Vanessa's journal-newbie's journey

Hey, congrats on starting your REI! and welcome to the DG family.

You don't NEED a RE agent, but they sure come in handy! You can find lots of posts in the forms about what a great realtor can do for you (and what a NOT-so-great realtor won't do).

The "assessed" value of a property is the value that your county tax assessor determines as a base for the property taxes you will be charged. Sometimes this number is the same as what they figure the FMV (Fair Market Value) is, but most often it is a bit different. The number your assessor comes up with is NOT necessarily what the actual FMV would be. THAT you determine by getting comps from your realtor of similarbproperties that have SOLD within the last 30-60 days.
I hope that's what your question was referring to.

Again, welcome. Look forward to reading your progress.

Rina

Omg today i was talking to a REA and i can not believe how rude she was!!! After I told her that i didnt have much money to buy properties she simply hanged up while i was speaking!! Not such a great way to start,right?? I spoke to a few but so far they are mostly interested in selling/buying houses and abviously their commission. I think i'll just try to do assignments for now. I have sooo much to do and learn !! Dean's lesson/acadamy software is really great

If i do get a REA and lets say he/she helps me find a great deal how much commission should they get?

Hi Vanessa,
You just joined a very addicting website with so much info that you will feel like you've been to college and back.It takes some time to learn the tricks of using the website, meaning finding the questions you have before posting them, when most of them have been answered a number of times.I recomend you lisen to all the conference calls which usually happens once a month also Deans weekly blogs to motivate you.The biggest problem most of us are having is finding a REA to put in low offers with the and/or assigns.
so I recomend strongly on you posting ads of what you are wanting the agent to do.Go to REI club meetings and pay the $20 to get in and find a Realtor there that's familiar with Investing.If you do what I'm telling you, you will get there a lot faster.It's been a long road for some of us on here.

Good Luck,
Jason Smith
San Diego

Like Rina, I have been around this site for over a year, and you have made the right choice on your REI career. Take your time to get comfortable with your new DG family. We are all here to help whenever possible. Start looking for a REI club in your area. It will be well worth you time and your time here on this site is priceless. Take notes and ask questions....Jan P.S. Up here in NY state a realtor gets 6% comiss and your agent gets 3% of that.

uhh, maybe i just find my own houses to sell without realtor, tomorrow i am going to see some houses, i am wondering...you think i will be able to sell the property/assign them to "We buy ugly houses" people? would it be worth it? I am running out of savings money so i have to move fast, hope i can find a deal soon..i need both buyers AND sellers..

the clubs closest to me are very expensive, i really dont have enough funds to join a club right now...i would love to joinn a club

I know an Investor who just pays $20 at the door to get in when he wants to go.

Where is this REI CLUB? I am located in philadelphia.

Find REI clubs online near you.contact them and ask if you can sit in on your first meeting.What I was told was from an Investor/buyer of mine say's he just goes down to the meetings and say's he doesn't have a membership and they let him in for a $20 dollar fee.

REI clubs are cheap to join. My club charges $75.00 for the year and that is just for coffee, water etc. If you are talking to someone who wants big bucks up front, walk on the offer. The whole point behind these clubs is networking and picking each other's brains for help. My club does just that. No back-stabbing here, at least not yet. go on the web and look for a club. part 2 0f your question. can you assign a house to we buy ugly houses? Sure, why not as long as you have bought it cheap enough. These people are wholesalers or rehabbers. So you must do all your homework, before you approach them. Offer to bird dog for them. I made $1,000 in about 6 weeks by bird dogging. Let me know how you are doing.....Jan

47

Utilize Dean's book. I don't know which one you read. I have only read one so far. The profit from re right now. But in it Dean discusses a method to find the right re agent that doesn't involve getting rejected. Let me see if I can summarize.

Step 1
Fax agents in your area a letter explaining what you are looking to accomplish. (There is a sample letter in the book that is awesome. I would have to type it up to give it to you. So if you want it PM me and when I type it up with in the next few days I will send you a copy.) At the end of the letter have a number leading to a voice mail with a more detailed discription of your wants and needs. Don't hold anything back. You are going to be making her a but load of money. She needs to treat you with respect. Have them leave a message and you call them back. This way only interested agents will be calling you and not wasting your time.
Step 2
Arrange a meeting. Meet face to face you want to make sure this person is motivated and serious. They will be representing you. Make sure they understand the challenges you will be facing as well as the fact that you will be submitting a lot of below fmv bids.

I think this is everything. Or rather the basis. I hope this helps. For more indebth look I would suggest either buying the profit now book or getting it from the library if you can't wait for it to be shipped.

Hope this helps
All the blessings,
Ericka

thxz guys. Bird Dogging? That's me looking up info for them right? I will try that. I read DEANS latest book and that is why I am trying REI! lol, it is very motivating specially the stories. At first i really didnt believe them but why wouldnt they be true, pplz get rich off real estate all the time. I will try the REI clubs. I have few buyers they also want to do rehab work but and want me to find them places, the problem? They are not willing to spend much on them, so i will not get a profit. I talked to this FSBO his trying to sale his house for $410,000, the comparables are $279,000, great neighborhood, he just remodel the house lots of land, needs landscaping thats all, I thought of trying a assignment with the owner but this would be my first time doing this and i dont know how to tell him what i want to do, should i get him to lower his price sign contract and tell him if i cant finance within 30 days i will get him a buyer? i dont know how to approach him. I am so nervous, i see a good opportunity but am afraid i will not get it low enough to get profit!! help i meet with him on wedns!!

I am new at REI also.
I am trying my hand at bird-dogging as well as assignments. I haven't made any deals yet.
I am trying to establish my list of investors first. So that you have them available when you find a motivated seller. Then my list of motivated sellers. The key is the sellers need to be motivated and willing to sell below market value!!
What I understand is that you make a below market value bid on the property so that when you assign you will make a profit. The person you are assigning it to may want to turn around and sell it after rehab costs for market value to make a profit. So, unless the investor you are assigning to can make a profit he won't want to buy it which means you will be stuck with the house.
This is what I know which is very little.
I am trying to succeed at REI also. I have read BAREM a couple of times. I ahve been on this website for hours. And I am still trying to figure it out.
I am going to start a journal so I can track my success.
Hope this helps.

Mark

One day I was driving by a neighborhood around my area and what do you know..I SAW A FSBO sign!! I was sooo excited and pumped. I wrote down the info called the owner up, found out that out of the houses in the area I found the highest price in the block. I mean this guy wants almost half a mil for his house when houses on his block were/are selling for $250,000.

He rebuild the home but that does not make it any better, I went with my bf to talk to him, man were we clueless, there was silence.... the owner was down with us but the catch? he wouldn't accept an offer below 380,000 even if it was cash!!

sooooo closee but so far.

Well, I guess you can say it was a nice 1st experience, we need to be more prepare next time. Oh and the owner seemed to be tooooooo nice to me, bf was kinda of mad because he said the owner kept looking at my assets. lol

Anyways, havent found a REI club, I put up ads on CL for other investors to partner up with me, found a guy to bird dog for but I am still not sure how am I going to get paid. Oh well, I am also working on my ads and bussines cards.

I set up a facebook,myspace and twitter page by the way I really dont see any benefit from doing this. I have received more response on CL. Tomorrow I will call the "we buy houses" people to see if i can bird dog for them. I think I found my 1st investment property but have to wait and see, any1 thinks if the house is up for sale for 17,000 that I will be able to get it for 8,000? I hope i can because thats the only thing we have.

Wish me luck.

I repeated myself on the last post but since then I have two buyers-hopefully. I talked to "we buy ugly houses"and yes I can bird dog for them or even sell one of their houses and make a profit. I put up ads around the neighborhood and supermarkets.

Idont have an agent-funding I am thinking of using Coastal Funding for back to back closings. Great way to get a foreclosure house with thier funding just need the right house and buyer. So far I am targeting buyers with bad credit/low scores I found a way to get a loan for them.

Now I am stuck should I look for the houses now or wait until I know what my buyers want?

If you end up using coastal funding, let me know how it goes...I am interested in finding out how they are from somebody who used them...

Good luck with everything too by the way...Sounds like things are going well for you, so that is good...

I think if you are targeting people with bad credit, maybe you should wait for what they are looking for, then search your butt off to find it for them...but at the same time, what they are looking for may not be available to them cause of their bad credit...It may be to expensive for them, regardless if you can get them approved for a certain amount or not...

So searching and finding properties a head of time, and then advertising that particular property with something that says, bank turned you down, we can get you approved for this house-then have a pic of it-(or something like that)That may be a good way to go about things too...

So probably didn't help to much as far as that particular question...Sorry

If you plan on doing assignments, then a buyers criteria def makes things easier(not needed though)...Cause then you look for exactly what they are looking for, lock it up at a discount, tell them about it, and if it is what they said they wanted, then you are golden.

The biggest thing is, just get out there and do it(which you are)So you are further in the game then a lot of other people

That makes sense, do you have a buyers list? How did you put it together? like I said I have posters up, I have my cell number on them since I do not have the money to set up the robotic system but I will because it is easier that way. Do you know of any good foreclosure listing site?

building a buyers list can be done by the advertising like you are doing...With posters and things like that...Posting ads on craigslist...Through REI clubs...Meeting people at the clubs, and talking and finding things out such as, if they would be willing to pay you a fee if you bird dog for them(bring them properties)I know some people sign up on myspace, or facebook and add all the investors as friends from the groups they have on their...Then they network that way...I haven't done that or anything...I personally wouldn't worry bout it to much if you don't have a lot of buyers lined up or whatever...As long as you are finding properties for discounts, there are going to be investors out there looking for the discounted properties...

As for foreclosure sites, I have only used Deans cause of a free trial...I thought it was really good, but right now, I am not focusing on those right now, so didn't keep it...At some point, I am sure I will be getting that again and using it a lot...It can def be very useful...the thing bout foreclosure sites are, they all cost money...

Myself, I would love to set up the number for the robotic system, but waiting a little bit for now...Down the road, I plan on doing that...I am using my cell phone for that right now...

I set up a facebook and myspace page to network but haven't even checked it yet.well def do send messages to facebook investors. Also I have a question on how title companies work and do i have to find one and a real estate attorney?

I don't know about title companies at all...I have only found an attorney, but I think state to state it changes...From my understanding, some states allow you to close through an attorney, and others you have to go through a title company...I could be wrong, but that is my understanding...

If facebook/myspace work out well, let me know please...Cause I will probably do that too...If it works, it will be well worth it...Especially since they are free, and tons of people have accounts

Hello All

I recently finished reading the book and ran into a situation today where a co-worker is looking to purchase a condo for 73,000. She has really good credit but is having a problem getting a loan. She currently has a Real estate agent. The property is currently bank owned..I feel I can help her by way of a Broker but don't know what the first step should be?? PLEASE HELP!

dee

hey, I dont know much myself but I think you should look up mrtgage brokers or other investors that would be willing to take out a loan for your friend.

Right now that is what I am doing, I am connected to a group of investors that take out loans for retailers. I advise for you to try to maybe get the condo for a lower price and pass it on to her. I dont know, but hey you have to try something.

I am working on the facebook network. I think you should def try it Marc. There are a lot of real estate investment groups. I am sending out messages to many. Hope I can find somebody!

I am trying to find a REA who will work with me, and make the offers but so far i am getting negatively. They keep asking if i have a license and would i pay cash and how much i have, how unrealistic, am i following a "get rich program" why do they have to be such a A@##$%$? Yes i know the market is bad but wouldnt it make sense for them to want to work with me to make some sort of money?

i am giving up on the search and doing everything myself all i need is a good real estate attorney or title company for the transactions.

Maybe you are going to have to try and sell yourself, more so than the "program" you are following...Just tell them you are trying to break into the real estate market, and right now is a perfect time...With housing numbers down, interest rates low, it is time to get in...When people are scared to do that, you aren't cause you realize the potential right now. You are just looking for somebody to help out, and if things don't work, then you guys can go your separate ways...You just want a chance for a few months to get out there, and make things happen...

Then if things go further with somebody, then you explain you have options to possibly help people in pre-foreclosure, help people get out of making payments cause there house isn't selling, you can assign properties which is one of the methods(you will probably have to explain this cause most agents don't know about it)You can also explain, any deals you find on your own, you will involve them in also, so they make money too...You may not make as much, but all the paperwork and all that will be worth it, plus if that makes them more confident, then that is great too...

Hope it all makes sense...I was rushing cause I am going to check out some houses soon...Good luck...

Ok updating my journal from, last time I posted on here.

I found a buyer with bad credit who I offered to help get a loan and a house at a low price, he was very happy and in turned hooked me up with a friend of his who has 5 acres in a very desirable suburbs in pa-the are is under development and the house has never being sold-it has being in the family for 3 generations! my buyer says he can talked them down to the price i give them but now I have to find investors or home builders who might be interested!!! land does not sell well specially now but I am trying to get hold of somebody before te sellers/buyers lose faith in me.

I really dont know much about land I mean whats ZONING????? AND HOW DO YOU FIND OUT INFO ON THE LAND,I MEAN WHAT SHOULD I KNOW ABOUT THE LAND!!!!????!!

I know I can make a very good profit in this deal, I just know it. But I need a buyer thats not going to want the land for pennies on the dollar- i know how investors work but i am hoping to get a good offer- previous land about .46 acres have sold for $136,000!!!!! AND I HAVE 5 ACRES! I know I can make money but i have to hope investors/home builders are not going to go for less than $80,000 on each acre.

side note* when advertising a property that you have under contract, how do you approach the buyers when they start to ask if you are the owner/have legal rights to sell/info on the property. Should I tell them i dont actually own it? How about when I want to do a double closing should I tell them the property is mines??? HELPPPPPP