Lloyd's Journal

Hi Laura! I miss you my friend. Good to hear from you. I hope that i have been able to help some of Dean students using this "No Money Down" or "100% Financing" method to close some deals. As far as the bank financing 80% of the appraised value, first you wanted to get the property appraised. Not by a realtor, but an acutal appraiser. Once you have an appraisial done, that's when you determine you want to pay for the property. I would make an offer depends on the value of the property and having the bank finance 80% of the property depends of what my offer is accepted for. I hope this help my friend and go out there and get yourself a "100% Financing" and "Get money back at closing" It's the greatest feeliing in the world! Good luck my friend.

Lloyd

Well, another week has come and gone and there's so much that i'm thankful for. First and foremost, i like to thank the Lord for all the blessing that i have been blessed with. My life has been truly blessed and for that, i have to acknowledge our Lord and Saviour for his unconditional love and guideance that he has for all of us.

Now that i got that out of the way, i must say it's been a busy week. Beside working 40 plus hours per weeek, i managed to look at properties and making offers. I'm also currently doing some repairs to the house that i just closed ("100% Financing") or ("No Money Down") two weeks ago today. The house doesn't need a lot of repairs, but it is my nature that when i rent out the house out to tenants, i always do the necessary repairs as if i was to live in it. I treat my tenants as if i want to be treated! I just started in Real Estate Investing last year, and i've purhcased a good amount of properties thus far, and now i have tons of potential tenants calling me to see if i have any properties for rent. I'm a firm believer in "Great Reputation" and when people know you treat residents/tenants as you want to be treated, they will come calling for you. Most of them are willing to pay more than what the local rental market indicate, because they know you treat them with respect and in good faith.

There's one or two particular investors around here that when they purchased a property, they just put tenants in there and let them do their own repairs work, but in the long run, the home owner ended costing them more $$ then what they bring in. They are life time resident here in the area, and they have treated residents/tenants in this fashion in over twenty years. It's sad, but it's a reality. I'm not saying this to talk bad about them, because i'm not, but in Real Estate business, it's about people's business, and you want to treat your customers as you want to be treated. The trade off is that not only that people will be calling on you every time, but you also give them a quality home to live. When you do that, you also hope that they will give your home the same love and the same attention that you have invested in it. And of coure the "Great Reputation" that comes along with it doesn't hurt by taking care of the people who takes care of you. It works both ways!

Since i moved in the area three years ago, and started REI last year, i've noticed that more and more people are now calling me for rental property. I'm truly blessed with some success that i've had thus far, but i'm looking for much more success in the near future. That's it for now folks and remember that "Faith without work is dead, and with good faith in what you do and little work on your part, you can go a long way"

Lloyd

That's a good word, Lloyd. Every bit of it.
Congrats on everything, friend.

Rina

Lloyd,
Thanks for your comment about my comment!Your idea of respect...Is very strong and i hope many others read your journal!!!
I love the 100% thing + cash back = True Invester.

Thanks for sharing the tips and information on tenants. A happy tenant can be a great client that produces a continuous stream of income for your investing. Also the best compliment you can get is referrals and it sounds like your doing well and having much success. Keep up the good work and have a great weekend. Believe and Achieve! - Joe

I just want to share that with everyone, as i know you have done the same with so many of your tenants. What goes around comes around and it's called carma! Have a great weekend my friend and thanks for your contuninous support!

Lloyd

Real Estate is people's business and when we treat people like we want to be treated, then it's always a win/win situation. Now, don't get me wrong because i will hold my tenant accountable if they will not pay their rent, but i have to handle it in a positive and respectful manner. I will not be fooled by any means, but i am a fair and honest man when it comes to protecting my reputation. Thanks for stopping by and for reading my journal!

Lloyd

What can i say my friend, you have done so much in term of posting and have helped so many people with your posts. I try to do the same by sharing my personal experiences with the deals that i've done and dealing with tenants in general. As i've mentioned above, Real Estate is people's business, and the more you have a good rapport and relationship of trust with people you do business with, the more business you get because of who you are and word of mouth of course. It's the same principle that applies dealing with banks and financial institutions. You do one deal with them, and when you take care of your obligation to the bank and the next thing you know, the window of opportunity has opened up for more finances available! Thanks again for stopping by and thanks for many posts you have posted on the site!

Lloyd

wow, what a wealth of information. i've started with the s.a. a few days ago, lots of info, kindof overwellming. i hope i can be like you guys, (when i grow u) and be successfull and then give back to others.

Rick, i just started REI in March last year and a year from now, you too can have the same success and the same results that i have. Learn as much as you can, but don't wait until you know everything because you will never stop learning. I took the information that i read from the book (BARM) and ran with it, and the next thing i knew i closed my first deal, the second deal, third, fourth, fifth and so on. So, i know it's overwhelming, but the fact of the matter is, if you don't take action, then all the learning and studying doesn't mean anything unless you apply them. Good luck and thanks for stopping by!

Lloyd

Lloyd, thank you very much for being a great example of hard work, integrity, and charity. Just want to let you know that I look up to you a lot as I go along my learning process and wish you all the best. I like it much when you say "Faith without Work is Dead." and from reading your posts, I know that when you try your best, the Lord will take care of the rest. Have a great General Conference weekend next week, Lloyd.

It's wonderful that you treat your tenants with the respect that they deserve. I'm sure they realize how lucky they are to have a good landlord instead of a slumlord.

Thanks for sharing.

Lea
SPR Property Solutions, LLC

Quyen, thank you so much for the inspiring comments, however, i don't take all the credit, but i share it with all of you. I share with Dean, Anita, Rina, Laura, and the list goes on and on. Dean has such a good heart and his desire to share his knowledge with all of us tells us that you too can have the same lifestyle as he does or maybe even better. What i take it from Dean and other successful students, i try to emulate what they do and trying to do it even better. Thank you very much though and yes, that's the motto i go by, "Faith without work is dead" Have a bless weekend!

Lloyd

Thank you so much for stopping by and i hope that you take something from my journal and try to apply them in your RE Investing career. As far as tenants is concerns, is the motto that i go by that i want to treat others as i want to be treated. Having said that, tenants are people just like you and i, and they all have problems like we all do. It's how we deal with their problems that makes us of who we are, and appreciate life even more. Thanks you though for the compliments and appreciate you for stopping by. Have a great weekend!

Lloyd

hey, Lloyd, what do i need to know when dealing witha hud home that i want to lock up, do i need a pof letter before theywill even look at my offer?

First of all B.C., you need to find out what the house is worth, and then do your figures before you submit any offer. As for a proof of funds, i'm afraid but yes HUD will ask you for a letter. Here's how i went about it on my last deal with HUD. Once i know how much the property is worth, i did my calculation and started offering at 50% of the appraised value. However, before i submitted my offer, i went to my local community bank and met with the VP of the bank and asked him if i could purchase a house at 25%-50% off the appraised value, would he lend me the money? He said "Yes". Once i got an ok from the bank, i started making offers. I went back and forth with the realtor who represents HUD and countered offers until it finally accepted at 35%. Once it was accepted, i went back to the bank and asked them if they could finance the loan at 80%, and once again, i was told "Yes". I should also note that having a good rapport with the bank's VP also help a great deal. Once i was given a green light, everything was set and the deal was closed. The best thing about it was that my bank is financing 100%, HUD helped paid for closing cost, plus 3% concession of which i asked, and i was able to get money back at closing, cool huh! Good luck B.C. and let me know if i could help with anything else.

Lloyd

SO you dont think my offer will be looked at. What i did is ask the listing agent to put my offer in and put in it that POF and Earnest money will be provided when the offer is accepted or within 7 days of acceptance. I am waiting for him to call me to look at the home on the inside. I already see the outside and i know what the ARV is on it. It is going to go fast because its in a good area. So i offered 25k less then they are asking for it.
Thanks for the reply Lloyd. And yea that is very cool that you were able to get money at closing.

Sometime HUD will not accept your offer unless you first provided Proof of Funds, but if you stated that you will provide the Proof of Funds and Earnest money when your offer is accepted, then they might take you up on it. Each situation is different and some scenario might be different than others, but the fact of the matter is, if you don't make an offer, then you will never know. If you know the FMV and if you think it's a great deal, then jump on it and make it happen. Good luck!

Lloyd

Lloyd, If it says owner/occupant bidding ( something like that)which means they only want someone who is going to live in it in order to buy it. Is there a way around that?

B.C., sorry for taking too long to reply. I've had a rough week last week. Ok, if HUD says owner/occupant, that mean they give the priority back to the previous owner trying to get back their lost property. After which that time is allowed, the property will be back to the investors and other bidders. Just have the realtor who represent the property keep you inform. I had to go through the same thing. Whenever the price is reduced, HUD gives the previous owners/occupants the first opportunity to get back their home. Good luck buddy!

Lloyd

Well, it's been a tough week last week as i was devastated to have seen the news and seen my beautiful country of Samoa has dealt with earthquake and the tsunami. I was scared for a while as i tried to get in contact with my family unsuccessfully, but after two days of trying, i finally got hold of them and found them to be safed and well. However, my dad's house in south side of the island "Falealili" was completely destroyed. One of my cousin was severily injuried, but he shall be fully recovered. My other house also have some damages, but i'm greatful that no one in my immediately family were killed. Having dealt with such a devastation last week, i just felt numb and helpless. I've had contacted with them just about everyday and sending money to help with basic needs at this time. It's a tough task ahead, and we're fortunate that the tsunami hit my beautiful island in the morning and not at night. It could have been real worse and the victims could be thousands instead of hundreds. Anyway, aside from that, i'm trying to stay busy and focus on new deals, but it's very tough when you try to make deals while my family and my people back home are suffering. I'm now planning a trip in the island in December and assess what my dad needs to rebuild his home. Until next time, i shall continue with my real estate investing journey and hopefully close on a new deal. I'm also just about finish with the repairs on the other house and i also have a tenant in placed. I will do a lease purchase on that house!

Lloyd

Glad to hear your family is well Lloyd. houses can be rebuilt.
Thanks for the tip on that hud.I know who the old owner was and i know he won't buy it back. But people are looking at it because its the best deal in the neighborhood.
so hopefully it wont sell too soon. I am trying to get another investor to work with that can put up the money and I will do most of the repairs as my part and split profits after they get the money they put down back. My RE lawyer is contacting a few investors to help me get rolling, she is really cool.

I have one correction to what Lloyd said. During the owner/occupant bid time, only buyers who will occupy the home are allowed to bid. If no acceptable bids are received, then it is changed to investor bids allowed.

My first thoughts were of you and your family when I heard the news. Glad to hear that no one in your family was killed. I will keep you and your family in my prayers.

Al

I'm glad that your family is OK. This must have been so scary and frustrating for you not being able to get through to them (I remember after the hurricanes here in FL not being able to reach our friends & famikly was upsetting we didn't know how they were or how their homes faired.) I wish you and your family the best. And I wish you the best in all of your deals.

Lea
SPR Property Solutions, LLC

Thank you guys so much! It was devastating when i first heard about it, but after two days of praying and trying to find out of their whereabouts, my prayers and a lot my family and friends prayers have been answered. So, thank you again for your thoughts and prayers! Yes, a house can always be rebuilt, but we only have one life!

Lloyd

Have been continuing to pray for your family. Like you said, there are lots of opportunites, but we only have one life. I'm so thankful that your family made it through.
Lloyd, is there some sort of fund set up to help? Or can we help through you in any way?
Love you, friend.

Rina

Thank you so much my friend. Yeah, i thought about setting up an account for the people in my dad's village and the victims of Samoa Tsunami, but i'm not a begger and therefore decided not to. I guess i have so much pride to ask for help and assistance when it comes to money and material things, but i'll try to do what i can to help my family and the people in my dad's village. Although i'm open for any suggestion from you. Thank you again and appreciate your love and support. Love you too girl!

LL

Believe me I do understand why you would say 'i'm not a begger and therefore decided not to.' However, you would not be begging for YOU or using the money for YOU but to help others.

Since 2003 I've raise money for an awesome non-profit organization by asking businesses, friends, family etc. to donate money and/or time to help the cause. At 1st it was akward & I felt exactly as you do. Then I realized I was asking for a non-profit organization who is helping thousands and thousands of people who really need the help. I hope you don't mind my 2 cents worth - it's just my humble opinion.

Lea
SPR Property Solutions, LLC

Thank you for the valuable information and i will look into it. Being a Pacific Islander and a Samoan i guess we have so much pride that we try to do everything on our own without asking for any assistance. However, my small nation had never experienced such a devastation in the history of our nation as what my people have experienced on September 29, 2009 and i feel it's time to let my pride down and do what's best for them and Samoa as a whole. Thank you again for your valuable information and i will look into it. Others have step up and contributed to Samoa Tsunami Relief and Rehabilitation, and i hope that i can do my part to contribute as well.

Lloyd