OfflineOk This is my first post long over due since I am about 2 weeks into this so far so this might be a little bit lenghty got alot to unload.
Well I bought Deans Amazing book about 2 weeks ago right before the end to the Blitz. I was the best ting I have done for myself in a long time. Got the book and read it cover to cover in 2 days. That may not sound like much to most of you but I honestly havent read a book in so long I cant even remember ( if I were to guess I would say some where in Jr. High) I have always been a person to learn from being showed how to do something once and then I pretty much have it, but if you ask me to read something I just cant get it A.D.D. just causes me not to be able to sty focased on something in a book very long. Anyhow Dean's Book managed to grab my attention and hold on to if for 2 days stright think i read it about 1 and 1/2 times or so truly amaqzing stuff.
Anyhow could not get enough so I was Lucky enough to be able to get The EDGE 09 DVD's too. They are truly amazing like I said I learn from seeing so much easier thank you Dean for putting them in that format. These Dvd's really helped me narrow my focas down and start the ball rolling in the path I now know will be best for me and my situition. BUY THESE IF YOU HAVE A CHANCE YOU WILL NOT REGRET IT FOR A SECOND !!
The place I am at right now is Credit in the crapper like Greg Murphy in the book and the EDGE dvd's and I don't have any cash to start or anyone in my family to ask for some either since I make currently more than anyone in my family at my day job. Also, I have never owned a home or read one thing on real estate before getting into this. But I'm in luck Dean and his system to the rescue.
I have decided with where I am currently I am going to a combination of Greg's Lease option system (page 70 of the book, disk 4 last chapter of the EDGE dvd), and Matt Larson's 25:1 system to go out and lock up some properties with a lease option and either sandwich lease them or assign them focasing on Foreclosure, Pre-foreclosure and Probates. Assignment of contract's being my first option gotta get some quick cash to get my bank roll going. I chose this because I fill this is the way I can help the most people along the way and that is a BIG reason for me wanting to do this. Keeping someone from losing there home to the bank and helping find someone a home that would not have been able to with out my help really drives me to suceed.
Anyhow lets see where I am right now is basically I have got my automated line set up with different prompts for each type of caller, just got all my flyerrs made(going be hanging them up when I get done writting this)Have both my main and probate websites set up, business cards are ordered, have a lawer already onboard, Sent out my emails to mortgage brokers and real estate agents directing them to my automated voice service to weed them out. So I am making some head way toward that first deal.
I actually have almost made a deal buy just picking up a paper and calling a number to an add that seemed like a motivated seller. Went and met this lady after doing all my research. She was wanting 49,900 each for 2 houses since she is an investor looking to cash out and move to Flordia to retire. The 2 houses she had where already fixed up and even at those prices would return about 400.00 positive cashh flow a month about 200.00 on each of them. I did my research and decided that 61,000 was about 40 % off of them and that was what I would like to get them locked up at. Printed out my info and put it in a nice binder and off I went to meet this lady.
I got there and we looked over the properties and I told her I could make something happen for her fast but needed to lock up the properties at 61,000 according to my research then showed here the folder of my research. She countered with 75,000 which was about 30% off FMV but she would not lock it up under assignment either or do a lease option.
So I told her I still may know someone that would want them and I would get back with her. I was time to birddog this on since I had tryed everything else I knew at that point. I had called a I buy houses bilboard eariler in the week to work on my buyers list and got the name of an investor for just such an occasion that said he would pay 1000.00 without the assignment contract if he closed.
I called him and told him the deal and he was intrested until I said the ladys name apperently he had already contacted her before and she had gave him the same price of 75,000 and he did not fill that was where it needed to be for him. He asked me what I felt the properties were woth if I had got my ideal price locked up. I told him around 61k he about fell over and said that was his exact price he wanted them at. He asked mehow long I had been in this I told him about a week and a half and his jaw dropped again. Anyways long storie short I have a very impressed Buyer now willing to work with me on anything I bring him!!! OH and he invited me to the next meeting of our investment group in the area this thursday.
So thats where Im at no deals atm but on the verge I fell it and now I have a buyer and a way in to the investment club and people to talk to in my area. Not bad For my first week if you ask me. Sorry this one was so long had a lot to get in. Just REMEMBER TAKE ACTION AND ANYTHING WILL HAPPEN!!
You have done your homework here it shows. I like your get it done attitude. If you stay the course, you are bound to succeed hands down. A big plus for you is the REI club. Take advantage of talking to investors just like yourself. It is a priceless move that will only benefit you now and down the road. I will watch for your success posts to follow soon. Best of luck...Jan
One word. WOW! Thats awesome! Sounds like you are doing great for yourself. Make sure you attend that meeting with him because you will be able to network so well from that one meeting. Buyers and sellers will be everywhere, and you will learn all kinds of invaluable information. Keep up the good work.
Success and Nothing Less!
First thanks for the support nice to have some postive feed back instead of just that wont work, you are crazy, how you going to do that with no money and bad credit ect ect ectI.... What do they know though they wont get up off the couch and even try.
I do have a question though along with all the other options listed above I did consider hard money, but after talking to a broker was told that i would only be able to refinance for the amount that the property was purchased for ie 75,000 in this case and not be able to take out the equity for another 12 months. Is that right or do I just have a crappy broker that does not know his stuff. If it is right why would you want hard money in this case only to sell right away ? Since you will have to pay back extra for the hard money loan. Is hard money only ment to be used in a quick flip not a hold?
Also is there another option I might have over looked other than owner finance, lease purchase, hard money, birddog, assignment of contract/ iee exchange. Any help would be great.
fantastic job chris !!!!!! i live in natchez, mississippi, but i know your area very well. i have spent quite a bit of time visiting my friends. i have friends in bristol tn, kingsport tn, abingdon va. lebanon va, please tell me where the rei club is. i have checked that area often and the nearest one is greeneville tn. is this the one you are goin to ? knoxville tn, is 2 hours from you. so it's doable but kinda far. get your business cards ready for the meeting. real estate clubs are like christmas morning to a 2 yr old 12 months out of the year. lol......
good luck and happy investing......
Well the REI Club has been trying to form for sometime I think for (Johnson City). They are kinda low on members atm here (I'm not wanting to drive to knoxville but I will if I have to in order to get into this type of setting, got friends in knoxville ) really hoping this works out here i'll know Thursday. From what I understand they just have 6 or so without me they are not listed yet, they are more word of mouth atm which makes it a better find for me I think.
You do know you way around these parts and Im sure you know this area is growing like crazy and still well underpriced as compaired to most of the country. I see a gold mine in this area. Walt, I see that big RV of yours in the pic(I assume)if you end up at the bristol night race let me know you are coming. I am The Beer Salesman for Miller/Coors in Bristol so Ill be around with all kinda fun things to do. Even if you dont make it for the race Id love to set down and chat with a fellow DG member face to face anytime. Thanks again for the support. Oh since you got friends up here you dont wana buy one of my deals im bound to find up here so you can have a home awway from home in thses beautiful TN mountians do ya
Anyways thanks for the support.
The title to this post is what I plan to ask myself every day, most likely a few times a day, to hold myself accountable along this journey. Today was Monday so up at 4:45 am and off to work again to sell some beer. While im at work driving between stops all I can think of is am I doing this the right way am I missing something that would make my first deal happen faster. I finally made up my mind probably I am but that means I am taking action giving myself a chance to make mistake, which is better than not doing anything at all.
Well got off work and had the flyers I had made last night waiting on me in my car. So off I went to hang them up, this was a little more difficult than I thought it would be I must say. I made up 4 different flyers 1) We buy houses flyer 2) Did the bank say know I can say yes 3) I stop Forecloesure 4) 3BR/2BA homes rent to own all fo these have my 877-XXX-XXX number on them with an extention directly related to what the flyers are about. Well I go to hang them up and it really is alot harder to find places to put them up than I thought it would be alot of places have signs saying no flyers witch I had never noticed until I went to do this. I finally decided to just look for places where other flyers had been worst case at least the person who pulls it down has to see it right. I did find a few car washes and laundry mats with boards for things like this. Coke and Pepsi machines made good targest at the grocery stores in the area I decided to target today ( not sure how long they will stay up but cant hurt to try) All in all not a bad day had 10 of each one of the 4 signs printed off. for a total of 40 flyers came home 12. Not to bad for an hour and a half of time.
Got home checked my email and had a response from a lead I had found yesterday. Basically it is a lease to own deal I pulled of the internet. They want 90,000 on this house on either a 15-30 year note through them for either 850.oo a month for 30 or 1150.oo for 15 it needs some minor work that I can do all of paint molding ect ect.. Trying to get a cash price from them to to keep my options open. I ran the comps and total view and seems to be FMV would be about 129,000. After going to check out the property, what I Could from the outside and through the windows, I guessing with some small landscaping ( which I know people who will do this cheap) some minor painting of the inside to get the colors more consistant ( they havve like 5 colors that I could make out that look awful) Pullin up the nasty red shagg carpet in the dean from what I could see and putting in new Kitchen Cabnets and appliances. All of whtch I am pretty confident I could Do or someone else for about 5-7k maybe less depending all on the types of appliances you went with and then this house should sell for the high end of the estamates about 148-158k since it has a great location to amajor business in the area and is in a very nice neighborhood. No I just have to wait on a response from the owners and see what there cash price would be if there is one and find out if they will do a double lease option if not. Well thats about where I am today Another maybe first deal in the works we shall see.
you are correct. HML's are for a quick close, get the money, have your buyers lined up, do the rehab, sell it, pay off your HML and go on to the next deal. It is expensive, but quick and the qualifying takes no time at all. There is a DG member who is a hard money guy from California. Here is his email. It usually takes him about 24 hours to respond, but he will answer your questions I'm sure. troyj@gofrf.com. his name is Troy Judd. Also there is another HML out in Ohio I believe, here is the web site www.blazevicfunding.com Try these 2 sites out and let me know....jan
Thanks for clearing that up basically I was looking at it the wrong way HML is for quick flip to seller that is already liined up not to hold the property for you long term gain since you can not get out the equity from your dome fast enough for it to be a valid way thanks so much.
chris when i get my vantare featherlite motorcoach, i'll park it at BMS and you can stay in it with your girlfriend and that way you dont have to drive back to jc in all that traffic and back to the race the next day hahah..... that'd be fun. it only cost 3 million dollars. whats 3 mill to a successful dean graziosi protege'. lol.......
but back to real estate. of the six people you say the club has, are you the only one with deans books and materials ? also i think y'all should call all the realtors offices, apraisers, motrgage brokers, real estate lawyers, handymen, closing agents, title companies, everybody an investor would need and ask them to join.
good luck and happy investing
WALT DOUGHTY III
What do you all think of this for a reply to a craigslist add Looking for owner financed real estate
Hello,
My name I Chris Williams and I am an investor in the area. One of the things I do as part of my investing is "debt takeover" Basically a lease option to keep someone from going into foreclosure and save there credit and give them a chance to downsize and start over. This may be of interest to you since you would fit the other end of the equation. Once I have a property under lease with an option to buy I then turn around and do what is called a sandwich lease or double lease to someone like yourself who has money to put down and may need some time to fix there credit or whatever your reason might be for wanting to lease to own but can get started being a home owner today instead of down the road. The properties I find are always a great deal to me so I want to pass that own to someone else. Like I said I am an investor so my goal is to make money I want to be honest about that up front but my main goal is to help people. With my system I get to do so in 3 ways 1)save someone from losing there home and give them a fresh start 2) help someone who may not have been able to own a home under normal circumstances be given that opportunity and 3) make me and my family extra money for my unique services creating a win-win-win situation for all parties involved. I also have the ability to be more creative with the financing terms to help you get your home approved for you to own since you becoming a home owner is where my money would be. I'm getting payed on the equity I have found. SO I REALLY WANT YOU TO BECOME A HOME OWNER you see. If this is something that may interest you please call my free information hotline it goes into greater details about what I have to offer and what you need to qualify that number is 1-XXX-XXX-XXXX there is no obligation to listen it may be just what you need or if you want to contact me directly call my cell at XXX-XXX-XXXX also please check out my website MYBUSINESSNAME.usapropertywholesale.com
Thank you for you time hope this gives you some other options.
Chris Williams
I Wanted to know how did you know what was the value of the property?
how did you get the FMV?
God Bless
Gerard Doret
Walt yeah I am wondering why there are only 6 or so members to0. I guess I'll find out thursday. Maybe no one has took it apon themself to do what is needed to get it going. Maybe they are waiting for it to just fall out of the sky and hit them in the head to have a bigger group. We think a alot alike though I agree not just invetors but everyone involved in the process should be in a group like this. I may just have to crack a whip and get them motivated about really getting this going too.
Walt as for that SUPER "Motorcoach" Dont see how they can call it a featherlite when it is that big, anyway keep focased and im suure in due time the keys to it will be in your hands.
Well right now that is pretty much an educated guess using all the things I could find on the total view system dean provides and other sites that I have found. I also did alot of searches for homes for sell like it in surrounding areas using price per square ft as my basis. As well as homes that have sold in the area recently near the same price per sq ft. I am also taking into accout the ARV and that the market is on a slow climb back in our area. Since if I did as lease option I would be selling at a future market value most likely a year or more. I would just be making a small positive cash flow until then. The market should have climed back some bringing the equity up thats why I like the lease option I get a short term hold at todays market price and can sell it at a future market price. If I assigned it to an investor they are most likely going to do a fix up and maybe a flip right now for the quick 25-30k or rent it for a bit then cash out a little bigger later. They key factor is location for this house you see it is about a 5 min drive from one of the highest paying jobs in our area Eastman Chemical Company. They are always haveing people move into the area and out there is going to always be a demand for this big of a house in this area always even for rent which can be higher cause alot of employes dont buy becasue they know they are not going to be hear for over a year or 2. So my thought process is this Location+ Bought at KILLER DEAL PRICE+ SOLD AT Future market value+ small positive cash flow = great deal for me or for a buyer I could lease to on the back end or one I could assign the contract to depending on what route this one goes alot depends on the owner wanting to sell for cash or just wanting to do a lease option.
Im just starting so i may not be dead on with the FMV but I fell pretty confident with myh knowledge of this area and my research Id be pretty close.
Thats my thought process hope that helps answer what you asked
Thanks Chris this is very helpful for me
I am Truly grateful...
God Bless
I wish you the best in Real estate investing
I can't wait to develop the confindents
Well today was a good learning day if nothing else. I managed to hang up some more flyers today while at work at some of the gas stations that are on my my route.Also I managed to get in contact with the person that I had mentioned in yesterdays post. He told me to come buy and look at the house on the inside after I got off work that he would leave the house unlocked.
I went right over after work to look at the house curious to see what the inside looked like since in there email reply they had said it needed "some work". When I got there the owner was there doing some mowing. I introduced my self and asked if I could look around. He was more than happy to let me do so. So off I went with my camera and my check list of things to look for that needed repaired that I got from the site here.
I took pictures from the outside and made my way in. As I walked around the property it was easy to notice that it would need some work. I took several pictures form many angles of eash room trying to make sure I got all of the things I thought needed to be changed in order to raise the ARV of the home. This house is over 2400 sq ft but as I made my way to the basement I could not help but notice with the right design the basement area could easily be remodeled to add a rough guess of around 600 sq feet or so. This house even had some 70's type bright red shag carpet which made me chuckle.
I continued through the home taking as many pictures as possible to help me remember all the flaws when I got home along with what I had wrote down on my check list and notes.
When I had finished I went back up stairs and noticed a few copys of the owners lease agreement on the counter which I helped myself to one of. I then went out side and tracked him down to discuss what I had noticed in my inspection.
I told him that I was interested but I did not think a lease option would be my first choice of how to move forward. I Thought that the property would need to much work for me to do a double lease option and fix all that was wrong with it with only the deposit money from the people I might lease to myself. I asked if he would be interested I a cash offer that I could bring to the table and close quick within the next 14-30 days. He asked what that might be and I told him I would have to take the data I had collected home and analyze it and get back with him tomorrow.
I then begain to ask him questions about how his lease option worked and what kind of luck he had had with it. I want to know what kind of strategy he uses. He was more than happy to tell me. He said that he had leased this property 9 times now and that no one ever got close to buying it from him and that I might be surprized how many people "throw" away money to him in deals like this. his down payment consisted of first and last months rent only and depending on weather he was doing a finance for them for 15 to 30 years it was $1700 (for 30 yrs) or $2300 (for 15 yrs) $850 a month payment of $1150 depending on the tearms. This sparked my intrest for future cash flow options on homes I will own. Made me think of a long term, high yield, no sale strategy basicly.We talked for about 20 more minutes abot investing and then I thanked him for his time and went home.
After getting home I went over what improvements I thought needed to be made and how much they would cost to do. My knowledge is fairly good since I have done construction in the past although I am not up to date on current material prices. I came up with about 20-25k to update them home and change the floor plans some downstairs to maximize the space available.
So basically I think I am going to offer him 72,500 for the property to get it under contract for assignment. Why this price well this is where im kinda just guessing to be honest, 72,500 + 30,000 (giving myself alot of space on my ability to guess the rehab cost according to my notes and materials) would be 102,500 total upfront investment for an investor pluse say 5k for myself (maybe less) as a fee would = 107,500. Right now without all the bells and whistles sold with just a modest rehab (10 - 15k or less on rehab cost) I think FMV (right now) would be only 130k a 37,500 dollar profit or so. With a Full rehab and floorplan change I think FMV would be 175k or so a 67,500 profit. I might be missing something so lets go another 5 k higher on each rehab cost 25k rehab for the low so 97,500 investment for 32,500 profit and 35k rehab for 62,500 profit sounds like a win to me and maybe more room to raise my assignment fee some. Am I missing anything? of course this involves him agreeing to the price I have but I could go up some and keep my fee the same too. What do you all think? Am I looking at this the right way ?
Here's to dreaming I guess.
Today after work I called the owner of the property and told him that 70k is what I thought my investors would pay but he did not answer so I left it on his voice mail. He called back about 2 hours later and I explained why I thought 70k was fair. He was willing to listen but dont think he want to go below 80k now we wait I guess.
I told him that I would try to contact one of my investors and get him to come look over the property in person to see if he was willing to pay that for it. If I do this it will pretty much rule out assignment of contract as a option for me and take me to the bird dog side of it I am assuming. Even if it does this will be a good chance to take my possible investor to a property and have him tell me what he thinks he would pay for it and why and if this type property would be something that would interest him. I'm not going to tell him what the guy is saying until he tells me his opinion as to what he would offer. This will at least give me some ideah of what kinda deals he is wanting me to bring him under contract for us to be able to do business often. I have called the investor and am now waiting on a call back. Well guess I'll see where this takes me.
What would stop your investor from just contacting the homeowner himself after you show him the property? You have no contract with him.
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
Well basically nothing except that I have a system that can make him as an invsetor way more money in the long haul (while I am building my bank roll assigning him great deals he may never get at theses prices anywhere else) than to snatch up this one deal. Also it is not like I have not started building a relationship with this guy we have talked several times now and he is the one that gave me the info to get into the local investment group. I have also already talked to this investor about "bird dogging" and what kinda of fee he pays for that he said $1000.00 bucks. I would be happy with even that right now just to get somekind of money coming in to say I have made a proffit with no money of my own.
No on the other side of it, I look at it for the positive it presents to me. Think about it this way I get to go show this guy with MONEY to INVEST what kind of properties I can turn up (fast too the second one we have talked over in less than a week) and that I know what a great deal looks like. I will also have him right there to tell me what he looks at when he goes in checking a property and how much he would estimate repairs and such to be and what he would ask to get the property at. This is priceless information to me getting to know what he will pay on future deals and why. I will know how much I can get from assignments in the furture and what he is going to be looking for to act fast. He knows I could have locked up a price on the deal myself but "as an act of good faith on my part" I am going to toss him a bone on this one and still make a grand in the process or more if he feels its worth it. You think he wants to cut me out of a deal now? or ever again? will he answer when I call next time? Will he want more of my deals in the future? I choose to focas on the positives not the negatives and worse case he takes the deal I get nothing in the form of cash. But he can't take the knowledge I have learned from the process and I just move own and find a better deal and do a better job on the next one.
Think positive and positive things will happen~
love your positive thinking and can do attitude. you are destined for great things my friend great things..much continued succes
GOOD LUCK AND HAPPY INVESTING
WALT DOUGHTY III
Well today was the day of the inverstor club meeting. I got off work and went to the meeting just got back. Well honestly it was not what I hoped. It was me and 2 other guys that showed up but thats better than noone I guess. The 2 gentlemen were very nice and happy to see that I was interested in investing. They have an old school approch to investing but were happy to listen to me anyhow. I was hoping to get a real estate agent real estate lawyer or broker that they used but to my dismay they did not use any of those things they used the listing agent basically when they bought a property.
Honestly I fill I have more knowledge about investing, that I have learned in the last 2 weeks or so than either of them. Thanks again DEAN. The positive to the meeting is I at least followed through and went and one might be a buyer for me in the future if I find the right deal for him. One of the 2 was a salesman for a company that compiles courthouse data into a web based product that is suppost to help you determin FMV. I am going check out the demo on the site he gave me and see what it is all about.
Well thats about it for today be back with something new tomorrow.
Chris,
you are an inspiration to me, your drive and determination make me feel like I can do it too. Good job, but whats up your last post was 7/20 we are waiting to hear how it's going. I have just set up my 1-800 # and am going to hang fliers and signs tomorrow, also I have adds on Craig's list and some local classified sites. I have drafted my letters to potential agents and brokers and will fax them out tomorrow and if there is time I will check out some homes for sale and rent adds and make a few calls, I have a full time assistant so we can get twice the work done!
Happy investing,
Perry
Hey Chris,
Was wondering how your sort and sift system is working for you. give us an update post
Perry
First thanks for the kind words Perry it sounds like you too are motivated. You have got a great start going on for yourself. My response from the flyers has been so so got a few calls mostly people who listen to all of the message and hang up I think part of that may be I might have the required credit score a little high got it at 620. Really need to find a mortgage broker and get the requirements they want I think it may help more people to leave there contact info.
I think my choice of places to place flyers may not have been good either. I kinda just went out and tossed them where ever. I am makeing some new ones that I plan to go to small restaurants and deli's and talk to the owners and ask permission to place the flyers. I am going to do the same with supermarkets and gas stations. I was timid not wanting to ask someone directly to place my first batch of flyers(just hung them on vending machines).I am not going to be that way with the new batch I am going to make sure if I place one it is in a good spot and it will stay up for a while (ink is not cheap). I am not going to use so many different types of flyers used like 5 the first go round. I am just going to use the I stop foreclosures, I buy houses, and 3BR/2BA rent to own flyers that will give me 2 feeding me sellers and one solid buyer flyer that has got the most calls by far of any so I am sure it is one to stick with.
I think this will work better Ill let you know.
I have a huge love for NO LIMIT TEXAS HOLD'EM that is where the title of this post comes from. I have played in numerous tournaments and one thing I have discovered is good cards come and go, but in the game of hold'em you dont have to have the best hand to win. Some times you just have to sit there and grind out a few hands that you know should never win but you play every angle the cards, the other people, position, ect... and take down the pot. This is where I am in investing right now.
Ok update now that I rambled a bit. I Am still talking to the owner of the home I mentioned above he still may lease the home out to someone, it wont be me though I do not want a lease on this property like I said needs to much work for me to be able to use someones small downpayment to fix it all. I have decided to forgo the assignment to as I said above mainl becasue the owner wont sign one becasue if he finds someone to rent to own it he wants to be able to move them right in. So I have decided to try and just bird dog this deal to one investor I found. I have been trying to get him and his partner to go look at the property with me and then run there analysis and see if it is something they want and teach me how they do it. Unfortunately we have not been able to get our schedule's to be free at the same time they are free when I am at my day job and when im off they are busy of a night with there familys. This one is not looking to good since the owner of the house is running an add in the paper and will most likely rent to own it this weekend before I can get my investors there to even look at at. Ill keep going til the end of this but its not looking good right now we shall see.
I am now going to focas on getting my team together I have called and emaled several real estate lawyers figured I would start here since I want to make sure my contracts are legal. I am going to start looking for a mortgage broker too and an escrow company. I am not sure I need a real estate agent for this method atm but going to look for one anyhow. I dont get why a real estate agent is needed maybe someone could help me with that. I am finding all the buyers and sellers and getting my contracts signed and reviewed by a lawyer and then the mortgage broker is helping me get them financed and the escrow company is handeling the payments so where does an agent come into this model.