Footsoldier's Journal....Finally

You can do it! There's nothing stopping YOU, I and rest of DG family here will be cheering you on to finish the marathon and pep talking you up for the next one. God Bless with your REI.

Welcome to the DG Family. Thank you for sharing your journal. I wish you much success and look forward to hearing about your progress.

Lea
SPR Property Solutions, LLC

Thank you for your responses and support. This is a great site, thanks to Dean. I am off and running.

This morning I called an investor that I had spoken with last week and we will meet at the Investor's meeting on the 19th. He lives in this area, but does most of his work an hour from here, but would like to do more deals here. I spoke with him about wholeselling to him and I am building my buyer's list.

Next I called on a FSBO and I don't know if there is anything here. Any ideas would be appreciated. This is a 3/2 appraised at $93,000 in '08 and He owes $80,000 on it and just wants out. He is a grad student and can't afford his payments and has thought of walking away. He said he isn't behind on payments, although I suspect he is, but I forgot to find out his monthly payment and lender. I left a message for him to call me with that information. I am planning to call the lender and see what the payoff is and see how much equity there would be in a cash deal. (I have no money, by the way and my credit is in the toilet.) Then find a cash buyer if the numbers work and sell my contract to them.

Next I called on a FSBO that is quite interesting. This is a 4/2/2 on 23.22 acres of pasture, except for about 3 of woods. It is about 21 years old. I haven't seen it, but my wife did and gave me the telephone number. The man drives 2 hours each way to work, they have 2 housepayments and want only the 1 house closer to his work. This house is owner financed and they can assign the property. Their monthly payments are $960. They are asking $195,000, although she did say they would come down to $190,000. They have already started packing and moving things and want out. They have lived there a year and they had no apprasial done on it when they bought it, but she said they were told it was worth $295/300,000. By whom, I'm unsure. She gave me the name and number of the out of town man that is holding the mortg. If the numbers work, I was thinking about finding a tenant/buyer for this one. I thank you for any ideas on this one. I could use some help on this one too, as I have never done this before and I'm a babe in the woods.

Thank you all again. I love this site and have gained much knowledge in the months that I have been here.(off and on, of course). I am on now and the flame will never go out. I am very excited.

Footsoldier

L/O & S/T. Find out comparables on both those properties and get them lock up under contract using a L/O and/or Subject To. Find buyers for those properties, sale to them at a higher price (future value--look at % of value increases for homes in that market, use a experienced realtor) and get paid on the front end of the deal and the back end.

Congratulations for taking action, starting your journal and being a part of the DG website community. It sounds like you have a plan and are putting your plan into action. The key is to do something each day to move your closer to your goals. You can do it! Good luck with real estate investing. Believe and Achieve! - Joe

My day started at 4am and was a long "job" day. I have another one tomorrow, but until I can do what I want to do all the time, I will be doing what I need to do. Real estate is my passion and it will be a labor of love, once I am able to do this full time. I am thinking 6 months, as I can see great opportunites where I live. I will make sure that if I have to continue in the "job" longer, that it won't be lack of effort in the real estate biz.

I contacted a local investor and we will be meeting at the Investor's Club meeting next Monday. It is held about an hour away from whre I live, and I don't think most are doing much in this county. I did post on their forum board and picked up a couple of potential buyers and was offered a couple of properties.

Thanks of your input Atlcamel. I have been thinking about L/O on both properties. The one with owner financing would be easier, as they want out fast and they are able it assign. Then I would just re-assign it through a non-refundable option fee and take most of my money out at the end. I'm not sure, I haven't had a lot of time to work on it, but I do need the comps done.
The other property with the grad student, I asked him to get me a payoff he called me back and said he would have it within 48 hours and he would call me back. I thought of putting in a renter or a tenant buyer and they just make his payments and he keeps it in his name, until it is cashed out. He told me that he isn't behind in his payments, but is trying to scape up enough money to pay this month. Guess he's late. All he wants is out and is not concerned about any equity he might have in it.

Thanks for your words of encouragment Indiana-Joe. I've read a lot of your journal and I noticed that you don't let a lot of grass grow under your feet.

Vincent (footsoldier)

To ensure a huge win/win for all, finding out the pay off amounts will give you some leverage. In the grad's case if it is much less than he is asking, some negotiations can come into play. It will also be important to know how the housing market is doing in that area. For the other house, you might want to know what is still owing on the mortgage in order to make the best decision. God Bless.

Sandra

This I must do. Quitting is not an option. What is the alternative?

Vincent(footsoldier)

and thanks for sharing. You are not alone. Live long and prosper.

I, guess I should introduce myself. I am married with 4 children still at home ages 10-17. I was a licensed RE agent several years ago for a short time, but I never made any money. As the years progressed, I have learned much about creative finance of real estate investing, but for whatever reason, I have started and stopped so many times, that my wife and children don't really dare to hope. Especially my wife. Now is the time. I will not stop. I am so excited that, it seems I am thinking about it all the time. What I am doing, I will post about later. I just realized that I should introduce myself, as I love this place and love being part of the DG family. You people are so awesome and words can't describe my graditude to Dean for making this all posible, as he continues to work for our success. I live in South Carolina and really believe that through real estate My family and I will be financially independent. The demon of proverty will be broken.

Once again, thank you all,

Vincent (footsoldier)

I love that name it brings about such power. I know that you will be successful just b/c of that name. Win you have God beyond, on the side, and in front of you it all works out for your good. Sounds like you are working your plan.

Oh, the life of a real estate investor. I think that I have gotten to the point that I know (I mean know), that this is going to happen. Why did I take so long? I don't know and have wondered that for many years. People would tell me, "just do it", but for some reason I stopped before really getting started. I'm not going to dwell on the past, but just look ahead, with a plan, guidance from He that is with me, and never never accept defeat. So I lose out on someone else's problem. So I can't solve it for them. There are many other people that need a 'problem solver'. I really will be able to help others, either sellers or buyers and the financial reward will be only 1 of the positive things that I receive from this. Life is good.
Monday evening I went to the REI meeting and it was pretty good. It is held about an hour from here, but I wanted to check it out and at the same time meet a local investor from my area that I had been in contact with. I learned that he would love to do work in this county that we live, but he just hasn't been able to find many qualified buyers and doesn't seem to hold out much hope that they exist. Now my turn to find them. I am convinced that they are all over the place. I have some ideas on how to find them and I will be following Dean's advice on how to find them.I see this county as a gold mine. I don't think there are many people in an upside down mortgage, as although real estate value has gone down, prices were never inflated and I look for a quick recovery. One town is already on the rise and has increased 5% overall in the last 6 months. I am working on 3 potential deals all with highly motivated sellers. I spoke of 2 of them in an earlier post and got some feedback and since that time I found another person with a problem.

#1) FSBO seller's decription
23 acre farm with 4BR 2000+ sqft home, pond, 8 stall horse barn, shed, joins****river $270,000

This is owner financed with a 5 year balloon with payments of $960 a month. They have lived there a year, so I think it balloons in 4 years. I haven't seen this place yet, but will soon. They want at least $190,000. I need to run the comps, but am unsure with this place how to do it. They can assign this contract.

My proposal: L/O, with a balloon after 3 years and pay full price. I was told that they would assign it for $42,000 and leave the rest in the deal, until the balloon was due. They want to use the money out of it to fix up their other place that is closer to the husband's work. I doubt they need it all at once to seal the deal or for that matter that much. I was thinking about proposing stretching that out for 12-18 months. They seem very open to the L/O and I will be talking with the husband about this more tomorrow.

My fear is signing the deal and not finding a potential buyer. Any input or ideas would be greatly appreciated.

#2)FSBO 3 bedroom on 1/2 acre in town. Appraised at $93,000 in early '08 when they refi. Payoff is $79,000 ad he just wants out. I proposed a L/O and he is open to it, with someone else making his payments. I have an appointment to look at it on Monday and we will discuss it more. Not sure if there is anything here.

#3 FSBO investor and his partner cashed out a deal for someone that was in pre-forclosure. They had lived inthe home for several years and still wanted to stay there. These investors were told a church was going to buy it from them in about a month, but they reneged. They have owned it now for about 15 months and want their money out. It has a high end of $91,000, low of $70,000. He is asking $64,000, but would take less. There is the tenant in there paying $600 a month, although he is starting to be a little slow pay. The investor will leave some money in the deal, but how much, I'm not sure. I'm not too excited about this place. I will be looking at it in the morning and told him I would send either an offer of at least what I'm thinking about it by noon. He says someone else is looking at it and I don't care if he gets it. Any ideas?

Well, I have a 12 1/2 hour day at my "job" starting at noon tomorrow, so I guess that I'll study a bit more, then get some shut eye.

Vincent (footsoldier)

,000 in spring of '08 when refi. Payoff of $79,000. He just wants out as he's in grad school.

HI,IM NEW TO THE DG SPOT AND I JUST WANTED TO STOP BY AND SAY HI AND SEE WHAT YOU THINK ABOUT MY FIRST MOVES.

1.FIND A PROPERTY I THINK I COULD BUY OR SELL
2.FIND A RELATOR WITH A GOOD BROKER THAT SPECIALIZES IN INVESTORS AND CREATIVE FINANCING.
3.LOCK UP THE DEAL
4.LET MY RELATOR TAKE CARE OF THE DETAILS AND PAPER WORK.(I AM A RIGHT BRAIN THINKER WHOSE NOT GOOD WITH DETAILS.
5.BE PRESENT ALL THE WAY TO THE CLOSING.
6.COLLECT MY FEE AND THEN REALLY START TO INVEST MYSELF INTO THE R.E. GAME LIKE YOU BIG PLAYERS ARE DOING.

AM I ON TO SOMETHING?

P.S.HOW SHOULD I PAY THE AGENT?FEE'S OR COMMISSIONS?

I now know that I am no longer playing a real estate investor. I AM a real estate investor.

Vincent (footsoldier)

I had an appt to see the 4/2 at 6pm tonight, but the man called me this morning and said he was called into work and had to go out of town. (he is a truck driver.) We will set it up next week. I think that's the next step, to see what kind of shape it is in. I'm going to ask a realtor to run the comps for me. They have $42,000 in it and owe $148. They want their $42k out and assign it. He doesn't want to do a L/O in case something happens to him, his wife might have to deal with lawyers, etc. He just wants out of the deal. The house was listed at $270,000 when they bought it a year ago. The 23 acres of land intrigues me. I have seen a pictue of the house and it's a ranch style about 20 years old. They are very motivted, so it is a potential deal. They have a balloon in 4 years and I will do one in 3. I figure they shouldn't expect the biggest part of their money until it does balloon. Maybe $15,000 down, up the payments from $960 a month to $1200 and they keep the differnce. It seems asking for $10,000 to put this sweet deal together for someone shouldn't be too much to ask. I just hope the numbers work. The rest shouldn't be that hard.

Vincent (footsoldier)

This was the email that I sent to the investors that want their money out of the place they bought for cash with their money and own if free and clear.

Good morning -------

After consideration of the property in Seneca, I feel it is not in my best interest to pursue it at this time. I could probably work something out as a L/O, but as much money as you need out of it in the front end, the numbers don't work for me. If you and your partner are ever willing to take the bulk of your money out at the time it balloons, then I could probably help you out. My best to you both and may love abound.

Sincerely,

Vincent Noe

Less than 5 minutes later I received this email back.

Hi Vincent. As I mentioned yesterday, we're open to all creative offers. Right now, we have nothing to consider. Just make us your best offer.

Take care.

-------

I'll submit the offer next week. Any ideas?

On a side note, I do own a rehab house. I paid rent on it for 6 months after we moved back here. Then we bought it with owner financing for 6 years and 10 months at $400 a month, no money down. The price was $25,000. It was assessed at $79,400 in '06. It is a 5/2 over 2,000 square ft. It has about 1 1/2 acres of land overlooking a mountain. I have been paying on it for a year and a half. I am thinking about finding a rehabber to do the work and we split the profits or else just selling it to him.

Blessings,

Vincent (footsoldier)

Tomorrow I will spend time with my Master.

You are really moving ahead - making progress! I know you will be one of the success stories of the year!

Best Wishes,

Janet