Lloyd's Journal

Well, it's been a long weekend but with yesterday been a Memorial Day, everything was closed down in my neck of the woods including banks, realtor's offices and businesses, well except Walmart, lol.

However, i was able to meet with my contractor and went over to an REO house the bank called me about it last week. As i mentioned last week, the house didn't meet the criteria of what i was looking for, but i wanted to get my contractor's point of view and see if we can make any magic out of this property. I've always believe that in the mouth of two or three witnesses shall every word be established. After we looked at the house and evaluated the pros and cons, it was decided that we will pass up on this one. I think it's a cute little piece of property, but with a lot of works required to make it livable and marketable, and plus the house being out in the middle of nowhere, i feel that it will not fit my criteria of what i want to do with it, which to turn the house into a rental property.

It should be noted that i've told some of my potential renters about this property being out of the area, but most of them have indicated that they don't want to move out there for safety reasons, and some have said that they don't want to be out of their comfort zone. So having my contractor opinion means a lot to me, and having my potential renters state their opinions sealed the deal for me to move on the next one. I'll contact the bank today and let them know that i'll pass on this one, but appreciate them for calling me about this property.

I was supposed to make offers yesterday on two properties, but given the fact that everything was closed yesterday, i'll do that today. I will also decide which company will do the work on AC/Heat for another property being renovating right now.

By the way Laura, i would love to post some photos of the property being renovating, but my lack of computer skills has prevented me from doing that, lol. However, i've taken some photos and hopefull will post them up once i learn how to download photos on the computer. I know, i have a lot to learn, lol. I think it's one of the reason i don't have facebook. Anita has been trying to get me to set up a facebook account, but my the lack of computer skills has prevented me from doing that as well. However, once i learn how to do all that, then i promise not only that i will have a facebook, but i will also post the photos as well. Unitl next time, now go close a deal!

Lloyd

Well, i made two offeres yesterday and both were rejected today. One property is listed at 80K and another one is 60K. The one listed at 80K, the Real Estate Agent thought it's overprice because of the comps in the area. The homes have been sold in the last six months for the average of 60K-70K. These are the three bedroom, one or two bathroom with sqft from 1,200-1,500. Given the fact that this is a short sale, the bank has rejected someone's offered of 55K. I only offered 45K, so if that means if the bank rejected an offer for 40K, my offer was not even submitted given the infomation provided by the agent. She did however said that the bank will not budge even if the house goes on a foreclosure. I questioned her decision not to submit my offer, but she said that the other offer was the same as mine with cash, take it "as is" and close in 30 days, but yet it was still rejected. I took her word for it, but i'll talk to my attorney and see if she can do that. My impression was that she should have submitted my offer regardless whether my offer was much lower than the other offers.

The other house is a HUD foreclosure. They wanted 60K for it. I offered 35K but they rejected my offer. They said that they will not take anything less than $55K, even if they have to hold on to it. The house was appraised at 60K and sell is "AS IS" with repairs both inside and out. I counter offered at 37K, but i'll just wait and see what happen.

Today i finally decided to get a facebook account. My good friend Anita has been buzzing me about getting a facebook, but i just never got around to it. I guess i'm very private person, but in the real estate investing business, you have to put youself out there and let people know that you buy and sell houses, so here you have it Anita, i'm on facebook now, lol. I don't have a photo for my profile yet, but i'll get around to that too, lol. Now go close a deal!
Lloyd

Hi Lloyd,
As far as I am to understand, all offers must be submitted to the seller's regardless of numbers. It's the seller's right to decided not an agent. Banks situation's change daily. Never say never what a bank won't do in this market! Find a new agent is my opinion. Keep me posted as to what happens. Much success..........
Sincereley,
Lubertha

That was my understanding too in terms of making offers, but the agent is not representing me. She representing the bank. I try not to deal with agents unless i have too. I have a RE Agent, but i rarely use him unless i need to look at his MLS. Thanks again for your imput. All the deals i've closed, i have not used an agent other than the ones represented the seller. I use my attorney to do all my closing unless the seller make it mandate to use their closing like HUD. Not that i don't need them, because i do, but sometime they only look out for their own interest and not all the parties involved. Thanks!

Lloyd

I still think they have to submit any offer - but who knows with the banks and their agents. Just like your stubborn bank deals - there has been a home 3 doors down from my very first flip I've been making regular offers on it for a year now. Its nearly a total rehab, but the bank wont budge from their asking price - which is only about 10,000 below FMV. Go figure. Hasnt sold in a year but they wont even entertain any offers under it.
I cant believe you got on facebook because I actually just DEactivated my account yesterday! Just dont get on the computer enough to keep up with it. And when I do get on I usually come here
When you learn how to put pics on your computer, use the photobucket website Rina showed me. It is super easy to put a link up here to the pics.
Keep up all the good work - love reading your journal!
Laura

Thanks for all the recent posts on your progress of your deals. I find it interesting reading. It sounds like you have been busy these past few days. I always try to make offers and continue to look for other deals, the search is endless. Sometimes dealing with the REOs,real etate agents and banks can be pressing, but if you keep these properties on your radar, you never know when they may hit that strike price. I know Bank Asset Manager motivations can change on a daily basis, so keep on them with those offers. Good luck on all your deals. Believe and Achieve! - Joe

Thanks Joe! I enjoy reading your posts too. It's very exciting to read them and to see your progress and your success. Keep up the good work and remember "Faith without Work is Dead"!

Lloyd

Well, it's been a while since i posted on my journal, but i thought i would provide an update since i last posted. I'm still willing and dealing with the HUD property. I've make my last and final offer and they rejected. However, the agent indicated that if no other offer for the next month or so, then they might have to reduce their price. I've infomed her that she will have to re-submit my same offer everyday or everyweek even if they won't budge on their price. I won't budge either and i have nothing but time. So, we'll just play the mouse and cat games and see what happen. If i have to move on, i will but i will keep a lit on that property until i get it, lol. My only concern is that someone might come in and offer more than what i've already offered.

The other items that i was able to accomplish over the weekend was tracking down the owners of the properties that i bought the houses at a tax sales two weeks ago. My good friend Anita was able to provide their info thru her psychic power (lol) and porvided me with the names, phones and address. I was able to track down on of the two, so that's good progress.

Aside from that, i was bed ridden over the weekend for "Poison Oak or Poison Ivy". Apparently last week wednesday, i was doing some cleaning up on the property being repaired. I climbed up on the trees and cut the limbs and branches off the top of house not knowing that i would have a major reaction from it. By thursday afternoon, my body broke out with rashes and bumps all over me and they were itching like crazy. The rashes spread throughout my body overnight, and the more i scracth, the more it spread. It was a very uncomfortable situation and i had to go to the emergency room and saw the doctor. He gave me a shot and perscribed some medications. I'm fine now, but i guess i'll just have to pay someone next time to trim the trees and cut the bushes for me. That's about it for now until nex time. Remember, "Faith without Work is Dead"! So, go out there and close another deal!

Lloyd

A seller (Bank or management company representing the bank) can instruct the listing agent not to present offers if they do not meet their preset criteria. This is very common in todays market.

Al

Thanks Al! I got it and i understand completely. I've talked to my attorney and my RE Agent and they told me the same thing. Thank you though!

Lloyd

I've been out for a while due to a poison ivy, but i'm ok now and ready to get back to work. I've talked to a dear friend of mine last night who just lost a love one and my heart goes out to her. Know that my prayers and thoughts are with you girl! After everything you went through, you always have the strength to fight yet another obstical. Know that YOU are such an inspiration to me and all the people you know.

Anyway, where was i? Oh i'm back again on the counter offer as i received an email from the agent who represents the bank as she informed me that my counter offer has been rejected again. Well, the bank have set their mind on the set price based on the appraisal value, but have discounted any repairs that could have made the deal work. I made one more and final offer and made an outline of all the repairs that is needed to make the house a liveable condition. I've also asked the agent to submit the list to the bank and see what happen. The list gives the bank an opportunity to look over my offer and hopefully reconsider why i made such offers.

I called my banker and provided him with an update of what's going on. He appreciated that fact that i called, and he assured me he's ready to back me up on every deals, cool huh! Now, that's money in the bank,lol. That's it folks, but remember "Faith without Work is Dead! Now go out there and close a deal!

Lloyd

I have a lot of catching up to do. Today was another busy day at work. I managed to do some phone calls and followed up on my previous offers. It's frustrating when you want to get things done and speed up the process, but everything seems to be on slow a motions, lol. I've managed to acquire a list of REO's and i called as many listing agents as i can possibly can to acquire info about the properties. Some have already been sold, but some are still available. If any investor is looking for REO's properties, give me a shout and i might be able to find a property in your location or an area near you. Remember, "Faith without Work is Dead" With little work and due dillegence on your part, you never know what's in store for you. Now, go close a deal!

Lloyd

I am glad to hear the posion ivy is better and not slowing you down. I hope you found a few gems in your list of REOs. It sure can be fun seeing what is on the market and what may be worth making an offer on. I hope you get a few gems. Good luck. Believe and Achieve! - Joe

Give me the location of where you are and i'll see if i can find you a few gems. I commented on your post about your ernest money and that's very sad. That's why i never send in a check when i made offers. I usually make a copy of the cashier and send it in. In case the offer is rejected, i wouldn't have to worry about them cashing it. Thanks for your posts and i enjoying reading them. Good luck in getting your money back!

Lloyd

I'm not fully recovered from poison ivy yet, i just had to keep things moving. I went about my daily routine as i normally do like going to the gym in the morning, get home showered and headed to the office. I did some work today and found some time to get on the site on and off and posted some comments. At 10:00 this morning, i met with the real estate agent to show me another property. It's a three bed rooms, one bath with 990 sq ft. The asking price is 55K, but after seen what i've seen, the house needs a lot or work. I informed the agent i will not make an offer unless the property is appraised. He said that he'll get it and let me know. I left from there and went and saw two more properties before i head back to work. The second house is pretty bad shape. The owner wants to get rid of it, but she's asking way too much for it. She's asking 79K for it. It's a three bed room, one and half bath, but the house sits on piers, which means the floor is off the ground. As i walked around the house, i noticed the floor was about to cave in. The roof is very old and definitely need upgrading both inside and out. She asked me to make an offer of which i did. I offered her 31K given the house needs a major renovation, but she politely and flatly rejected my offer. I informed her the house needs a lot of works which she totally agreed, but i was told that she only wants to get what they owe on it. Well, i polite told her i appreciate her time, but with a lot of work to make the house in liveable conditions, i had to make the my offer accordingly. I also informed her that if she changed her mind to give me a call. I gave her my business and went on my way. I should make a note that i got a call about this house from the ad i placed in the newspaper last week (I buy houses in any conditons). The third house, i couldn't get in, but i saw all i needed to see from the outside. I went back to work and stayed a few extra hours to make up for the time i was away from the office. That's all folks, remember, "Faith without Work is Dead" Until next time, have a great evening and now go close a deal!

Lloyd

I went in to work like i do every saturday. Actually i work six days a week and saturday was not any different. When i got off work, i went over to the house being worked on and met with the contractor about the job he's been working on. I let him know that i was not happy and very disappointed for taking forever to get it done. The renovations project was supposed to take 30-45 days max, but now it's going almost three months and still far from completion. The project also ended up being over budget then expected because other factors were neglected by the contractor like the windows, new flooring and the whole new bathroom, but i can still make real good money once i sell it, but the fact of the matter is, not only it's way over budget, but it has taken so long to complete it. I let him know that i'm not happy, and this could be the last time i do business with him. He became very apologenic and vowed that he'll do his best to get the job done. After the meeting, I stayed at the job site and helped out and cleaned up unitl we called a day.

Everything seems to be back on track now and i'm hoping this would motivate him to speed up the repairs and get it done once and for all. It should be noted that a lot of people have driven by and seen the house being worked on, and wanted to look at it, but i'm not ready to have anyone look at it until the whole project is completed. I'm planning to flip it, but if it takes too long to be on the market, then i can still rent it for decent cash flow unitl i re-finance or sold. That's all for now folks, now go close a deal! Remember "Faith without Work is Dead!

Lloyd

I met with the contractor at the job site and went over the other aspects of the project like the bathroom, flooring and windows. The new AC/Heating system was installed. It's more $$ out of pocket, but it's money well spent. I also had to make a run to Lowe's and supplied a new tub, toilet bowl and other supplies to finish the project. I'm hoping the plumbing system will be completed next week. That' all folks, now let's go close a deal. Remember "Faith without work is Dead!

Lloyd

Hi Lloysap,
Just thought I share my Lowes expereince. I find that they are great on negotiating floor samples. I do alot of contracting work. So I sometimes buy in bulk. They will negotiate on their floor samples, especially if they have ben on the floor for mor than 30 days. They then will be marked down half of that price. So I always look for the date it has been orignally discounted. My best buy was on storm doors. Some were 200 to 300 dollars. I got 7 of them for 20 bucks each. Resold them to clients for 100 each. Especially carpets. You can get some great buys on tile and carpes there. So in hopes this will help on future rehabs for your. Much success to you.......Lubertha

Thank you so much for that informtion. I will definitely look into that the next time i go in there which probably anytime soon, lol. I purchased the carpet and tile from them and they will do all the installion, cool huh! Now go close a deal!

Lloyd

Followed up on current offers i've made and so far have been denied. One of the offer i thought i had a good chance of getting it has been counter offerd three times. Now, i received an email from the listing agent and indicated that the property has been referred back to owner/occupant priority until Monday. I guess the owner is trying to get his home back. I hope he gets it, (I really mean that!) but if not, then hopefully i get another shot at it. After that, it will be back on the market for investors. I informed her to re-submit my offer if the owner/occupant doesn't come through on Monday. I also made a few phone calls to a local real estates agents about their MLS. One of them said that he has two new homes on his MSL listing and he'll be happy to show them to me. We'll look at those two houses today. That's all for now folks, now go close a deal and remember "Faith without Work is Dead"

Lloyd

I met with the agent this morning to look at two properties he recently listed on his MSL. After evaluating the houses, both properties will need a lot of work to make it marketable and livable conditions. The first house is currently occupied, but it needs some work to make it more attractive and livable. It's a three bed room, one bath with 999 sqft. The asking price is 50K. The second house is vacant. It's very old house and has a very strong odor. It's a one bed room, one bath and approximately 700 sqft. The house definitely needs a new pint job both insdie and out, needs new flooring and not to mention repairs both the bathroom and the kitchen. The owner is asking 30K for this one. I told the agent that i would like to make a package deal if it is acceptable, but he first has to get it approval from the seller. I informed the agent that i will do some number and call him sometime tomorrow or by the end of the week. He also gave me another address of another house that will become availabel for sale, but the house is not quite ready for showing. That's it for now folks, now go close a deal and remember "Faith without Work is Dead!"

I called the agent and made an offer of 56K on two properties i looked at yesterday and it was declined. The agent indicated that the owner turned away 61K offer, and therefore once offer was rejected again. I'm not disappointed at all because i made an offer based on the conditions of both properties, and i've taken to an account of what it takes to make the properties marketable and livable conditions. The agent asked if i wanted to make a counter offer, but i politely and respectuflly told him that my offer no but no thanks. He did however told me another property, but the house got burned down, and the owner is willing to will and deal for any potential buyers. I acquired the address and found out that the house is around the corner from my current home. I knew when the house got caught on fire, but i didn't know that the owners wants to get rid of it. I drove by the house and looked at it and noticed the house is 3/4 burned. It will need a lot of work, but i don't know if it's worth saving it. I will meet with my contractor sometime next week and get his professional opinion before i could pursuit any further. That's all folks, now go close a deal and remember "Faith Without Work is Dead!"

Lloyd

I called the agent and made an offer of 56K on two properties i looked at yesterday and it was declined. The agent indicated that the owner turned away 61K offer, and therefore my offer was rejected. I'm not disappointed at all because i made an offer based on the conditions of both properties, and i've taken to an account of what it takes to make the properties marketable and livable conditions. The agent asked if i wanted to make a counter offer, but i politely told him, no but no thanks. He did however told me another property, but the house got caught on fire, and the owner is willing to will and deal for any potential buyers. I acquired the address and found out that the house is around the corner from my current home. I knew when the house got caught on fire, but i didn't know that the owners wants to get rid of it. I drove by the house and looked at it and noticed the house is 3/4 burned. It will need a lot of work, but i don't know if it's worth saving it. I will meet with my contractor sometime next week and get his professional opinion before i could pursuit any further. That's all folks, now go close a deal and remember "Faith Without Work is Dead!"

Lloyd

I did some yard work and cleaning up at the propety being renovating over the wekend. I also drove by the burned house yesterday and take another look at it. I think the more i look at it, the more it's scares me with all the works it would take to make the house marketable and liveable. I just spent a lot more $$ on the current renovation project than expected, and i don't want to go thru the same thing. Sometime the nature of repairs are unknown until you face with a real delima, but the fact of the matter is, my philosophy about repairs, if i don't do it right, then i shouldn't do it at all.

This morning i got another email from the listing agent indicating that the house i previously made an offer on it is back on the market. Apparently the house was supposed to turn back over to owner/occupant, but i guess it felt through. She wanted to know if i was still interested on the property and if do, she suggested that i submit another offer of which i did. The asking price is 60k and i re-submitted one and final offer at 41K. I hope it will accept it, but if not, then i move on to the next one. I also had to call my banker this morning and provided him with an update of what's going on in terms of the properties that i made offers on them. He is willing to finance a property for me once an offer is accepted, and it's my duty to keep him informed of what's going on. I've been making too many offers and nothing has been accepted so far at 30%-50% at appraised value. I'll keep trying maybe i'll get one soon or later. Now go close a deal and remember "Faith without work is Dead!"

Lloyd

Looks like the owners are not selling and asked if you wanted to make the final offer and you offered them the same price and that shows them you are serious with one firm price so they will have to decide what to do. I do believe that you will get those two properties and good luck Lloyd.

Paul

Yeah, the main thing is never let the agent or the owner control your emotion. You have to take control of the situation on any given time. In this case, they wanted more than what i was willing to pay, but if they have no other offers, then they may have to reduce their prices. The other property i talked about above is a HUD property and it was on the market, and then last week, the agent emailed me and told me that the house probably will be back with the owner/occupant. This morning, i received another email from her and told me the house is back on the market. I thought i would take one more shot at it and see what happen. I have nothing but time, and the more time they hold on to the property, the more $$ they lose, so i don't mind playing the mouse and cat game with them. I've done it before and got me some great deals! Two or three months from now, that same house probably be still on the market and if it is, i will then offer them a lot less than what i'm offering right now. Thank you Paul and appreciate your encouragement! Now go close a deal and remember "Faith without Work is Dead!"

Lloyd

It was really interesting catching up on all you've been doing since I was last online! You are an amazing multi-tasker and go getter and always inspire me. Your constant action is exactly what it takes to be successful.
Oh - heres a silver lining for you with the poison ivy....when I was young I had it bad like you - actually had to be put in traction to keep myself from scratching for a few days - but the good news is I developed a natural immunity. Now if I touch it I may, rarely, get a few bumps and it goes away. So hopefully that will happen for you too! Keep on keeping on my friend.
Love,
Laura

First of all, thank you Laura for your kind words and appreciate the info about poison ivy. I guess this is all a learning experience for me about dealing with trees in the south. I guess i'm used to be around any trees in the island and nothing happened to me, but here, it's whole new world, lol.

Well, as far as my REI update, i just got off the phone with a listing agent about the property that i made an offer on it. I just posted a threat on this site about Realtor and Brokers are not APPRAISERS! I was rather upset about trying to make an offer with a listing agent and found out that the apprasial was done on the propery was way over priced. I've done a throughly researched at the assessor office and made copies of the comps in the area of the homes that have been sold for six month into a year. The prices were very reasonable and accurately, but the house being on the market is way over price. The average prices of home have been sold were from anywhere of $45,000 to $70,00 based on three bedrooms, one or two bathrooms with average square footages of 1,000-15,000 sq ft. This particular house that i made an offer on was appraised at $89,000 and the bank will not even look at any offer of less that $79,000. It has come to my attention that the house being appraised was not done by and independent appraiser, but it was done by a broker's as an assessement value only, of which the bank has taken to an account and made their price based on the broker's assessment. This is where i have a problem with. If the broker knows what he/she was doing, he/she should have taken the comps into an account, and thus comes up with a more accurate appraised value. This particular house that i made an offer on it has the same amout of bed rooms (3) and one (1) and half bathroom and 1,300 square footage. Now, how can the brokers appraised such house at $89,000 while the rest of the homes in the same area have been sold between $45,000-$70,000? There's no way to justify that other than being selfish and greed. I don't have anything agaist Brokers and Realtors, but please stick to marking, buying and selling properties, but let the Appraiser be the Appraiser and don't try to take their jobs away from them. Having said that, i called the agent and told her that i will re-submit my offer of $51,000 and provided her with the copy of deposit check and financing statement and let her trying to deal with the bank. That's all folks, now go close a deal and remember "Faith without work is Dead!

Lloyd

Thanks for the nice message you wrote me. Have the greatest day as ever !!

Paul

Good thing you did your homework Lloyd. I experienced the same problem with several houses. The banks have a price they wont go under, which is totally inflated and unreasonable based on both comps and repairs necessary. My realtor told me the same thing you found out. That most banks hire a realty company to represent their foreclosures, and often there are so many to list that they dont do their homework properly in pricing. Maybe they think they'll make more money - but in the long run they just sit and everyone loses. I wonder what it takes to make that price change.