The Journal of the Daily Adventures of Indiana-Joe

Hi Joe,

I enjoy reading all of your posts. I was wondering how you can get around an earnest deposit on an REO. We are going through financial difficulty and don't have the money for the earnest deposit. We have a couple of homes that we want to put offers in on, but don't have the EM. Any suggestions would be greatly appreciated!

Thanks for the comments. In regards to the Bank REOs, the best banks to work with you for no earnest money deposit are the small local banks that will work with you to get the REOs off their books. The larger banks are not as flexible with this. If the banks will not be flexible, the best thing might be to find a partner and do a few deals until you can build up your available cash. Then you may have enough to go forward on your own. I hope this helps. Good luck with real estate investing. Believe and Achieve! - Joe

Friday is finally here and the start of the weekend is near. Today was another cold rainy day in the midwest. It is hard to believe the differnce in the weather in one week. I drove into work this morning and have an extra zest in my step. This was a great week and I was looking forward to the weekend. I have a special project for work that I need to complete in the next few days. Therefore, I may be on-line a little less during the next few days.

After work I went to look at a probate property that I had on my radar for the past few weeks. They just made a price reduction to under $40,000. Thus, I felt it was now time to take a look at the property. I liked a few things off the bat with the property, it was under $40k and it was on a double lot.

When I got to the property I immediately noticed that the home needed a new roof, new windows and a lot of general clean-up. As soon as I walked into the home I could tell the living room floor had a slant. The kitchen and bedroom had a slant too. The home was over 100 years old, thus I wanted to look at the maiun support beam in the basement. The beam was not steel, it was a thick piece of wood. I am not an engineer but I could tell this home had some major issues. Sometimes when I look at properties they can tell me something. This property was screaming "RUN". Thus, I thanked the realtor for their time and left. It was worth my time to view this property because no matter the price this property goes to, I know that it should be removed from my radar regardless of price.

The great thing about real estate is each day you can learn something. So even though I did not want to make an offer on this property, I am glad I went to see it because I even noticed a for sale by owner home down the street. Thus, you never know where you may end up when following one lead. I hope everyone has a great weekeknd and finds a deal. Good luck with real estate investing. Believe and Achieve! - Joe

Hello,

I was leaping with joy, and weeping tears when I read about your recent REO success. I am so proud of you, and I pray many, many more blessings in your life. I know that if I need some pointers on REO's you would have not problem sharing with me. It is exciting to read just how things can come together when you set out a goal to accomplish. Again, I am sooooo moved by your successes.

God Bless You!!
Yasiah

"Faith Without Works Is DEAD!"

Thank you for the nice comments and the congratulations, we really appreciate it. Dean's books and programs are packed with so much great information and inspiration because they can literally change your lives.

If you set an action plan work the plan and keep doing the right things, good things will happen. We are so happy that we can assist other with what we have done. Several of the DG Members asked me about approachign bank about REOs. Below please find a link to a prior posting I did on 08/28/2009 about approaching a bank on their REOs. I believe this can help others.

http://www.deangraziosi.com/real-estate-forums/buying-foreclosures-reos-...

Good luck with real estate investing. We look forward to reading about others progress and future deals. You can do it! We feel blessed for what we have been able to do and all the great support of the DG Members. Believe and Achieve! - Joe

This morning I finally gave in and headed for my basement. This was a day that I had dreaded for a few weeks, but I knew it had to be done. I walked over and flipped the switch to my furnace on. It reminded me of a commercial I saw on tv about a furnace not only burning natural gas but they showed shovels of cash going into the furnace, as well. My energy provider is happy this time of year, but it is nice to have comfort and warmth in the home. It was a typical October dreary, overcast and cool day in the midwest. The type of day to relax, put on that thick heavy sweater and make a bowl of hearty chili with macaroni elbow noodles, of course!

I spent a little time on the internet this morning and checked out a few new listings on the MLS. I had to jump into my work project early and had to stay off-line to get it completed during the next few days. The project is very fun because it is not all accounting related and I am having a great time working on it. When you enjoy what you are doing it no longer can be seen as work.

I have to admit that the early part of 2009 was a very challenging beginning of the year with bills and the hope of a fresh start with a new year. Often you may be at a point in your life where you are searching for an answer or try to make it better. Let me tell you it can happen but you have to be positive and stay the course. Real estate is the answer and Dean's books and programs can get you there.

I can't tell you how excited I am about the rest of 2009 and 2010! Dean's conference call on October 1st was great. I am so excited to hear about all the new information and looking forward to the "Success Fest" that Dean talked about. Also, the upcoming information in the month of October from Dean will probably be nothing short of tremendous. The suspense always keeps me on the edge of my seat and I will wake up extra early each morning in October to check my email to see if there are any new details! I want to be like a big thick sponge and soak up all the new real estate information that I can get my hands on! I am sure October will be a terrific month to learn and keeping pushing forward to the next level.

I have noticed a lot more for sale signs in my local area and new properties coming on the market. I believe one of the hottest times of the year is coming. The time from just before Thanksgiving through February. The properties will be piling up on the market and the sellers will become more motivated during the holidays, year end and the Winter season. So be sure to get ready. I hope everyone finds a great deal this weekend. Believe and Achieve! - Joe

The sun finally appeared after about 4 days of overcast and rain. The lawn mowers were all humming this afternoon as people were outside as the temperature got back up into the mid 50's (Midwestern October Heat Wave). It is interesting to see how the days are getting shorter with sunlight. That time of year is upon us.

I was on-line this afternoon and looked at a few new listings. There is a foreclosure that has been on the market for about 6 months and I believe the bank should be reducing it soon. It does not need much work, so the bank is probably trying to stay firm on their asking price. I may offer a 50% offer this week to feel out the bank. This would be an ideal property to assign to another cash buyer.

I also checked out some other new listings on the MLS. There will probably be more new listings on Monday because most agents will not load the new listings on the weekends. I hope everyone has a great week. Good luck on those deals. Believe and achieve! - Joe

Well it was Monday and that means back to work. I drove downtown and the weather was starting to warm up a little. The sun was out early so the drive in was not too bad. Work went by rather fast today and I could not believe how close the Moon looked tonight. The sun was setting in the West and the Moon was over the Lake. As the sun was setting there was a reflective orange glow over the Moon. The orange glow Moon almost appeared as if it were the sun over the lake. The Moon was so large that it was truly a sight to be seen.

I had a nice REO on my radar for the past several months. It went contingent twice and came back on the market because of financing. The home was listed around $89k and I kept offering between $40k an $50k. I was turned down each time. Several weeks went by and boom, it hit the MLS the other day. I called the listing agent and he stated that the bank was pulling the listings from him and it would be relisted with another agent in the next few days. It is weird when a sale falls through the banks get a little angry and then relist's the property with another real estate agent. The property boomer-ranged back on the market today around $60k. Thus, I decided to offer in the low 40's. We will see what happens. It is interesting that these homes continue to come back on the market. Thus, never keep your eye off the market because you never know when that hot deal will boomerang back.

I also had a Senior Bank VP call me today about a few very large REOs they have available. These commercial REOs are probably larger than something I may tackle, but I wanted to listen to see if I could figure out an exit strategy for any of these bigger ticket REOs. I just keep on telling myself there just like the single family homes but with a few more zeros. I hope everyone has a great week and finds a few deals. Believe and Achieve! - Joe

Amazin how they keep turning down your offers and then end up selling it to you for less than your original offer lol. Scares me to know that these people are in charge of something other than a rock farm. keep up the good work Joe. And those commercial props sound like something you should atleast look at. who knows, maybe they will finance it for you 100% at a great price.

Thanks for the comments and insight. The Bank had rejected my offer today on the REO home for low 40's and counter with low to mid 50's, thus I went ahead and submitted the same low 40's offer. Hopefully they will just take it. It always helps to have a little extra cash left over for repairs and such. I have been running the numbers and doing a little research on one of these commercial properties. Thus, who knows what may work out. Good luck on your future deals. Believe and Achieve! - Joe

The weather was a little dreary and overcast this morning, it clerared up for a while but then in the evening came the "winds of change". The weather became very windy and even tonight as I type I hear the trees swaying in the wind and see the leaves blowing off the trees. For a minute I got a chill thinking about the winter and this would be the conditions of a blizard snow storm. Well, I better did the snow thrower out of the shed.

My offer on the REO home was counter and I resubmitted my offer in the low 40's. As of this evening I had not heard back yet. Time will tell, but I am patient because I have several other homes on the radar. I do not get emotional about any one property because you need to go in with your price and then walk away if the numbers do not work out.

Well, the rain is starting to storm pretty heavy now, so I better go before we lose power. Good luck with real estate investing! Continue to chase those plateaus of knowledge as you move toward your next deal! Believe and Achieve! - Joe

patience and persistence. I know as I get closer to actually submitting offers on my own properties and I will do best if I remember your mantra of patience and persistence. Things will happen when they are meant to not when I want them to... Thanks for the quick reminder : )

Suzi

Hi Joe -
You made a comment in your last entry that is so true. No one should get emotionally attached to a property and that includes, in my opinion, even if it's one you wish to live in as your own home. I've purchased several properties over the years, homes I've lived in; however, I always had the attitude that "if it's meant to be then it will be." I was always ready to walk away, and have on occasion. When I've walked away a couple of things happened. In one case, the house really was too small and in a city that didn't turn around as we had been led to believe by many was happening. We dodged what could have been just an "ok" decision. By the way, we found a MUCH better house in a fantastic area!

In another case, we put in the offer, they countered, we countered, they countered again and we walked away. We had another house we also liked and were getting ready to put an offer in on it when our RE agent called to say the owner wanted to accept our last offer. I told her we had to think about it since we now also liked the other house. We ended up buying that original house and it turned out to be a good decision so it was meant to be, but if it hadn't worked out then I wouldn't have been upset either as there are so many great houses out there.

Coming from that knowledge of strength from the beginning of a RE search feels good and, yes, even powerful. It really gives you confidence. But look who I'm talking to...I'm "preaching to the choir" on this. You of course already know this.

Just wish I had read Dean's books much sooner and I would have been able to negotiate even better deals! But the books came into my life when I was ready for them, when it was meant to be.

Anyway, love to read about your and Stacey's deals and the advice you have for all!
Nancy

It is so true that patience and persistence will pay off in the long run. As Dean often says, if you are in the game and doing all the right things, a deal will pop up sooner or later. Each day you are acquiring more real estate knowledge to better prepare yourself for your future. So be sure to celebrate your daily or weekly plateaus of success because they are getting you closer to achieving your goals each and every day. Keep up the good work and keep the faith. Believe and Achiueve! - Joe

Thanks for the comments and the additional insight. It is so true that something better usually comes along. You have to be looking ahead and not behind you. The confidence you display to a seller or realtor about a property may provide you with an advantage with a future negotiation on the deal.

So some of the keys to investing include: being persistence, patient, and not getting emotional attached to anyone property even if it will be an owner occupied residence. I often believe that if you focus on yesterday you lose sight of today and tomorrow.

Live your life today, plan for tomorrow, but only learn from yesterday. The deals are out there, they are all around! Keep looking, making offers and most importantly have fun. This is a great business and real estate investing can give you energy you didn't know you had! Good luck on all your future deals. Believe and Achieve! - Joe

Welcome, to the fantasy Fall weather in the midwest. There are leaves on the ground and many Halloween decorations through-out the neighborhood. My work day went by rather fast today and traffic was not too bad this week. They are setting up for the Chicago Marathon this weekend. It is funny how the weather is so unpredictable each year when the City of Chicago host's this event. One year they experienced record heat and another year it was record cold. Being in Chicago you never know what to expect with the weather from day to day. Hopefully the weather will be nice on Sunday because they draw people from all around over the world for this race.

Years ago, I actually went downtown to watch one of the Marathon races. Running a marathon is kind of like real estate investing because you have to have the goal of finishing the race! Thus, each day you have to take a methodical approach at running your race at your pace. Each mile marker is a plateau of your success! Do not be intimidated by the cheers or jeers of others. Run your race! The key is not how fast you run the race but if you have enough determination to finish!

I had several things I needed to get completed by week's end, and I am having a great time this week. I decided to make an offer on a REO foreclosed mini-sub division with 2 homes. The developer was foreclosed on about 2 years ago and I hope the bank might be a little motivated to move the property. I decided to throw out a low offer to feel out the bank on this one. I also included a few contingencies in my offer, in the event I run into any problems during my due diligence period.

Today, I was countered again on my offer for the REO that I offered the low 40's on yesterday, they still want mid 50's so the home is going back on my radar. I may make another pass (offer) next week if the property is still on the market. My real estate agent called me to inform me about an REO I liked but it was over $100k. My agent knows I may like the REO better now because they lowered the price to around $90k. I will need to look at this one tomorrow before or after work and probably submit a low (but very reasonable) offer on Friday.

Wow...it will finally be the weekend. Hurray! So, let's get busy with our real estate action plans. Good luck finding that next deal. Don't ever look back, don't ever quit, and let's run this race to finish what we started! Believe and Achieve! - Joe

Rain, rain go away come back another day. The rain has been falling for the past few days. It seems like Fall is here and we can officially put away the outdoor patio furniture. It is alway a great feeling taking it out of the shed, but I often struggle to find room to get it back into the shed in the Fall.

This week has flown by and I have had a lot of fun working on some projects and potential deals. I have more offers pending as it becomes a numbers game. Remember to always offer low because you can always go up from there. When making an offer on an REO or foreclosure, I always start low to try to give the bank or seller an expectation of what they may expect to get for the property.

Sometimes other buyers may come in with a higher offer and set an unrealistic high expectation of a selling price to the seller. Then this buyer may not qualify for financing. Then the seller hopes to get this high price, usually to only sit on the property for several more months until they get motivated and give in and sell it for a better price. Thus, we discover patience and persistence again, when making our offers.

I hope everyone has a great weekend and finds some great deals. Be sure to work those action plans and continue to explore those new local areas in search of the next potential deal or opportunity! Believe and Achieve! - Joe

Joe,

I love reading your posts because you always are so generous with your teaching. What I've taken away recently from you is "patience." That has really resonated with me this week.

Thank you!

Nancy

Thanks for the comments. I am glad you find the information helpful. The more the DG members share information, the more we will continue to grow as a community. I am thrilled to read about people's progress, insight and deals. The more we learn, the more we can share. Keep up the good work and enjoy the Fall season. As we know snow flurries are in the forecast already! Can you believe it? Believe and Achieve! - Joe

FRIDAY...........Let's hear it for the weekend! This has been a great week and I can say it will be a great weekend. First of all, it will be a long weekend because I am fortunate enough to have off Monday for Columbus Day. I wanted to start the weekend off right so we went out for dinner. We went to a Texas style steakhouse. You would never know the economy was soft because the wait was more than a half hour long. Their food is great and it is a fun place to eat. They have homemade rolls and all the peanuts you can eat!

Today was a great day for me and I am so thrilled with the weeks ahead. I am having such a good time with real estate and everyday there are more and more great things and homes coming onto the market. The opportunities look bright and it is such a great feeling.

I went to look at the 3 bedroom foreclosure my agent called me about the other day. This one was lowered to around $90k but the property taxes are high and scaring off would be buyers. The home is probably worth between $115,000 and $120,000, but it has been on the market for more than 100 days. I went to look at this foreclosure and was pleasantly surprised.

It had a new roof, an updated kitchen, and an updated bathroom. Updated kitchens and baths can save you a lot of time and effort as well as thousands of dollars in rehab costs. The carpet was in great shape and only needed a cleaning. This is the type of foreclosure that you change the locks and put the "For Rent sign" in the ground within the same hour after closing the deal!

The other features that tenants in our area like is as follows: basement, fenced yard, central air and a 2 car garage. This home would probably rent for $950 to $1,000 per month. Thus, I put in an offer in the mid $40's. My real estate agent said great, "let's go ahead and submit it". It was pretty painless and easy. The hard part is waiting for the acceptance or counter. I hope the Bank Asset Manager needs to clear a home or two off their plate and they start with my offer. You never know a bank's motivation and it can change on a daily basis.

This weekend, I am going to look at the 100 unit complex again. It keeps calling me back to try to figure out a creative offer. Plus, it is next to a farmer's market stand that had some great pumpkins the last time I drove by. I can pick up a few pumpkins and maybe another deal. I hope everyone has a terrific weekend and be sure to have some fun with all the fall festivals and activities. Believe and Achieve! - Joe

The winds of change has swept in this weekend. The weather was brisk and even was cold as evening approached. At least the sun had finally came out of the clouds. Many of the neighbors were mowing their lawns this morning. I thought about it, but figured it could wait another day to dry out a little more. I have a few items to put away in the shed for the winter season.

I spent some time on the MLS this moring and then later went out for a nice afternoon ride. I located a few for sale by owner properties that I will call on but otherwise it was a quiet day. The local firehouse had an open house today and it was very nice to see the firefighters, all the equipment and the trucks. All the kids really enjoyed going through the firetrucks. I often think about the firefighters being some of the real heros that risk their life to often save others.

This evening I will spend some time on the DG website and look through the real estate listings. I always like to see what has come on the market in my target areas, what went contingent and what sold. I hope everyone is having a great weekend. Believe and Achieve! - Joe

Hi, Joe,

It will be interesting to see how eager the bank is getting with this property. In this sort of deal, the terms they may be willing to offer you might be more important to you than the price, which is important to the bank.

You're doing all the right things and inspiring others with your journal.

cactusbob

Thanks for the comments and the additional insight. You bring up a very good point here and one that we should always remember as investors. With any deal the terms and conditions of the sale could be more important than the price we pay to the seller. If you pay the seller's price and they will provide a great interest rate or great terms, it could make the deal! Thus, creating a win-win deal for everyone invloved is always the best deal. Thanks again for the insight. Good luck on all your real estate deals. Believe and Achieve! - Joe

"I often believe that if you focus on yesterday you lose sight of today and tomorrow." Joe you truly provided words of wisdom. As always your post focuses on what actions could accomplish, and always give us the extra push we all need in this business. In reading your post, you actions show your fearless nature in this business. It is either the banks accept or reject, and if they reject, well another one is coming their way. It is always a learning experience reading your post. Thanks for sharing with us. God Bless.

Sandra

I enjoy reading your experiences with your deals. Keep up the good work

Thanks for the additional insight and comments. Unfortunately, in life people sometimes get stuck like my old Pontiac Lemans in snow. Some people are often harder on themsleves than anyone else would be. At times, these people may feel a sense of failure and they replay the bad time or failure they may have experienced over and over. They never give them enough time to see that success can be possible because they are stuck in the past. Unlike the DG Members on the website, we know that success is within our control because each day we are learning more and gaining that overall knowledge in real estate. Continued success as we all move forward on this journey. Believe and Achieve! - Joe

Thank you for the nice comments I appreciate it. I hope others are celebrating their plateaus of success as each day we take one step closer to our goals. Good luck with real estate investing. Believe and Achieve! - Joe

Sunday! Sunday! Sunday!....well today was probably the coldest morning we had in some time. I went out to get the Sunday paper and ran in to get gloves. It was only in the high 20's but it was a shocker. I know come January the 20's will feel good because sometimes it can be below zero with wind chills in the -30's. As the day went on it did warm up, but I thought about the runners in the Chicago Marathon, it had to be a little brisk by the lake. The Bears had a bye week this week so there was not much else going on in the city with baseball being over for the Chicago teams.

I just have to share this with you. If you can picture those very small black and orange "FOR RENT" signs that are smaller than a car's license plate. You know the ones...right? I not only saw 1 of these "For Rent" signs today but 2 at different locations. You would think there may be in a window? No, they were on a paint stick and in the front lawns of the apartments for rent. I was at a stop light and tried hard but could not even make out 1 number on the sign. As a reminder, when renting or selling make sure you sign can be seen from far away. If a person is driving by and does not catch the number, they may not come back for a second pass.

I looked at a few new listings today but none of the properties warranted an offer at this point. I will spend some time looking on-line this evening at the new property listings. I hope everyone had a great weekend and don't forget to celebrate Columbus Day tomorrow. "In 1492, Columbus sailed the ocean blue!" Remember, Columbus did not listen to those naysayers, he stayed the course and followed his dream! As Columbus did so many years ago, Believe and Achieve! - Joe

Perseverance with action seals the deal everytime

Thanks for the comments. It is true that this is a winning combination as we move in search of the next real estate deal. It is important to take action hold the course and keep pushing forward. Believe and Achieve! - Joe