Richard LaCelle's Journal

So I just went to my states bar association web site. Low and behold they have a TON of documents including assignment of contracts, etc. Best part it is free.......yeah...free. Even better it is for my state. I will still double check with an attorney, but it's a good site. Every form imaginable is there for the taking. All from my states bar association. Doesn't get better than that.

I talked to one of my agents today. He sent me over the weekend about 50 more properties to look at. I sent him 18 that I wanted to make offers on. A couple after reviewing them with him we crossed off. Too complicated. He was very optimistic about 3 to 4 of them. He is very hesitant about offering 100K less than the offering price on most of my properties. That was an average, not a standard. He will call the sellers tomorrow and place my offers verbally or by email. I sent him the copy of the agent script. I told him we can tweak it to be "us", but I want a consistant verbage when I talk, or him, to people. I need to set a different standard than the other investors. I know a lot of them up here have a bad rep. That's what I want to change. I have nothing to lose, but my morals. Not happening. I told my agent after the few offers I need to him to start placing offers. They are going to be low, but it's not just to be low. I have a lot when I make an offer. Rehab costs, market, comps, how long the house listed, what area, and so on. I just want him to make my offers. If he follows want I am trying to accomplish then no one should take offense, or at least we did it in a way that we don't need to feel as if we are trying to kick those who are down. I follow him on these few, but I need to place 30 to 50 offers per week. I am serious and I need to close a deal now. Time is too much of the essence, and I can't afford any more procrastinations.

Richard
Bothell, WA

Wow! There is nothing like getting a 3 day pay or vacate notice to really put things into "MUST GET DEAL DONE NOW" mode. My wife will figure something out. We always do. Hello Pawn!! We worked for years to get our stuff out of pawn and now it's going right back. It could be worse. Having nothing to take back in would really not be good.

So I decided to start calling on properties, and talking to the sellers (or agents) to get things going. My agents are putting me on the back burner because they haven't seen a deal yet. Well when you only put in a few offers a week it's not going to happen. As I said I am taking over.

In doing so I found some good information. I will do short story because I talk too much as it is.

Property one I find that is a fixer, of course. The house on market for 146 days with no offers. Lot's of inquiries, but no offers. I find out through their agent is the family is divorcing. House is a mess and they need a couple more days to get things calm enough to bring people in to look at it. All other people wanted to see that house that day. Not working. The wife has lived in this house since she was a kid and took it over years ago. Now it will also be 2 blocks from the new "Towne Centre" the city is putting in. In my area these aren't just strip malls, these are business centers, and shopping. Can't beat that once it's in. I told agent I would call back in 2 days to check in and do my homework to make an offer.

Property two I talked to another agent who just called out of the blue, acting as a buyers agent, told me the house I emailed about was an investors house. It just appraised by city for $550K. Owner has it on market for 68 days and listed orig. for $599K, now $475K. Come to find out the seller also has all his other properties he wants to unload. I am talking about a bulk offer for these deals. Now obviously since he is an investor he won't just take low ball offers, but if I do my homework and present this in a respectful manner I think I can get somewhere. I need to talk to him tomorrow to find out why he is selling. Retirement, health, or what? I will find out.

I am beyond motivated and I feel if I don't get a deal done this month I will get evicted from our place. I can't let that happen to my family. I won't. Time to work. I hope everyone had a great Mothers Day. No one person deserves to have a day dedicated stictly for them alone than mothers.

Richard
Bothell, WA

I wish you the best on these properties. I am sorry to hear about your circumstances but I know you are super MOTIVATED to make things happen. Take care.

Lea
SPR Property Solutions, LLC

Lea,

Thank you for the support. I am a firm believer that everything happens for a reason. Whether it is in my understanding or not doesn't matter, because there is a plan and I will go with the flow. I am not one to questions his ways, but I will do my best to make him proud.

I did get a few more calls from more sellers agents today. One property has the owners about 3 payments behind (per agent), so according to Dean figure 6, and the sellers are very close to having to do a shortsale. I want to see if I can help. I have no tenant buyers lined up because I am focusing on assignments, but maybe it is a sign to start looking at lease/options. If I can't give it the attention it deserves I know someone in my area that might be interested. Pay it forward I say.

Good luck to everyone and remember that even though we have our trials, mountains to climb, or just plain bad luck; that there are angels all around us who may only help by giving us a kind word, hold our hands, or just listen. That is all we need to get to the next day. Just make sure to return the favor. It is amazing how far the simplest of gestures can go.

Richard
Bothell, WA

You and your family are in my prayers, God knows your
faithfulness and will pour out his blessings.

Georg41

George41, There you are!! It was nice talking to you and I am glad to know your are up here as well. That's a few of us. I know if we all teamed up we could rock the Northwest! Thank you for the words and you are right, the Lord knows all and best. I am not one to question his ways.

Here is the great part. A co-worker of mine called up last night and offered to help me out. I didn't ask, but he called because his wife and him felt it was their duty. We made it another month!! It just goes to show you that even in the darkest of times if you work hard enough it will happen. Maybe not the way you want or expected, but you will survive. If you survive long enough then you can thrive! (insert "I will survive" song here) So thank you co-worker. My family will return the favor, and after our first deal is done dinner is on us.

More to come about my meeting with my agent. A blitz of offers are coming and that right soon!!

Richard,
Bothell, WA

After a wonderful day of working outside in the SUN (Finally!!!) I received a call from my agent discussing some ideas she has. I told her what I needed to do and what I have been doing over the weekend (calling seller agents myself), and that I need to close a deal NOW. She is awesome. Tomorrow at around 1:00 she will call and we will just sit on our computers going through listings and picking out the ones we will send offers out on. That is what I want! For a few hours I will tell her a house, she will do her searching (by the way she has a great research tool that shows all liens, loans, mortgages, etc. on each property so we can see if the seller really has enough room on their property) on them, the we send the email offer out. Next one, same thing. That is what we are going to do.

She also sent me a listing that she had given to another investor, but he is not moving on it fast enough so she wanted me to take a look. Oh my. Heres the run down. HUGE house, over 5000 sq. ft., built 2009, nobody has ever lived in it yet. Selling for $750,000. Taxed assessed this year for $1.13 MILLION. I want it for $600,000. Now you may think there is something wrong and you are right. It's listed on the MLS, but you can't find it because there are no "search criteria descriptions" for the listing. Unless you know the number you will have a heck of a time finding it, but she did by just doing a area search for another property and stumbled on it. Any takers? This house is crazy. My dream house isn't this nice, and I have high hopes. We'll see what happens. Tomorrow I have to take off work because we don't have a babysitter, but it will be a very productive day. That first deal is on it's way, and many, many more to follow!

Thanks again for the support to everyone. From the bottom of my heart, and my families, I can't say enough about how great you all are. You know something is good when you haven't even made a cent yet, but you are turning your negative people into positive ones just by doing the work. You should see how my father in law is acting. He will get in on this soon I bet. Thanks again everyone and have a good night.

Richard
Bothell, WA

That was a very productive day I must say! I got done talking with my agent and she is about to call on over 40 properties and put the offers in verbally or by email. She is awesome. She was surprised on how many properties I want to bid on. Even more so when I said this is just 1/3 of this weeks list! No bank owned, no short sales, and all ready!! Nice and simple. It has to be. I am getting excited.

So this house I was talking about yesterday (the castle) my agent went out to look at it earlier today. The builder who built it ('09) lives a couple of houses down on the same street. There are some things that need to be fixed (a window, some little things) due to no one living there, but it is a really strong property. Seller asking $750,000, value (lowest possible end) $931,000, assessed this year 1.1 million. I am asking $500,000 and I think we can get it. My agent is going to talk to the builder (owner) in person to bring the offer. Any takers? There will be. If I get this one I will have to show the pictures because it is awesome! More to come!!!!

Richard
Bothell, WA

I like your castle, remember GOD owns the cattles on a thousand hills
also the castles ASK HIM for it. HE says you receive not for you ssk not.
ALL things are POSSIBlE with GOD, just give HIM all the glory. I see Victory
comming.

I called three Realtors yesterday that I was a real estate investor looking
for a Realtor to work with, a newbee with no money. The response

#1 You need to buy your own home first, in 5 years use the equity to
fund your investments.

#2 Did'nt sound interested, put me on hold, waited 3 minutes I hung up
no return calls

#3 Left my number to call me, no response yet. George41

George41

When I have been talking to agents I just tell them I have been working on assignments. Most that I talked to haven't done one, actually all of them, but they know of them. When I'm asked how many deals I have done or how much money I have I tell them that I am new, and since I am doing assignment of contracts I use none of my own money. When I am ready to work on a different strategy then I will use my own money, maybe, but for now I don't need to use any. When I explain that to them they are interested. I tell them I need to make things simple and not over complicate things. I want to make 25 to 50 offers per week, verbally or by email, get a price agreed upon, and then do the formal purchase and contract. I have had a good response with people wanting to try it, but I have only found 1 agent so far who is actually willing to do the work. Trial and error. If they don't do what you want then explain to them why you need it done that way (laws of average, numbers game), and if they still don't get it then it's time to move on. Try just calling agents and see if they have completed assignments before. If so then they are a step ahead and can help you through the process from start to finish. REAPS would know of great agents to work with. Hope that helps.

Richard
Bothell, WA

WOW, you are on the right track and moving along. I wish you the best with the 'castle' and all that you do.

Lea
SPR Property Solutions, LLC

http://www.youtube.com/watch?v=JD_fjYZwnb0&playnext_from=TL&videos=8PMkp...

Lea,

Thank you as always. You have great information on your journals and all your posts. I have learned a lot from you and I appreciate your comments. That is why I love this site.

Richard Patterson,

Thank you for that posting. He is absolutely right. I love the last part when he said he made a dedication that from "that point on I would never allow someone to have the ability to fire me and put my life, and my families life in jeopardy." That is what I think we are all working on. It will happen. Thank you for that.

Still making calls on more properties. My agent is going on full blitz mode to get offer out there. I told here my plan is to have no less than 3 to 5 properties on contract at ALL times. I want to finish my website so I will always have a changing inventory that my buyers and anyone can go look at the deals I have and pick what the want. I want to take this wholeselling to the wherehouse and keep up my stock. Look out Costco, my family is about to take over.

Richard
Bothell, WA

Thanks for the info I'll try your strategy. Attended monthly REIA
meeting monday night in Bellevue, speaker was Todd Toback the
assignment expert. Did a little networking with 2 investors from
Bellevue looking for rental properties in their area, will
add to my Buyers list

George41

Thanks for the info I'll try your strategy. Attended monthly REIA
meeting monday night in Bellevue, speaker was Todd Toback the
assignment expert. Did a little networking with 2 investors from
Bellevue looking for rental properties in their area, will
add to my Buyers list

George41

Thanks for the info I'll try your strategy. Attended monthly REIA
meeting monday night in Bellevue, speaker was Todd Toback the
assignment expert. Did a little networking with 2 investors from
Bellevue looking for rental properties in their area, will
add to my Buyers list

George41

I Love Daddy

I Love Daddy

Sorry for the mess Richard, clicked on
post comment once did'nt respond clicked
twice more, computer just stalled like.
Thats what you get for clicking 3 times.

George41

George,

No problem. It looks like my son got on and did the same thing. He is all about real estate. We should talk. I am interested in what you learned from your REI meeting. I hope you are doing well.

Richard
Bothell, WA

Hayden (my son), daddy loves you too.

My agent has been calling me all day, and I am happy. She put out 30 offers and we heard back from almost all of them. Only about 3 were even close to accepting, but not enough to make a deal. That is ok. My agent is very smart and has an ability to explain to all the agents who when we first talked to them they were against what were are doing. Now with her and the way she explains what we are doing we have these agents putting her on their top investor agent to call when they get listings that fit. I will take it as a victory. Setting the stage. Still haven't heard about the "castle", and we are working on that for this weekend.

We are getting closer to that deal. It is amazing how fast this is going. With my agent who is beyond motivated I know this will happen soon. We will send out the next "blitz" of offers in the next 2 days. We are just working the numbers. I know it will happen. The counter offers on a lot of these properties are good just not for assigning purposes. I need to get them low enough to make my buyers jump, not question it. So until then I wish everyone the best and it is going to happen. Also, like everyone else has said before when you start it is slow, but when everything is set up you can make offers, get them assigned, and make money within hours. Believe it.

Richard
Bothell, WA

With all your offers been made and not enough equity to assign
to an investor, is it possible to do retail with your agent who
may have a buyers list who are interested in same properties
which you negociated for a lower price? a win win maybe!
just my thoughts,

George41

just read through your journal. i love your optimism and unwaivering faith. i'm really good at it for others and working on getting better on it for myself. sounds like you have a wonderful agent. i just got my RE license in March and am seriously considering becoming an investor's agent as well as an investor.

George41,

That is great advice. The other 4 investors she works with are interested only in commercial and multifamily properties. She does however know they have buyers as well. We are networking through many channels and are having the sellers agents put the word out about us. Hoping this will continue as it has started.

Linda,

Thank you for the very nice words. I really do appreciate them. For your question my agent follows along the lines of the agent script that is on this site, and the book PFRRN. What her technique is for lack of better description, is the ability to listen. She has a gift to listen for key words and phrases from the sellers, agents, and others. When she hears what she needs she capitolizes on them putting the other parties at ease, and eventually on our side. It doesn't work all the time, but it doesn't need to. She truely is very saavy and has wisdom beyond her years. I am learning a lot from her, and I know that we will make a deal soon.

This weekend has been a slower one. I sent my agent about 87 different offers on strictly estate sale properties and she said she will be calling them today. That will put us at over 110 offers in one week. I just need to get one of these offers accepted and I know I can find a buyer for them. I am not asking for much (from an investing stand point). I want 25% off FMV, what my expected rehab costs would be for my end buyer, and just $5000.00 for me. That is it, but I know with this set up and the prices are not just low ball offer we will get a deal done. My offers are calculated, and safe for both parties. There is great equity in each one, and the seller will get their property sold if they accept my offer. QUICKLY! Will put out some more offers in the next day or two when I get the update on this round. Blitz #2 to come shortly.

Richard
Bothell, WA

To my wife,

Tomorrow is our 7 year anniversary, and I wanted to say that I love. We have been together for over 10 years, and you have given me my son, confidence, unwaivering support, trust, and most importantly your love. You give me strength to carry on when I feel weak. You talk to me as if we were still dating when we first met. You look at me in the middle of a crowd, and I know you are only seeing me. You are my best friend who I can't wait to see when I, or you get home from work. Your sacrifices for our family have been a heavy load to bare, but you carry them willingly and without a moments hesitation. I love the way you laugh when we are at our most vunerable. You give me hope when we are in the midst of disparity. You make me believe more and more every day that God has a plan for us and everyone because he has sent me one of his angels to comfort me. I thank you for all you do, what you see, what you don't, and everything inbetween. I love you, and Happy Anniversary!"

Love,

Your husband,
Rich

what a nice tribute.

Happy Anniversary Richard and GOD bless you
and your family, what an awesome tribute.
You have been richly blessed! 7 is GODS
number Be prepared, just give GOD all the
PRAISE HONOR AND GLORY

Georg41

Thank you both very much. My wife deserves all the credit. Without her I wouldn't have any motivation. She is awesome.

Last night was great, but I promised my wife I would do no work on our anniversary so I followed her wishes. Today is a different story. I talked to my agent and she is starting (I can tell) to get a bit frustrated. Over 100 offers and no takers yet. Laws of average should kick in soon. I hope. I am not asking for much of a difference (from an investing standpoint) with my offers. 25% off FMV, minus rehab costs, and minus my $5K. That's it. Still no takers yet. My agent said we should drop to only asking 10% below, but then she quickly realized that would leave no room for profit. We are going to brainstorm here in the next day or so. I want to get inside her head as an agent. I want to know how they think and look at things. If we can know what turns them on and off then we should capitolize on those key triggers. I know it will happen. It is just not about putting offers in. There is a missing factor that when I figure it out will open the doors to many wonderful things. Have to keep up the faith.

Richard
Bothell, WA

I had scheduled a meeting with my agent today to sit down and really pick her brain. I want to find out a way to stand out from the rest of the crowd. I need to discover a nitch. A technique that makes it to where the selling agents can't, or don't want to ignore my offers. I know this won't be a 100% of the time, but I have to do something that is not of the norm. Unfortunately that meeting didn't not happen. I will find out why tomorrow.

So far out of the 100 plus offers I have put in there has been no takers. That just means that there will be (according to the 25:1 rule) a frenzy of accepted deals here soon. I refuse to think any other way. I can't afford it. I will find some way (doing what is in the books of course) to make this work. I can throw offers out forever and a day, but I need to do more. I need to get the offers accepted. That sounds good. More to come.

Richard
Bothell, WA

are there any offers you can resubmit? an investor in my REI club was sitting next to me at a meeting and suggested that we keep submitting the same offer or even lower over a period of months. the banks need these properties off their books, even if they think they don't. we went through the house last night again and are preparing an offer package that we will keep submitting until they accept our offer, accept another offer or tell us to bug off. it's the persistence thing. we will submit in the offer package things to justify our offer such as: rehab costs, things that make the property less valuable right off the bat like being by a busy road and pictures of everything. just a thought....