OfflineI am playing catch up on this to get everybody up to date. When I started my quest in real estate, we were in a small town of 5000, where I had just sued a nursing home that was privately owned by the county with a million dollar bond that was supported by the wealthier people of the town, so I was known by everyone, but not in a good way. My suit and dealings with the state played a big part in them being bought out by a corporation. Just 2 years before this we were on top of the world, and having a great time. Then dealings from a bad venture with a fortune 50 company and me doing land home deals with them, I lost everything. (bankruptsy) For the first 6 months of my real estate adventure with the DG family, I never closed a deal. Road a bus back & forth from TN to MO trying to get started. I could'nt even afford gas at that time. In the first part of my catch up journal, I closed my first deal June 1st 2009 and had closed 10 deals by Nov. 2009. So here's my story......
The first thing I would like to do is to thank Matt Larson, Drew Moren and my wife Julie. I still can't believe I bought a book off of the TV. I thought it was stupid when my wife ordered things from a catalog. I probably watched Deans infomercial forty times before I ordered his book. The day I got the book, I read it front to back and the next day I read it again. Then I decided to make that crucial call. After talking to the personnel at PMI and filling out a questionnaire, I decided to spend all the money my wife & I had which was $20,000.00 to try to make a better future for us. The crazy part is we had just went though bankruptcy, I was out of a job in a small town where if you were making $10 an hour you were doing good. There were no jobs in our area, and a hundred miles from any city to try to find a job. Until now, I had never bought anything that I could not see or touch. I had really put everything on the line! Drew really kept me motivated the whole time. I did everything that was asked of me. I new deep down this was probably my last chance. I found a good attorney, a good realtor and a good accounting firm. That part took a little time, but it paid off. I had all this lined up when Matt Larson arrived for my three day on site training. From what I learned from Drew, I had a house lined up to look at, and a good realtor to introduce Matt to. The on site training was a God send. It really helped my wife not to be so afraid of what I was risking our money on. It proved to her that someone with no money of their own, can find a way to make this work. Matt was living proof. After a great weekend with Matt, I thought I was off and running. I shotgun 20-30 offers a week, I was finding deals 30-40 cents on the dollar, then I hit a stumbling block. I contacted every small bank in a 40 mile radius, they would only give me 80% of rehab. It took me several meetings with each bank to even get this worked out, due to the economy. Looking back, getting that worked out was pretty good since I had just went through bankruptcy, I had no money, no job and a wife who only made $8.00 an hour. My next move was to talk to the three people that owned 90% of the rental property in Bethany, No luck. So now my last chance was hard money lenders. I did find some who would work with me, but not in Bethany Missouri. It was just too far for them to travel. By now I had 3 months involved and numerous calls to Drew, so we decided to try assignment of contract. I still had all the paper work Matt had given me on assignments. A lady I used to work with, was looking for a house to use as a group home. I got with my realtor, which was 40 miles away, and we went to work. While I was working on this deal, I started travelling to TN. I would spend 5 to 10 days in Clarksville TN then come home for a few days and work on the assignment deal. I chose Clarksville because I new they had survived the recession as good as any where, due to the fact they are a military town. Julie and I went to the bank and borrowed all we could against my pickup truck and we went to work. We started sending out letters from the pre foreclosure list, about 400. The problem was they were $3000 to $10,000 behind in payments. Drew really kept me motivated during this time. While I was in TN, I was staying at my folks house out in the country. No internet, phones that worked half the time and a mother who told me this would never work, several times a day and Julie in MO trying to keep working so we would have some kind of income. Finally I found a deal for the group home in Albany, MO. In northern MO, real estate is a little different. You can have a reality sign, and a for sale by owner sign in the same yard at the same time. I guess it's may the best man win. The realtor that had the house listed didn't want my realtor to come with me to look at the house. Finally we got this hurdle resolved. I made my offer, as you will see in my first deal. Somehow the realtor found out I was doing an assignment of contract. He called my clients and told them that what I was doing was illegal. Finally got that problem resolved. Then I went to the title company with my client and the title company said what I was doing wasn't legal. Got that resolved, then the realtor that listed the house said that we couldn't pick the title company, that he would. Finally got that resolved too. This was a great lesson learned. With Drew's help everything worked just like the book said it would. After all this trouble, I ended up with $1000.00, a lot of knowledge and 3 more deals with the same clients after the first of the year with $5000.00 assignment fee each. Not bad for a country boy. Now I finally had my first deal done.I have been working on some really big deals in Clarksville,TN. Staying in touch with Drew on a regular basis, I feel like I know him personnally. Now I had to swallow my pride and borrow another $5000.00 from my folks, and as always my mother said this would never work. By this time I had spent close to $3000.00 in adds of several different types, with not much response except from investors who wanted to know if I would buy their houses. As always Drew is always there helping me stay motivated. During this time I was talking to raltors, contractors and developers in the Clarksville area trying to figure out the market here. I used to be an inspector for the city and used to know the market pretty well. After a lot of research, I knew I wanted to target the military with VA loans. I started putting out bandit signs, very cheapest way and very plain, saying "We buy houses" and my phone number. What a great response! I would get 20 to 25 calls a week from about 10 to 15 signs I put out. Most of the calls were from people in the military having to transfer. All they wanted was to get what they owed on their house. After doing some brainstorming with Drew, reading Dean's book over and over and reviewing my course work, I came up with "Subject to existing loan". Now I had to put a packet together to make this work, and find buyers for the homes. I needed to cut out all the extra costs that I could. I ran a dummy add in the newspaper reading "no bank qualifying for sale by owner". I got great response from people who had $3000 to $10,000 to put down. I knew the type of homes I wanted were homes bought 2 or 3 years ago and 4 to 10 years old. These houses sold well under market value due to Clarksville being full of new homes. Developers were discounting houses trying just to break even. All the military troops had been deployed. So then I got to working with Drew, realtors, attorneys, property management companies and other investors to come up with the best of everything I could find. For my buyers packet I have the following.. 1. Standard real estate purchase and sale agreement,"subject to existing loan" encumbering the property. 2.Letter to mortgage company telling them to send all information concerning the house to me. 3.Escrow agreement 4.Standard warranty deed. 5.Power of attorney for closing, insurance, mortgage payment and all matters pertaining to property. 6.Letter of agreement and addendum(cover your ass letter). This way the home owner never has to do anything with the house again. In my sellers packet I have a sellers agreement and a renters agreement. Once I got all this together, I was ready to make deals and make money. I have probably turned down some good deals, due to being a little more cautious than I should have. These are the type of deals that I am really targeting right now. I am giving 0 down, sometimes getting the home owner to make up to 3 months of payments. All my homes have at least $10,000.00 in equity and are in excellent shape. I have 8 homes like this. Combined worth in excess of 1 million dollars, with zero down and all of them were gotten in the last four months. When I sell these homes I do a sellers agreement and rental agreement. I have gotten as little as $3000.00 down and up to $8000.00 down. These are non refundable down payments, with over $100.00 a month in positive cash flow per house. All of the people I have bought houses from are very greateful for the service I am providing. All of them have said they can't afford to make 2 house payments, you can close in one day, and I don't charge them. They also say that realtors won't promise thatthey could sell the house. A couple of these houses were listed with realtors when the owner contacted me,but with a little work and no money, I got a release from them. Summary..Motivated seller, transfer and can't make 2 house payments, 0 down, I have deed, I have power of attorney, I have CYA letter, house financed 2 to 4 years ago, all are VA loans with locked interest, sell house $20 to$40,000.00 in profit, $5000.00 average down payment, over $100 positive cash fow per month per house. The clients I buy from are happy, the clients that move in are happy and I make money which makes me happy. I have one more deal I almost forgot about in North Carolina. My nephew is going to NASCAR school there. This is a town where housing is expensive and rent is even higher. I talked my sister, his mother into buying a house there for him to live in while in school and use it as an investment. There are a lot of houses on the market there for $300,000 to $500,000. We found the house that she bought on the pre foreclosure list, but it was already an REO, $158,000.00 was owed on it and we got it for $121,000.00. This deal took four months, even though it was a cash deal the bank kept taking other offers, but the financing would never go through. The bank finally excepted our offer and the deal has been closed. She is renting rooms out to other students and her son lives there free. Summery.. No house payment, free rent for son, and sell in 2 yrs for $40,000.00 profit. Thanks to Deans book and the PMI staff, the following is what I have accomplished in the last 6 months.. I have a knowledge that is priceless, I have closed deals in four states, When I paid the bank off in Bethany, they wanted to talk to me about my deals, Now that I had some under my belt, they wanted to work with me. I own 8 homes with 0 down. I have gotten more aggressive and am getting owners to pay 2 to 3 months of payments. Have clients ready to move in the day the owners move out, doubling profit for 2 to 3 months. Have local bank willing to work with me. I moved 600 miles. Wife owns first home. Everyone paid off. Have local investor to front money for homes and split profit. Proved everyone wrong who said this wouldn't work. Once again I would like to say thank you to Matt Larson. Your trip to Bethany,MO for 3 days really gave my wife the courage to stand behind me. I don't think I would have made it with her being negative about this venture. She was very scared. Matt helped to ease her mind and prove this could really work. Drew, your motivation and endless hours you have spent with me is priceless. I feel like I have a true friend that I have never met. Gross value $1,041,800.00 Net value $229,404.24 Down payments received on 7 homes $37,000.00 Positive monthly cash flow on 7 homes $1,091.99 We live in the 8th home.
Thanks, Randy (sorry this is sooo long!)
Randy's Journal; 1st runner up in Deans send me away contest
Posted on: Sun, 02/28/2010 - 22:28
Randy's Journal; 1st runner up in Deans send me away contest
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Randy, I'm gonna have to read that a few times over I think, for it all to sink in. WOW!!! What a ride. Hats off to Matt and Drew. And most of all to you and Julie!! Great, great story (that just keeps getting better over time!).
Thanks for starting a journal. I will love "riding along" as you keep pushing forward!
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Very Inspirational! If you can take anything at all away from this story, its DONT GIVE UP! I love the tenacity, especially when those around you continually naysay. Good for you and best wishes on your continued success.
When one sets out to take Rome, TAKE ROME!
Greatness courts failure.
Thanks to you is the reason I am doing this. At least this part got me though nov of 09. My gold is be caught up with my journal by the 15 of March.
Randy
www.adeptpropertiesllc.com
Very inspirational, thanks for sharing and congratulations Randy. God Bless.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.
What a great post. Your story truly IS inspirational as Sdbox said. I'm looking forward to hearing more.
Randy and Julie, you are just getting started. You don't realize it yet but you are about to change the lives of many, many people. Please just keep being you and keep chasing down your dreams!
When I showed up to mentor Randy and Julie, Randy had the flu. He refused to miss a single thing. The average person wouldn't have been able to cope with being that sick, but then again Randy isn't average as all of you already know and soon the world will know.
Randy looked me in the eyes and told he was going to get this thing done and I believed him. Now he is letting time prove him right!
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
That was an awesome journey you just took me on...i felt like i was there. Its so good to hear such an inspiring story....it seems the more people stay connected with the DG TEAM, the better chances for success!
Again congragulations.
Woody
STAY FOCUSED OR LOSE SIGHT!!!!!
Woody
STAY FOCUSED OR LOSE SIGHT !!!!!
Randy, that was a fanastic entry for your journal. I had my mouth hanging open a couple of times while reading. You and your wife should be very proud of yourselves. You have done a great job so far, can't wait to hear more!
Cathy
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
That was a great story and very inspiring Randy.
Good luck going forward and god bless.
Richie.
Randy I don't even know what to say - WOW! Your's & Julies's story is amazing and you are a true inspiration. Thanks for sharing your story. Continued success to you both.
Lea
SPR Property Solutions, LLC
This is an amazing story. You have done things that most people would never have had the Kahoonas to do! I would love to learn more about your sellers package. I have not taken the steps to purchase anything for myself yet. I am a wholesaling addict and as soon as I get a great deal well... I wholesale it! The fast cash is addicting...lol!
I am coming across many properties here in NJ that I would love to do a lease option or subject to with. I am just trying to absorb the whole process. But you on the other hand jumped right in the water!! How awesome!
Would you be willing to share a copy of your sellers package? I think many others here would benefit from it as well.
Are you going to be at the Edge? I would love to meet you both.
Do not fear, for I am with you; do not be dismayed, for I am your God.I will strengthen you and help you; I will uphold you with my righteous right hand. Isaiah 41:10
http://realwholesaling.com FREE wholesaling tips and resources!
To your success,
Carol Stinson
Yes we will be their.we are going out a couple of days early, and staying until Tuesday. And yes I will share with anyone what I have learned. I am really going to try to get my journal caught up this week. Thanks everyone for the great response.
Randy
www.adeptpropertiesllc.com
Thank you so much for sharing your story....as everyone has said above...its an incredible journey you just took us on and shows so much courage, heart and determination! I am sorry I wont be enjoying meeting everyone in May this year - but look forward to following your continuing journey here in your journal until the day we are lucky enough to meet in person!
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
Here I go pecking away. I guess for any of this to make a lot of seance I am going to need to share a little of my personal life with you. Julie really got to see me at my worst when I lost everything. It even got to a point that I was drinking to much. My experience with a fortune 50 company was like riding a wild horse. Every time it buck me of I would climb back on, But once the horse died I had no were to climb. 500 k LEASON. After working with two different company's in northern mo. Things really got bad. I was diagnosed with major depression and chronic fatigue. I guess everything was starting to wear on me, It got so bad that it would take me all week to cut the grass, the physical pain was almost unbearable, But the good side of all of this I got to see Dean's commercials. At this time I was really concerned on what I was going to do, We were to the point now that we had no Insurance. The reason this bother me so much was because of Julie. diabetes In her family was bad. she has 3 bothers one is blind. one has one eye and the other is having surgery to try to save his.They all three have had kidney transplant and open heart surgery. all of this was by age 30. Well maybe this will help some one to understand all the fears I had. I spent everything I had to Make this work.Even though it took me 9 months to close my first deal everything work out just the way it was supposed to. When we maid the move to tn their was still a lot of fear and plus I was moving Julie 600miles from her kids to make this work.(POSTIVE SIDE HAVE CLOSED 18 DEALS) With none of my on money. In Nov we Had to go back to northern mo for a wedding of my stepdaughter and the funnel of our young granddaughter. I had to stay back two days to get a couple of deals done,They put a little over 12.000 dollars in my pocket. Without this I don't know what we would done. This is the reason My gratitude is so great for Dean the success academy, Drew and Matt. OK that's enough about me. In the next post I will tell you about my 22 million dollar deal i almost pulled of. And I will start getting in to some of my different strategy. I actually got a deal over the weekend that I gave a gentleman $8000.00 down, but i never used one dime of my money. He is not getting his money till the end. I have maid myself promise to get this caught up, If this helps motivate one person it will be worth all my pecking. I can never give back what I have receive. Once again thinks for all the positive feed back.
THANK YOU ALL
Randy
www.adeptpropertiesllc.com
Randy,
Thanks for sharinging your HEART and keep going, it will all work out! hang In there! Looking forward to hear your Sellers Package. Your a TROOPER! Thanks Jay C
Jay C
Whew! I had to print out your journal to really get the full effect. GOD is good all the time.....
Thanks for sharing, what an inspiration.
Peace and Blessings,
“Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light not our darkness that frightens us. Actually, who are you not to be? You are a child of God. Your playing small doesn’t serve the world. There’s nothing enlightened about shrinking so that other people won’t feel insecure around you. We were born to make manifest the glory of God that is within us.”
- Nelson Mandela
,When I first started traveling back to TN, I found a trailer park for sale in Stewart County, listed with a real estate agent. It set on a 4 lane highway in the city limits. City water and sewer. It listed for $500,000.00. It had a $2,500.00 positive cash flow,financed at 15 yr @ 10%. Found the owner of 35 acres adjoining park that was land locked. I could buy the 35 acres for $1500.00 an acre, but it wouldn't be much good without the park. Now I have to keep this as short as possible, I did have 4 months and several hours in this project. I really got to work on the research of Clarksville and found out that Clarksville had survived the recession, homes values had increased every year. Fort Campbell payroll alone was 2.49 billion a year, industrial companies were moving to Clarksville. New home construction was booming, and at present rate of growth, Clarksville is going to be 10,000 homes short by 2015. Every 4 plex and up are being sold to outside investors as quick as they are being built. By now I am getting a little excited. So I went to work with Dover TN to see if I could get the 35 acres annexed in the city limits with water and sewer. I actually got all this worked out. But by now the listing for the park was running out. I could get the park for $350,000.00. The 2 acres on the front was zoned commercial and was worth $500,000.00, once I removed 5 trailers. I know everybody is thinking "owner financing". No way! I tried everything. This whole time I am working close with the success academy, especially Drew. Now I had to have some help. I now have a pretty good packet put together, like Dean's book said, it's only dollars, don't let the good one get away. I actually sent my packet to the success academy and they forwarded it on to Dean. The total cost would have been $17,160,000.00 with a gross profit of $8,060,000.00. They did e-mail me back, but they said for the first deal this was a lot of money. I had a lot of great exit strategies, allot of bartering, that would have increased the profit by 20%. After 6 months to pull this deal off, I needed $30,000.00 to lock this up and only had one week to come up with it. I just ran out of time! What I still call "my project" is under construction as I type this. What amazes me is that the success academy, especially Drew, stood by me the whole time. They told me to think BIG and I did. The rewards were great due to all the research and hours put in on this project. It got me to rolling on what I am doing now. There is really a lot more to this project that would take to long to explain, but this was the gist of it. Like I said, it got me back into the research of the area. Some people might think this was a waste of time,not me. My glass is half full not half empty. Took a negative and turned it into a positive. It's kinda like fishing, the big one got away, but not the knowledge! In closing, thanks success academy and Drew!
Randy Vaughan
www.adeptpropertiesllc.com
I have got some pm, and for some reason I can,t seem to reply. I will get this problem work out somehow. I am willing to help anybody.
Randy
www.adeptpropertiesllc.com
As you've told me your journal, i read it and it REALLY, REALLY AND REALLY inspired me. I'm so happy for both of you. If i need any help, i will PM you.
Thanks a lot
Balf real estate investment LLC
Baria
What a great journal with lots of inspiration. After ready this it motivates me to do more than I already have. Keep up the good work I feel like it is an inspiration to many.
Mark
Top notch man, I have just read your journal, what a pure piece of determination. Wishing you and Julie much continued success...Jan
Well today I have really got a full plate. I am trying the impossible. I have went back and made settlements on the people that I filed against. Alot of people might think this was crazy, But I morally owe them. and on my report it shows the judgement was satisfied. My goal is to get my bankruptcy removed, Even it was filed in 08. I have got two deals that I am really trying to get work out, Both homes have 0 owed on them. I will give you more details on these as they unfold. If I just get one I will jump for joy. I want them with 0 of my money with a clear deed so I can get me a credit line set up. I know this sounds crazy but I think I can pull it of with a little creativity. I do Have a week tied up in these with some swapping and barting but that's the fun part. and I promise I will get ever one caught up on my other deals.
Thanks for all the great response. And carol I will call you today.
Randy
www.adeptpropertiesllc.com
Bankruptcy is there for a reason. You were in a situation that you had no choice and you did what you had to do. Things have changed (GREAT FOR YOU) and you are doing the mans man thing and taking responsibility. You could have just gone along and let the system protect all that old stuff.
Folks, now thats some class right there!
When one sets out to take Rome, TAKE ROME!
Greatness courts failure.
all i can say is you have an amazing determination and a great partner to move forward with all you have learned.A very inspiring story of tenacity and perseverance that motivates me to take MORE action in my rei. thanks for sharing everything with us and i wish you all the success that is coming your way !!
jay
Click Here For homepage www.jaysthilaire.com
need to sell ? http://www.jayhousebuyers.com
Need me to FINANCE a home ? http://www.jaysrenttoown.com
CHECK OUT MY JOURNAL http://www.deangraziosi.com/real-estate-forums/investing-journals/20063/...
Reading this story gives me so much confidence in what I can do for myself, which is, think outside the box!!
Well I had no intentions of buying any homes today, But I got three. All subject to the existing loans. all three are VA loans what a interest rate. Well I have to take a break for a few minutes and let all this sink in. Will be back later tonight to go more into my deals.
Randy
www.adeptpropertiesllc.com
Randy, just love to read your detail of events. Your determination and desire for success in real estate is amazing. Financial Free, "Here I come." God Bless.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.
Sorry guys I am having major troubles with responding to my pm and getting on this site. I have got someone coming tomorrow to see if I can get this problem resolved. Talk to carol yesterday, The winner of Deans send me away contest. (WHAT A LADY). We are in the process of swapping strategies as I speak. I really kick myself in the butt for nor being a part of this, I was just to caught up in the lesson part of Deans program. I mean if you you really think about it here's two people, bad credit and know were to turn, several states away, never met, Making money today but are swapping strategies so we both can take it to the next level. And foremost I have got to think Rina for getting involved in this web site. See what happens when you are opening minded to change. When I joined the success academy i went in open minded. If they had told to go stand in the corner I would have. Might not have agreed with it. But I new deep down I had to TRUST someone else beside myself.
Randy
www.adeptpropertiesllc.com
My name is ( Reina ) I'm in Goodlettsville, TN. 37072
I moved from California aprox. 5 years ago, Now I'm in
to Investing: I'm very new at this...some one by the name
of ( Rina ) asked me to try to get in touch with you guys..
I hope you can help me? How do I close a deal in regards (REO)
I found a house that is worth aprox. 200,000 and the bank/Lender Asking price is
10,000 Please help? how would you aproach the bank to come to an agreement? I want to keep this property and Lease it out.
www.reinarendon@live.com
Reina Patricia Rendon
I hope this computer will stay up long enough for me to finish this. Sorry guys I still can't answer my pm. Just bought my first house with a partner. Are getting all the details work out tomorrow.
Randy
www.adeptpropertiesllc.com