Lloyd's Journal

You welcome Paul! Let me know if there's anything i can do to help.

As for you Laura, yeah, that's the sad thing about it. The banks are the ones who got us in this mess in the first place, and now instead of using the right professional people (Appraisers) to do their work, they now turned to realtors and brokers firm to inflate the prices of homes. I just got a my offer rejected again, but i'm just going to move on. The sad thing is, my friend who owns the house moved to San Diego because of the death of her mother. I talked to her last night and she said that someone has offered seventy thousand something for it, but the bank refused to accept the offer. She's now concern that she may face foreclosure because the bank has rejected every offers, suck aye! Oh well, i'm not going to lose any sleep over, i'm just going to move on the next one. I wanted to purchase the house to safe her from going thru foreclosure, but from the look of it, she is heading into that direction. I've attempted to do lease purchas with her, but the agent refused it and said that she would be in violation of her contract with the broker. There's plenty of homes out there, and i'll just keep looking. The house will eventually go to through foreclousre, and who knows, maybe i will make another offer then, thanks. Now go close a deal and remember "Faith without Work is Dead!

Lloyd

Well, i made my fourth and final couter offered on the HUD property and has been rejected again. The bank wanted a specific amount, but i wanted to purchase it at the most 25% off the appraised value, which is the most i would pay for any properties. I normally purchase properties from 60%-30% off the appraised value, and this house was not any different. The agent sent me an email which indicated that the bank would not budge on their price. Well, guess what, see if i care because i would not even go there. We'll just wait and see who will budge first. I don't have anything to lose but everything to gain, so they can sit on that piece property as long as they want to, because i don't care anymore and i'm moving on. One thing i've learned about real estate investing, is NEVER, EVER fall in love with the property. Sometime we get caught up in the emotional game about the property that we may end up paying a lot more than what the property is worth. I've learned that about this particular property, and having said that, the bank can have it back because i don't want it anymore! That's a lesson learned! Now, go close a deal and remember, "Faith without Work is Dead!

Lloyd

This morning i went about my normal routine as i do every saturday, you know, working out, and then headed to the office for work. I still haven't recovered from the other offer rejection i received yesterday, and i'll just sit on for a while and be non responsive to the seller and it's agent and see what happen.

I made arrangement to meet with my contractor at the house to finish up some repairs. Apparently, someone he (contractor) knows wants to look at the house because he is looking for a property around the lake area. The house has been renovating for 3 months now and it's two weeks away from being completed. I met Mr Hamilton at the house, and found out that he is a judge from another county here in Louisiana which is about three hours from here.

We walked around the property and checked it out both inside and out. The house is 40 yards from the lake front, and has a boat dock which comes with it. He really likes it, but he could not make a decision until his wife and daughter look at it. We talked about the price and i asked him to make an offer. He didn't want to make the first move, but i told him that the house will be completed in two weeks and fully renovated. He wants to make an offer and take it as it, but i informed him that the house is pretty much paid for and the only thing is left is putting in the carpet and tiles on the floor, and finish up the bathrooms and replace the rest of the shingles on the roof. I indicated that if i was going to put the house on the market in two weeks when it's completed, then i will market it at 120K, but if he wants to take it now as is, with everything being completed, then i'm willing to drop the price at 109K. He seems very interested but his wife and daughter has to make the final decision. He informed me that he'll call to make arrangement for his wife and daughter to look at the house. We exchanged information and promised to contact me. Now that's sounds like music to my ears, and hopefully have this baby sold before i can even put it on the market, cool huh! Now go close a deal and remember "Faith without Work is Dead."

Lloyd

Just for information purposes, the house i'm talking about above if the Judge Hamilton goes on and purchase it at 109K, that's $56,100 profit in 3 months, that's not bad huh!

I purchase the house at $25,000, and spent $27,000 in renovations. I've made three payments of $300.00 and that would put $56,100 in my pocket. Now even if i sell it for $99,000 for a quick turn around, that's $46,100 profit in three months. That's more money than most people make in a year here in where i live, cool huh! That's all folks, now go close a deal and remember, Faith without work is Dead!

Lloyd

That's great news with Mr. Hamilton and sounds like he may take it for a vacation and weekend home. I will keep my fingers across for you. Go and close that deal on Father's Day !!

Warm regards,

Paul T. La Moy

Paul, thank you so much for your support! As far as Mr. Hamilton goes, yeah, he's looking for a property get away for him and his family, and i think he may have found himself a real nice home which close to the lake with a boat dock. However, i mentioned to him Saturday that there's other people are interested in looking at the property, but i have reframed them from looking at it until it's completed. He was the exception because he made arrangement with the contractor and i didn't know about until the contractor called me that morning. He also drove three hours to loook it, and it would not be in my best interest to deny him of looking at the property. I would like for him to get it, but if not, there's an opportunity out there for me to make more money by putting on the market, but i aint greedy. I always want a win/win situation for everyone involved. The contractor has gotten his share, i will get mine once i sold it, and of course the new owner will get his share of good amount of equity in the home.

Aside from that, i haven't responded to the agent and the bank demands for a higher offer. I will do the non responsive response for a week and see where it will take me. I have to be in control here and if the property doesn't meet my requirement and my terms, then i'll move on to the next one. The bank (my bank) is however ready to close on this deal if my offer is accepted. I will not however give in to the sellers demands unless my terms are met. I guess i'm playing hard balls, but Lloyd gotta do what he gotta do, ha ha ha. Ok folks, that's it for now, so go out there and close a deal and remember "Faith without Work is Dead."

Lloyd

Just catching up on your journal. Great job on all the deals going on!!
You are amazing!
That will be a nice profit on the judge's house. Lloyd, what are ya gonna do with all that $$?? hmm... perhaps take a trip with Anita to the beautiful state of Wisconsin?

Love ya, friend. Very happy for you and all your success!

Rina

Ha ha ha, nice try Rina! What's in Wisconsin anyway, ha ha ha, just kidding! You know you and Anita have always been there for me, and nothing's more exciting than to meet up with friends who share the same passion and interest about real estate investing. Now, don't get me wrong, i would love to come out there and visit, but there's so much to do, and maybe, just maybe, if i can talk Anita into it, LOL. However, i still have to sell the house so until then, we keep on working for bigger and better things. Thanks again for stopping by and thank you so much for the love and support. Your friend in Louisiana.

Lloyd

Any news for the Lake cottage ? Did his family come back and take a look at it yet? Did the contractor that is working for you and have he heard from them ? I have a feeling they will call you toward the end of the week and set up an appointment for you to show the family on sat. Much success!!

Warm regards,

Paul

Sure have enjoyed reading your entries Lloyd. Your desire is strong and your persistence amazing you WILL have your dream. warmly kay

Thank you Kay! Appreciate you stopping by. I hope everything is going well for you in terms of real estate investing. Good luck and you just hit it right on the nail when you said "Your desire is strong and persistence amazing You" So, go out there my friend and make it happen. Be bold but not overbearing!

Lloyd

It's been a while since i wrote on my journal, but i thought i would stop by and provide an update. Since last week, i was very disappointed that my fifth and final offers on another property was still rejected. I like that house so much that i was willing to spend more that i wanted to, but i've decided to stick to my goals and criteria. One thing i've learned about real estate is never fall in love with a property. So, having said that, I've decided to take the non-responsive approach and give them (agent & bank) a silent treatment. The agent emailed me back and asked if i wanted to make another counter offer of which i have not replied. As of today, i haven't heard anything from them and i've decided that i will move on, but i will keep that property under radar.

I've also been looking at more properties and right now just trying to concentrate on the renovating project. I'm hoping to finish it in a matter of weeks. I've had Mr. Hamiton looked at it last week and he really likes it. In fact, he brought back his wife and his daughter last week and looked at it. He wanted to make an offer to take it as it, but the house is pretty much completed with a few things left to do. The only major thing is left is replacing all the cabinets, finish up the bathrooms and the new flooring. I indicated to him that i will take it for 109K, but i was willing to go as low as $99,000 if he wanted to take it as is because everything else have been paid for, with the exception of the cabinets. It should be noted the ARV of this house is $125K.

Mr. Hamilton called yesterday and said he'll stop by tomorrow to look at the hosue one more time. He then will make an offer. I'm a little anxious now and keeping my fingers corss that he'll get it. I'm hoping to meet somewhere in the middle in term of the price, and i will go as low as 95k if he can close it 30 days or less. I aint greedy and i'll do what best for all the parties involved. So, having said that, it's a matter of waiting game at this point, and i hope i don't have to wait too long. I've also made another offer on another house that i looked at it yesterday. It's a short sale and it's going to be a week before i could hear from them. I will just keep making offers because the more "No's" i get, the closer i will get to a "Yes". Having said that, now go out there and close a deal and remember "Faith without Work is Dead. So have faith and with little work on your part, you can go a long way."

Lloyd

I'm reading this thread because I wanted to learn about self directed ira's, but I've ended up learning about Tax Sales as well. Thank you all, for the wonderful information. I'm consulting with a Guidant rep later, I now have several more questions to ask of her.

Lloyd I am glad you are doing well, Keep up the good work.
Don't you think you should have atleast replied to the bank and say that you already bid higher then you originally planned to bid, and that it would not make sense from a financial stand point for you to go higher on the property, and that was your final bid. Atleast this way they have a reply from you and instead of dropping it they may reply back to you about accepting your final offer. JMO.

Good luck
Richie.

You welcome Alicia! Thank you for stopping by and i hope that you have learned something from my journal.

Lloyd

Thanks for your support and word of encouragement! As far as the bank and their agent is concern, i've already informed them that i've offered them $10,000 more then my originally offer. They know that but they want to milk every penny out of me as they possibly can, but i'm not going to let them do that to me. I've learned when to say "NO" They didn't take me serious when i made my fifth and final offer, and they responded saying that they have a set price well, tough luck because they're not getting it from me. I'm moving on now and it's their lost. Two or three months from now, they wish they sould have taken my offer. Having said that, i'm moving on and looking at a few more properties.

Lloyd

Yes you got that right

Man I just love reading your journal! I havent been online for ages and yours was the first one I went to. I am so happy to read everything and see you are moving ahead and making wise decisions. I sure hope the lake house sells for you! How sweet would that be. Sold before finished! That is what I'm hoping for my renovation house too - but the darn building dept. is killing me haha. They love their power and control in making you wait and wait each step of the way. But thanks for keeping up with your real estate life for us - I learn so much and am always inspired by you! Stay well and have a great holiday weekend!
Love from Jersey,
Laura

Howdy you all! Well, it's been a month since i last posted on my journal. I thought it's time to get back to work and taking care of business.

Not only that i've been slacking for several weeks, but i also took a mini vacation to Utah. Well, i guess you can call it a vacation, but while i was there, i checked up on my properties and went house hunting with my Utah realtor. Aside from that, i met up with some of my old friends that i played college ball with that i haven't seen in years. I also enjoyed the Samoan festival that was going while i was there. I went camping and boating with my banker and just have a good ol time like there's no tomorrow, lol.

Anyway, i'm back now to Louisiana and ready to go back to work. Since i last posted, i have several offers out there and the revovation is finally completely with some minor things that needs to be done. I should have the house on the market in a matter of weeks. I thought i had a solid buyer during the renovation, but that fell through. It's part the beast in terms of this business, but you learn to adopt and revamp your strategy. Unitl next time, remember "Faith without work is dead, and with little work on your part, you can go a long way." Now, go out there and close another deal!

Lloyd

Just read your post on facebook the offer was acepted with the bank 100% financing and geting money back Outstanding!!!Please post details eager to find out more.

I sure will. I'm meeting with the agent in an hour to sign the purchase agreement. I will post more detail in due time. Thanks!

Lloyd

to hear the details of this little tease Lloyd! Do tell us about your latest conquest! Glad you had fun on vaca...living life to the fullest..aint it grand

Well, after been away for a while, i thought i would stop by and post the latest update on my latest deals. I just signed the purchase agreement yesterday on one of them and submitted another offer this morning on another property. The one i signed the purchase agrement yesterday is a HUD property. This was a long process and it finally got the deal signed. The bank will finance 100%, and not only that, i will also get money back in closing, cool huh! Well, some of you might be wondering how the heck the bank in financing not only 100%, but getting $$ back? Well, here's the deal. Just like any real estate transactions, you always want to buy the property at the lowest if you to purchase, and sell high if you are selling. In this case, i was able to purchase the house at 30% off the appraised value, and then i asked the bank to finance 80% of the apprasied value. The appraised value was $60,000, and my offer was accepted at 42K. The bank will loan me $48,000 of which the $42k is for the loan and the $6,000 will goes towards repairs and for re-investment. I should also be getting another 2K from the seller because i've asked them to pay for all closing costs, and they approved that too, cool huh! So, as you can see, if you work hard and be persistent about your dealing, you never know what you get unless you ask for it. I've always believe that if you have faith in what you do, and work hard, and be persistent at it, things will always come out better in the other end. That's all folks, now go close a deal and remember that faith without work is dead!

Lloyd

Ok let me get this straight there are two banks one seling the house and the other giving you the loan amount. So you go to the 1st bank and put a low offer 30% of appraise value and it get acepted. Then you go to the 2nd bank and ask for 80% appraised value. Was the 2nd bank a hard money lender?

Patricia, yes, bank one owns the property. I made an offer with the condition that they will give me back 3% concession for closing costs and they agreed. This was part of my first offer. We have been going back and forth on this particular property for about three months, and i finally signed the purchase agreement. Bank two is my local community bank. I've asked them to provide financing for me, of which they glady agreed. This is not a hard money lender but a business loan with 15 year terms. I'm planning to rent it for cash flow and then sell it in a year or two. I hope this help and good luck!

Lloyd

Awesome deal. Very encouraging! I just love the deals you find and negotiate. You are a true example of what taking action and not being afraid to ask is all about! came at a perfect time as I am off to my local banker this morning to convince him I am the best investment he can make despite being in debt up to my eyeballs on my current rehab haha. Have a great day and keep making those deals!

Laura, your not the only one with debt. Join the club! LOL. That's part of Real Estate Investing business, you have to spend money to make money! I just spent $37K on renovation, but i'll get it all back and then some once it's sold. Let me give you a quick advise my friend. When you go to the bank, ask to speak with a president or vice president of the bank. Get to know them and establish a business relationship of trust with them. Once you have a good rapport with them, ask them if you could find properties and purchase them for 60%-30% off the appraised value, will they be willing to lend you the $$?. Most of them would say yes. Sometime you may have to show them the property and provide a copy fo the appraisal to secure their investment. Once they know their money is safe, they will go out of their way to provide you the finances you need. Good luck and let me know if i can be any assistant. You go in there girl with confidence and let them know that they will make a big mistake if they don't lend you the money! LOL.

Lloyd

Thank goodness the renovation project has finally completed. It has taken me a lot longer than expected, but i'm just glad it's finally over. I also ended up spending a lot more $$ than anticipated, but that's part of the the beast in Real Estate business. Sometime you spent more than expected, and sometime you spend less. I will however get it all back and then some once the property is sold. Just like in any business venture, you gotta spend money to make money, and in Real Estate Investing is not any different.

I'm also waiting for closing on another property. I signed the purchase agreement last week and and hopefully we'll have this baby close in a matters of weeks. I will rent for cash flow and then sell it in a year or two. I also made another offer last week, but the realtor called me this morning and informed me that the bank has countered offer. I will not re-counter their offer, but i have informed the realtor that my offer was based on purchased "AS IS", and if the bank wanted to counter, then i will gladly re-counter if they do all the repairs. I've also talked to her (realtor) that she should have some influence on the bank asset management team because they have no clue of what the condition of the property is in. All they see are the numbers on paper, but they have no clue of what the property looks like. She said that she will talk to the asset manager and let me know. That's all folks, now go close a deal and remember that faith without work is dead!

Lloyd

you and I have been rehabbing at the same time! So I know how you feel now thats its done! Good for you! I am happy that the numbers still work for a profit! Thats the beauty of what we're taught here! Hope you make a quick sale, and get your hands on that income property. I'm shadowing you all the way thats my next goal too. I'll play keep up with Lloyd haha.

Yeah, the house is finally completed, but i still have some minor stuff to do like landscaping, leveling the driveway, etc, etc. My first option is putting the house on the market. I also have a plan B just in case it might take longer to sell. Plan C is rent the house unitl it's sold. I've already talked to the bank about re-financing it and they will be happy to do that for me. If i have to, i will re-finance it at 75% of th FMV. The house is appraised at $120K and if re-finance at 75%, i will get $90K. That's enough $$ to pay off the other loan, cover all my repairs expenses and a little more in the pocket, cool huh! I also have a list of renters that are looking to rent, and i will keep that as an option. Thanks again for your friendship and words of encouragement! I will be shadowing you too all the way, lol. Now go close another deal and remember that faith without work is dead!

Lloyd