to read that there was someone else out there who is experiencing the same "exact" feelings that I have.

You described so succinctly the feelings that come with learning something new (not feeling competent). That is ME 110%. I can honestly say that I despise the feeling of incompetence ... it's up there with lack of control (and I'm working on that too)...

So thanks again for sharing, even the "not so nice" feelings; I'm glad you were able to quickly see the benefit of pressing through.

Jacqui

Congratulations!! You should be very proud!!! you are an inspiration.

Rina

It is awesome to hear your words of congratulations. I think getting the deal was as much about having you guys congratulation me as well as receiving the fee. I have proven to myself that this works and for me that is huge. Indeed this is for everyone who will step out and do!!!

Jacqui - the feelings of incompetence still exist but not as much. I still have so much to learn. It's funny...now the concern is of not being a one hit wonder...was this deal a fluke!!! Can I do it again? I can not wait for that day when all of this is no longer new. When it all makes sense...when I feel just as I do now in my regular nine-to-five but with one significant and major difference...My success is in my hands (Joshua 1:8 )

I see a lot of investors here on the website with scripture attached to their signatures. Well I just wanted to point you to the 3 that kept me going through these initial 6 weeks. I did word studies on these passages, printed them out and stuck them on my wall. They are 2 Timothy 1:7, Matthew 6:31-33 and Hebrews 11:1

This up coming week should be an interesting one...I should challenge my self with...how many offers can I submit by the end of the week. I read Jason's post (http://www.deangraziosi.com/real-estate-forums/buying-foreclosures-reos-...) and I can not get over that...I mean 66 offers...HUGE..HUGE step forward.

Hope everyone accomplishes at least one goal that they set out to do this week.

Happy Investing!!

Great job Beth! Was this an eastside Austin property?

Yes it was.

A lot of activity is occurring over there. It is more east than some would like yet the growth is moving that way.

When I locked up this particular property I noticed that there was a boarded up property across the street. Wasn't able to get the owner's contact number until a few days later and called him about it. Did not hear anything from him until 4-5 days later when he called me back. I ask him whether the property was still available. He told me that he had sold it. I asked when and he told me 4 days ago. AAAAGGGGHHHH!!!! Well I added him to my buyer's list.

This is certainly a race to find that needle but I am having fun.

I have become a member of the 2 local REI clubs so hope to see you at one of them next month. Added some more investors to my buyer's list.

I haven't submitted any offers this week (tut tut...not good) although I have been talking to sellers. My regular nine-to-five is getting in the way (bummer) as well as working on the marketing campaign to get that finalized. But once that goes out, my ideal outcome will be to have my phone ringing 3-5 days after that.

So my expectation will be to speed up and take off in April.

Say Beth Congratulations On your Deal and for taking Action! Very inspiring to me as I am new at this and trying slowly but steadily to acquire knowledge by taking in all these posts-and forwarding specific information to a folder I have geared primarily toward assignments. I am still working on my buyers list-and have ads on craigslist. Great job on sharing your experiences and taking Action-You are an Inspiration to all of us!

I met you at the Real Estate Invest meeting Thursday Night (that was my first so I kind of felt like a bull in a China Shop -but did strike up two conversations with two Investors there which is even unusual for me because I'm not the "outgoing type". Anyway-you were "working "that room so Props to you. Joe

P.S. my email address is cruisecontrol12@**** Beth if you want to touch base here in austin sometime ...

You are an inspiration! I feel like I need to go back and start over - seriously!! LOL You have done everything in a very orderly fashion and you are just hitting your goals every week - my hats off to you! I am going to spend some time and go back to read your journal.

Thanks for the inspiration!

It is certainly a good feeling (more relief) to have the first one under my belt. Until that first deal occurs, you are never really convinced that 1. this thing works and 2. that it will work for you.

But it does work and it will work for you if you work it.

But like I said in a previous post, now my concern is to not be a one hit wonder...LOL...do the concerns ever go away...probably not...it just keeps you on your toes.

West - it was a blast to meet a fellow DG student. You are too kind with your words. Believe me I was as nervous as you but I had to force myself. As I said I had attended the other REI meeting the week before so I already knew a few people so that lessened the anxiety a bit. Everyone else was new. But what is so good about being at a meeting, is that everyone there has common goals so you are not an alien there which is wonderful. And I attach tremendous value to physically meeting with someone, so most definitely we WILL keep in touch here. I'm going to be sending out an email (as soon as my nine-to-five gives me a break) to you and others I meet so that you can have my new email address and contact info. I have just established my 800 number so you can listen to my message...LOL.

rbncowgirl - Thank you. When I started I had to force my self to zero out the additional information that was coming at me from all directions and focus on doing the weekly course tasks. Anything accomplished outside of that were bonus activities but I at least completed the course assignments. I think that is important otherwise you can easily become overwhelmed and don't do anything or rather do things that do not move you forward to your goal.

Anything I can do to help please let me know. We are in the same boat after all.

Hi Beth and everyone else,

I'm new to this just joined the success academy a Mar. 17 after getting my RE Lic Jan. 30th. Attempting to do both agent/invest. I'm new with the RE thing also but would like to team up with anyone in the austin metro to see how we can accellerate one another's success.

Beth your plan of attack sounds like the best way to go at, it's much the same way I intend to go at this. Just like Matt Larson says he is doing (Profit from RE right now)...quick way to get the success academy paid off!

Hope we all achieve what we set out to do!

Tim

oops..double post

Congrats Tim on joining the success academy.

You will definitely be in for an enjoyable ride and I look forward to reading your journal of success.