Alana REI Journal (what a week I've been having)

Another day of waiting on the Listing agents to get back with my Agent on the property I originally tried to view Tuesday & other listing I had tentatively schedule to tour today.

Update: Call Listing agent myself, only to find out, house is already under contract; still waiting on Agent to call with word as to availability of the Condo.

3:05pm-Agent finally called back in regards to Condo; it's in "Best and highest bid" senario. That's dilemma properties already under contract by the time I come across them from Realtordotcom (which it isn't updated on Listing's status) and I can't ride around looking for properties with Dr's restriction on driving. I really need to find me a place before my son goes back to school in August. I want to be move & settle by that timeframe.

Still waiting...and waiting, for my Agent, to call me back so confirm schedule appointments for properties I want to go view Monday, at latest since he will be out of town this weekend. I walk to CVS/Pharmacy this morning to go get some Theraflu. Sigh, me and my baby both came down with summer colds, my throat itches, nose is stuffly and running. I know he's probably feeling just as miserable. Blame on going in and out of house while A/C is running straight into the hot Summer air. Hold on a minute, let me run and get some tissue.....I'm back, guess what the mail man drop on porch at my door this afternoon.

DeanGraziosi real estate program; whoopee, snatch up off the porch like covert looking around to make sure no one was lurking to see what I had. I gotta start reading thru books and asking some harder questions to seek some answers. I've also turning my attention to possibly investing in Detroit real estate. There are so many good deals in properties that is, can't let slip through the cracks. One day Detroit will rebound prayerfully. Last night, I was touch by both the passing away of MJ and Farrah Fawcett. It touch my heart so deeply b/c it recalled a passage in Quran which it states "a man's wealth and children will not prevel him, when he's call to return to us" something along those lines. Right now turn to the person who you love and tell them how much you love them rather they're your wife, your husband,and so on even a friend because to tomorrow ain't promise to any of us when the trumpet is blown.

I am glad deans books arrived this morning and I suggest that you read it a few times and also get involved with the DG website for the wonderful support group. I hope you will get some rest this weekend to get rid of the cold you have and also let us know the deals you are working on. Good luck !!

Warm regards,

Paul T. La Moy

Paul that sweet of u. I plan too if my little one will allow it.

In reading Dean's book pfrern Matt Larson suggests having your agent pull 100 listings that suggest a motivated seller; cut that list to 25 of the most promising and submit offers 30 to 50 percent off. And only after your offer is accepted do you go out and look at the property. That way you are not wasting time looking at properties.

Thing is I like going to look at the properties. It's not a burden too me. It get's me out of the house until my classes start next month. You know yourself not all of listings have multiple photos, some have no photo at all or Google maps sometimes doesn't have the street view for that particular property that I might be interested in pursuin. I have to go see the interior of what I will be bidding on and getting to know Atlanta's n'hoods and what attracts people to those areas.

What a journal. It is like a good novel. You are very energetic and has the drive to acquire what you want, nothing will keep you back, not even the flu. By God's grace the house will come. Keep researching, viewing properties and looking for the best deals. All the best to you.

Sandra

Thanks for your sweet message. Have you finished the book yet ?

Warm regards,

Paul T. La Moy

Congratulations on joining the DG website and starting your journal. It is great you jumped right in to share your activity. I believe we can all learn new things from each other. Thanks for sharing your progress each day. Good luck with Real estate investing. Believe and Achieve! - Joe

This is an awesome journal man... good details time and everything... you are keeping organized and staying on track even before having the books... You will surely profit from real estate.

Let's see what did I do yesterday, oh yeah, I rested feeling much better after taking several of Theraflu packets still have a slight cough although that will be clear by this coming Wednesday, ran some errands & look at more property listings online that I might possibly be interested in seeing. Answered a PM from Jim a realtor in Detroit, I see a possibility of business relationship budding there. Also chatted with BDC via Skype. Another great tool to use, Paltalk, if you want to do conference calls via video.

I started reading BARM, last night; Matt and Lorie's stories were very inspirational. I don't care what nobody say, there's nothing wrong with being on food stamps, I'll be the first to say it; why I can remember time as a young child, my mom receiving a $100 or $500 book of food stamps (before they became electronic benefits...lol) for us to eat for the month. Those were good times!

Today, I'm going to continue reading BARM; jotting down notes as I go! I also came across an article explain How to Determine After Repair Value;

http://www.invisionfuture.com/more-articles/determining_after_repair_val...

What confuses me about this article is they are using the same 0.65 or 65% that would be used to determine your CAP (which if I remember correctly sistreat explain clearly in one of her posts) after multiplying the percentage to NOI (net operating income). Does that make many sense? Are these two formulas one in the same? Someone please help me out explain ARV clearly. Would it be wise to have an appraiser perform an ARV on any houses/properties I'm considering purchasing until I become more comfortable with determining costs to fully rehab a property?

I am glad you are feeling much better and just hang in there. Looks like you been reading Dean's book and also making some connections with other investors and wish you the best of luck. You have a great day and looking forward to you next post tomorrow.

Warm regards,

Paul T. La Moy

Thanks, I'm just go for it tomorrow with making an offer on property, I'm been eying since last Friday. Their asking $9900 according to the assessor data;
Year 2009
Appraised Land $17,900
Appraised Building $57,100
Total Appraised Value $75,000
Assessed Land $7,160
Assessed Building $22,840
Assessed Total $30,000

Only concern is listing agent is marketing it as 4/2 while assessor has it 2/2. I'm little overwhelmed with making my offer; whether I should go alittle less than their asking price or offer them their asking price but then ask for seller concessions for them to pay all of my closing costs (I mean the whole nine yards). How would that work out, would I required to bring the entire asking price to closing? I will also add in the contingencies of inspection and appraisal. What do you think I should do?

09:19a.m.-Called REA to follow up make sure he had received my email about putting in a potential offer on one of prospects that I wanted to go do a preliminary walk-thru inspection on. Didn't immediately answer so I left a msg for him to return my call.

09:35a.m.-Left out the house to go pick up a camera to take pictures of water meter read (water management company fudging the monthly readings) for evidence towards bill dispute & take photos* (Tip of Today) of the properties I go view so properties & their features don't run together in my mind.

10:25a.m.-Agent return call informed me one of houses already had multiple bids (notice I'm not wasting valuable time getting involve in a bidding war on those properties I come across, other investors usually end up overpaying on them) in on it and the other is available but the agent has already rejected an offer. Explained to him what I found out regarding property & my explanation why I disagree with LA. Agreed to meet & see it at 4p.m. today.

10:30a.m.-Stop & got a catfish nuggets dinner for lunch. MMMmm

11:04a.m.-Receive a call from school teacher, Son, is having a melt down while the rest of class is trying to get ready to go too lunch. Deal with with it when he arrives home on bus.

11:59a.m.-Watching Ch 2 News-Atlanta City Council voted 2:1 to increase property taxes for next year. I love Michael Jackson grew up with his music just like everyone else I'll be glad when he's laid to rest & news anchors move on to news worthily Headline. Sigh Going to finish my lunch.

01:07p.m.-Agent just called; say he spoke with the actual Listing Agent that other property is being purchase as part of a Bulk Deal. Dang it how am I to get ahead when other investors with deep pockets are beating me too the punch. I feel it's time to probably Fire my agent go straight to Listing Agent when I want to present a potential offer.

Email REA last night make sure he had gotten MLS ID's I'm interested in and give me "word" asap as to their availability. I also submitted a "Interested in buying home" msg on my own (toward's one of MLS id #'s I am interested) directly to LA stating my inital offering price last night via Zillow.

11:00a.m.-Submit a "Request for a Showing" form to Ramsus to view one of their listings. Probably would have been better off calling them instead; haven't receive a confirmation call from their office scheduling a tentative appt to see property I'm interested in yet. I call first thing tomorrow.

2:04p.m.-Still no "word" from REA regarding availability status of those listings I'm interested in. I'm done with this guy. >:( Priorities for tomorrow 1.) make a Ad "stating my criteria have REA to join my team" like Matt L. did & send out via Craigslist or other similar sites 2.)call several attorneys verify who knows their stuff regarding assigning contracts. and lastly 3.)Go to the GREC to purchase several of State-approved real estate forms to submit my on offers on & make duplicate copies to have on hand.

Good read and congrats on taking action!

@kennyg-Thanks

[6.30.09]
2:25p.m.: Scheduled showings for tomorrow morning with Remax agent to go view two of MLS#'s (I had originally sent to my ZipRlty agent) after becoming impatient waiting around on him to get back at me with; as to status availability of MLS#'s I had sent him Monday afternoon.
4:36p.m.-ZipRlty agent finally sends a email update stating "he was still working on them (referring MLS #'s I sent him Monday) & should have all the information tomorrow".

[7.1.09]
12:26a.m.-Checked my email, found out another one (one of very MLS #'s I sent ZipRlty agent Monday afternoon) got away from me, again. >:{ Sent a reply to KW REA (who update me via email on N. Eugenia Pl status) stating my criteria for properties I am looking for. I'll wait & see what listings he sends & how long it takes him to response before deciding if I will want to work with him. Well I tell ya for this other agent (ZipRlty); "tomorrow" is a little too late! Somebody else beat me too the prize deal--that one had a wddeck & 1-car garage also--again. His deficiency is he spends too much valuable time trying to track down the LA for properties I wanna go tour & possibly put a offer in on. I will address this, if & when he calls, I doubt I will continue to utilize his services, after today.

11:33a.m.-and yet two others got away called Remax agent; he informed me Oglethorpe property had a "High and Best offer" war started on it yesterday and Eugenia Pl property is sold. I tell ya they really need to find a way to quickly update Realtor.com this is making me frustrated. You think the Listing is available b/c it say's "Active" on Realtor but it's actually long gone.

Finally a proficient REA; i'm done with other agent. He's FIRED! I haven't told him verbally, he'll soon find out! Let me tell you why I finally got fed up with him. I ask for him to send me comps on properties I'm deciding to put offers in on, one of them I'm actually going for viewing today. He sent me comps for two properties I didn't ask comps for; then want make it seem as though it was my fault stating I need to be more specific. Oooh that right there burn my goose. Then when he finally does send me comps for the correct properties I asked for; they're basically what the subject property and comparable properties had sold for for last year close too around this time. I mean sure there were some properties that have sold for this year listed on comps. But I felt they didn't help much in the way that those properties were located in nearby neighborhoods or were sold in the early part of this year.

So I emailed KW agent one of the properties (that's still available, other is under contract after seeing MLS # had been update) that I ask ZR agent to run comps on that I'm interested yesterday night. He emails he more favorable & appropriate comps that reflect todays real estate market for the area that the house is located in. We set up an appt to meet today at 4:30 to view first house & from there we'll go see the second house. There is a possible third house that I keeping in the wings if either of these go under contract before i get chance to view & determine whether I'm going to move forward with submitting an offer on either of them. I'll keep you posted how things work out.

Update (yesterday's viewing): The house David met me to go view was a total mess. The sheet rock had been ripe out so vandals could get at the cooper wiring. Yes people the wiring was completely gone plus there were people residing in this dark house. No go on that one. The Graymont house had been sold already. So I email him two other houses (off list he emailed me) last night to find out their availability status. We'll wait and see what turns up with those two prospects. My challenge is finding properties close to Marta Rail stations or on one of Marta's bus line. Alot of people here depend on Marta to get around Atlanta metro.

10:30a.m.-went view 3 prospective properties today, list price on each one; $12k (3/1.5), $10,500 (2/1) and $13,900 (4/2).

[10:35a.m.]Prospect #1- interior needs extensive work and updating: fuse circuit panel needs modernizing and possible rewiring for whole house, paint throughout, hardwood floors refinish, picture window needs replacement, closets' need new closet doors hung, new refrigerator, new electrical stove, kitchen cabinets delay replacing basement gas furnace (possible replacement), gas water heater(possible replacement) exterior paint brick and wood siding, fascia and some wood on eaves needs to be replace, landscaping (shade tolerant).

[10:50a.m.]Prospect #2: interior hardwood floors need refinishing, exterior landscaping needs curb appeal miracle. gone under contract

[11:10 a.m.] Prospect #3: interior suffered fire damage (don't know how recent though), whole inside is covered in soot and smells like Smokey's barbeque, no toilet in Master Bath (oh the tragedy), kitchen is none existent (no cabinets, no kitchen sink, no refrigerator, no stove). Don't remember whether there was laundry hookups (that'll remind me to take a camera next time to take pictures). Electrical panel will need to be replace along with rewiring entire house possibly. The house does have good bones though. exterior landscaping will also need to be shade tolerant. under contract

Waiting on REA to get back at me on the numbers and other information I request on two of properties before deciding which will be worth my time to pursue. Will need to decide rather quickly which one to put offer in on before either are put under contract.

Also following up with private landlord to find out all information on 2 family duplex before scheduling a tour to present her with my offer.

Sounds like you've really taken control of this thing. I hope at least one of those leads works out for you! I'll keep reading!

6:00p.m.-Realtor emailed me back "Prospect #3 is already under contract". Bummer Ask REA to put offer of 50% of $12k listing price on Prospect #1, keeping fingers cross. AHHH the SUSPENSE!

I love reading your journal (hadn't had the pleasure until today).
You are a very determined person, and I have much admiration for you making a way, even with your vehicle in the shop and children to take care of. It won't be long before you are in the middle of a great deal! I am excited for you!

Keep up the great work, and writing with such heart. You are an inspiration!

Rina

@Rina: Thanks for the kind words. LOL no...I only have one and he's a hand full. He'll be 6 years old next month. I hope my journal is a learning experience & motivation for others (like myself) to get out there and just do it.

Well last night REA tried sending copy of offer to me to view before submitting to Listing Agent in the morning.

9:03 a.m.-This morning REA calls after I had gone over Purchase Agreement and Lead-Base paint disclosure. I wanted to make a few changes; requesting that response time be change from a Tuesday of next week to 48 hour response. He told me that I could request that but it's really Lender's call how long they would take before they got back to me with a response on rather they had accepted the offer or not. I also want to request that the seller pays the full tax amt. Again my REA said that my closing costs would be less than $1000 dollars (I'm going to hold him too that) since I'm paying Cash. They would prorate the taxes. I would get a credit from the beginning of the year up to the day of closing. Then after I would be responsible for full amount of this years taxes coming due. He said something to the effect that if I wanted the Seller to pay the closing costs than they would be expecting a larger amt closer to their listing price. He also stated that they usually want 80% of the list price that they would probably reject my offer. I kindly reminded him that comps for the area didn't support me overpaying for per SQFT for the property plus along with the amount of work that the property needed to make it comfortable for me (or anyone for that matter) to live in. Plus I throw in there the fact that the property would be uninsurable due to the old fuse circuit panel (believe me I checked with a State Farm rep already to add to my amino) needing to be switched out & wiring updated before any insurance company would insure it.

12:10p.m.-REA stops by for me to sign a contract and I hand over a copy of EMD and Coastal-Funding POF letter.

Well let me tell you why I made the offer that I did:

1)I'm not willing to take a chance losing $12k or even 80% for a property that isn't insurable.

2)comps for SQFT don't support what they're asking for for listing.

3)I'm not going to overpay for square footage that isn't there. Basement doesn't count, it's not livable space, at least not yet.

Plain and simple fact is they're either going to have to accept my offer or I move on! There are too many properties already on the market, coming on the REO market and more waiting in the wings that have yet to to be process, here in ATL, that could very well be better deals then this property. So now it's the hurry up and wait game that Me and Lender play. I have a good feeling that they're going to accept my offer (which is what I hope) or at least counter with a reasonable offer but I'm not going to hold my breath. I already know my target price of what I'm willing to pay for this piece of RE if they plan on countering. I won't go beyond $8000 now that I think about it further not even $7500. No no no no no I did my homework on this one as well. Comps (base on age and SQFT) don't support the $12k or even 80% that they're seeking for price of similar houses that have sold in the last 6 months. 2008 prices get boot out the door. So they can't even take that move and they know it.

Comps that sold for $14k and above; had from 1000 to 1100 more (whether they were built on a full basement, partial basement, crawl space only or none) SQFT than the property that I bid on. So we'll wait and see what happens. In the mean while I'm keeping my eyes open like a owl for other deals.

HaHaHa...I did not go to sleep til something after 2 o'clock this morning. Along with the amount of caffeine I had earlier probably didn't help either. My mind was swarming with all these ideas about, how to improve a upon, the property I offered on yesterday. Knocking out the picture window to turn into a double bevel lead glass patio doors for excess to the patio from back of house instead of having to go out the front door and walk all the way around. Relocating the washer/dryer hookups for laundry from the kitchen into bonus room/den/4th possible bedroom. Back to the kitchen adding a dishwasher (since one doesn't already exist) in place were washer/dryer would have gone, on that wall in the kitchen since the water supply is already there in place along with a pantry cabinet for microwave and other small kitchen appliances storage.

Putting in new kitchen cabinets, granite counter tops, new smooth cooktop stove and refrigerator w/ ice maker. Moving to the bathrooms; redoing the main bath and half bath in Master with updated tile & decorating scheme & also recycling the old sinks & toilets to save money there. Removing both monstrosities; the gas water heater & furnace in basement. Gas water heater I would replace it with a tankless gas water heater & relocating it on the west wall in basement. The gas furnace would be removed entirely from the scent to free up floor space in the basement. Replacing it with a electrical A/C heating & cooling unit instead in nearest corner & making sure the basement is tie into with heating and cooling of main living space. Both windows in space would be replaced. I'm not really sure yet which paint colors I would use exactly for main living areas. I've been looking at HGTV shows for inspiration to see what are latest popular colors.

The roof would be replace and along with some updating of landscaping in the front and back to draw the eye to features of the house. I know its wrong to get attach to something before its even your own but I like running remodeling ideas through my mind because I can see home potential where ordinary buyer would dismiss the opportunity that's there.

I had finish getting my hair style at salon. Me and my son walk to the Family Dollar store (they're all within walking distance) before we head home for the evening. I get the few items that I wanted and I go to check out line. One patron is getting her items ring up and another patron is in front of me and gets out of line go get something else. So I move up in the line being that I'm next to check out. The patron who had gotten out of line; jumps back in line without asking the courtesy can she get back in her spot. I check her on the matter. Telling her she needs to get back at the end of the line. Then she going to tell me I'm not going to tell her what she's going to do! I went around her and put my items on the counter. She keeps talking out her mouth. And tells some other patron in the store to go get her daughter, her keys & MACE. LMAO. Look here, i have had been expose to chemicals far worse than mace. Back to scene; the whole thing that set it off was when she came out her mouth and call me a _ _ _! Its one thing to be lack manners when someone calls you out on your wrong its a whole other thing to disrespect somebody behind their back when their standing in the line in front of you.

But another patron i believe who also was a store employee jump between us to keep the situation from further escalating. I have no problem at all fighting two people. She was thinking about my son; I was ready to defend myself if I needed too if one of them threw the first punch. I understand her point the patron who was standing between us (and what all she was saying afterwards while i was walking home) & to try to calm me down but I refuse to be disrespect by any other person (adult for that mantter) when their obviously lack manners and courtesy in the first place. That was my evening

Yes, there are a lot of RUDE people out there, but violence because someone took there place back. I would just let it ride, but that's just me. Oh, by the way, you are not the only VET. on this site.

Happy Hunting
charlie-d

I will not be intimidate nor walk over! I refuse to be by anyone! Its call courtesy and manners; two things people have forgotten or don't bother teaching to their children or remembering themselves. Have a restful Sunday.

So got email from REA; prospect #2 went under contract 3 days ago. He assumes he will get a response back on Prospect #1 in next couple of days. Turns out we didn't have to resubmit my first offer; LA assure him the time limitations of first contract didn't have any affects with having to resubmit a whole new offer. Well it's turn out it's true, the bank really does like to take their precious time reviewing offers. I miss my first class today; it was raining early this morning and I haven't gone & enrolled my son in daycare. There are so many daycare centers in metro Atlanta it's hard to choose which one would be a right fit for him with his needs. I have to make that decision today. I have same class (i was suppose to be in today) meeting on Wednesday and I'm not going to miss that class!

Slow start too morning. I email REA regards to short sale opportunity on 2-family to find out any & all details possible; waiting on him to get back to me with the information. Since I can't get financing myself maybe I can get in contact with the owner to work out a possible deal directly. Any thoughts? with this one. It is listed with a REA. There's another just like that's already bank owned. Both these units have their own 1-car garage! What new url for ATT's Who Is page to track down phone numbers? Just gotten word that they rejected my offer on Prospect #1 is was to low. So what should I do with this one. Walk?