The Journal of the Daily Adventures of Indiana-Joe

There is nothing like the start of a long weekend! Because of the Martin Luther King Day holiday, our offices are closed on Monday. So many people were trying to leave a little early on Friday to maximize their time. When you live in the Midwest there are many places to go including the Dells in Wisconsin or just getting a way to an inside water park. I reviewed all my travel options but decided to "just chill" at home for the weekend and maybe catch up on some things, go out to eat and catch a movie. The NFL playoffs were also appealing to watch as the final teams gear up for the road to the Super Bowl!

I drove my neighborhood yesterday and I have a few leads. I also made an offer on a single family home at 53% of the asking price so we will see what happens. I have about 18 different properties currently "on my radar" and I am making a new flyer. There are so many great (cost effectient) ways to advertise and usually one deal will more than pay for your entire year of advertising! That is an awesome return on investment.

I recently was helping a friend purchase an investment proeprty and the big thing that confused him was the concept of fair market value (FMV) for properties. It took a little while but he finally understood that he should base his offer on the FMV of the property not the asking price. Recently, I was traveling and the 2 passengers next to me were talking about real estate in the Chicago suburbs. The one passeneger stated that he just purchased a home for $450k that was selling for $525k less than a year ago. Passenger # 2 said ... "wow you got a great deal!" The question here is did he? Without knowing the fair market value of the homes in this area, what if the home today was only truly worth $400k? Thus, look at the history of the listing but do not believe you are getting great deals without looking at the current sales and today's values. I just want to share this principle because it is such an important aspect for your real estate investing efforts.

I hope everyone has a great weekend filled with family, fun, food and football! Make sure you do a little today to prepare you for tomorrow's deals. Wouldn't it be great if not too far in the distant future everyeday was like the weekend for you? When I speak to many retired people they often don't even know the day of the week, unlike most of us that mark the days on the calendar until the weekend! Believe and Achieve! - Joe

"Life begins at retirement". ~ Author Unknown

My broker submitted my offers but all my first offers were rejected. I asked my broker if he submitted my MAX offer price and he said no. The reason for this is because the listing agents refused to take any unreasonable offers. So basically he seems as though my broker has given up on me. Argh..........
I'm back to the drawing board. I'm trying to figure out how to determine FMV without using a real estate/broker agent. My broker told me to use SqfT x location. I asked him to explain this, but he has yet to answer or he is avoiding my question. I'm dealing with Luxury homes so there is not a lot of comparable prices for this. Would have any recommendations for this?

Thanks

A realtor by law has to presen any and all offers. Thus, if you real estate agent is hesitant on presenting another max offer, then go to another agent. Keep on trying until you find an agent that is willing to work with you. Ask around for referrals and try to go into the smaller real estate offices and talk with the agents. I bet you will find an agent that is eager for business.

When your agent talks about square footage by location they are usually indicating an average cost per quare foot. A home that is $1 million dollars that is 10,000 sq ft in size would be $100 per square foot (1,000,000 / 10,000). Yo udivide the price by the size of the home to get an average per sq foot. This is one way to help with FMV but there are many other factors.

Dean's new book, "Your Town, Your Real Estate Profits", has some great examples and goes into great detail about FMV. I am sure it will provide the insight that will help you along the way. You can also do research through the county recorders offie to view current sales. I hope this helps. Believe and Achieve! - Joe

Your last paragraph says it all.. retirement. I am working towards the day when Monday is Saturday. If you know what I mean.
As for Anne. I agree with Joe You need to find another realtor. don't let anyone tell you that you can't do something. It is only a road block.

Donna

Hi Joe and Stacy,

I am also working with REO, I had another one accepted. WOOHOO!!
I have questions for you. I love reading your blog.
I hope I am not going to ask anything that you have alredy spelled out.
You have been buying these properties, Do you fix them up, then refi and pull out money and use that to buy more? I haven't been successful at refinancing anything yet. Are you using private money at all??
Keep up the strong work.

Donna

Thanks for stopping by my journal. Please feel free to ask any questions. I want all the DG members to know, we are always happy to share our information that we have learned. So never feel hesitant to ask any question out here, even if you feel I may have answered it before. When I use to teach at the local University I always told my students "the only wrong question that you could ask is the question you are afraid to ask. Often more than one student has the same question but is afraid to ask. Learning always involves plenty of questions and finding the answers."

Our strategy is for the long term we purchase properties fixed them up and then renting them out. The key here is finding the local community banks in your area that do not require seasoning and will let you refi as much as possible. Some banks are only allowing 60% loan to value (LTV) others may offer 70-80% LTV. Thus, you want to find the bank that offers you the greatest LTV. If your area does not have these type of banks another approach would be to get an independent appraisal completed and try to locate a private lender. This will allow you to free up cash for other property acquisitions. In business it is all about cash flow and being liquid when you need to be. I hope this helps. Good Luck and continued success on all your future real estate deals. Believe and Achieve! - Joe

Hey Indi Joe are you getting this heat wave too. We have been in the upper 30s for about a week now. Nice to see roof tops again!! Helps when you're shopping for great homes!! Hope everything is going well!! Enjoy you MLK day with Stacey. Oh, watched your video, it's always nice to put a face with a name!! Talk to ya soon!!

Yes, the heat wave has arrived! It is much nicer than the Zero degrees with the negative (- 20) wind chill. I can go into stores without my heavy jacket now. That is always fun having frosted car windows from the inside of the car and driving in a really heavy thick parka coat. You are so right about the melting snow, now you can see condtions of the roofs as you access deals. I am enjoying my day off as we are heading out to the movies. Continued success on all your future deals! Believe and Achieve! - Joe

The weekend is just flying by as Sunday is upon us. I have several things that I had to do in the morning but I also had plans to watch a little of the football playoffs later in the day. It is always nice to have an extra day in the long weekend because it gives you more options. The weather has warmed up to the upper thirties as the snow has been melting and the neighbors are headed to the car wash to get their cars cleaned and the road salt off their cars.

I went for a drive through a new area and found a few FSBOs that I will call on. As I drove the area I did see a "We buy houses" sign so I wrote down the number. This could be a future buyer to add to the buyer's list. There were no open houses which kind of surprised me but in the Winter they are not held as frequently in my area.

It is important to keep on pulse on your local market and know what is on the market, how long its been on the market and what types of homes in what areas are selling. The pulse of the market will give you a better idea of making offers and understanding the current fair market values of an area.

I hope everyone has a great week ahead. Keep working your action plan each day and soon those deals will begin to appear. Good luck. Believe and Achieve! - Joe

“When it is obvious that the goals cannot be reached, don't adjust the goals, adjust the action steps.” - Confucius

It sure was nice having a day off work. I was able to get some thigns done that I needed to do. I went out for some pancakes at the Cracker Barrel old country store and restaurant. I love the open fireplace with a log fire blazing on a cold winter's morning. The pnackes were great the hardest decision were he maple syrup in those little bottles or the tasty fruit toppings!

Later in the day we did a little shopping. I stopped at a local realtor's office that I saw just opend about 3 months ago. The realtor left another broker's office and was venturing out on his own. I asked how was business and he said great. He had 7 closing lready in January and about 4 more already scheduled before month end. I spent abput 5 minutes talking to him about the lcoal market and his knowledge. I culd tell he was "a player and in the game of real estate to win!"

Later in the day I called on a few FSBOs. It was ironic because the voicemail made me even wonder if I had the right number. I thought it may be a good idea for FSBO sellers to put some info about theeir home on their voicemail. A little info could grab the attention of the caller and lead to a future sale. It is the old saying of "marketing is everything and evrything is marketing"!

I hope everyone is having a great week. Keep looking for that next deal because as the snow thaws you never know what it may uncover for you! Keep working your action plan each and every day. Don't stop dreaming and believing.... Believe and Achieve! - Joe

“Really great people make you feel that you, too, can become great.” - Mark Twain

Joe,

You mentioned about local banks. It seems that all the properties I find are/were financed with Countywide or Wells Fargo or whomever. I am going to try finding local banks or institutions that finance properties. I noticed your advice to Anne to do that. I know of only one or two that might be local enough to find the asset manager.

I really enjoyed your video and I hope to see you at the next The Edge meeting.

I appreciate your encouragements to all here on DG.

Tim

Thanks for stopping by my journal. Every area has local banks and the key is to locate the banks in your area or near your area. Anothe great resource could be credit unions, they are plentiful in your area as well. The great thing about central Florida is you are near so many different price point markets that are only a few hours a part.

Remember, you are not looking for the huge banks as you mentioned or even the large banks in Florida like Sun Trust or Regions, you are looking for the smaller community banks. They are there just keep searching in more areas. Good luck and keep us posted. Believe and Achieve! - Joe

The weather is still rather pleasant as the temps were in the mid to high 30's. The ice and snow on Lake Michigan is starting to thaw and there were waves of water that began to touch the shore again. It is amazing to see how quickly the weather can change and the effect it has on wild life and even people of the area. The joggers were back on the trails along the lake as many probably have the vision of "Spring fever".

I had a busy day of meetings at work and had an opportunity to get out for lunch. I had a nice time as I walked to a local restaurant that has a nice variety of dishes. As I looked around the restaurant I saw many workers that were enjoying lunch but still had the stress on the economy or the daily grind on thier faces. This is a total different look than when you are out of town and people appear genuinely happy and stress free. Stress can be a harmful thing that holds you back or even down. The key is don't let it, focus on the positive because tomorrow is a new day with new opportunities.

I continue to actively look on the MLS and make offers. I know if I went up a little more on offers, I would have more deals than I could handle but would also require more cash than currently available. Thus, I am focusing on more no money down deals or as Dean would say "killer deals" rather than just great deals. Each day is a new opportunity so carpe diem (seize the day).

I hope everyone is having a good week and moving forward with their real estate education and progress. The deals are there, the opportunities are plentiful, just keep on doing all the right things and it will happen! You can do it, so as so many have done it before you! Believe and Achieve! - Joe

"Carpe diem! Rejoice while you are alive; enjoy the day; live life to the fullest; make the most of what you have. It is later than you think.” ~ Horace

The day started off in the upper 30's but the temperatures dropped through-out the day. The work day went by rather quickly, however on the way home the light rain turned into a heavy sleet. The roads were icy and I knew that the morning would probably bring an adventure to driving into the city.

I checked out the new listings on-line and had a few rejections and counter offers in my in-box. I read several more interesting articles on real estate on-line and decided to go through some additional listings in the lastest real estate magazine from the grocery store. I always look at all the "free" books because you never know what you may find.

I have some properties to look at over the weekend. With the Winter season, I usually try to plan ahead. With bad weather plans can sometimes change so it is always a good idea to have a "Plan B". In any event if the weather is bad this weekend I am sure the football playoffs.

I hope everyone is having a great week as we look forward to those sunny Spring days that are hopefully not too far off. Vroommmmming.... Ah, the sweet sound of the lawn mower! Believe and Achieve! - Joe

“To laugh often and much; to win the respect of intelligent people and the affection of children...to leave the world a better place...to know even one life has breathed easier because you have lived. This is to have succeeded.” ~ Ralph Waldo Emerson

Hope you had a safe journey to the City Joe, I hate that black ice.
counter offers are good, I would look at that as progress and the rejections,well you have the formula, just sit on them for a while and re-bid later down the road.
I actually get caught up in the moment when I read your daily journal the way you describe lol, I start picturing the scenary the way you describe it. Maybe you should write a book,your words are captivating
good luck
Richie.

Thanks for stopping by my journal. You are right that snow is bad enough without the ice you can't even see. Just as in life, at times, it is the unexpected or the things that you don't see that can cause you the most grief!

When your on the highway and one car sldies and does a 360 it screams pinball pile-up. Thankfully, everyone was driving slow with caution today. I often think of counter offers as not a "no" to my original offer but a "no" today. I often believe that a seller's motivation can change on a daily basis. I am glad my journal is visual, often I feel I see some things that I often want to share with others. I enjoy writing because I often have a lot to say. I am glad to hear that others enjoy reading my journal because I believe I have found a second calling as a writer/author! Have a great evening. Believe and Achieve! - Joe

........The day started out at warp speed as I had to get up around 4:00 AM to head to another location for my employer. We were having a Board Meeting aruund 7:00 AM so I had to get downtown and they catch the CTA train to go out West. As I waited on the cold dark CTA platform I could hear the rustle and screaching of steel wheels on the rails as I saw the train rounding the bend as it pulled into the station. I made good time because traffic was almost non-existent at this time of the morning. I usually only get up this early when I have to go the the airport to catch a flight to go out of town. Some how it is always more fun when you know you are going out of town.

The work day went by rather quickly with meetings and issues through-out the day. I was going to leave work a little early to beat the rush but I ended up staying until a little after 5:00 PM. The drive home was not bad, as I wanted to get home to make a call to some friends. I made it home by 7:00 PM and talked with some friends. It is always nice to speak to others and share your day. I really enjoy the time when I get home because it is time with the family and time to devote to learn and pursue real estate.

Sellers may become more anxious at certain times of the year. The Winter season is good because of lack of foot traffic, however around the time when property taxes are due or income taxes are due (April 15th) could be another time of year where sellers get a little more motivated. The key here is try to understand the seller's motivation if you can and find a win-win deal that works for all parties.

Good luck in finding that next real estate deal! Are you working your action plan? What have you done today, this week or this month? You can make it happen by taking action! Make an effort, make some offers and then make some money and memories! Believe and Achieve! - Joe

"Leadership: The art of getting someone else to do something you want done because he wants to do it." ~ Dwight D. Eisenhower

Can you feel it? Friday is in the air amd the weekend is near. It is always a great time when it is Friday and a Double Bonus when its Friday and payday. There is nothing like that 5 o'clock, the weekend has started feeling. I think of Fred Flintstone hearing the whistle as he jumps out and slides out of the job in pursuit of the weekend!

I have some things to do this weekend such as get the oil changed in the car and some general shopping to do. I always keep a look out for real estate deals or eBay items while I am driving or shopping. It is fun when you discover something new you may have missed before. So be sure to take the road less travelled this weekend!

I will make a few more calls on properties and Iam also workign on a project I really enjoy for work. When its fun it does not seem like work. I will probably go the movie this weekend and have to get the big popcorn with the family. The lcoal theaters offer free refills on soda and popcorn and thi is something that we take advantage of. I believe the last time we went to the movies for tickets and popcorn, it was more than $50. I often wonder what happend to the weekend $2 matinee?

Have a great Aloha Friday and make sure you find rest this weekend. Try to work the action plan in search of that next deal because hard work should yield some results. You can do it! Believe and Achieve! - Joe

"There are no secrets to success. It is the result of preparation, hard work, and learning from failure.” ~ Colin Powell

Joe,

I am glad you mentioned the motivation for sellers because of real estate taxes and income taxes. I am hoping that will give me an edge this year to find some good deals.

Tim

Thanks for stopping by my journal. When looking for deals always consider anything that can add to a sellers motivation. To take this a step further, here is a

GOLDEN TIP for all:

Most counties have tax sales to pay back taxes on properties. The counties want to collect back taxes and get the property back on the tax roll. Thus, if you cross reference any properties for sale that will be coming up for tax sale, this should scream "motivated seller". The seller is still liable for back taxes when you purchase the property so they may be very motivated to take a lower offer to pay the taxes and put at least some cash in their pocket. If not they potentially risk losing the property during the tax sale or during the holding period. I hope this helps. If you like this tip or find it interesting or useful, please let me know. Believe and Achieve! - Joe

The weekend was finally here and it took me a little while to get going on Saturday morning. I felt a little under th weather and I have to admit that those 12 hour cough medicines really don't last 12 hours. I made the most of my morning and headed out in the afternoon. As we drvoe through a few new areas, I got some fliers at the "take one" boxes.

Later in the day I headed over to McDonald's for a quarter pounder burger and some fries. I like to change it up for lunch as I usually like Subway a few days of the week. It takes me back to my chilhood when McDonald's was the hot place in town. I remember the day the McDonald's opened because people were lined out the door and down the street. The only other fast food we had in town, at that time, was White Castle Hamburgers which I still enjoy today. For those of you familiar with the White Castle "sliders" there just as tasty today!

I read several real estate articles online as I always like to read new things and keep up to date on the latest news. I am trying to start a little project and I want to see the results I get. I will share the results after i gather more data over the next several weeks. It is always fun to try new things to see what works.

I hope everyone is enjoying there weekend. Remmeber there are only 52 weekends per year, so make the most out of each and every one. The dy is still early what are you going to do today to make a difference for tomorrow? Believe and Achieve! - Joe

"Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning." ~ Albert Einstein

Handy link here Joe.

You can find the "Troubled Asset ratio" of any bank you want to find. Check it out. It gives you an idea of the % that banks REO's on the books.

http://banktracker.msnbc.msn.com/banks/

Joe, if I were to purchase a REO with cash or my HELOC if it gets approved, I just re-fi it right after closing if I can find a bank with no seasoning requirements? Right? Or, I could double close to another investor. Right? I'm getting close and now questioning myself.

Can you show it while it's waiting for close to potential renters? REO?

Got some good nuggets catching up tonight on your blog. Thanks Joe.. Love it..

Blessings,
Barbara

Thanks Joe for sharing the additional details about the ins and outs of real estate. Information sharing is always a plus. God Bless.

Sandra

Thanks for visiting my daily journal and the article about trouble asset ratio of banks. The more information and knowledge we gain, the better we are prepared as investors.

You are right on about the use of your HELOC. You may be in a strong position to make low cash offers on proeprties that you can close quickly with the use of your HELOC. Then you can find a local community bank that may offer you a 60% or 70% LTV mortgage based on the appraised value of a property with no seasoning. You can also do a double close if you prefer. When you have some available cash it open up more options for you. I would find the banks in your area that don't require seasoning and then you know your options prior to making offers.

Based on the condition of the REO you may be able to show it to potential renters. Just request this as part of your offer and culitvate a relationship with the bank asset manager. They can usually be flexible if they want to be. Good luck. Believe and Achieve! - Joe

Thanks for stopping by my journal. I hope all is well and I wish you continued success on your real estate journey. Each day can be a new opportunity to learn, gain more knowledge and pursue that next deal. I am glad we can all share information and inspire other DG Members. Believe and Achieve! - Joe

The day was overcast but actually reached 40 degrees. Most of the snbow that was on the ground had melted and the ground was rather soggy. We are forecasted to get more snow toward the end of the week with temperatures back in the 20's. I can't wait to get through January because winter will be more than half over.

I had to do some errands in the morning and later in the day we decided to take it easy and relax. We watched the NFL playoffs and decided to just have a day to recharge. Later in the day I spent some time on the DG website and I looked through the classified ads on Craigslist and the local newspapers.

Remember to check out the MLS listings on Monday afternoon. The new listing from the weekend usually get entered on Monday. Thus, you will be able to have an opportunity to be first to check out the newest potential deals.

I hope everyone had a great weekend as we start the new week ahead. Good luck with real estate investing. Believe and Achieve! - Joe

"Life's real failure is when you do not realize how close you were to success when you gave up.” ~ Author unknown

It's another Monday as the work week has began. I woke up to blowing snow flurries and a frosted car windshield. The temperature had dropped about 20 degrees from the day before and this was just a friendly reminder that our old friend winter has yet to leave the area. I had to dig out my hat and gloves becuase when temperatures begin to dip, you need all the necessities to face the elements.

Just as with investing try to have all the necessities you need whether it is a notebook to organize your own system for finding and tracking those new leads. Your own system will lead to your own niche. Your own niche may lead to greater profits. The more you work to perfect your own system the greater the chances are for your success.

I also believe networking and sharing ideas will help you get to know the "pulse of an area" and the changes that could be occurring. Sometimes you make the extra profit when you see things others do not or you see them prior to the rest of investors in the local area. The key here is network, ask the right questions and be a good listener. You always learn more by listening.

The time is now to take action and make things happen. Be the one to take action rather than following others that are the reaction. Decisions that you make will move you forward as you learn and gain more knowledge. Its a commitment to continue to pursue that goal no matter how many challenges or obstacles you may face along the journey. Good luck finding that next real estate deal. Believe and Achieve! - Joe

“Desire is the key to motivation, but it's determination and commitment to an unrelenting pursuit of your goal - a commitment to excellence - that will enable you to attain the success you seek.” ~ Mario Andretti

I used to live in western New York for many years. I remember the frosted windshields etc. I used to take two pans of hot tap water to clear the windshield and maybe the driver's door. I also used to shovel the driveway at 10 degrees wearing only jeans and my work shoes. That way I didn't get drenched in perspiration. Since I have been in Winter Haven for 11 years now, I really appreciate good weather and when it gets down to 70 or so it is a little chilly.

Tim

Joe wrote:
Most counties have tax sales to pay back taxes on properties. The counties want to collect back taxes and get the property back on the tax roll. Thus, if you cross reference any properties for sale that will be coming up for tax sale, this should scream "motivated seller". The seller is still liable for back taxes when you purchase the property so they may be very motivated to take a lower offer to pay the taxes and put at least some cash in their pocket. If not they potentially risk losing the property during the tax sale or during the holding period. I hope this helps. If you like this tip or find it interesting or useful, please let me know.

Joe,

This is a really good tip. I fully intend to check this out. Thank you so very much for the tip. The list I have is hard to work with since it only has case numbers. It takes nearly 15 minutes to traverse through the websites to nail down who the owner is and the address of the property. Then trying to find a phone number to call. If all else fails I drive to the property to check it out and try to contact the owner. Thank you again for your good tip.

Tim

Thanks for stopping by the daily journal. I know I would not miss those cold wintery days and hopefully one day I can enjoy the sunshine of a warmer climate. I am glad you found the tax tip useful. Sometimes I believe we can try to work real estate as hard as we can and then one day we will find that one item that really opens up the opportunities. If you are in the game and keep trying, good things are bound to happen. Please keep us posted if you locate any gem of a deal from the tax roles. Believe and Achieve! - Joe