The Journal of the Daily Adventures of Indiana-Joe

Thanks for stopping by my journal and its great to see you back on-line. This is a great time of year to be inside on the computer with a nice mug of hot chocolate. The snow is here and I hope it won't be a bad winter. Sounds like you got enough snow to last until the holidays. In our area they put the bright orange mini poles on the hydrants so the snowplows don't hit them. Keep up the good work. Believe and Achieve! - Joe

It was another day of some snow with very high winds (30-40 MPH) and a really cold chill in the air. The artic blast of almost sub-zero temperatures is barreling in like the "Polar Express". This is the tiem of year to get that extra coat and blanket in the car and some extra weight such as sand bags for your floor or trunk. This extra weight uysually provides more traction in snow and helps if you encounter some ice. I also know this is the time of year that I can't open my passenger door because it will freeze open. I have done this and not thought about it until it was too late. I now carry a hair dryer and extension cord in my trunk in case this happens to another door. My car is older but still runs like a champ.

I called on a few new listings I saw, I was able to get more information but none of them jumped out to me as a great deal. I also put up a few "we buy houses" bandit type of signs in a few local stores. I did get a call within 2 days after putting up one of those signs. The sellers situation would not work out, but it did show me that people were seeing my signs. Therefore, it was a reminder to also advertise and pass out business cards as much as you can.

A tip may be to create a master file for copies of all your ads. If you make a hand written bandit sign flyer and use say a black sharpie marker, you can create an original and then photocopy as many as you need. Chances are these flyers will all appear as hand written flyers when you post them around places in town. Also, notice what types of ads your competition may be posting in your area as well. Do they post ads in stores, signs on telephones poles or signs in the grass near the malls? IUt is always a good idea to see where the competition may be advertisignbecause thsi could be another area of town to explore.

I hope everyone is having a great week and just think the weekend is almost here. It will be the perfect time to look at more deals and make more offers. Each day is a new day and a new opportunity to move closer to where you want to be! Believe and Achieve! - Joe

Is it good to go during the weekend to talk to an asset manager? Or should this be done during the week? I'm having a hard time finding a real estate agent that is willing to help me, so I'm saying forget them.

Thanks

The best time to reach the Asset Managers is during normal banking hours (Monday-Friday). Try to contact them early in the morning because this tends to be the best time to reach them. The normal lunch hour 12 Noon until 2:00 PM can be tough and most people do not want to talk toward the end of the day. I believe a phone call is the best way to start the contact and cultivation of the networking process. It also saves time from driving bank to bank. Always ask for their email so you can thank them for their time and stay in future contact with them. Good luck with REOs. Believe and Achieve! - Joe

COLD!.....COLD!.....I mean really cold! Wow, I got up this morning and could not believe how cold it was. I opened my storm door and the glass immediately became frosted as the cold air took my breath away. I felt like my nose was frozen and ready to fall off my face! I ran to the car got into this icebox and turned the key. Urrrr..urrrr....verrrrooooommmmm. It started! That's Sear's Diehard Gold battery's cold cranking amps in action! I could not believe the one day drop in temperarture. I turned on the radio and they said it is - 2 (yes, negative 2) with a wind chill at O'hare airport measured at - 22 below zero. Now that's cold! If you are reading this and live in a warm climate like Arizona, California, Florida or better yet Hawaii, please bottle up some of that warm air and send it to the Midwest! (Mahalo!)

As I drove into the city, Lake Michigan was steaming. It was pretty cool to see that the water was so much warmer than the air that a tremendous amount of steam was just pouring off the lake. It was cool to see especially with some snow on the ground and Christmas music playing. The sights can be some of the benefits as I drive into the city. I had to laugh though, because there is an entreprenuer that sells bags of fruit on a busy corner. Today, he had his brand new Chrysler 300 parked as he unloaded his fruit boxes. I guess there is good money in selling fruit bags.

After work, I stopped at Menard's which is similar to a Home Depot or a Lowe's in the midwest. I grabbed a flatbed cart from the parking lot and headed in the back of the store for the bags of ice melt. When it gets cold this ice melt sells quicker than bottles of water at Walt Disney World on a 100 degree central Florida humid day! There were people loading their shopping carts, as I grabbed two 50 pound bags at a time. I had about 10 bags on my cart which should last the winter. This ice melt is also great for having extra weight in the car for the winter. When I got home, I unloaded the bags and then spent some time on the DG site, MLS and did some other general follow-up for my real estate activities.

The weekend will be my time to put my action plan in high gear, as I will drive the neighborhood and look at a few prospective deals. I hope everyone is having fun and finding that potential lead to the next deal. If you live in the midwest, bundle up, put on those boots and start trekking out there, because the deals are waiting for you! Nothing will warm you up more than finding and locking a great winter deal to provide some "cold" cash! Believe and Achieve! - Joe

but do you have any suggested websites or anything other than the Bank to obtain REO listings, oh... and real estate agents? I'm definitely going to go to the bank, but I just want more outlets to look at.

Thanks again for all your help. I greatly appreciate it.

Anne

I do not want to brag, but we are enjoying somewhat of good weather in New York surprisingly known for it's snow. Maybe you might want to visit and enjoy a New York Christmas. I dislike snow and do not look forward to seeing a sizzle of it. I pray that the weather will lighten up to make your commute much easier. God Bless.

Sandra

The best advice would be to call all local small community banks in your area and cast your net out farther and farther. Talk to the asset amanagers and see what might be available with REOs. They can tell you what they currently have but they also have knowledge of what might be coming. So I have had an Asset Manager tell me in the past to call back in 6 weeks because they were taking back 3 proeprties an would have all the information then. So a key would be to make contact but work on developing the reltionships as well.

You also may want to go to some open hosues to meet real estate agents or call various agents to look at a property. The key here is you are looking at the proeprty with an agent but also trying to interview the agent to see if you can work with them going forward. Good luck and keep moving forward. Believe and Achieve! - Joe

Glad to hear your having such nice weather in New York. A trip to a warmer place sounds like a good plan to me. Keep looking for those hot deals and that will usually warm up any cold winter. Summer is only 6 months away! Believe and Achieve! - Joe

The weather was cold today but at least it warm up a little from the negative wind chills. The drive into the city was not too bad as some of the commuters were probably taking off for a long 3 day weekend. My car is dark blue but looked white as it was covered in road salt from the drive into the city. It is always a good idea to carry an extra bottle of windshield wash because you tend to go through t pretty quick when the roads are salty.

I contacted my real estate agent about a high end listing he had. It is a REO and the bank is holding out for top dollar on this high end home. I had made three offers about 50 to 60% of the asking price but they will not budge on their price. I figure if it is on the market in January they may warm up to a better price. Thus, I keep looking in my target area to see if anything else might be a good candidate to make an offer. As the ground is pretty frozen the real estate signs are a little harder to put into the ground. I did notice a few for sale by owner signs that wee at an angle or fell over. If you are putting a sign into the frozen ground, try a bottle of hot water by the legs of the sign and it should go into the ground a little easier.

On my way home I stopped at the grocery store. The grocery store in my area tends to get the free home books right before the weekend. I like looking through the books for the homes but mostly for the ads that are run by real estate professionals. I usually tear out the page with their ad and put it into a large yellow envelope for future reference. You can always use a few extra contacts. I got home and went on the computer and then it happened! The lights on modem to my DSL went out quicker than you could say shoot. I rebooted and re-plugged in everything but it was toast. My internet provider told me they would have a new modem shipped to me by Monday or Tuesday. I never realized how much I missed the internet until it was gone. It was going to be a long tough weekend.

Well, I hope everyone has a great weekend and is able to have some fun. The holidays are getting close so do not forget to go out and do some shopping to help the economy. Keep looking for that next deal because they are out there just waiting for your offer! Believe and Achieve! - Joe

Well it was almost 24 hours without the internet, but I made it through the cold night somehow! Can you believe Christmas is less than 2 weeks away? Where did the year go? As I buy some last minute gift items, I decided to take a ride to a Train Museum that had a holiday train ride and Santa Claus. The weather was cold and brisk so the heavy coat, boots and gloves were all key accommodations for the day. As we got closer to the museum we stopped off for hot chocolate at a Starbucks. The store had up some cool holiday signs. I like the one that read” if only adults could remember what it was like being a kid”.

This is so true because as kids we often believed that anything was possible and we could do anything we set our mind too. Sometimes when we get a little older our outlook and perspective can change, but the change may not be in our best interest. We have to make good decision but not be afraid to dream, try or take that leap of faith. In real estate we may not be sure of every offer, but with each offer we become more knowledgeable and confident. So take that leap of faith and believe again. You can do anything you set your mind to do!

The museum had a nice crowd and the train rides were a little fun. We were able to Santa Claus himself and let Santa know our Christmas list. It was a lot of fun as Santa listed to each and every request. I remember one of the best gifts I got when I was young was the Monopoly board game. I guess it gave me that first exposure to real estate. Isn’t it funny how certain gifts can be such a great memory even later in life? I hope everyone has a great holiday and gets everything they hop for in this special season.

The weekend is at that half time as we call Saturday to a close. Tomorrow will be fun, shopping, open houses and maybe a little football. I hope everyone is having a great weekend and has found a few more leads to that next deal! Believe and Achieve! - Joe

It is now about 48 hours without the internet and I was debating about going into work or the local Kinkos for a quick check on my email and the DG website. I realized that I was going through "internet withdrawal" and was actually looking forward to Monday. I was working on some things for work and enjoyed reading some materials of information for a project I was working on. It is always does not seem like work when you can do something you enjoy and the latest project I have is just great fun for me.

Later in the day we went for a nice Sunday drive. It felt like a heat wave because we had temps in the mid 30’s. I enjoy not having the feeling of my face freezing with my nose ready to fall off from the cold. I stopped at a few open houses and took a quick run through the home. One of the new real estate agents was chasing me through the home with the clipboard asking me to sign in. I finally did but it showed me they were pretty eager to get some new clients. I spoke to the agents about the homes and the current market and had some good conversations. A tip here is to always ask the real estate agent for some referrals to see who they can provide to you whether it is a banker, mortgage broker, contractor, etc. Everyone knows someone that may be able to help you in the business.

Later in the afternoon I stopped off at a Roadhouse style restaurant. The peanuts and the hot rolls are really tasty and the chili is delicious. I enjoyed my lunch as I headed home. I could not get on the computer to spend my usually time on the DG website or to check out some additional MLS listings. Therefore, I broke out the Sunday paper and ran through the classifieds. They were a little thin but I found a few potential properties that I called on. I always like to leave a message because some people want to get a few calls first before they call people back. I believe the sooner I leave a message the sooner I may get a call back.

I hope everyone had a great weekend and has a great week ahead. It is a new week and a fresh week to start the adventure in search of the next deal. So make sure you make the calls, drive the local target area and make some offers. Let’s try to get one deal locked up before the end of the year! Believe and Achieve! - Joe

Well, it is 72 hours and counting without my DSL internet at home. The internet provider claims I should be up and running by tomorrow night. I just can't believe how cable and internet companies operate sometimes. You are at their mercy and they hold all the cards, I guess. The weather was overcast and in the 30's today. This is a forecast for more snow later in the week. I will have to get a few things before the snow hits.

I checked out some listings on the way home. There was nothing too exciting regarding these potential properties. I still want to check out another multi-unit that was a foreclosure. I hope to get a few more offers out week. I guess it is like fishing, the more lines in the water the more chances of catching a fish. Therefore, the more offers, the better the odds.

It is close to year end so I have some additional things going on with the day job. We are about to go through a major expansion so I will be working a few more hours than normal. I am the lead for this massive project growth which will more than double the size of my department. It is fun to be part of growth cycle for an organization and satisfying to know your efforts have helped the company get to where they are today and in the future.

I hope everyone has a great week ahead. The holidays are right around the corner so this is a great time of year to spend quality time with family and friends. I bet you will feel a little more proud this year at gathering because of your vision and determination with real estate investing. Congratulations for taking those steps forward to changing your life. 2010 will be a great year and one that you look back on this time next year and be amazed at how far you have come with real estate! Believe and Achieve! - Joe

Hooray, after several days it finally arrived....my new modem for my DSL Internet connection at home. It sure feels good to be back on-line. This was worse than when my tv went out when I was 8 years old. I could not wait to get back on-line. The weather is brisk again with the night chilling the air. Tomorrow we have a forcast of 8 degress with a wind chill of - 10. (Winter is back)

Tonight I spent some time cruising the MLS listings to see what I missed in the past few days. I also spent some time on the DG website and read more great stuff. I feel like I have some catching up to do. I am looking forward to a holiday lunch party tomorrow. We are having the office party and it is a nice chance to talk with people from all our other offices. I can't believe December is almost have over, the month is just flying by.

I have some calls to make in the next few days and a few REO Managers to follow-up with. I want to wish all my contacts a Happy Holiday season and it is a good opportunity to touch base with them. Anytime you can continue to cultivate your real estate business contacts, it is a good thing. A phone call, email or even a card can be a good idea to keep in contact.

Good luck working those deals and keep the search going. A cold deal can turn hot at any day. So don't miss out! Explore every potential lead because it can lead you on a path to that next great deal. Believe and Achieve! - Joe

hi
I need info on a Lease/Purchase. Do I need to write two contracts? one for purchase, and one for lease purchase. My agent told me to do this!!Also, I need a partner to help with POFs Letter!!!!!!any suggestions?

i am submitting 4 offers today, at the same time I am advertising the sale.Any suggestions?

Thanks so much, I admire youe tenacity and vigor. Keep up the work it will pay off.!
Blessings,

Patrice

On the DG website at the left hand side under the "Student Resources" section there is a section called "forms and docs". When you click on that you will see a form that reads "lease with an option to purchase". You can use and modify this agreement. In most cases one agreement should work but inqurie to your agent why she believes you need two. If your agent brings up valid points, consult a legal attorney in your area. In regards to the POF letter, network at Real Estate Investing Clubs, build your buyer's list, talk to other professionals you may know dentist, doctors, etc. Once you have a great deal under contract the numbers should speak for themselves. In regards to selling or assigning the offer, this is where a buyer's list is handy, other post bandit signs in your area, in local stores, etc. Good luck with these potential deals. Believe and Achieve! - Joe

Traffic was light today driving into the city. Usually the last 2 weeks of the year is not as bad driving because there must be so many people that take time off of work for the holidays. I still want to take some time around lunch and take a walk down State Street and see some of the sights. It is funny how you can work some where for years but do not take advantage of the benefits of being downtown and close to many fun activities.

I went through the MLS listings today and I updated some of my tracking information for my local target market area. There are a few real estate auctions in my area that I considered attending but will have to see how my schedule plays out as they get closer. I thought about trying some "we buy houses" fliers door to door or doing a selected mailing based on some research of pre-foreclosure information. I will have to review my game plan to get the best response for the time and effort.

I have to go get more business cards made. I try to pass them out everywhere and I believe you should always have some available because you never know when that next deal is lurking around the corner. I found that if you are a little more organized and are consistent with passing out or postings your information, there will be calls and opportunities. So don't get discouraged as you continue to plant these seeds of future opportunity. Yo unever know when or where that next deal will pop up.

I hope everyone is having a great week. There are only 15 more days to tie up that deal for 2009, but 2010 will be filled with tremendous opportunity as well. So keep up the good work and let's make it a great holiday and new year. I heard that "2010 is the Year of the Real Estate Investor"! Believe and Achieve! - Joe

I finally found a real estate agent who wants to work with me, and knows double closing. I told him in the mail of my plans, and he still wants to. Whoo hoo! He also knows about double-closings. I've had bad luck finding someone. I was hoping you can quickly help me. What are some questions that I can ask him?

Congratulations on finding a real estate agent. A good real estate agent can really make the difference and is a very valuable member of your real estate investment team. Dean's book "Profit From Real Estate Right Now!" has a great chapter on working with real estate agents. (Chapter 6 pages 111-117).

Per the book, some of the key questions include (Page 113):
- Time in business
- Willingness to work with new investors
- Worked with investors in the past
- Example of the best deal they have done and how they made it easier for their
client or how their client was able to profit
- Experience working with banks on foreclosures/shorts sales/REOs
- Have they ever handled an assignment of contract deal
- Do they invest themselves
- Willing to make low offers
- Willing to send you comps and information on a regular basis

(Page 117) The real estate agent should have a pulse on the local market such as be able to tell you:
- Which pocket or areas of homes sells the fastest?
- What price range of hoems are selling the most or selling the fastest?

As you speak with agents you will probably add to the list of questions based on your own questions, things goign on in your local market area or any additional things that come up based on your conversations. Good luck working with your agent. Believe and Achieve! - Joe

The week is just flying by as Thursday is in the books. The weather was overcast and in the low 30's for most of the day. At least we have not had more of that harsh artic cold and snow that looked as though it could be a rough "December to Rememeber"! The weekend weather is suppose to be good with a chance of snow. If it snows it may be good for the holidays, so we'll see what happens.

I called on another REO multi-unit. The bank wants to have all prospective buyers turn in a "POF" letter prior to viewing so I told the listing agent I was not able to get the letter because my banker was out of town but still wanted to look at it. Thus, the real estate agent is motivated so I have an appointment schedule for Saturday. I know it needs some work but I do not know how much at this point. Saturday will definitely provide more of the story. I do believe the building has potential and is in a nice area. I am going to take plenty of notes and pictures so I can "run my numbers" with more accuracy.

This can be a key few weeks to make some offers. Most people are getting ready for the holidays so foot traffic through properties is probably down in most areas. Some people may be hoping to get an offer by the end of the year, so now could be a great time to make offers, or a lot of offers. Start low and see what happens, the worst they can say is no. I bet you may even be a little surprised if one or two get accepted. So make this a weekend to take some action.

I hope everyone has a great weekend as the holidays are fast approaching. Good luck finding that next potential deal. Keep that action plan in high gear and good things will happen. Each day you are one step clsoer to the next deal! Believe and Achieve! - Joe

It is hard to belive that Christmas Day is only one week away. Where did the time go? I know the stores and the local mall will be packed this weekend as shoppers find their "last minute treasurers". You better get an early jump on Saturday to find those last minute bargains. I have 99% of my shopping done, I just have a lot of gift wrapping to do this weekend. The weather is forecast for cold and chance of light snow, so it will feel like the holidays. I just hope we don't get too much snow, because it is nice to look at rather than shovel.

I stopped at my local grocery store on the way home and checked out the bulletin board. There were several FSBO ads listed on the community bulletin board. The free Home Books were extremely thin but I still grabbed 2 to take a look through this weekend. I will probably do some shopping this weekend by looking at properties more than sweaters. I hope to find a motivated seller running that end of year sale.

On Sunday, I am going to get the newspaper and take a quick look through the classified looking for any hidden gems. I also have to get some things done around the house as we prepare for holiday guests. It will be another fun holiday and a great time to spend with family and friends. The holidays is a time where we all gain a few pounds from all the goodies but we have a chance to lose the pounds with our new year resolutions. I often have too try a little of everyhting, because it often looks all so tasty.

I hope everyone is getting all their goodies in order as your making your lists, and checking them twice. Have a great weekend, the last weekend before Christmas, and looking forward to hearing about those delicious fruit cakes and fun filled deals! Believe and Achieve! - Joe

The weekend started of with about 2 inches of accumulated snow over night. As I looked out my window I saw neighbors shoveling to be the first to get their sidewalks clear. I even heard a few snow blowers rumbling as people had the itch to get out to clear the snow. I took the approach that I would get to it after breakfast and did not want to be as eager to get out to the great outdoors.

I was doing some things around the house during most of the day. I spent a few hours cruising the internet looking at various properties in various areas. I even seeing my market and other markets as well. I went through the "Free Home book" that I got at the grocery store on Friday. I even picked up a Waterfront Properties free book. I enjoy looking at these properties especially in the cold of Winter. I bet this is a great time to buy one of these properties.

On Sunday, I have some errands to do but I want to take a look at a multi-unit and look at a few open houses. The open houses are rather sparce today because of the holiday week. I hope to be able to get a few other things completed as I also want to drive to a new area to check-out some potential deals. It should be a busy weekend and I am looking forward to the Christmas holiday.

I hope everyone is having a great weekend and finding a few deals. Keep working the plan and good things will happen. You are learning and getting closer to a deal. To find the deal, you have to always be looking so do not give up faith, they will come. Good luck this weekend and I hope you have a Super Sunday! Believe and Achieve! - Joe

He wanted me to go after properties more than a million dollars because there isn't enough inventory of REO's. He said everything below $1M there are 20 offers out there on one property so he won't be able to do anything. I think I just go about this myself and have a Real Estate attorney review all my work. I have a day job working at a law firm. I can find someone. Arhg..... thanks for all your advice and help. I greatly appreciate it,

Anne

How did they determine the interest rate if they didn't take any financial information?

Thanks again. Sorry to keep on bothering you.

Anne

When I look at various deals, I want to try to figure out a deal that will offer me positive cash flow each month (money left over after all the expenses are paid). To do this I can calculate all the relate costs such as property taxes, insurance, etc. Then I see what amount is left over based on estimated monthly rental revenue. This allows me to kind of "back into" a figure of what is the most I can pay for a proeprty's mortgage payment (Principle and Interest) and still have a positive cash flow (with money left over each month).

What I like to do is get a 30 year fixed rate mortgage. If I offer a higher price I want a low interest rate close to the prime rate. If I get a lower sales price I can offer a higher interest rate. By putting the figures in an automated mortgage calculator program, you can see where these different ranges of amounts would provide the same monthly pament based on the numbers I hope this helps. Good luck. Believe and Achieve! - Joe

The countdown is down to 5 Days to the BIG Day! I hope everyone has there holiday shopping finished. I drove by the mall today and it is just an adventure to find a parking spot! The weather was decent with light snow flurries most of the day. I had a chance to stop for lunch at a local restaurant. They always setup a great holiday display with trains, Santa's sleigh and all the festive decorations. It is fun to be able to spend time with family and enjoy the holidays. I can't believe how fast the weekends have went in December.

There were virtually no real estate "Open Houses" in my local target market area over the weekend. I did check out Craigslist and the local newspaper for the new area FSBOs. I made a few calls and will see if anything pans out. I did take a closer look at the multi-unit building I had an interest in. However, it needed much more work than the pictures showed. Therefore, I would be interested in the building but at my price which may take the owner a month or two to get motviated to that level. Always remember time motivates a seller, so stay in contact and who knows what may happen over time.

Even though it is the holidays, I have a few busy weeks of work at the day job. Thanks to the integrity and efforts of my fiscal department we have been selected to administer a very large program for a state agency. This is a tremendous opportunity for the organization that I work for and a compliment to the efforts of my fiscal staff. We provide social services throughout various areas of the country and the need today is even greater than the funds available. The better stewards we can be of every dollar, the more people that can benefit from our services. I am happy to be part of this extraordinary team and I feel great that I played a major role in helping the organization more than double in size this year and grow nearly ten times of when I originally started and restaffed the entire finance department. As my final few weeks approach at this organization, it is gratifying to know that I will leave the organization in a much better position then when I began my employment there several years ago.

I hope everyone has a great week ahead. Be sure to keep looking for those last minute deals at the mall, down your street and through-out your neighborhood. There is a great sale going on so be ready to make some deals. Good luck locking up those potential deals! Believe and Achieve! - Joe

Are you leaving your job to do RE full time? Or just switching jobs to somethng without the commute? Merry Christmas.

Cathy

I am happy to say that I will be retiring from my day job (career in accounting) and pursuing real estate investing 100% of my time. I can not begin to tell you how thrilled I am over this as I can now pursue my passion of real estate investing. We owe a tremendous amount of thanks to Dean for what he has done in our lives. Dean's books and programs gave me an option I never thought I would ever have available. He not only gave me the confidence and the knowledge but has now given me the most valuable commodity (or the greatest gift) you could ever ask for..."Time". I will have time to do what I love (real estate) and have even more time for my family. I will now be the Dad that can go to all the school and after school events. I can't begin to explain what that means to me. I hope all the DG Members know how powerful Dean's books and programs really are. They have the treasure map in their hands, they just need to grab a shovel and dig for those deals! I will keep all the DG Members posted as I have a lot more ideas and tips to share with everyone as this adventure continues to evolve. Believe and Achieve! Merry Christmas and Happy New Year. - Joe

Congratulations on leaving your job and doing REI full time! I'm happy for you and looking forward to hearing your ideas and tips. What a fantastic way to begin 2010.

Merry Christmas and Happy New Year to you and yours.

Lea
SPR Property Solutions, LLC

Thanks for the nice comments, I appreciate it. I am looking forward to the holidays and the new year. I want to share whatever I can with tips and ideas to help others along the way. I know I have a great idea that can help others generate some extra cash. I trying to find the the extra time to gather and share the details with all the other DG Members. I believe 2010 will be the "Year of the DG Student Investor"! Believe and Achieve! Merry Christmas and Happy New Year! - Joe