Lloyd's Journal

Its good to have plan A,B, and C just in case its beter to be prepare! Thank-you for explaning bank 1 and 2 now I understand. You sure have worked the numbers right i need to get better at that.

In REI, you always want to have plan A, B & C. Just as you making offers, you always want to have an exit clauses just in case things doesn't go the way you planned. This is not any different. Real Estate Investing is about learning the ropes, (system) planned your strategies and taking actions! You can learned as much as you can, (knowledge is power), but unless you use that knowledge (information) and put them to actions, then knowledge is powerless with just meaningless information. Thanks for stopping by and good luck with all your real estate investing venture!

Lloyd

Well, it's time for a quick update. The house that i signed the purchased agreement last week is scheduled for inspection. I received copies of the contract yesterday from the realtor and the authorization of utilities activation. I will contact the gas, power and water company today and start the process. I've also called the inspector and schedule an inspection hopefully today, if not Monday depending how soon the utilities can be turned on. The realtor who's representing the seller has to be there as part of the HUD requirement. I'm exciting about getting this property under my belt and move on to the next one. Hopefully the house will pass inspection, but if not, then i will evaluate the situatuon and go from there. The other option is if some reason that i'm not satisfied with the outcome of the inspection, then i don't have to proceed, but back out of the contract. I doubt that will happen because i've been working long and hard about this property with the realtor for three months, but i'll see how things will turn out. I will make my decision based on the outcome of the inspection, but i'm hoping it will pass. That's it for now folks, now go close a deal and remember that faith without work is dead!

Lloyd

I had a Home Inspections yesterday with the Inspector and found out the house have too many problems. I have to say that i'm glad i did, and it was was the best $300.00 investment when it comes to making sure the house pass inspection and meet my expectations. The realtor who represents the lender (HUD) was not present but she was required to be there. I've informed her know when the inspection will be taken place, but instead, she sent her daughter to open the house for me and left. I aint mad though, but i'm glad i ordered the Home Inspection. The house has too many problems such as electrical problem, plumbing problem, HVAC problem and it also needs a new roof and a new water heater. Given the information provided by the inspector, i've sent an email to the realtor and informed her of the situation with the house. I indicated to her that she can have access of the report online and provide her with the website and the link. I've also informed her that we can meet on Monday if she wants to, and go over the report and show her the problems we have identified. Now that i know the house have too many problems, i've informed her that either we can re-negotiate the price of the house or i want out of the contract. It's was a great lesson learned and the $300.00 was a good investment in terms of learning of what to look for. I rather spent $300.00 for inspection and learned something new, than save $300.00 from inspection and ended up costing me ten thousand of dollars in the end. That's all for now folks, now go close a deal and remember that faith without work is dead!

Lloyd

Ok folks, i've decided that i will pass up on the property i mentioned above. There are too many problems with the house, and i don't want to spend any more money than i need to. One thing i know for sure i'm glad that i ordered a Home Inspection, or else it would cost me an arm and a leg to fix up all the problems that me and the inspector have discovered. I email the realtor this morning and requested a cancellation form for my Earnest Money to be refunded as we will not consummate the sale. I've also asked the realtor if we could re-negotiate on the price, but that was out of the question. I also thought maybe since they went through the escrow process and it wouldn't hurt to ask. I've learned a lot in dealing with Real Estate that if you don't ask, then you don't get what you want. I rather back out of the deal and save $$ then go throug with it and ended up costing me a lot more in the end. There's plenty of deals out there and i will find them. The only down fall is, now i have to let my bank (100% financing) know that the deal is off. That's all for now folks and remember that faith without work is dead!

Lloyd

Well, i met with my banker yesterday who will be financing 100% of this deal and informed them of the home inspection. I basically informed them that the house has some problems, but nothing that i can't fix. Well, actually i won't be doing any of the repairs, but i have a contractor who does all the works for me. I did however informed the bank that despite some repairs that needs to be done, i would like to move forward with the closing and get this baby closed. The bank has approved 100% financing, and not only that, i will get money back during the closing, and that money will goes toward repairs, cool huh! So, despite the problems that i discovered during the inspection, i will move forward and proceed with the closing. After everything is done with the repairs, i still will come up on top. I purchased the property 30% off the appraised value, i got the bank financing 100% and $$ back in closing, but i also had no money out of pocket. That's the best thing about this deal, and i think i have met my objective, and that is to purchase any property with NO MONEY OUT OF POCKET. I will turn the property into a rental for cash flow, and then probably flip for way more cash after a year or two. I'm also working on another deal which is an REO that the bank (seller) and i have been working on through their realtor. That's all folks, time to get back to work, and remember that faith without work is dead. So, with your faith and little work on your part you can go a long way.

Lloyd

NICCCCE deal, Lloyd!
I like how you set your mind to something and make it happen. There's more than one way to skin a cat (SORRY, LUBERTHA!! lol). you know what I mean.

Rina

Thank you Rina! The repair costs worries me at first because i didn't want to put out any $$ out of pocket, but after re-evaluating the situation and the repairs costs, i will still come out ok. I've been working on this deal for three months and i will not allow the repairs to put a demper on what i've been working on it for a while, lol. I like what you said, "There's more than one way to skin a cat" So having said that, it's time to move forward and sign the dotted line, lol.

Lloyd

All your persistence and hard work has paid off on this deal. I am really happy for you! Your plan is the best - cash flow for now and sell down the line. And oh yeah - in case you didnt catch Rinas offer - if you find a nice house that needs two lady owners you know who to call - and then dinner will be on US! So go close that deal

I've alaways believe that if you work hard and be persistent in what you do, good things will happen, and i'm just glad that i didn't give up on that house. Sometime we tend to scare off when we sees red flags with home repairs and house problems, but if we do our homework and due delligence, things will work out just fine and with much better results. As for the catch Rina offered, oh yeah i got the drift Laura, lol. I do have a house that will be on the market next week, that i could sell to you ladies for a great price, if you catch my drift, lol. Thank you two so much for all your help and support. I appreciate the love and the friendship i received from you both. Now go out there and close more deals!

Lloyd

I enjoy reading your journal posts, and havn't seen anything recently. Hope everything is going well with you.

Al

Thanks Al! Yeah, it's been a while. I've posted some comments on other people's threads, but neglected to update my journal unitl now. So, here it is. I've been working on a few deals and one will be closing on in a week or two. I've also had another deal that i just lost it, but i blame noone but myself. I made a vow that will never happen again. The one will be closed in weeks is a 100% finance and money back in closing. When i submitted my offer, i've asked for 3% concession toward closing and i've gotten what i've asked for. I've always believe that you don't get anything unless you ask for it. Don't get me wrong, i'm not a begger, but in real estate investing, it's about taking advantage of the stragetic and creative ways of making money, and so far has been working very well for me. I just wish there's more properties in my area which sometime is a delima for me, but i'm greatful for everything that i've been blessed with. I guess living in a samll town has his pros and cons, but i'm just blessed and fortunate to have the knowledge and a system to make real estate as a vehicle of creating wealth. I'm not there yet as i have a long way to go, but i'm more financial stable now than i was a year ago. I love Real Estate Invesing and my life has been truly blessed because of it. That's it for now until next time, and remember, Faith without work is dead, and with your faith and a little work on your part, you can go a long way.

Lloyd

Hey Lloyd, I too love reading your journal, The way you put each step in detail is awsome. good luck on the house.
Richie.

Congratulations on your new deals. It must be very exciting especially getting some cash back. The great thing with real estate investing is even 1% can be some good dollars for improvements or your pocket. That is just great! Continued success on all your deals! Believe and Achieve! - Joe

Ok folks, it's been a while since i've written on my journal. So here i am for a quick update. Well, i've finally closed another deal on Friday September 11, 2009. This deal is a 100% financing with cash back at closing. I didn't have to spend any of my own money, yeah that's right i've said it, and the best part of it was getting money back at closing. Even all the closing costs were included and still get money back, cool huh! It's the best feeling in the world and i'll do it over and over as long as the bank keeps lending me the $$. Some of you may ask, how do i pulled such a deal especially with banks being so strict with the recession is upon us? Well, the simple fact is this; if you do your research and make sure your figures are right, then there's no reason why you or anyone else can do it. In my case, i've purchased the property for 30-35% off the appraised value. When i negotiated the price with the agent who represented the seller (HUD) i've asked for 3% concession goes towards closing or repairs costs. Once that it was approved, i asked my bank (lender) to finance 80% of the appraised value of which they gladly accepted it. When i finally closed on Friday, not only the bank finance 100% of 80% of the purchased price, but the 3% concession that i received from the seller (HUD) paid for the closing cost, and whatever was left over the the 80% for the amount of the loan financing by the lender, HUD cut me a check, cool huh! Ok, that's about it for now folks but remember, "Faith without work is dead, and with faith in what you do, and with little work on your part, you can go a long way. Until next time, have a bless day everyone! For specific figures, i'll be more than happy to provide such figures if you have any questions.

Lloyd

Congratulations, LL!!!! I know this is getting to be like a piece of cake for you . Thank you for sharing your techniques with us, and thank you for taking the time to keep sharing your successes! It's so fun to watch all the DG "oldies" and "newbies" continue to change their lives thanks to Dean. I feel like we're in an ongoing story that just keeps getting better.
(And thanks for being a great friend and support. )

Love ya,

Rina

Wow Lloyd I am so excited about your deal. I haven't gotten the courage up to approach the bank yet, but you have inspired me. If you would be so kind, could you run the numbers for us? You know, what they were asking, what you offered, etc. Great job!

Cathy

Congratulations on a great deal. This is great how you were able to get the 100% financing and cash back. It sure doesn't get any better than that! Keep up the good work and make sure you celebrate your recent deal with a big bottle of bubbly. Continued success on your future deals. Believe and Achieve! - Joe

Thank you too my friend! It's been a great feeling to have closed another deal. I just feel like the more deals i do using this method, the better i'm getting good at it, . I just love the "No Money Down" or "100% Financing System". The funny thing is, i thought it was IMPOSSIBLE to do such a thing, but now, every deal i'm working on, i try using the same methods. I just hope that by sharing our expereiences with other investors and Dean's students gives them hope, desire, and the courage to take directive action to make it happen. Love you too girl!

Lloyd

Ok Cathy, here are the numbers. The property was appraised for more than 60K. My starting offer was 50% off the appraised value which was 30K. We went back and forth in terms of counter offers and it finally accepted at 42K. With that number i've also asked the seller to give me back 3% concession of which that $$ went towards closing costs or repairs costs. I went to my local bank and asked them to finance 80% of the appraised value of the 60K of the property of which is 48K. Forty eight thousand is the amount of the loan the bank is financing the property. I purchased the property at 42K, and with 3% concession i'm getting back from the seller. The 3% concession covers all my closing costs such as loan fees, attorney fees and recording fees, and i'm getting $5,000 back at closing. This $$ will be used for repair upgrade and if any $$ left over will go into my pocket. I hope this help Cathy and good luck with your REI. In terms of the realtor, i negotiated the deal myself and i did not use a realtor other than the the seller's realtor. Good luck!

Lloyd

Thanks Joe! Appreciate the congratulation man. Yeah it sure feels great to have purchased another property without using any of my own money. That's the beauty of it and the more i do it, the better it gets. Thanks again and i wish you the best on your real estate investing.

Lloyd

Congratulations again Lloyd!!
I am amazed at what you have done. I have a question or 2, What are you doing with the houses? are you renting them or flipping ? I was just curious of your after sale stratedgy.

As far as the houses goes, i'm doing both. If i purchase a house within 20%-30% of the appraised value, i would do some work if needed and rent it out. I would rent it out for a year or two or do a lease option. I always gives the tenants an option in advance before i do anything. The houses that i purchase between 35%-60% off the appraised value, i will do some repairs if needed and the put on the market. Good luck BC and thanks for stopping by.

Lloyd

Lloyd,
It has been a while since i read the term "Killer Deal"on this site,I say bring it back with your NO MONEY DOWN DEAL and 3% concession with a take home check from closing!
Thank-you for sharing your actions with everybody,Great information!!!

Randall

Thank you Randall! I shared this information with eveyone with hope that some of you may benefit from this. Real Estate is about people helping people. It's a people business and i've always try to make it a win/win situation. Yes it's a "Killer Deal" because it was a 100% financing and didn't have to use any of my own money, and the best part of it was getting $$ back at closing. The seller (HUD) got thier money for the house and got rid of the property off their books, and i got the house. It's a win/win situation and we both got what we wanted.

Lloyd

It's been a week now since i closed on my "100% Financing" or "No Money Out of Pocket Deal" and the best part of it, was that i was able to get $$ back at closing. I've been working on other deals that i've neglected to get on with the repairs on the house that i just closed on it last week. Well, i finally met with the contractors yesterday at the house and went over with what work needed to be done. One of them faxed me his labor costs this morning of $1,675.00 which i thought was very reasonable. I'm also waiting for another contractor to submit his bid before i could move forward with the repairs. The materials was estimated by both contractor approximately $2,00.00 and with that figues, i should have some $$ left over from closing. Anyway, that's about it for now and until next time, have a bless weekend and remember that "Faith without work is dead, and with your faith in what you do and with little work on your part, you can go a long way. Good luck!

Lloyd

Met with the contractor yesterday who will be doing the repairs on my new purchased property. The other contractor never submitted his bid in, and therefore i don't have time to waste. He did however called last night and said that he been waiting for his tile guy and the painter, but if that is the case, i will not wait for nobody but it's time to move on. He was given the same time and same opportunity as the onther contractor has been given, and obviously the first guy wanted the job bad enough that he submitted his bid in within days more so than the other contractor. Having said that, i will meet with the first contractor today at Lowe's and get the materials for the house. I will also have him sign the contract ageeement and then proceed with the repairs. Having said that, it's time to move on and time to find more properties. I like to close my journal today by saying this as i do every time "Faith without work is dead! With faith in what you do and little work on your part, you can go a long way" Have a great day everyone!

Lloyd

Way to go Lloyd, I agree with you on moving on with the guy that got his bid in on time.
If the other guy dragged his feet on just getting a bid in I would bet he would be dragging his feet on getting the work done too.JMO.
Keep up the good work,
Richie.

I've always try to be fair in any business deals. In this case, i've given the two contractors the same opportunity as i wanted to be given if i was doing business with anyone else. One took action immediately and got rewarded for it, the other had the same opportunity and did nothing with it, so it's the same principle that apply in Real Estate Investing. We can learned as much as we can and obtained all the skills in the world, but if we don't apply the skills into actions, nothing becomes out of it. Having said that, it's time to get back to work, and time to find more properties and get them close. Thanks again BC and good luck with your RE Investing!

Lloyd

Seems like forever since I've been on and caught up with the dealings of all my DG friends and mentors. Wow - congrats on this deal! And your hope that sharing your deals will help others is fullfilled! For the few deals I've done I have yet to find a deal where the numbers allow me to structure a deal like this one, but I am so inspired by you that I am bound and determined to do it to! Question: when you say the bank financed 80% of appraised value - who determined that appraised value - and how did you come to know it before you placed your offer? Thanks my friend, Laura