Kristin's RI Journal

It's meeting virtual friends like you Cathy that make it seem so personal, yet real. And we will get to meet in person in May, so see you then!

I am going Girl, and you're right there next to me!

Kristin

Don't be afraid of putting in a low offer. Would you consider buying a multi-family or possibly buying a duplex and renting out the other unit(s). There seem to be some good deals in multi-families!

Hi Kristen. I like Chris' idea because that's what I am telling people that I'm going to do. My daughter will be gone for 11 months and so it will be just me so I may just buy a duplex and rent out the other side. I didn't think about like a triplex or 4 plex but all that's a possibility. Keep up the good work. I too need to get a website started. I'm glad Chris had the link for Dean's free one. I also just found the http://www.totalviewrealestate.com website. It's a great tool. All we can do is do something a little bit; a baby step will go a long ways in the end.
Blessings and keep up the good work!
Cathy

I was trolling CraigsList and found an ad for some multi-families in a nearby city that offered seller financing. One was even listed "subject to" the existing mortgage. With the pictures and street names, I found the areas where the houses are located and both are in good neighborhoods.

I got over the fear of feeling and sounding stupid (and I am not afraid of speaking to people since I used to do customer service and was a public school teacher of high school students) and finally called the name in the ad. The man I spoke with was really easy to talk with and was the property manager for an owners properties.

Being offered are 4 different properties, available as a package at a discount, but can be sold individually too. I was mostly interested in the "subject to" property but will need to raise the funds for the deposit. This may prove to be an issue. Trying to think my options through, but if anyone has some suggestions, I am all ears.

The property manager sent me the P&L for each of these properties, but since it is in Excel and I have my new Mac, I have to go to the library tomorrow to print it out and see how they are performing, The one I am interested in is fully rented and 2 out of the 3 units have long-term tenants in place.

Kristin

Kristen,

There are lots of different options, but one way to get the deposit is borrow money from your 401K, most of the time you can take a loan, and the rates are cheap. It all depends on what you want to do with the property. You could also assign the deal to someone else, or do a sandwich lease option.

Also Kristin maybe you could ask the seller to finance the down payment and have 2 seperate loans; there are banks out there that will still allow this. I don't know; just keep at it; you're definitely on the right track.
Cathy

After reading some posts, I have gotten another idea or two on how to proceed with this multi-family deal.

First, I will check out the spreadsheet with the P&L to see how much income is coming in for each property.

Second, I will send the details to the hard money lender I have cultivated a relationship with and see what his numbers may come back at.

Third, I will visit some local bankers to see if I can get a loan for the required deposit which is just about 15% of the asking price of the property.

Lastly, I will speak with my father and another friend to see if I can get a personal loan for the amount required, which is listed at $29,900. And I will speak with the seller to see if that is a hard and fast number, or if there is any leeway in it.

Moving forward and tearing down that darn brick wall one brick at a time!

Kristin

Way to Go Kristin. You are tearing down those bricks. Those are great ideas. Can't wait to hear more.
Cathy

Hi Kristin - sorry to interrupt the conversation flow. I sent you a PM about the Edge rooms - please reply.

And, I've been following your posts. Congratulations on the action so far. I'm impressed with how you approach a goal with planned action steps. Makes it more concrete and achievable when it's approached this way. Good luck with getting private money funding - much better rates than hard money lenders.

Ronnie B

I have been working through the DVD tapes from the EDGE 2009 and it has so many fantastic ideas! I just absolutely cannot wait for this year's event in about a month from now. I have worked in an extra day or so to enjoy Arizona since I have never been there, but if I like it, then will definitely return soon with money from my profits.

I will be speaking with the man offering the multi-families today and will be checking on the down payment amount and if that is at all negotiable. I also have questions on the P&L he sent and need a few answers to make the numbers more clear to understand.

I also found a FSBO that I have been driving by nearly every day for the past 2 years, and finally looked up the details on the town's tax assessor page. It is a trust! Perhaps an estate property that is being rented out, so very excited to call on that today as well.

Watching several of the students talk at the EDGE event has given me a new insight on how to attack getting out there and making progress. So many people worry about if this will work (me included) but just doing it and making it work will show you the easiest success. I don't think it will be easy, but just planning and looking, and reading about real estate does not make me a real estate investor. Getting my butt out there and accomplishing my goals will do that.

I have met with the MD and she will be releasing me to work, but not to my former position since I have restrictions. So my source of income will soon be drying up unless the attorney can get me millions of dollars (I can dream big!) and I may have to file for unemployment. What better incentive to move my a$$ and make my dreams happen? The proverbial back against the wall has worked for many before me and now it's my turn.

P.S. If anyone is looking for a birddog in the RI area, send me a message!

So off I go!

Kristin

I am not getting a fast enough response from the agent I had previously been working with, so I contacted one that had also responded to my CL ad several months ago. She seems to be hungry and sent me properties with the specific criteria I requested within 1 day. Now she is running some comps for me on several SF I am interested in, and sent me a bunch of multis too. A few of those look like deals too!

I may try to get into one of the properties this weekend to view it and to meet her in person.

Kristin

P.S. No progress yet on the tasks from the other day, but I'm working on it!

At least your having luck with Agents. The ones I've talked to are like the ones Dean talks about. They say "Oh no you can't do that". I've talk to about 6 so far. I did talk to one that may have some potential he seems willing to think outside the box and is at least persistent. He called me several times after I logged into his website lookinng for a house for myself. I told him that I was just starting out in REI but I would be looking for a Real Estate Agent. I didn't get into what I wanted in an agent but I am going to keep him in mind.

Haven't heard from you so I hope that means you're doing well and you're too busy to chat.

Jean

Just give me a call. Sometimes I get so wrapped up in what I am doing that I lose focus on real estate and friends. I need prodding every once in a while!

The agent didn't get the comps over to me when she said she would, so I sent a very nice email. I am so glad I have excellent manners and didn't complain about her not getting back to me. She ended up in the hospital delivering her baby girl a wee bit early and totally unexpected. I would have felt like a total jerk if I hadn't been professional in my emails to her. She said she would be ready to show me properties by Wednesday, but I told her if she wanted someone else to do it this week that was fine with me.

I haven't told her what I exactly plan on doing, but she did initially respond to my ad on CL asking for a realtor willing to work with investors and able to submit low offers on many properties, like the one in the books. Once I meet her I will go into more details about what I am trying to get done.

Kristen:

You can run you own comps, be sure to check out Dean's tool:

http://www.totalviewrealestate.com/

It will give you a list of recent sales, find the most recent sales (within the last 3 months) and average the square foot prices of all of those (drop the lowest & highest values first). Figure out the square foot cost of the property that you are looking at an compare it to the average that you came up with. If the property is above the average, pass on it, if it below that average go after that one!

Duh! Talk about needing prodding. I even have it saved as a Bookmark. Going there now. Thanks!

Kristin

Hi Kristin. My turn to be cheerleader.
You Go Girl!
Cathy

I had sent the mortgage broker I met with an email asking some basic questions about minimum criteria for qualifying for a loan to use with my tenant-buyers. He insisted I actually come in for a meeting and I did so yesterday afternoon. What a waste of my time!

I did get the basics, which I practically had all the info for anyway, but he basically told me I had to follow what he did and get my own first property, perhaps with someone else as a co-signer, and then branch off from there in a few years. He will be sorry he wasn't thinking creatively when I have more than 30-40 properties sold within those few years!

I am not him and do not want to follow his path to owning properties. He also shot down lease-options and seller financing, and "subject to" properties as too complicated to do. Maybe for him, but not me.

But instead of putting a damper on my spirits he actually prodded me along to prove him wrong. He is a nice man, and if I want a traditional mortgage I will certainly contact him, but for now he is not my guy. Next!

Kristin

Was this a bank or a mortgage broker? Usually mortgage brokers will have more options available and should be more creative!

How was the meeting last night?

Well sometimes it's nice to meet a mortgage broker or other such person for the reason you said; to make us prove 'them' wrong. It reminded me of Matt Larson when he first contacted the landlord of his apartment and was told there are no good deals out there. It didn't stop Matt and it sounds like you got the right attitude to move on and look for someone elso. WAy to go. And keep up the good work. We are all in this together. I thank you from the bottom of my heart for your sweet posts on my journal. I can't wait to meet you at the Edge and Chris too and everyone else.
You Go Girl!
Cathy

I have definitely been a slacker with my postings, but a lot has been going on.

My daughter graduated with her B.A. from New England Institute of Technology with a degree in Interior Design Technology. Time to put that girl to work! So proud of her.

My son is in a lottery for a charter school starting a 5th grade class and we find out if he makes it tomorrow night...

I received one response from the CL ads I posted looking for sellers. I do not think this deal will fly since the price is at FMV already since it has been recently renovated. But I plan on taking a picture of it and sending it along to the investors I met at the REI club. Can't hurt to discuss it with them and fine tune what they are truly looking for.

There is a duplex I have mentioned before that has been empty nearly 2 years. When I recently checked the site online for the tax assessors office there is a new name along with Bank of New York. It is listed as BNY c/o a mortgage servicing company, so I am sending a letter to them stating I wish to buy this property. The worst thing that can happen is I spent $0.44 for a stamp and they toss it in the trash. But, they may actually get back to me, so it is worth the try. Heading off to the post office in a few!

And the EDGE is nearly here!!!!!!!! Woo Hoo!

Kristin

Hello. Hopefully you will hear from them. Can't wait to meet you at the Edge event.
Blessings,
Cathy L

I was searching through the classified section of our local newspaper and narrowed the search down to foreclosure and mortgagee sales posted in the past week. Then I am going to pick out the ones that give me at least 10-14 days to reach out to the homeowner before the sale or auction. Some of these have been postponed several times, so maybe that homeowner is trying to find a solution. I will create a letter asking if they are facing difficulties (divorce, job loss, illness, bad tenants...) and looking to make a quick sale. Once again it is about an hour of my time getting the addresses and printing out and mailing the letters. Worth some time and a few stamps to try and reach out to some folks that may be desperate for help in selling right now.

I so want to have something going by the time I head out to Arizona next week. Can't wait!

Kristin

P.S. I will send a copy of the letter to anyone who wants it and will let you know if I get any responses.

Didn't see you at the REI meeting last night. You didn't miss much, I am thinking about not going to the Northeast REI, it seems to be a new sales pitch every month.

Since you have been to a few meetings and get that feeling, then maybe I won't even bother checking them out. I do enjoy the folks at RIREIG.

Kristin

My son got into the Democracy Prep Blackstone Valley School and is excited about learning for the first time in a while. This will mean long school days and plenty of hard work, but I am so proud of his opportunity to earn an excellent education and start preparing for college way ahead of the rest of the kids his age.

With that off my mind, I can once again focus on everything I need to do before heading out West to Arizona. Will be getting the addresses of properties from my classified ads together tonight and finish creating my letter to any possible sellers.

Also, the elderly gentleman with the beautiful house in Lincoln has been ill and is now wishing to sell sooner that the end of the summer. He wants to get out and head to Arizona where his daughter lives for the dryer air. Too bad he can't come with me! Will be running some comps for his property and see what I come up with. Hope to meet with him for the first time tomorrow night.

Kristin

Congrats on your son, a good school can make all the difference! Some of the people are the same at the NEREIA, but the meeting are very different!

Good luck with your house hunt.

I finally finished setting up my free website through Dean. Now I just need to get something together so I can post some pictures on there for potential buyers and sellers to look at. Have my 888 number through PATLive and will get new business cards posted before I leave for the sunny skies of Arizona. Networking is the way to go and I plan on making the most of being in the same space as so many DG Superstars, as well as us Newbies making our way into the real estate world.

The letter I sent to the mortgage servicing company should be there in NJ by tomorrow, so I really hope they will contact me, even if to say NO. At least I will know it was received. Have to try any and all options as you fidn them available.

Kristin

I just needed to get something off my chest and wondering if anyone else is experiencing this problem.

There is an REO that my parents were interested in. When we saw the property I originally called the listing agent. Left a very professional polite message, but no call back. So I called my realtor and we got in the property. But my parents move slower than molasses going uphill in January, and by the time they decided they were interested the property was under contract.

Then my mother was in the area and saw the sign back up on the lawn. Nothing in MLS but I called the agent again anyway. 3 TIMES! She never returned my call so I tried her again and must have caught her by surprise since she actually answered the phone. And she proceeded to rather rudely inform me the property was under contract. So I had to throw out to her, in a nice manner since this was for my mother (the Queen of proper behavior!) that U had called several times and she could have returned the call previously. Then I thanked her sweetly and hung up.

Why aren't these real estate companies that specialize in REOs returning calls? She isn't the first one I had issues with in my area of RI. Are they so complacent with their listings (hundreds of them) that they don't need to return calls? Or are they already tight with their own group of investors that they don't feel they need to return calls from interested parties?

I feel better now that I said my piece. Interested to know if others are having this same problem.

Off to make some phone calls to REO listing agents...Good thing I have all day!

Kristin

just finished reading your journal. sounds like you are headed in the right direction. i hear what you say about agents so i hope that i do alot better than that as a new realtor myself. it's just like with any other profession, there is good and bad. have you considered calling the agent's broker? they might be more help and you can politely let him/her know what has been going on. enjoy the EDGE. i plan on being there in 2011.

The problem is that she was the broker!!! Ha ha. But her loss will be wondering where all her potential clients are once the REO situation clears up. I was a Realtor in the past and dealing with these slackers makes me realize how good I actually was. Keep in touch with your clients and contacts and you'll be doing just fine. Best of luck with the new career and thanks for visiting my journal.

Kristin