Bimal's Journal

I am Struggling....

But I CAN DO THIS... I CAN DO THIS.... I CAN DO THIS...
I have my weakness and I will overcome it... I will overcome it.... I will overcome it...

I do not want this year to be like my last year in RE space.

Soon I will be telling my success stories.

What I Did.
. Listen to couple of Rock Bottom Blue Print Vidoes.
. Arranged meeting with my realtor to look at a property.
What I will Do
. Much needed, Place an order to get my Business card printed.
. Make 5 offers in 7 days, no matter what.
What is lined up
. Attend workshop on how to wholesale a property in next 30 days.
. Ateend REI meet on Tuesday Feb 4, 2014.

What needs to absolutely happen in next 30 days make a deal happen, No Matter What....

For that to happen I have to give my Absolute Best, Not Quit, Negotiste with my mind and not walk around like a defeated investor.

Help me GOD in making me disciplined, work hard and smart and make money only which I deserve based on my hard work.

Bimal

What I did

--- Looked at one property for myself.
--- The property I had put offer on was sold to another bidder
--- Attended wholesaler and Rehabber meetup
--- Attended the chat session by Donna Doo on Lease Option
--- Wasted Friday evening to saturday as we purchased pup, but had to return
as I cannot commit time for the pups development.
--- Added two new buyers to my buyers list, Total 6 buyers now.

What I didn't Do

--- Have not ordered my Business cards yet,
Excuse -- Confused which design and matter to use on the card.
--- Have not done any drive bys
Excuse -- Not sure which locality to concentrate on.
--- Haven't called any realtor in past 3 weeks.
Excuse -- No time (hahahaha)
--- Haven't made any offers yet.
Excuse -- Lack of Discipline.

On a positive note
--- Reduction in TV watching by 1 hour, sill watching for 2 hours, goal is
to cut down to 30 minutes.
What I need to
--- Make one deal this month.
--- Plan around my goal and comes with steps to achieve he goal.
--- start driving around (Can't drive in evening as it gets dark soon but
atleast I can drive around on weekends)
--- Study and Identify location where I will be driving around
--- Place the order for the business card today.
--- Study the subject locatility (School, Crime, Commute, whether hot or
not)
--- Prepare for my fulltime job interview.
--- Attend workshop on saturday on how to wholesale aproperty in
next 30 days.

Good Luck to myself.

Hi Bimal,

Great job evaluating what you need to do and what hasn't been done. Please take it easy on yourself and not beat yourself up. Just put in a little time for your business, for your life purpose, and a better tomorrow for you and your family.

One of the ways I got over my fear was to send emails to Sellers/Investors on Craigslist and posting ghost ads. Then, I answered the phone when people called. It made the business feel real and the Investors are down to earth everyday people.

You're doing a great job thus far!

*Your 1st deal is the realization that you can do this!

Thanks Monique, very nice advise, I loved the last lines with *, very motivating.

What I Did
-- Finally ordered my business card yesterday will arrive next week.
-- Sent an email to my realtor to send me COMPS on one of the listings.
-- Tried to find COMPS myself, spent about 1.5 hours on that but very
little success, in the process I learnt about two new sites like
propertyshark and redfin.
-- Almost started the Webcast replay of Gina and Andreas presentation,
will continue after I finish my journal update.

What I didn't Do

--- Have not done any drive byes
--- Need to plan where to do the drive byes.
--- Haven't made any offers yet.
I did some study on the target properties but not able to find COMPS,
trying to find what needs to change to start making offers.
--- Haven't done a deal yet
Excuse --- Haven't made any offers, except couple of properties, have
not identified an area I will be concentrating to make offers.
--- Haven't started planning to come up with steps to achieve my goal.
Excuse --- No Time.

What I need to
--- Come up with a weekly plan to achieve the short term goals.
--- Make one deal this month.
--- Driving around on Sunday as Saturday I am attending a workshop.
--- Study and Identify location where I will be driving around
--- Place the order for the business card today.
--- Study the subject locality (School, Crime, Commute, whether hot or
not)
--- Prepare for my fulltime job interview.
--- Attend workshop on Saturday on how to wholesale a property in next 30
days.

That's it for today.

im learning about refinancing but I want to learn the tycoon way of finaning.

p.s.
god bless you

What I Did

--- watch portion of Gina and Andrea's.
--- Listened Jim Rohns inspirational speech
--- Read the 4th part on Landtrust by Carol Stinston, I am keenn on this because since I am getting all REO listings from my realtor
Land Trust is the option to do assignments deals, to avoid double closing, deed restriction and non assignable clause by bank.

What I didn't Do

--- Haven't done any drive byes yet, ( for this to happen I have to plan my days accordingly, this Saturdays evening homework)
--- Haven't plan anything yet.

What I need to do

--- Send my Business Tax information to my accountant to files the corporate returns.
--- finish listening to the the webcast and Jim Rohns inspirational speech from where I left of.
--- Attending workshop tomorrow.
-

What I Did

--- watch portion of Gina and Andrea's.
--- Listened Jim Rohns inspirational speech
--- Read the 4th part on Landtrust by Carol Stinston, I am keenn on this because since I am getting all REO listings from my realtor
Land Trust is the option to do assignments deals, to avoid double closing, deed restriction and non assignable clause by bank.

What I didn't Do

--- Haven't done any drive byes yet, ( for this to happen I have to plan my days accordingly, this Saturdays evening homework)
--- Haven't plan anything yet.

What I need to do

--- Send my Business Tax information to my accountant to files the corporate returns.
--- finish listening to the the webcast and Jim Rohns inspirational speech from where I left of.
--- Attending workshop tomorrow.
-

Hello my friend, I have done 3 deals so I feel like I can give just a little bit of advice. First, the areas you are going to be making offers in is the areas your buyers are buying in, so you dont have to analyze it so much.

Also, use the agent to tell you what are the hottest pocket areas to flip in, that is where your buyers are going to want to invest, or if they are B & Hold buyers then where they will get the best rents.

And basically making offers, lot's of them, 25 to 1 is the system, make offers off of the MLS & off of craigslist & bandit signs, I think that is the basic thing, and following Deans 30 days to RE Cash, to the letter, it really will get you your 1st deal in about 30 days or so since you are working full time. to download it go to deansfreebook.com.

Hope that helps.

Congratulations on your 3 deals and that too soon after returning from your vacation.

I welcome your advice and just shows that you are a well wisher. I am not doing RE fulltime but part time and trying to use the available time towards RE.

1) Couple of buyers have told me their area of interest. Currently what I am doing is based on the listings my realtor has sent I study the property and try to get comps which is turning out to be a daunting task because of not enough SOLDS within .25 miles, 90 to 180 days or no similar properties.
To night I am writing to all my buyers to ask about areas they are interested in and other related information.

2) My realtor has not sent me any hot areas in any town inspite of asking them, may be time to look for more realtor.

3) I can't even follow 25:1 as I am finding it hard to make one offer due to lack of CMA, how can I make 25 offers unless I start making Blind offers but in that event the rehab cost estimate will be purely guestimate and that will not provide a good ARV.,

I will start re-reading Deans Book, I already have the hard copy.

Now here is the latest..

What I Did....
-- Went to the whole day workshop on Wholesaling
-- Found a person who is prepared for a JV.
-- Ordered education material on wholesaling in my area.

What I Didn't
-- Haven't sent my business tax information to my account yet,
Execuse : was in a whole day workshop.
-- Not done my drive byes, this will start happening next week, starting
tomorrow
Excuse: Lack of planning, area not identified.
-- Didn't complete listening to Jim Rohn's Speech and Didn't finish
watch Gina and Andrea's Webcast
Excuse: Time need for both combined is more than 2 hours of
listening and watching,

What I need to do

--- Send my Business Tax information to my accountant to files the
corporate returns.
--- finish listening to the webcast and Jim Rohns inspirational
speech from where I left off but do it over 3 day period.
--- Find properties to look at.

I know I can achieve....

Bimal

Yesterday got home very late from the Monthly Real Estate Meetup, so could not post yesterday

What I did
--- Finished watching the webcast by Andrea and Gina
--- Attended monthly Meetup, subject covered was Short Sales, very informative, pertinent to NJ
--- Started studying for my interview, this is going to consume majority of my time.
--- Finished listening to Jim Rohns audio.

What I didn't do
--- Haven't sent my business tax information ,
--- Haven't made a concrete plan to achieve my goal this month.
--- Haven't listed properties to look at

What I will do
--- Saturday I will send my information to my accountant. ---- Time required one Hour
--- Weekend prepare for my interview ---- Spend a total of 10 hours for preparation
--- Tonight work on the sold properties to do a CMA on a property -- 30 minutes
--- Need to plan what to do for the next 3 days, this will include short term planning for the remainder of the month

My Business card has not yet arrived.

as I said, I will get the CMA for a property, could not find any sold in last 6 months or 9 months, I will have to let this pass. This is has become really challenging for me, any listing my Realtor is sending me, I have not succeeded in find CMAs as they are not available. Very Frustrating. This have become an impenetrable wall for me. I am still not able to figure how can people make 25 offers, where do they get CMA. I am just shaking my head. What a road block.

What I did Today
-- Watched Andreas's presentation at the Edge 2013 CD.
-- Spent some time preparing for my interview.
-- Attended a webinar, but quit half way as it was all about the
presenter selling hi CD system.
-- Last weekend met with an investor and he is ready to by a deal from me.
-- Prepared worksheet

What I didn't Do

-- Haven't made an offer yet.
-- Haven't identified any property yet(No Drive-Bys done yet)
-- Didn't work on planning or setting goals yet for REI.
-- No activities done that will put me closer to making a deal.
-- Saturday Send my tax info to my accountant one hour.
-- Get a Planning App to keep me on track.

What I will Do

-- Thursday and Friday spend one hour each to plan for short term goals.
-- THusrday and Friday spend 1 hour each to prepare for my interview.
-- Saturday and Sunday, spend 5 hours each to prepare for my interview.

Last two weeks put me off track as I was preparing for the interview and one thing led to another.

I got my business cards.

What I did in last two weeks
-- Watched Gina and Andreas's presentation in preparation for Edge 2014.
-- Spent some time preparing for my interview. But I am too senior for the
position, they may consider me for VP position if there is budget.
-- Attended REI meetings.
-- Gave out my Business cards to possible cash buyers.
-- Added couple of investors to my buyers list.

What I didn't Do

-- Haven't made an offer yet.
-- Haven't identified any property yet(No Drive-Bys done yet)
-- Didn't work on planning or setting goals yet for REI.
-- No activities done that will put me closer to making a deal.
-- Get a Planning App to keep me on track

What I will Do

-- Home Work that Gina and Andrea gave us to find MAO for three properties.
-- Tomorrow call Real Estate Agents using Matts Script.
-- Request properties on MLS listing.
-- Go look at the properties if there is any property of interest.
-- Go to laundormats, grocery store to pin my business card alternative get a
yellow writing pad and with a short letter and cut out of the telephone
numbers for people to take it.

I am still not comfortable about putting bandit signs.

What I have now for this business
-- Google Phone Number
-- Business Cards
-- Two realtors
-- Small Buyers list
-- Small Hard Money lenders list.
-- Membership to look REI clubs.
I see progress here, I am still slow but need to speed up.

What I accomplished today

-- Called 4 realtors office left messages at two places and got voice contact
with two realtors. Once said currently there is low inventory, but he will send me listings but not from MLS. He asked if I had purchased any properties and I faked it and said 'Yes', I have purchased two properties and he asked which areas and I provided names of two towns. He said how would you fund it and I said it will all be cash offers, just like what I learnt for Gena and Andrea's presentation, so yesterdays education came in handy.

-- Listened to a portion of the book, Be a Real Estate Millionaire.
-- I have started taking this business very seriously
-- Went to gym for one hour, total elapsed time 1.5 hours.

What I didn't do or haven't done

-- No yet prepared my Business plan
-- Not yet set goals but I know how much I want to make by end of 2015.
-- Not yet done yellow letter but this is for the weekend

What I will Do
-- Send out yellow letters, need to get a list of home owners to dens out letters to .
-- Add more buyers to my buyers list.
-- Do a drive by in my area this coming weekend.

Room booking for Edge 2014 is done, Flights tickets will be booked in two weeks. Every day we are looking for deals currently tickets are over $300/pp. I am coming with my wife and daughter.

What I accomplished in last two days.
-- Called 4 realtors, two of them immediately sent me listings, but one of
them just dumped lots of listing without understanding what I want, now
I have list of properties not interested in.
-- The other realtor sent me one listing, I studied it I could not find
enough COMPS to make an offer.
-- With my existing realtor I made an offer on the house, Asking price 204K
I made an offer of $119,430 after doing my calculation. I found out
today the house is rented and the tenant still lives in there. That
surprised me because I didn't expect a tenant in a Fannie MAe owned
house. I have a buyer who is interested in this house or any property I
put under contract. He is also educating me at the same time and we go
to the same REI club, he probably like the honesty in me.
-- I did my drive my today, came across on estate sale, but I was late for
the showing today, tomorrow is the first thing I am going there and
with my business cards too. Found couple of properties on SALE

-- My Account called had some questions on the paper work I submitted for
my business, resolved all the issues. Tomorrow sending in my details
for my personal returns, all tax related activities will be out of the
way.
-- Again listening to Gena and Andreas presentation in preparation for
the EDGE 2014.

What I didn't do yet

-- Haven't done anything towards my marketing, tomorrow is set to do some
marketing.

-- Call realtors to inquire about the for sale signs for the properties
I saw today.
-- No yet prepared my Business plan
-- Not yet set goals but I know how much I want to make by end of 2015.
-- Not yet done yellow letter, I will take this tomorrow.
-- Haven't completed Gena and Andreas homework of find properties and come
up with an MAO on atleast three properties.

What I will do between now and tomorrow

-- Identify the addresses where I need to send the yellow letter.
-- Send my personal tax information to my accountant.
-- Take a short nap.
-- Ghost Ads to add buyers to my buyers list.

Regards,
Bimal

What I accomplished

-- Created WE BUY HOUSES sign and posted it at grocery store, Laundromat and
Library
-- Arranges with realtor to go look at the property I had put an offer on.
-- Contacted a person who will put Bandit sign for your on a Friday and take
it down on Sunday. Cost $25/10 signs.
-- I worked on the offer numbers to the listing my realtor sent me. But again
could not make an offer as there were not enough COMPS.
-- Did a Drive By on Sunday, Took the phone numbers. Found 1 FSBO.

What I didn't do yet

-- Haven't done anything towards my marketing, tomorrow is set to do some
marketing.

-- Call realtors to inquire about the for sale signs for the properties
I saw today.
-- No yet prepared my Business plan
-- Not yet set goals but I know how much I want to make by end of 2015.
-- Not yet done yellow letter, I will take this tomorrow.
-- Haven't completed Gena and Andreas homework of find properties and come
up with an MAO on atleast three properties.

What I will do between now and friday
-- Identify the addresses where I need to send the yellow letter.
-- Send my personal tax information to my accountant.
-- Take a short nap.
-- Ghost Ads to add buyers to my buyers list.

Regards,
Bimal

I have spent so much time and money without any income now I cannot not drop this and go back to my old ways.
Every day I am now spending at least 2 hours behind this business.

Progress is at least I have now started making offers. No getting enough COMPS has become a challenge for me and I on my own have to Tame this monster.

Hope I can make a deal? I become very emotional when I see that after all the sacrifices, time and energy spent I am nowhere close to making a deal.

I have no savings.
no money for retirement.
pay check to pay check inspite of 6 figure income.
not able to visit my parents as often as I like to, they are in their
mid eighties.
Not able to take care of their medical needs when required, my uncle
takes care of it all the time, such a shame for me.
Cannot afford to take a sick day off.
Haven't taken vacation in many years(My vacaction this year is
EDGE2014, I am attending).
As I right this I have tears rolling down my cheeks.
no money to gift my Son on his wedding day.

But the blame is all on me, it is my doing of this undoing.

Well I have to dust of this misery and rise above the circumstances and vanquish it and come out a VICTOR.

The words in DEATH CRAWL still echoes
- GIVE YOUR VERY BEST, YOUR VERY BEST.

Have I? hmmm....

Bimal

Been busy with RE related activities,
Made couple of offers and both got rejected as they were way to low.

On one property asking price was $245k, required 100k of repairs, my fees $5000k, the ARV came around $266k,

After all said and done I offered $61,200.

second property Asking Price $204k, rental income $1350/-,
NOI = $611/pm
@10% cap rate I can offer $61,100,
again too low, I did not factor in the repairs estimated at $15000/- or my fees.

But this was a great learning experience, I should still fail once at the contract signing because I will still end up with lots of experience.

Now I am in the process of ordering my Bandit Signs, which will arrive next week and then weekend after next will put the signs out.
This week except of attending live chats on dginsider elite and watching. RE videos on how to estimates repairs on a house.

Bimal

Yesterday Saturday March 22nd, 2014, I went and looked around for vacant houses and found

1) A 2br 1bth house in foreclosure, today I went and saw the house, it is in ready to move in condition, I will put an offer on it with an idea of renting it out. Roof may require replacement down the road and I am going to factor in the cost.
Asking Price is: $118,000 no liens.
Repairs: Roof Replacement, Gravel Driveway needs expansion to make it
2 car driveway.
My Offer :
Monthly Gross Rent 1100
No Of Units 1
Management 10% 110
Vacancy 5% 55
Maintenance 5% 55
Property Insurance5% 55
Water & Sewer 50/Unit 50
Property Tax 371
Total Expense 758.5
Monthly Net Monthly Gross-Total Expense 591.5
Annual Net Monthly Net * 12 7,098
Cap Rate 10%
Offer Yearly Net / Cap Rate 70,980
Less Repairs $10,000 $60,980
Less Closing Cost 6% $57,321.20

2) Property number 2 is a commercial property A FSBO, was rented by ALL STATE Insurance, I took the number to call and called several times, can't even leave message.
Asking Price is : Unknown

3) Today I am going to look at 3/2 house, waiting to hear from the realtor if it is go, this is also a Bank Owned Property.

4) Forth property is a 2/1, need repars, waiting for the realtor to get back to me, if I can go and have a look at it today, doesn't seems like ti will happen.
5) Awaitng my Yellow Signs, purchased a Sharpie Magnum Size permanent marker to write on the yellow bandit sign, once they arrive.

Stay Tuned in, lets see if something comes out of this.

Bimal

I have put an offer of $40,860 instead of $57,371.20, Asking 118K.
Waiting to hear from my realtor, she was kind of surprised at my low offer.

The FSBO guy never returned my repeated calls.
The 3/2 REO alreay had multiple offers and now the bank was only accepting back up offers, I dropped the idea to veisit that property, becuase an offer was already accepted and under review.

The forth 2/1 property, reltor is trying to coordinate to go take a look.

The signs will arrive this week, Will call the sign installer to prepare him for this weekend or the next to go an put my signs. I will be hand writing it on one side only.

I have planned to read 5 books by April 22nd
1) Think and Grow Rich, will finish reading it on March 29th.
2) How To Make Friends and Influence People start on March 30th
will finish reading it on Tuesday April 2nd.
3) Awaken the Giant within, finish reading on Aril 14th. (500 page book)
4) Good To Great -- finish reading it on April 19th
5) Bible (The Proverb) finish reading by Aprill 22nd.

APRIL 25th flying to Phoenix for the EDGE Event.

I know many people visit my journal but do leave any feedback, which is OK, but today I want to "Suggest" something that may change your life.

1)Read Think And Grow Rich, it is very profound and will assist you in
achieving your dreams. You may also want to do Two to three reads of this
book.

As per my plan for this week I finished reading 100pages of the book and I am in awe. it was very hard for me to stay awake to finish reading my schedule 50 pages but I prevailed over my sleep and completed reading 50 pages yesterday almost at midnight, I wake up at 5 in the morning everydayto reach work at 7.30am. This is my first accomplishment of this year in a sense that I decide to finish reading 50 more page no matter what and I did it.

Another accomplishment: My TV watching hours has come down from 2 to 3 hours to 30 minutes a day, now I am looking to eliminate this all together and pursue my dream of making my first deal this year and build my real estate busines from there on.

I am not great at building or keeping relationship, I am wired so differently that I tend to be very abnoxious to others after awhile and I have to change that. So my next read will be How to Win Friends and Influence People.

No offers made, isn't that a shame. this has to change to so I want to read GOOD TO GREAT and then Awaken the giant within.

I am a very slow reader as it is taking me time to grasp what is conveyed in the book I am reading.

To All New Real Estate Investors, DO NOT QUIT, stay on it and Give Your Very Best.

Best of Luck To You All.

Bimal

--- Quitters and Not Winners and Winners are not quitters - Source Unknown

My Signs will go up Next week.

Spoke with the guy who will put and remove signs for me.
Next step is to identify my area where I want to put signs.
Next prepare my phone speeches for the buyers/sellers/investors.

Accomplished
Today I read 50 more pages of Think And Grow Rich, I am on target to finish reading it on Saturday.

HaHahahahahahahaha...

---
Success Formula:
-- Burning Desire,
-- Decision(Definite Decision of what you want to do),
-- Faith(Do it with FAITH in Youself),
-- Persistence,
-- The Master Mind("like minded people") and
-- Organized Planning -- Source Think and Grow Rich

You are working very hard. It will come. Do not give up! I have faith in you. I believe in you!

A few suggestions to you. Do NOT concentrate on what you have NOT done. Do not list that anymore. That is negative. Negative attracts negative.

Focus on what you HAVE done and what you will do tomorrow. Feel good about that. Positive attracts positive.

Look back at how far you have come and be proud of that. Let yourself feel the pride. These are positive vibrations that you are sending out. Positive attracts positive.

Then visualize how much further you will be this time next year. Feel excited. Close your eyes and feel the joy. See it as yours. Positive attracts positive.

Don't see yourself as being obnoxious to people. Since you know that you have done that in the past, visualize what a wonderful, kind and empathetic person you are NOW. Practice listening to other people and instead of thinking of what you are going to say next or how to get this deal, concentrate on listening to THEM. Really listening with an open heart to see how you can use all the knowledge you have acquired to help them to solve their problem. Be the person you would like to meet. That is who you are NOW. Think about how much you REALLY like this new you.

Listen to your thoughts and your words. REALLY make a conscious effort and be aware! When you hear anything that is not positive, STOP YOURSELF and rephrase it!

This is not easy to do at first. In fact, it is VERY difficult, but it will TOTALLY change your life! I promise!

VERY IMPORTANT!!!!! When you are allowing yourself to REALLY FEEL the vibrations of the positive, excited, happy thoughts and feelings be sure to hold that excitement for AT LEAST 16 SECONDS. It takes at least 16 seconds for the vibration to be sent out into the Universe and start attracting like vibrations.

THIS IS A VERY IMPORTANT ASSIGNMENT FOR YOU. Print this post out and read it as often as you can EVERY single day until it is automatic for you. Practice. Practice. Practice. And then practice again.

Please be sure to find me at THE EDGE and give me an update as to how much it is changing your life! You will be STUNNED and HAPPY! I look forward to meeting you.

Best wishes! Now go make your good luck happen!

Karen

Hi Karen,

When You are going along and trying to be successful in a new venture with no success in sight and then one of the members of the DG family comes along and sees your efforts and compliments saying "You are Working very hard.....", it just invigorates your spirit and makes you aware that there are helpful people out there , who wants you to Succeed. Karen, Thank You For That.

I have printed the post you took time to prepare and post it for me and Karen, Thank You for that.

One copy will be right in front of me at work, so I can read it every morning and one copy in my home office.

As I ponder back , I realized, this year I have made great progress and have acquired good amount of knowledge which has made me more confident.

I am excited to go to The EDGE and have a list of all the people I am going to meet first who I got acquainted on DG site.

I am sure going to find you and give you an udpate.

No more negative thoughts.

Thanks Again, Karen.
Bimal

What formula are you using on your numbers? I am getting different offer amounts. Maybe this is part of the problem you are having.

On the first one if the ARV is $266k, take
$266,000 x .70=$186,200
$186,200 - $100,000 repairs -$5000 fee= $81,200 max offer

On the second one, you don't say what the actual ARV is, so let's just assume that it is $204,000 x .70 = $142,800 (you would have to substitute your actual ARV, but this works to show how to do the numbers.
$142,800 - $15,000 repairs - $5,000 fee = $122,800 max offer
If using the 1% rule on cash flow, you would base it on the $1350 rent, which would mean paying up to $135,000, it would still cash flow.

ALWAYS run your number on the ARV that you get from running comps on actual "SOLD" properties, not "FOR SALE" prop numbers. You can totally ignore what the asking price is. It doesn't matter AT ALL! People can ask $1,000,000 on a $200k house if they want. You have to know what people are actually paying for similar props and that will be the ARV numbers to use.

Does this make sense?

Karen

Do you have a Title Company that you work with? If not, contact one and ask to speak with a rep. Set up an appointment to go in to meet with him/her. Meeting face to face is much better than just talking to them on the phone. People like to help and they will want to help because then they will get title work from you when you do deals.

Tell them that you are a new investor and you are interested in what type of "farming tools" that they have available to help you.Tell them that one of the problems you are having is finding accurate comps.

When I was in LA, my title rep gave me my own code to log into their system. I could then put in any address in the area and get a property history and about 15 of the latest sold comps for that property. Priceless tool.

Karen

In response to your earlier email, I will revisit my numbers and check where did I miscalculated. But I know for sure that instead of 70% I took 65% of the ARV.

Yes it does make sense.

For the second property I did not take the ARV into consideration, but based my numbers off of Monthly net, then calculated Annual Net/10% cap rate.

I did not know anything about 1% rule, but your illustration made it clear.
So if a house rents at 1550, applying one percent rule I can offer 155000 less repair cost and closing cost,

All my COMPS are SOLD comps, which I get using Zillow and Trulia. The Sold COMPS my realtor sent me were a year or more old and outside of 1 mile radius.

No I do not have a title company, on Saturday I have dedicated to call people and now I will include to call the Title company tomorrow..

Thanks for the nuggets.

Also Today I also practiced twice the 16 second rule to hold my excitement. Yes it is heard to keep the visual that long but I think by the EDGE time I will have made it a part of my daily routine.

Bimal

I am SO proud of you for putting this into practice already! You are such a winner, Bimal, and do not forget that! You WILL do it! How often have we heard, "If it were easy, everyone would be doing it"? That is so true! Only us "tough guys" survive!

Depending on how your area is recovering right now 65% may be too low. As values are rising and inventory is getting tighter, the speculative buyers are snatching things up faster and investors are having to take a smaller spread. That may be putting your offers out of the running.

The 1% rule is just a quick way to determine if a prop should cash flow. ALWAYS base your offers on ARV.

If all of the comps that the realtor was able to provide are that old, you may need to reconsider that area. If houses are not selling there, you may not be able to turn it over quickly. Very important!

Keep up the good work! You are getting closer every single day!

Karen

Below is the a run down of how I arrive at the offer:

ASKING PRICE: $118,000, I di not take ARV, but purely base my purchase on CAP rate. This offer was presented 1o days back.

Monthly Gross Rent 1200 (This is a 2/1 property)
No Of Units 1
Management 10% 120.00
Vacancy 5% 60.00
Maintenance 5% 60.00
Property Insurance 5% 60.00
Water & Sewer 50/Unit 50.00
Property Tax 371.00
Total Expense 721.00
Monthly Net Monthly Gross-Total Expense 479.00
Annual Net Monthly Net * 12 5,748.00
Cap Rate 10%
Offer Annual Net / Cap Rate 57,480.00
Less Repairs $10,000 47,480.00
Less Closing Cost 6% 44,631.20
Assignment Fee $2,000.00 2,000.00
MAO Less Assignment Fee 42,631.20
Initial Offer 40,860.00

So if I apply 1% rule that means I will have to purchase the house at $120,000
plus closing cost + Commission + Holding Cost, I know I am still missing some info.

Thanks
Bimal