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

[7.14.09]Tried to go see Prospect #4 but someone had taken (actually stolen) the Supra KeyBox [that holds the property's key(s)] off of the front security door.

[7.15.09]No word yet on whether they rejected my "Best and Final" offer on the Prospect #1 listing. I had a full day of classes; they hadn't gotten the 5D cameras in today as they were supposedly were to be. So I have to use Rebel XT to do my assignments for next week. Hopefully the newer cameras will come in, by Monday.

Going to go look at prospective 2 family tomorrow; still no response on my final counter offer. Alot of $10k and under listings are put under contract within or under a week of being listed. I'm my eyes wide open for next new deals on horizon.

Didn't go look at the 2 family yesterday; did go today and viewed another SFR property. It was a wreck; wiring was rip out of wall, toilets and sinks taken from the property. As well as kitchen cabinets (including sink) had been rip out out of the place. Along with the double door leading to patio had been taken even.

Definitely going to go look at smaller 2 family tomorrow. Also emailed, the Listing agents--late tonight, of two other MF properties (quad and duplex), seeing what terms the perspective owners' are offering for their properties as far as owner financing is concern. For quad, Seller will consider owner financing and for duplex seller will offer some owner financing. Although, I'm not liking the asking price, the quad owner wanting for their property. The assessor's appraised value (Land+Building) is way less than their asking price. Duplex has had fire damage in one of the units. So I'm trying to find out how badly damage is that one unit; good news is it is nearby the first prospect I put an offer in on. So that's a plus!

Went and look at smaller MF duplex; space inside was awfully small and there were too many other boarder up properties surrounding that property. Listing agent got back with me regarding much larger MF duplex; one unit apparently has smoke and wood damage from a fire that happened in the living room. Listing agents wants me to call for financing terms. I'm not really wanting to make that call in regards to any lender financing if that is the case. So I may just pass on that one. In fact, I am going to pass on that one! I don't want to deal with any fire damage building right now; reason being lack of experience and knowledge of knowing how to get the space back livable in as quickly a manner as possible.

I have read your journal and I admire your zest. drive and determination which keep you going. You diamond in the rough will soon be realized. Keep the momentum, it is only you to make you successful. I wish you all the best in your real estate investment career. May God continue to bless you and begin your climb by providing your first deal, from which will come many more.

Sandra

Thanks, I'm staying optimistic that, that deal will come through. God Bless to you also, in your REI endeavors.

In the mean while I have my eye on FIZZBO; that I came across, today, on my REI pursues after looking at some other listings on my list. Those listings didn't pan out; one was taken off the market for whatever reason the LA didn't disclose to my REA (I found all this out after I had gone over to view the listing--for some reason I hadn't gotten message in time from my REA) and the other was a burn out. I'm not wasting my energy pursuing those kind of properties at this moment in time. Maybe down the road in the future! Going to call that FIZZBO tomorrow and find out what he/she asking for their property.

Came across another REO today listed with same Brokerage firm; Lender hasn't stated what they're going to sell for. I'm working on trying to get in an offer if possible before its listed in the MLS. The sales agent they transferred me to wasn't available so I had to leave a message on her phone. So going to write a letter to see if owner listed on another property in same neighborhood is willing to sell it for low price.

Another eventful & beautiful day, Alhamdulillah. I had class this morning. Scope out some other listings, watch LiveStream of Atlanta Masjid's khutbah for Jumu'ah. Waiting on REA to response back regarding availability status of some listings. Insh'Allah I will be closing on my first deal real soon, I can feel it

No response back from my RE agent regarding listing statues I inquired about. I forget its the weekend. I don't want to potentially miss out on these come Monday morning. I also check daily property listings, I have email to me, property I bidded on Wednesdy is now back on the market. I email my RE agent early this morning regarding it to find out whats going on but he hasn't gotten back to me.

Quiet Sunday weekend yesterday. This afternoon REA hadn't heard anything back yet as far as offer was concern (whether they accept my offer or I was outbid) on the house I'm in competition on. Actually been keeping my eye on a Property in my current neighbor. It recently had some activity, by way, of mowing the grass. Its being sold FSBO by Mortgage Broker. I look up their company information this evening and sent them an email inquiring what owner is asking for it if it's still for sale. Check assessors website, saw it last sold for over $200k back in 2004. I probably should have just gotten their fax number and fax in an offer and see whether they would bite. The other two properties I inquired on need extensive rehab work to make livable. Not fend to get hung up on something I don't have experience in so I'm leaving those to more experience investors. Receive a call from Success Academy today. Don't feel as though I would need their services to help me out on my first deal, since property I would be purchasing would be for my son and myself use.

Thank God its Friday! Went to go view, another property, this morning. Those mofo's did it again "taking the keys out of lockbox" as to deter no one else from viewing the listing. I had my agent submit an offer close for asking price with and/or assignee on the contract. I'm wait and see what they say on that one, if they're response, is "No" to Assignment of contract. I'll have him submit an addendum to add "And/or Nominee" to contract. So I'll still be able to assign it to another investor through Trust, if Lender accepts my offer.

When obstacles come in the way it is for a reason, be not deterred. Your diamond in the rough is but a finger away. Remain vigilant, your first deal is on it's way. Remember to pray about everything. God Bless.

Sandra

Hi Alana,
Instead of using and/or assign try using "Vesting to be determined". I picked that up during research. Good Luck.

Happy Hunting
charlie-d

Alana,

Just wanted to say hi!!!

Bob

Offer has been accepted *thumb ups* All praise be to God.

Asking: $7900
Offer: Full price, paying cash
SFR 2/1, 880 sqft .2296 acres
open porch 138 sqft
Zone R3

Going to meet REA tomorrow to view inside of house & to turn over $1000 EMD (certified funds) and get inspection scheduled. Closing is schedule for Sept. 4 tentatively, if everything else falls into place (mainly if I'm satisfied with inspection outcome.) Appraised at $41,200 (Land+Building) according to County Assessor for this year, value only drop $1800 from last year's appraisal. Property does need mostly cosmetic work (i.e. carpeting/other flooring, paint, etc) from what I could tell from peeking through windows.

Zillow's zestimate: $107,500 Value range $80,625-$127,925
Cyberhome's estimate: $48,312 Value Range: $43,480 to $55,558
eppraisal:Mid Value: $356,221 Value Range: $302,787 to $409,654
TotalViewRE Our Estimate: $166,581

Went to go look at property today and sign off on the papers. I tell y'all I was not happy at all with the amount of work this place needed. What it actually needed was a wrecking ball more so than a miracle like I had stated earlier. So I'm going to have my agent submit the paperwork tomorrow to withdraw my offer get my EMD back and walk away from that one. Well ya know the saying 'when it rains it pours' well it was actually sprinkling rain anyways I return back to my residence after viewing the property and the dang lock decides it wasn't going to cooperate nor function any longer after I inserted my key into the lock. I couldn't turn the key at all! It was functioning when I had left this morning-I had lock the door when I left this morning. So I had to call (411) an emergency locksmith service to come out and open the door. The guy had to drill into the lock to get inside. It cost me $220 *crying tears* for him to legally break into my residence. I tried getting a hold of my landlord to let him carry the cost but to no avail. So I had no other choice.

Well you're probably asking yourself and snatching your heads 'why didn't she just go in through the back door?' Here's the clincher!

Wait for it! *Macauley Culkin look* Turns out landlord doesn't know the whereabouts of those keys so I only have the front door key. So when I was able to get inside and call him he hadn't promptly return my call til 1.5 hours later. So now I got to wait and see if I will get some if not all of my money reimburse back to me. I also had my agent send another offer off this evening. I'll get the confirmation in the morning that the other agent has actually receive it.

That's okay! Tomorrow is a new day, and it WILL be better! Plus, even though the house wasn't what you expected it still gave you the experience of doing a walk through with your agent. You now know exactly what you're looking for in a property and can narrow your search down to properties that fit that description. Hope all goes well with your land lord!

yeah I know you're right, at least I got a brand new shiny lock on front door LOL

Why not counter offer factoring in the repair expenses. Concerning the locks, since it is the landlord's responsibility to have both locks in working condition, if he refuses to fix them, do the repairs and submit the bill against your rent. God Bless.

Sandra

Well the bank stated in their addendum I sign yesterday they would not make any repairs because they're selling it "As-Is" nor would they give any seller concessions. The floor joints in the bathroom need bracing along with the size the bathroom (claustrophobic) plus with other repair costs. I have to take Indiana Joe's investor friend's advise "the good deal is the one you didn't do". There are plenty other deals waiting in the winds. I submitted another offer on a different place. I'm waiting on the confirmation this morning that the Listing agent has in fact receive my offer on that property.

Update (on accepted offer): Well I email my REA this afternoon and instructed him to withdraw my offer. I want a deal not a headache the property needs an extraordinary amount of work to make it habitable once again. Plus I had found out the day before going to view the property by checking out the IndyMac REO site that the property on their site is/was price for $4500 not like the $7900 that its listed for with the listing agent. So I refuse to pay $3400 extra. I'm still waiting word on the other pending offer I submitted on Wednesday.

what have I been up to since I withdrew my accept offer on Worthem Ave property. I bid on 4 other SFH properties, didn't hear anything back on those offers. About around the end of August, 26th actually, I went on HUD.gov looking through their listings for my first and next "not so scary" potential deal. I found one listing that appeal to me that wasn't far from two other SFR properties I had been through--and one I actually bidded on earlier--when I started my search for REI properties.

This HUD listing (owner-occupant), the sale price was $6000 (as-is). I contacted my REA first thing that morning. He stated "he was out of town (gave him the benefit of doubt, its the labor day holiday) and he would be back to submit the offer on Monday". I also requested for him to put in the contact for the seller to pay closing cost. He relaid back to me that Monday morning 'that HUD would only pay 3% towards the closing costs. If that would be ok?". I said "that was fine". I had to wait a week to see whether my offer would be accepted by HUD's seller. Meanwhile I had been looking at other properties in case that bid fell through. On Sept 7, 2009, I got news from my realtor, David, that my HUD offer had been accepted.

I met him on Tuesday (which was the next day after my accepted offer) to sign the contract. Since HUD put in their addendum that I would have to occupy the dwelling for 12 months (meaning I couldn't assign this deal). I had the funds to go ahead pay cash. I gave him (my realtor) an earnest money deposit of $500 (certified funds). That was also the day I first tour the home as well. I can tell you this place was far better shape (interior) than Worthem Ave property. I had to get copies of my bank statements and fax those other to my Real Estate agent before he would mail the package back to the seller. I waited a week from time they received the documents for the seller to sign them and send them back. After that the attorney (HUD approved/assign) had to wait 10 days for the title to come back. They receive the title back yesterday. I also learned when I got contract sign back from the seller at that time that HUD gives owner occupant buyers a $1000 credit to appear on the Statement at closing. So not only will I get $180 towards closing costs, I now have a $1000 credit and my earnest money deposit $500 coming off the $6000 offer price that I gave the seller.

My real estate agent David contacted me today, saying 'we both need to sign a revised contract' since it would be a cash deal. I'm a little confuse on that part since the original contract that I signed, I checked that I would be paying cash and not financing the deal since I couldn't assign this property to another investor because of the 12th occupancy restriction, not qualifying for FHA insurability and also not qualifying for the 203k renovation financing and finally I had agreed (signed as well) that I wasn't purchasing the property for an investor (wink, wink). So tomorrow I have got to meet my REA to sign the revised contract so he can get back to HUD attorney so they can do their thing to gather all the paperwork so we can schedule a closing date. It's been 30 days since my bid offer had been accepted and we expected to close this deal within 45 days or less. I'm shooting to get this deal over and done with by end of next week or Wednesday the following week.

Looking over the appraisal today, it will require a MPR (minimum property requirements) of $15.400 to make all the repairs. I had guess on my own a rough estimate of $13.900 (allowing 40% overage for unforeseen repairs) improve its curb appeal and marketability to renter and to increase its value to comparable homes in the area.

I went to meet my real estate agent, David, in Doraville at the Doraville Marta station to sign the revise contract. He basically had to cross out a portion of the sentence that stated the buyer would be getting financing through FHA. All that time wasted for a simple strike-through (you got to LUV *heart symbol* how the govt does business, NOT). He inform me than that it would be another 5 days before we can schedule a closing date after they gotten all paperwork back from the seller. And that I possibly wouldn't have to pay the closing attorney since we were using HUD's attorney and no transfer taxes but he would inform me if I do. I had tried getting an insurance quote from State Farm earlier well before the floods happen on another property but the representative informed me at that time that they wouldn't give a quote on a vacant house. So I am kinda hesitant on getting my homeowners policy because I don't know if there's any restrictions for writing new policies for Fulton County.

In talking with USAA after handling business about a default insurance policy on my pre-foreclosure home in Pensacola, that Fulton County,Atlanta Ga didn't fall into that category of counties with restrictions on writing any new insurance policies. After I get that straighten out next week, I'm going to see what they will quote me for homeowner's insurance for my place here in Georgia. So any properties in Douglasville County and other counties hardness hit by the floods, insurance companies are not writing new policies which I don't see how they can restrict anyone buying a home from insuring their home in those counties effected by the flood.

I'm also researching and finding out all the information I can about Subject To deals and gathering up the courage to see how I can work a deal to lock up and assign a $48.5 million-Renaissance Walk (Auburn Ave) 161 condo unit- foreclosure.

In emailing my agent, David, HUD should receive the revise contract on Monday. HUD will take a couple days to review the contract and send it back over to the closing attorney again and after the attorney reviews the docs, it will take 24 hours for them to generate the HUD-1. So from whenever that date is we can schedule the closing 5 days out. So I'm looking at a tentative closing date of Oct. 22, (which will put us right at the 45 day mark). Getting this one done has been a long one coming. It's all good though this one deal ignites the fire to get 13 more deals done before the end of this FY.

Contacted a FSBO regarding her property for sale. Property management is slow in moving owners from "wait" to "rent" status (2.3yrs-ouch)! She just wants out of her property for what she owes. I'm trying to think differently on this one, since ratio of owners occupany to renters has already been reach (20%), I can't rent this unit out to anyone. HOA is $248 and is expected to increase 10% in 2010. Haven't decided if its worth further considering? Would really appreciate someone else's opinion and/or advise?

Call this evening to get a quote on homeowner's insurance, turns out it was very cheap. Yeah. So thats been my day. I'm go research tomorrow at the County Courthouse to see NODs and come up with a plan to reach out to those homeowners.

Congrats on your Hud deal closing on the 22nd, and on your FSBO you're working on. Keep up the momentum and focus on what's coming your way. I'm the new kid on the block just getting my feet wet. Gleaned from one of your links, very informative ARV GODBLESS George41

@George41: Thanks for reading my journal. God Bless in your REI.

[1:04 p.m.]-Call an R.E. attorney today (whom I found out about btw, from my local GREIA club). His firm handles loads of real estate transactions for investors and Lenders in the area. So I made an appt. tomorrow to discuss with him the contract language of Subject To deals. I like having a sound understanding of the contract before visiting a Seller, so that when I go visit them. I can explain the contract, to them, in as plain a language as possible, so that I put their minds at ease and they will have a understanding about what's go to transpire with the deal. So that we can complete the transaction as smoothly as possible.

Decided to heed fellow DGers, Destrie and KimmyJ, sound advise and wisdom-Thanks ladies and not pursue the condo FSBO, any further. A good deal is the one you didn't close because of the migraines it could of generated to get rid of it. But I will pass her information along to another fellow investor who can buy the condo outright.

9:00a.m.-Headed out today to go catch the Marta train to go to the meeting I had schedule with Stephen (Harlan and Associates) this morning. The low cloud cover kept it cool, with the hint of rain showers looming. I arrive at his office right at my appointment. We sat down to discuss Subject To's and other concerns I had. My main concern was covering my behind. He didn't object to the Sub 2, he's close plenty of Sub 2. Although he though doing a Sub 2 deal was stupid, he has no control over what people do to sell their properties but he caution me of knowing what my exit strategies would be if I were to do a Subject To in the event the loan was call due. Or if the person you intentional buying the house from were to die tomorrow. He also warned me not to put all my eggs in one basket with Subject To deals.

He spoke of past clients where circumstances with his personal affairs lend its hand to having to do a Subject To deal on his home. He emphasize being absolutely aware of whats going on in my area's market. Sharing a story of one of his another client, an investor had to bring $$ to the closing table because the house next to property he had a Sub 2 on went into foreclosure and sold for $40k less. He highly advise for new investors learning the roles to use hard money even though the costs (10-15% interest plus points) were high. Because you would have a second set of eyes scrutinizing over the deals. They critique whether you really have a deal or not. He assure me they evaluate properties all day. He mention several hard money lenders-two of whom I've heard of-here in Atlanta, that have been in business since 1985 and early 90's.

Having that conversation today motivated me to go out being ever aware of what's going on in my market around me and locking up deals so I can leave away from the closing table with checks instead of bringing checks to closing. So I can build the cash reserves for major rehabbing projects in down the road. Stephen also inform me that investors in and around Atlanta metro are going out buying $30k SFH, rehabbing them and putting Section 8 tenants in them to cash flow. I mark on my calender to attend a upcoming Subgroup for Lease Options, next month, to learn and ask questions regarding doing deals with this strategy in Atlanta.

Emailed agent again later this morning, trying to find out whether he had receive notice that Hud received the revised contract or not. If not, to set up a date and time to sign another revised contract. So he could personally deliver it to the Hud office. If I don't hear back from him over the weekend. Come Monday, we're going to have to have a real estate intervention. I have no later than 45 days to close this deal after Seller's acceptance (according to terms of compliance to the contract) or else I start raking up penalty fees and we can't have that. Nadda happening! Inshallah, I don't want to have to come out of pocket to pay for another month's rent. Don't know whether my landlord has started advertising (the duplex I'm residing in) already nor whether he has someone else lined up in the event to rent it next month. So time is of the essence! :0

Take note: It's your responsibility, as an investor, to know the status of any pending contracts deadlines and the progress of where its at in the chain. From getting the signatures from the Seller (if the offer is accepted), title search and/or attorney review, title status (whether its clear or clouded), any remediation to clear title (if liens are present and you still want to move forward with the deal), proper preparation of HUD-1 settlement statement (this means having credits in their prospective places were credits are due, closing costs (deductions-includes Mortgage Payoff amount if there is one), and most importantly Net Proceeds Due to the Seller) and lastly knowing the schedule closing date and being on time for closing. Oh another important fact, if your using Lender funding, making sure that their underwriting sticks to its word of funding the transaction.

Nothing can make a Seller flaming mad as a Naga Jolokia pepper, is to learn that the buyer's Lender has gotten cold feet at the last minute and back out of funding the transaction, at the closing table. I pray that never happens to any of us. "Love the exit strategies of real estate".