OfflineHello everyone My name is Rick and I bought DG's "BAREM" about a year ago and loved it. I currently work in the finance industry so I had some knoledge of current markets and idicators but the info and tatics I got from the book were excellent.
Dean's book was the first I read on RE investing and thought that they would all be this way. Well as many of you know by now they aren't. I read another book by some other author who has a TV show that was given to me by brother inlaw that was well....left one wanting.
Ok so agian about a year ago I knew trouble had already hit the housing market (I'm from New Jersey) so my strategy was going to be find great deals on foreclosures or preforclosures with a buy and hold strategy.
I started the research myself and found a few good deals but nothing great. Finally I found the one I wanted. It was in preforeclosure for about 50% FMV 200m owed on a FMV of 400m.
I feel selfish about this, because unlike most starting off, cash was not the problem. I set a plan in place and found a private backer to 100% finance any deal I found with a 50/50 split to start. Well this house several times got delayed at auction. I sent several letters to the home owner asking if they were interested in selling. No response.
So I moved on and made a list of about 50 houses that were in PF that I sent letters to the current owners. 0 response from any of them. On or about 9/08 I got discouraged and completely stoped looking or sending out letters.
Well I'm back. My PI had reached out to me asking if I had been looking at all. So I am. I'm taking a new tatic not strategy. I'm looking at REO's with the same strategy of buy and hold unitl we make it through this mess.
IMO we still have about 8 solid months of a down market give or take 2. But along with doing my own research I'm working with an agent who I've known for a while. I'm going to make it happen one day at a time.
I hope to update this journal on a daily basis but more likely a weekly one. Please feel free to post and let me know if any of you are from my area and whats working for you. I will do the same.
-Rick
Rick,
How have things gone since your post? I agree with your strategy... 100% cash for REO's is a goldmine. Banks will respond. Take Matt's 25:1 formula to heart and start submitting low offers. When they counter, they reveal some of their hand. Recounter... persistence. If you have the cash you are positioned to take over the market you are investing in!
Cash is king and in this market, with the right amount of cash the deals can be rolling in. The biggest thing that holds most investors back, is having the cash (even short term cash) to make the deal happen. I know I could make 5 times the deals that I am currently making if the cash was readily available.
As DG Admin (and Matt) have stated, start making a lot of low offers on REOs and good things should happen. Banks want to move these properties and if you have the cash available and can close quick, banks will usually move just as quick. A Bank's motivation can change day by day so an offer refused on Monday can get accepted on Friday! Good luck on all your deals. Believe and Achieve!
- Joe
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I know how it feels to invest in something and be totaly disapointed. Not all rei authors are the same. Dean is just the best!! You should definely read his new book PFREN it takes you step by step and has lots of freebes. I'm glad you are re-energize and ready to start making deals.
Stop thinking just DO IT!