Louisa's Journal - The Sky is the Limit!!!

Cathy - Thanks for stopping by! Totally true on the cooperative L/Os...I love this concept! Yes, I will keep it in mind with that cash buyer as I continue to check on him and those houses. It sounds like he likes to keep his cash going by continuing to sell and he knows exactly what he is working with, so I hate to cut him off with an L/O before having some house options for him. But I will throw that out there as we get our relationship going. Great idea! SO GLAD YOU ARE COMING TO THE EDGE! Awesome!

Karen - you are too kind! Thank you for catching up with me here. And for your comments.

Let's see...where to start:

OFFERS WITH THE AGENT
I had another 16 offers go out the door last Friday and 7 more offers went out last week on Monday. All in all, we have had a couple counters (from the previous week, this past Friday...jury is still out), but nothing that made sense (too high) and when offering another counter, they have been turned down so far. Except for the one property that I mentioned I would need to figure out financing on as there isn't enough room to assign it to another investor, but it is a good project with money in it after the rehab (I'll come back to this). But back to the other offers...I think my agent may be getting a little discouraged. He wrote me today that he had been getting all kinds of phone calls and emails from agents that are mad about the low offers. I'm hopeful he'll stick with it....good timing because BEFORE he sent that message, I sent him Matt's agent's script in dealing with sellers and seller's agents, along with Star's letter in PFRERN. We had talked about it before, and my agent said he had no issue with low offers, and dealing with those, and I told him I'd send him something that may be another way to approach it and/or give him some tidbits he could add to his own routine to make it more palatable to seller's agents in his approach. We have been submitting every offer in writing as that is his preferred way, and there is no "softening the blow" as Star, Matt's agent sounds like she does in making all the phone calls and/or emails first. I can see why some people try this, and give up. But I really want to stick with it and I do hope my agent agrees. I think, with the right approach, this is a brilliant system, and it takes time to work. I also think that in month 3 or 4 of doing this, you are in an even better position as when you are continuing to go back and make offers again on some of the same properties that have been on the market for so long and/or REOs that the combination of persistence and necessity to sell, some offers are finally accepted that second or third time around. Persistence, persistence...as Richie says, Never Give Up!

PROPERTY NEEDING FINANCING
no longer needs financing! YAY! So I had found a hard money lender for my one REO property that I had made a cash offer on through my agent. We have worked out all the details, and they are ready to close sooner than later. I still needed to come up with $17,500 for closing as my portion of the deal and I've been a little frantic this past week about it, even though I have a few more weeks time. My husband stepped up and said we would do it. Specifically he would do it out of some of his investments. Whoo hoo!! This is a huge feat in itself. My husband getting on board enough to say he'll use his own money. A BIG FIRST!!! YAY!!! The money is just a nice side-line to the point here...his support and shift in belief in this is SO NICE!

Of course in the future, I prefer to use little to NONE of our own money. But if I can get a few of these under my belt, along with continuing to do deals in other aspects of RE requiring no money (lease options, owner-financing, subject-tos), then I'll just continue to use my success story rehabs along with pics to get private money in the future for these deals.

Numbers look like this:
Purchase price: $70k
Rehab: $15k
ARV: $130K

Hard Money: putting up $85k ---specifically $60k at closing (so I have to come up with $12,500 or so with closing costs), and then hard money lender puts up the rest of the rehab money after close on a draw, along with the balance of my money (if I want it all out quick, I have the option to keep it in or take it out with a little more profit out of the deal as well) so that by the time the rehab is complete, I have all my cash out if I choose to structure it that way. Then I put it on the market of course, and sell it fast. Or re-finance, pay off hard money lender, buy-hold-lease option it out. Right now, I'm going for the quick money flip, but I don't want to forget about the other as it is a great long term strategy and hits my number 1 goal for 2011 which is CASHFLOW!

The inspection was supposed to happen this past week but there was a mix up with the utilities, so inspection is due for tomorrow. If all checks out well (and I'm curious about the crawl space - possible water damage), then I'll be good to go. My rehab is pretty tight on costs with all that I'm wanting to do (I do have a full budget from the general contractor, but there isn't a lot of wiggle room, so if there is anything super-unexpected on this inspection, I'm out). But overall, this one looks like a no-brainer rehab-wise, and it's a clean house, just needs some upgrades, paint, and some curb appeal. So I'm eager to get started. We may close as early as February 11 with the goal to put it on the market by March 4.

LEASE OPTIONS
No progress here yet.

NEXT STEPS
I've really been hammering out the offer process with the agent on all of the ones I have out there, and saw a few properties with him last week (although for the most part, we are offering without viewing the properties, but due to some low asking prices on 2 of them, I had to check out the houses/areas.)

So I'd like to just continue with 20 offers a week...I believe we have it down to 2 hours of time. This coming week will be the first true test of that 2 hours. Each week we're getting better at streamlining it. We'll see.

Now that that is conquered from a time standpoint, I'd like to have this rehab going in the background as my next "layer of RE", and get the lease options underway. 5 proposals a week to start would be great. I just want to get my numbers up so things will stick. Still some reading/studying to do on this, so my goal is to get all that "studying the approach" and getting contracts all in line this week, and go for it by this weekend.

It's so hard to be patient with all of this, when I am so ready for more deals to happen YESTERDAY But I have to remember that continuing to add layers to RE each week, and getting more irons in the fire, takes time, and if I read and learn this week for my next layer, I will be that much more effective in the deals that I work out! I'd like to at least do 3 lease purchase options by the time The Edge rolls around this year.

More soon!
Louisa

OMG I am so glad you are back, I love the details of your posting..It helps me set goals and see what I need to be aiming for. I know everyone has to run it the best way for them but, seeing your goals and numbers helps make adjustments that produce.

Thanks. I'm glad to see your hubbies has moved over to the TRUE side. Mine is supportive but, OMG I am up reading and searching and he is sleep on the sofa. Makes me want to scream. I want to just stand over him and scream really loud do you even have any idea how much work this takes....the foundation is not EASY at all. Oh well we all have our parts I'm sure. My dream is a hand by hand me and him biz.......fingers crossed!

Thanks

Wow you have a great ability to explain all that you do and are thinking!! Its inspiring to hear all you have in the works .I also wanted to say that a past post of yours about taking more action when you see or hear others complaining or being lazy or negative is exactly how I am also.IT ,in a funny way drives one to make even more happen!!!! awesome to hear your husband is working with you to make things happen,this will speed your financial freedom and make working rei all the more enjoyable !!
Keep up your amazing actions and look forward to hearing all you have accomplished this yr at the edge.
JAY

Erika - Thank you so much for commenting...I'm so glad the numbers help you with your goals too. You make me laugh ha! Yes, lots of work...hope you're having a great RE week!!!

Jay - Thank you for stopping by and for your words and comments. I appreciate them!! I enjoyed your Empowering Conversation (just caught up with all of mine recently) and love the drive that you have in this business!! Can't wait to see you and Karen at The Edge!

UPDATE ON REHAB
So the inspection was today. So many issues found in the crawlspace. I was expecting $2k of work, per what the bank disclosed, but I believe there is a lot more than $2k of work. This is not my bag, but I would guess more like $8-10K of work, including all drainage, some cracking/repair around a window that is allowing water in the crawlspace, and all the pooled water around pillars on the foundation. I'm having another estimate done tomorrow for this additional work, along with a termite estimate due to some tunnels found in the crawlspace as well. Bank sent me their estimated bid. It doesn't look like it covers everything....it looks very light-weight by a GC who doesn't specialize in this and is just eye-balling a couple things. My thoughts are after this additional estimate, I'll be asking the bank to come down on the property per these bids, and hopefully we'll come to terms to get a closing on Feb. 11th and proceed with the project. If the bank doesn't come down, then I'm out. I'm hopeful we can make it happen.

AGENT and OFFER SYSTEM
This is such a delicate thing. Your agent really has to be ready for the firing squad as far as the other agents are concerned and these low offers. I think Matt's script from Star is excellent, along with her letter. You can be motivated to no end, but if your agent isn't completely on board, or is having trouble communicating these offers in a way that "softens the blow", then you're out too, as you are going through a third party to get things done. Your agent also has to be organized and ready to put out 20 offers a week. Mine called today. We're meeting up tomorrow. He says he needs to figure out a better way to organize this and hasn't ever done this before...sounds like he's getting overwhelmed. But not sure what he means or why I need to be involved. I have an Excel workbook with a worksheet completed each week listing all our offers, the addresses, the agents, their phone numbers, the original list price, and columns for additional notes, counteroffers and final offers. It's very well organized and I update the workbook each week with a new sheet of offers. I highlight any ones I'm waiting to hear back on. And I submit all of this to him weekly. So if he's having trouble keeping up, he can just open the worksheet, and insert any comments, counteroffers and status updates directly next to each offer. I have even formatted each sheet to print out in one or two pages. Beyond that,not to be harsh, but I think the organization part really lies on his own shoulders and has little to do with me. It's his job. I'm trying to be amenable, because I'd really like to get a couple of these under our belt so he can soon be a true "believer" in it, and then he'll have no problem stepping up to the plate to get things in line to keep my business. He's watching his "paper mill" costs go up at his brokers office (approx 200 pages a week for 20 offers), and no real bites yet, and just a bunch of angry seller's agents calling him every other minute in response to his offers. Your agent has to have a strong backbone for sure, and be willing to hone their "offer approach" in order to make this work. My agent is already very successful, so I know using these unconventional methods...well, it's not like he's having trouble putting food on the table, and while he's game, I'm curious about what he's going to be asking me tomorrow. Because if it is something of the nature of him being unwilling...well, I'm just going to put on my best game face tomorrow and see what we can accomplish and get him back on the horse if I'm able. I need him as much as he needs me right now. If he dumps this, sure I'll walk away and find another agent, but man oh man, I would love to make this work as our relationship is already in place. He has an unparalleled energy and I'm hopeful he's just having a rough day and that tomorrow, with a little convincing, he'll be back at it.

TONIGHT
Going over some lease option stuff. Trying to make goals on this for this week. My son is sick, went to the doctor and getting better, but has needed to stay home, so I've been limited on RE so far this week. I'm SOOOO motivated, and wish I could have a 3-day one-on-one bootcamp for lease options to get my questions answered, contracts finished, and just get going to houses. It's like I need a 72-hour trainer!

A NUMBERS GAME
We've all heard RE is a numbers game. But I continue to remind myself of this all the time. How many action items have I taken on today? How many calls have I made? How many houses have I visited? How many sellers have I spoken to? I tend to relate a lot of things to dating as I was single for 33 years. I think dating is very much a numbers game too. One of my single girlfriends who I've known for years was upset last year when she was talking about how someone she met online who was a great guy, and was nice, and everything she was looking for, but when they met, there just wasn't that spark. She was disappointed in herself that there wasn't a chemistry there. She is actually a pretty drama-free girl, very sharp, cute, has everything going for her, and this wouldn't normally upset her so much ----but it was just hitting her that she was still single, and she was just ready to find the right person in her life, and just ready to be over the dating scene, and she was just hoping that this might be the right guy. In the midst of her tears about it, and me consoling her, and empathizing with her, I asked, "So, have you been on several dates lately?" She said "no". I then asked, "So, how many guys have you been out with, say, in the last year?" She said that this was the first one she had been out with in several years. Several years. She was complaining that she wanted to be over the "dating scene" and she apparently wasn't in it at all!? I told her that with all due respect, she needed to get out there and make it a goal to go on 20 dates in the next year, or six months or some realistic goal she felt was a true challenge but attainable. I realize women don't always have a choice in the matter if the guys are doing the asking, but they can put themselves in the right situations, and get themselves out there socially, and volunteer, and just go, go, go in terms of putting themselves in activities and places where they will likely meet people. But I digress...my point being that how on earth was she going to find the right person if she wasn't going to get out there and date, date, date!! Make a list numbered 1 to 20 and keep adding people to it until you've gone out with 20 of them! Put the work into it that you would put into a work project. Think of all the fun restaurants you'll get to go to, and things around town you will get to do! It actually becomes fun once you treat it like a strategy to win by getting through the numbers. If you are a fortunate soul who finds the right one on date #1 with soulmate #1, then thank your lucky stars (I do have a friend like this! Awesome for her!), but meanwhile, the rest of us learned a lot through the dating process and hopefully, we are better mates because of it! I relate my friend to someone walking into their FIRST house, talking to their FIRST seller, and not being able to come to terms, and walking out, and being frustrated with RE! Just keep saying NEXT!!

More later!
Louisa

Okay, so we had our little meeting this morning. And I'm thrilled he's still on board as far as working these. He is just overwhelmed because he's not organized, which can happen to the best of them putting in 20 offers a week for one client when he's never done this before. I think he might be Excel-challenged too because he started a log in front of me on a piece of notebook paper of every single property we talked about...scribbling feverishly ---when he could have just pulled out my worksheet and at a quick glance answered his own questions, and threw in a follow up note in it. I'm just trying to go with the flow, and whatever way he wants to work it that works for him, great. I just see this hand-written "log" as a little bit of a challenge, but as long as he gets it done, great. There have just been issues on the follow up, but I'm glad we sat through 2 hours and got through all the properties, reviewing each and reviewing the follow up needed. This is just not necessarily needed by me in person next time. So I'm hoping he can get up to speed on the organization side of things. I may print out my sheets and hand them to him tomorrow in case it helps!

A POSSIBLE BITE!
So property listed for $100K. I put an offer of $55K. They came back at $64K. Not bad! This may be one we pursue. It's a definite rehab but in a hot area, so I may be able to strike a deal on this one. We're going to take a look at it tomorrow morning.

ON MY WAY....
to get estimates on the rehab ---the additional work on the crawlspace flooding, floor work, mold, foundation issues. It's a bit overwhelming. But I'm hopeful just to get some numbers, and to get the bank to come down on their price.

More soon!
Louisa

So, busy, busy, busy. I went cross eyed when you were talking about your excel work book and offer sheets. I too am excel challenged. Is there a support group for us?

Wendy Patton and Joe McCall are doing a L/O boot camp in FL on at the end of Feb. I'm sure she told you about it. Am going to her seminar in Mpls. this Sat. any questions you want me to ask her?

Your journal is always an inspiration.

Great to hear from you. Haha!!! (on the support group) It's so much simpler than you think it is!

Yes, absolutely know about the bootcamp. I'd love to go. I need some more dough from these deals first though! Thanks on the "ask Wendy" questions...right now I'm okay. I'm drowning a bit actually, as I'd love to have time to digest more of everything in a few days. Tell me how her presentation goes Saturday!! She cracks me up. And I'd love to know what catches your attention in her presentation specifically since you've had some experience at these things!

THANKS CATHY!!!!!
Louisa

Wow, so the rehab has issues in the crawlspace, cracking up the side (possible settling/foundation), and some pest control issues. I'm awaiting a 2nd bid tomorrow on it, but so far, we're looking at:

$2k for the clear out of the crawlspace (spores, water, drainage issues) doesn't include rotted floor board under both bathrooms.
$500 for recluse spider treatment (ugh on this! Just found these today!)
$600 for termite treatment

And unknown estimate on foundation issue.....coming tomorrow, which affects a couple sides of the house.

Also other estimates needed for exterior of house ----hoping to get these from my GC tonight.

This house looks like a no-brainer from walking through it, but so many more issues than anticipated. Will just have to collect these bids, and ask the bank for $$$ off of the house! I'm still willing to take it on with all of this...just wish the process was a bit easier. Maybe I should walk away....I have to say "brown recluse" does not excite me!

Any thoughts out there are always appreciated!
Louisa

Wow! You are on fire!! I love reading your posts and hearing all the detail you share - thanks!

Is the recluse a brown recluse? Do you have to disclose this when selling the property even after it's been treated? They are dangerous spiders and I wouldn't want to buy a property to live in if that was disclosed to me. But that's just me - other's may feel differently if they love the house However, we did buy and live in a house that had black widows and they never came back after the house was spray bombed. Oh great, Denny just told me he has seen black widows in our garage last summer!!

Lea

Brown recluse and black widows, termites? I know I am freezing my patuti off up here but the cold winters definitely keep the bugs from wanting to live here.

Hey there Lea!!! Yes, yes, it is! So bad I know! Great question on disclosure. I asked the same thing to the termite guy when he was there, and then to my agent tonight. I'm with you on staying clear of brown recluse spiders!!! If there is anything that could make me jump ship, it would be that (without knowing the rest of the story below). Ugh on the black widows. I think the scariest movie in the world for me was Arachnophobia ---back in the day 1990 or so? ha!

Termite guy said I could just say it was treated for spiders. Agent said that I would sign some protective something or other that as an investor, I would not have to disclose this at all, since I've not had the property long enough to "know" the property, and that the buyer would need to do their own inspection and due diligence, which this form would say. (It sounds like it is a routine form that all of his investors use regularly.) I am okay with this, as I will in fact, of course treat the brown recluse spider issue by fogging the place, etc...

Agent gave me another pest control contact who is meeting me tomorrow at the property at the same time a structural engineer/foundation guy is meeting me. This guy can do the $500 recluse spider treatment for $150. May be a good contact!!

Wow, all these meetings and I don't even own the property! I decided it is good to meet these folks for the first time as I need some of these contacts for the future (i.e. the structural engineer, etc...) I'd really like to just pick up the phone and have these people go bid on it, without having to haul Zachary all around town, bless his little heart, and just have to spend so much time on this stuff. Learning curve. Right now I'm envying the girl (totally forgot her name) that Dean put in his book, who lived in Florida and did rehabs from afar with an entire rehab/contractor team and she never set foot on those properties. Unbelievable! I know this will all be more automatic when I can get more rehabs going.

My maltese is doing wind sprints in our living room....it is cracking me up. We just went on a walk but I believe she is tired of the cold and needs to burn off some more energy. This is a you tube video waiting to happen. HILARIOUS. Sorry for the diversion....back to RE!!!

Cheers Lea! Thanks for stopping by!
Louisa

you are not in BUG-LAND!!! A friend of my husband's has a deep mark from a hole in his leg caused by a brown recluse bite. Terrible stuff!!!!! They are pretty common here in Tennessee! Scares me to death!

Ha!! I've always wondered how you spell "patuti"....hahahahaha!

You've talked me into it!

I'm going to give up REI and take up dating!

So glad to see you are back in the swing of things. I am in North Carolina for the next 4 days, But cal me the first of the week and we will have lunch.

Randy

KAREN - hysterical. Writing that made me miss it (only for a split second)

RANDY - Great! Thanks for stopping by! I look forward to lunch! Getting ready for our speed-talking conversation already!! YAY! I'll give you a ring first of next week.

UPDATE
So I visited the $100k property that I put $55K on and they came back at $64k. This is my first walk through this morning checking it out. A bit disappointing. Actually, I'm a little crushed. It's a dream for them at $100k. It's a complete tear down. Area is good. Historic district and re-sell is super high. But being a tear down, you are almost paying for the lot, and then you're of course paying to tear it down, so the price better be more than CHEAP!! And then, if you're an investor who loves the historic district AND dealing with tear downs in this district---you are rare, because you have to keep all the historic codes, keeping the face of the property EXACTLY the same. So my one investor who likes tear downs....he likes them OUTSIDE the historic district and understandably so. Thinking on this one today. May have to move on.

More later!
Louisa

So I'm typically a positive person. But I've just hit a little wall today. How do I sum this up? Wow...

All I know is I gotta get more letters out the door, more phone calls made, and more discussions with sellers going so that one wall doesn't make a dent in my day, for sure. The more irons in the fire, the less you can get down about the one that falls through.

Here's the scoop:

On the rehab which is under contract:

Couple days ago we filed an extention with the bank as there were additional issues that came up in inspection including:
--brown recluse spiders
--termites
--crack up side of brick needed to be evaluated by foundation expert
--needed a second bid on mold remediation and crawlspace drainage, etc...

Update:
---I had gotten estimates (including up to 2 or 3) on most all these issues (the extermination issue) and some contractors called in also happened to address drainage/mold issues, so I let them bid on it of course.
---Agent recommended a guy to look at the foundation crack. Said he was the best priced and best expert for the job. I took his word, and did not see the necessity in getting additional bids for that job.
---In this extension period, my main bid I needed in order to get back to the bank during this inspection period was the crack/foundation issue. I was not comfortable in moving forward with the property without this being evaluated.
---Yesterday, I met with the recommended contractor. He took note of the issue of the patio overhang and assessed that it would need to be moved under the cracked brick in order to support it, so the patio would need to be supported by some kind of jacking up the house to hold the patio in place while this pillar was moved
---He also took notes on repairing the stairs to the front patio and the concrete slab that held the HVAC system that is pulling away from the property ---basically filling both of those issues with mortar and sealing the cracks.

---I had all my bids in last night and ready to go, attached to an email to my agent with my new offer to the bank which was $67,425 (previous offer $70k) due to the additional issues quoted. My only concern was still the foundation guy, as I had received a quote from him for all of the above work for only $400. I put in my email to the agent "I need to check and be sure he is licensed and insured, and then I'll go ahead and run with this offer to the bank. As soon as I touch base with him this morning, and get his insurance in hand, I will call you and we'll be good to go."

---This morning ---I called the foundation guy ---he is not insured. Wow, this complicates things! The only issue I only got one quote on due to the high recommendation from my agent is not insured. And if the entire brick patio comes crashing down during the pillar move, he would not be insured. Ugh.

--Today is the "extension due date" on the inspection period from the bank. I do not have a good quote for the crack.

--I called my agent. Left a message about the issue. Then I wrote him an email and said "I'll just go with an additional $2k off the price to cover this" so my final offer would be $65,425

---My agent called me back ticked off that this whole deal was "going to fall apart" as he has seen this a million times with the bank, where they won't accept it, and then had the nerve to say to me "well, let this be a lesson to you [insert 'newbie investor' with MAJOR condescension], to get your estimates lined up more quickly." UM, EXCUSE ME MR. AGENT??? I called all my people and set up estimates within 24 hours of our inspection, and got multiple bids on all issues, and YOU sent me an uninsured "go to" guy to give me a quote on a foundation issue saying "this guy is the real deal" and NOW YOU ARE ACCUSING ME of not doing my part to make this deal happen??? Do I love running back and forth to a property I don't even own yet with my 6-month-old baby to get multiple quotes to have this whole thing fall apart DUE TO YOU SENDING ME THE WRONG GUY for the job on the ONE area I trusted you on??? Can you just own up to the fact you screwed up, take accountability, apologize and roll with what we have on this issue, rather than getting defensive and making ME, YOUR CLIENT, the bad guy?

I'm absolutely the first to raise my hand and say "I did wrong" when I do wrong, and I'm willing to take accountability for my actions. I just ask the same in return from those I work with.

Okay, so needless to say, I'm a bit frustrated. This is probably my most angry post ever!

I will say he did call back within 10 minutes to apologize. I know we're both frustrated and I'm chalking it up to him not eating his Wheaties this morning. The whole interaction just rubbed me the wrong way.

We're submitting the counter back to the bank at $65,425.

If they accept, we go with it and close with hard money lender next Friday.
If they don't, we walk away.

No additional offers going out this week! I need an RE break Tomorrow is a new day, with new mailings, new sellers, and new circumstances.

Maybe this is a sign for me to go after Lease Options as a #1 and rehabs as a #2. I am going to reassess a little bit! But more importantly, I'm going to go to the gym, run off my steam, and start fresh tomorrow!!

Cheers!
Louisa

the initial inspection was delayed 3 days from the original appointment (which caused the original 3-day extension to the inspection period to be made) because MY AGENT did not have the water and electric turned on for the inspection to take place (even though I verified and confirmed one day prior to the inspection) that it in fact was confirmed all utilities were on.

Sorry for the rant! I need to just roll with the apology and move on...

Off to the gym!!!!!
Louisa

Whew girl, you are busy, busy, busy!!

I know how you feel about the wall. You are welcome to borrow my hard hat anytime, it's come in handy for me LOL! You always keep moving forward, are creative, always taking action and your decisions are well thought out.

You are so right about having a lot of irons in the fire! I was just talking to someone about this today.

I'm happy for you that your husband is involved

Hope you enjoyed the gym. You just reminded me of a time I was having 'one of those days.' So I went for a walk through the trails in the park, a FAST walk and covered a lot of distance - it helps!!

Lea

wow Louisa you really are busy!! I WILL TELL YOU IM PROUD THAT you stood up to the agent. He sent the foundation guy to you. Do not use a guy that is not insured!! stand your ground and if you have towalk away then do so, dont get attatched to the property. You are way too smart for that.
Really proud of you as i am Jamie is also. Keep going forward, I may give ya a call one day hello
I know i am late with my gift bu i will make it to the mall one day soon I hate shopping as u can tell lol.
Miss you guys
Richie

Very very busy!!! Very detailed journal. Keep cranking.

Richie ----Thanks so much for stopping by and for the encouragement ----it means a lot!! Oh, I'd LOVE to hear from you anytime...give me a ring! Even if it's just to catch up about your day in RE or property management issues! ha! No worries at all on the baby stuff. We all feel pretty loved here at DG and that means a lot! I know time is SO precious and it will make me even happier if you get another deal done in RE. We can shop together later with our profits! We are all going on a trip to a tropical island one day without a care in the world, right? Maybe I'll shop with your wife!!! (maybe she likes it more?...haha!) So great to hear from you as always and thanks for your words!!

Helpme2 ---Awesome!! Thank you, thank you!!!

HARD MONEY LENDER TRYING TO SET ME UP WITH NEW DEALS
So I've been in constant communication this past week with my hard money lender on the status of this rehab as they have wanted a daily update. I almost feel close to this couple now who work together and are continuing to evaluate investors' deals to see if they can help fund. I'm thinking they are a great long term contact and could eventually become private money if they want to stay involved in investing with me (when I'm done with hard money!). So they reached out to me yesterday knowing what had gone on, gave me their foundation contact for the future, and said they would of course wait on the bank to see if bank accepts on this deal. But in the meantime, they sent me a few deals to see if I wanted to look at these! While they are in an area that is super far from me and one that I would not want to commute to for a rehab, I was super flattered that they were looking out for me. I let them know that the commute was too far, but that I more than appreciated their leads, and I hope they keep me in mind for other deals. They are also speaking at our next REI club meeting. I will have to attend as it would be my first meeting with them in person! FUN!

READY, SET, GO!!!
Okay, so I hopped on to Dean's site this morning and this old post by CBR came up I believe I read this last year, but it got me pumped to read it again!! Here it is:
http://www.deangraziosi.com/real-estate-forums/everything-else/37803/let...

This got me inspired to set some new goals and get a new system going. I cannot rely on just getting a lot of action done without some clear set goals on what type of results I'm looking for in the end, and then establish what type of action I need to get that accomplished.

I'm just kind of frustrated that I have these cash buyers hanging out and NOTHING for them yet! And if I were making strides in other areas, I'd be more inclined to not be so unsatisfied, but I'm still at square one. This is going to change!

I know I'm one here to set some pretty lofty goals and not always accomplish them. But I'm going to do my best to stay accountable to this new system at least, here in my journal. This may be tedious, but I think the tracking will be invaluable to understanding what it takes to get there.

JUST A GOAL, or GOING TO GET IT DONE?!
My husband said something interesting...I don't think I've written it here yet, but I can't keep up with my own journal! Anyway, I'm known to not always be the best manager of time, especially when it comes to being ON TIME. I'm a perfectionist and take longer to do things than I should. So a couple weeks ago, I said "my goal is to leave here by 11:15" He replied, "Is that just your goal, or are you actually going to do it?" It made both of us laugh of course. But point well taken ----am I going to set a goal that there is a possibility I'm not going to live up to it, or am I going to say "I'm going to get this done no matter what stands in my way!" It really is a different mind set.

NOW UNTIL END OF MAY:
So as I ramp up my mind set, I also ramp up my action items, and my goals to actually be accomplished----I have set a vision for the year, but my goals from now through May is what I'm going to focus on for now to break it down:

---5 properties cashflowing between now and end of May (sub2s, L/Os or owner financing) I know how aggressive this is!
---1 Rehab in progress via hard money
---1 Rehab in progress via bank rehab loan (since bank terms are set up and ready to go)
---2 properties wholesaled between now and May

If I can get this done, this will allow me 2 days of childcare per week by our friend so that I can go get more done. Right now, we're having to cut that back, so little Zachary will be in this journey with me and we'll accomplish these things together. He likes to watch me type...it's all about fast-moving objects...ha! Jamie can help me out on Thurs/Fridays some as he'll be back from travelling for work, and has a few hours to help each day, which will be awesome. My mom and his mom can usually pitch in a few hours a week too.

My real long term goal is that by next May ---May of 2012, I will be exceeding the income of my husband in cashflow. I know that is a crazy lofty goal...but I'm going to work it in 3 month segments and focus on the now to get to the "later". The sooner he can have more flexibility with his job, the better!

ACTION TO TRACK
FEB GOALS:
Letters: 400
Visits to Sellers on property: 20
Converstations: 250 (no idea how many conversations it will take, it may be much more)
Offers out on MLS: 60 (via agent)
Offers out on non-MLS: 10 (via myself) ---including getting L/O contracts in place and proposals going out the door
Contact with Cash buyers: At least 2 emails or a phone call to all my cash buyers this month to "keep in touch"

So, here's what I'm going to do...I'm currently making a tracking sheet that I can carry with me each day, just like my RE mileage sheet for the car to track each category above. So when I talk to someone, I can just put a marker on the sheet.

Every time I write here in this journal, I will update my tracking for the day in these categories.

Getting my first mailing together today. Goal to have it addressed, enveloped and stamped by end of Super Bowl to go out Monday AM.

Cheers!
Louisa

now i need a nap. you are doing great and you will accomplish what you set out to. i will enjoy watching the progress.

WOW, I luv it, You have written a book since I last read your post. But the upside you are staying positive and getting it done. Remember you don't want a good deal you want a great one. Keep Up the good work.

randy

Linda & Randy ---thanks so much for stopping by, for your words and encouragement!!! Doing my best to keep up here, but keep plugging on with the action. THANK YOU GUYS!!

Quick update
Ah!!! If I spend too much time here, I won't get all my action done today. So I'll be brief.

REHAB
Looks like it will likely close on Tuesday. I have to forget about it at the moment in order to get the other balls in the air I need to get going!! Hard money lender is lined up. I'm now locked into a contract, awaiting the bank to sign back, which is expected for Thursday. Now I just have to let it go and not stress My stress revolves around the fact that I'm locked in and depending on all the numbers to pan out with the hard money lender which so far is good, but they are ordering a BPO and honestly, I just don't know. All I know is looking at my potential profits and all the points/profit share on this deal, I'm watching a good portion of my $$$ go down the drain. All the more motivation to get rid of hard money and use private money ASAP. Learning process. Funny thing....after 3 people looked at the structural issue, the third guy is who I'm going with....he is licensed, insured and his solution makes the most sense, and as it turns out, it is only a $450 issue. Unbelievable! I really needed it to be low, but I'm glad it actually is low....this helps me apply the other $$$ that the bank is discounting to my rehab costs which in reality, I need EVERY penny!!

TOMORROW - REPORTING ACTION
I'll begin reporting my action daily here as far as the numbers I mentioned before. I have had a lot of back and forth work on this rehab deal, and trying to get my time use to it's most efficient state.

MEETING TOMORROW
with my friend who drives limos who had given me the $3.4M lead before. Ha! (I did the math after figuring out their mortgage and realized they are paying an upwards of $150K a year just to maintain that vacant, empty place...it is still in the back of my mind that they may come back to me). Anyway, he consistently drives people to interviews who end up relocating to Nashville work for this one booming company. He says it is crazy how many people he has met in the past several years that end up moving here. We're going to set up a referral system. I'm investigating where this company is, and how I can ramp up my operations to get houses under contract and rehabs going in this area. I have the end in sight, but lots of work to come up to the demand of the number of recruits this guy sees, also knowing that not every single one of them will call me, but I must say, my friend is pretty great at selling anything. Such a personable guy. I believe his network in the future will be huge. Network = Net Worth. Handing off a stack of cards to him tomorrow and meeting up to come up with a referral system for a win-win.

MAILING - FIRST ONE TO EXPIRED LISTINGS
Working on this now. Still have all my February goals in tact to accomplish...haven't lost sight of these at all.

OFFERS OUT - MLS
I have decided I may end up putting these on hold this week. There is so much to accomplish outside the MLS and I need to spend my time cranking on this to get that "layer of RE" set. Then I can add my 20 offers a week as far as MLS offers back into the swing of things next week. But right now, I'm treading water to maintain my action outside the MLS, and with all the set up needed, I'm not going to have time to review MLS offers this week. Very excited about my progress outside of this though!

LOOKING AHEAD
You know when you can see yourself being successful in the future....you know that once you do this 10 more times, you will rock at it, and you know that you will get to a place where you can get TONS done MUCH MORE QUICKLY because of your past experience, and streamlining processes to be more efficient?! THIS IS WHAT I'M SO EXCITED ABOUT!!! I can't wait to get to that place!!! How can I get these great processes in place to use my time better, and just CRANK OUT THE ACTION!! The set up, reviewing of scripts on the phone, in person, etc..., reviewing of mail pieces, reading, educating yourself, etc....is so much work, but I CANNOT WAIT until I have 10 more rehabs done, 10 lease purchase options done, and just keep cranking at it. I have so many thoughts as to all I need to do to make it happen -------it's a little exhausting ---but exciting all at the same time. My vision is clear. My path to get there will become clear after I do, do and do some more!

Gotta run!! So much to do!!
Louisa

I totally saw it, loved it, and just realized I did not comment back! Thank you for stopping by! And yes, would love to borrow your hard hat sometime. Thanks for the positive words...I needed to hear those that day, and so appreciated your support...I needed every word!!!

Thanks for making me smile!
Louisa

Luisa, I can't tell you how much i am impressed with the action your taking and of course your never ending energy
Good luck on your rehab and i will put money on it that you get to that 10th property very soon. Everything will then be like second nature for you soon and things will slow down for you.
Good luck my friend.
Richie

What an amazing job you are doing!

I always get so much insight when I read your journal! You are truly an inspiration!

When I grow up, I want to be YOU! LOL!

Karen

Richie ---Thank you for your awesome support. I needed to hear your words right now! Yes, can't wait until the "second nature" part...man, oh, man, I wish it were right now! Ha! Thanks for your encouragement and your post!

Karen - You are far too kind...thank you!!! Thanks for stopping by and taking time to say hello.

UPDATE
Well, not much to say except I'm kind of "drowning in rehab"...I don't close until Tuesday, but the planning is a bit overwhelming. And not much childcare going on right now, so I do my best to work hard during every nap Zachary takes which these days seems to be fewer. I also have a bit of bad karma going on...day before yesterday, I hit my head on the open trunk corner of my car (HARD), yesterday, I fell down the stairs (our stairs are a bit narrow and I slipped and bit it...still quite sore and bruised). Then this morning, I dropped dishes breaking them, and then all my coffee grounds spilled everywhere, and well, I was almost afraid to drive....you would think I was just plain clumsy! But I know better...I typically always see the positive and my days are good! I know somehow my psyche has gotten a little "off" and I'm doing my best to turn it around...and get that law of attraction working in my favor again. I'm just a bit overwhelmed with everything. I was hoping this rehab would be more on auto-pilot as far as just handing it off to the contractor, but the way the hard money lender is set up (and I'm sure this is normal, but just a bit frustrating), you get paid AFTER each week has been invoiced, so you have to put money upfront for supplies and labor, and then you get paid at the end of the week. So the labor part is easy that way and the way I would do it anyway....but the supplies....I don't have the money upfront to pay my contractor, so we'll have to go from store to store, and I'll just have to charge everything on the credit card and get reimbursed from the hard money lender. Oh, how I dream of a line of credit one day to avoid this silly-ness!! So much time wasted. I really like to be efficient, and get things established and a good system, so that I can free my time to concentrate on other areas of RE. But I guess I'm just wanting it all too fast. I need to be thankful for the baby steps, and I have to know I'm experiencing all of this for a reason...and I need to appreciate the experience, and try to glean what I am supposed to from it and live more in the "spirit of learning".

[Inserted later ---I'm coming back to read this and I realize how whiny the above all sounds...I am really glad to be working another rehab, for sure! I'll try not to whine so much next time. I also need to remember...was it Sandra or Lubertha WHO RODE HER BIKE TO GET IT DONE!!! If you don't know this story, try to look them up in the search bar...AMAZING story and really puts me in my place right now!]

So, I haven't forgotten all my other goals of letters, phone calls, visits, etc...but when I come up for air from this rehab, I will do my very best to get it done! I'm keeping track of my every hour and exactly what I'm doing with it when I'm not with my baby, so I'm doing the best of making the most of my time.

I did submit 9 offers to my agent. So we'll see where those go.

LOTS TO DO!!! And I must remember how much there is to be grateful for. I believe gratefulness makes for better days...now and in the future.

An Inspiring Thought

Something has been rolling around in my head over and over and over the past week....Matt wrote as a portion of a comment in Rob Clay's journal over a year ago:

"I was willing to make mistakes faster than anyone I had ever met."

I absolutely love that. I literally have been walking around with that in my head at least every other hour.

"I was willing to make mistakes faster than ANYONE I had ever met."

How quickly are we able to make a mistake and get up and go again? Do we dwell in our one mistake, or can we dust it off and go again? How long does it take us to do that? Maybe we shouldn't count how many activities we are doing, but rather, how many mistakes we are making, and how quickly. We have to pick ourselves up more quickly and move on to get where we want to be more quickly. We can't dwell. A lot is in our own head. I'm kidding about counting the mistakes we make...it's a little negative, but it is definitely something that hits home when you think about your day. Were you too afraid to make a mistake so you didn't take action in that one area? Why not do it, make the mistake and move on because success lies on the other side of many, many mistakes.

I know it will resonate with me another week...at the least...it is a powerful thought for me.

Now let's go make some mistakes!! Who's with me?
Louisa

Hello my friend I hope you are feeling better. But look at the bright side of things, you didnt get hurt too bad and you will recover Sometimes things get frustrating, I can't tell how much I ran into with my rehab. But its the nature of the business. Stinks about the HML paying after you get reciepts. Is there a way you could do lay away plan with the stores and submit the reciepts and then purchase fully at the end of the week? Just looking at a different angle for ya I mean you would be on the up and up,you would have purchased the items, just didnt pay in full for them. Just an idea that popped into my head while i was trying to figure a way around your obstical
I have a little time on my hands, I am working the night shift til 12am then back at 8am. I will have to give you a call soon, let me know whats a good time to call. Keep the glass half full as always:) I have much faith in your abilities.
Richie

Wow! I have fallen off of this site. Working, working, working it!

Richie ---thanks for your words. It was awesome talking to you last week. I also love your creative thinking above So, so so great hearing from you!!! You will be sorely missed at the Edge.

Where to start?

Well, it's super late, so I'll try to be quick:

--an REO I've been beating up with offers since January finally ACCEPTED TODAY!!!! YAY! I'm thrilled. This may be a quick rehab, buy and hold, put tenants in and re-fi and pull cash out. I still could flip it. But I think the cashflow is winning me over, plus I can still pull cash out on this one.
$61K
3 bed / 2 ba
1200 sq. ft.
Built in 2005 - adorable house, cute curb appeal, landscaping and everything, fresh paint inside and all new flooring. Um, what is wrong? Just no pizzaz....no upgrades, nothing that makes it stand out, smaller bathrooms, and just way too many properties on the market for this one to sell with nothing special more than anything! But this is a hot area, so I am THRILLED to get this price on a GREAT house needing very little fix-up.
As-is value: $90k
Repairs/Slight Sprucing: $5K
ARV: $110k
ARRV (per Jim's post about ARV not being "Retail market" but rather just repairs, so I liked this reference to ARRV ---basically upgrades, etc...for a RETAIL flip): $130-135k (this figure supported by comps and would require putting $15-20k into the property for a total of $81K in it + closing/holding costs etc...)

---So this is my first one that I got doing Matt's 25:1 formula. We came back at them 4 times only increasing our offer by $1,000 and hitting them with that the following 3 times. At the end, the bank kept coming back at us with $65K. I wouldn't budge. The agent on the REO side was our friend because of my current rehab (also purchased from her), so in continuing to follow up with it over and over, she worked it for us too which helped!! This is one that my agent laughed at when I made the offer initially. This was back when I met my agent for the second time, and we actually looked at a few properties before making offers. This was one of those. And when I said "$60K" he thought I was DREAMING. I love that my final offer 2 months later was still just $61K and it went through! I think even my agent was blown away. The good news is actually keeping him afloat for me, because he hasn't been working this 25:1 and following up....he literally has not been able to keep up (nor has he made it a priority because I feel a lacking of belief on his end). So this kind of puts us back on level ground, and I'm hoping he'll really work some of these now. While I know this isn't one of those "well, we bought the property for $30K, put $20K into it, then rehabbed it, put renters in, re-fi'd it and pulled our cash out with the ARV now $150K"...I'm always amazed at what I run into on this site! I will do a deal like that....absolutely. For today, I'm pretty happy with this and will keep striving for the dirt cheap ones too...marketing, marketing, marketing ramping up!

--I originally thought I would wholesale it. But I found a way to keep it. Private money to get me to the closing, which the bank demanded was in 10 days with 10% earnest money down. I did finally give in to that part, but at least I'm not using my own money! And then after closing, through that DREAM bank I met way back when, I will do a rehab loan....replinishing most of private funds minus 15% of the rehab costs (which are the terms of the loan ----property + rehab + investor must put up 15% ----so private money is still giving me that 15%). YAY. DONE. EXCITED.

--So the plan (at least this option rolling around in my head and seeming like the right idea) is to rehab quick. Put renters in. Get cashflow going. Re-finance. Pull money back out. Pay off loan. Use extra funds for the next deal.

--Current rehab is going ok. We're supposedly a week and a half to the finish line, but it seems like it will be more delayed than that and the original finish date was this coming Wednesday...it really isn't coming together yet, and yet it is so simple. I do have contracts in place that are solid with the work being performed. I'm a terrible enforcer. I just want to work with someone who has a sense of urgency, does good work, and who can uphold a timeline....especially when they are the ones that set that agreed upon timeline to begin with!

--Meanwhile, I've met with two sellers about lease optioning their homes, not in a sandwich but in a co-op. Interesting dialogue. One was ready to pull the plug, and then didn't end up doing it. Learned a lot. I have more meetings to set up with sellers. I see myself getting into a groove with this...but I'm still learning. And I'd like to get to the point where I'm doing this from home without having to meet everyone. But the motions initially are helpful. Just need to ramp up my calls, mail, and follow up to get more irons in the fire....hoping some virtual assistants will help me on this front. Want to get programmed to get automated going forward, but doing the hard work on the front end and walking through all the motions myself in the beginning will be some good framework for putting some automated systems in place. I actually plan for this to be my bread and butter while rehabs are going. I think I'm going to LOVE this part of RE. I already like the approach, and I love helping sellers and helping tenant buyers. I really want to close at least 2 of these by the end of April.

I'm so busy these days my head hurts. But I know the hard work is all good, and I'll feel so much relief when the $$ starts coming in. I literally could not be spending ANY more time on RE than I already am. Now I just need to have faith that it will all come together and keep plugging.

I'm trying to get so much done BEFORE THE EDGE!!! It definitely drives me!

Cheers!
Louisa