Randy's Journal; 1st runner up in Deans send me away contest

Randy's Journal; 1st runner up in Deans send me away contest

I 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!)

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randy

just getting caught up on your journal and WOW you are going fast !! you certainly have what it takes to succeed!!DETERMINATION !!!!!!!!!!!!!!!!! its great to hear how you make a deal happen no matter what.I would like to ask you how you keep everything straight with your deals?? do you use sfl ?? dome book ? ideal book? or just a spread sheet ?
i know paperwork is sometimes overwhelming and i know u mentioned your cpa but what system are u using? i am trying to systemize to make it easier.sometimes the deals are the easiest for me but keeping track and good accounting is tougher at least for me until i get a system down.any info will be appreciated .
thanks randy and keep running um down !!
tell julie hi and cant wait to see you both at the edge 2011 !!! will be bringing karen so she can sit in the sun during the day and also my boy to attend the edge with me and his girlfriend to enjoy the sun with karen !!! cant wait !!!!

jay

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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/...


Jay

I hate to admit this bur the paperwork is the hardest. I am still trying to get all that to were it is easy. I hope Julie is going to be able to help me full time here in the next 30 days. It will sure make things a lot easy and free up some of my time. I messed around and missed out on the SFL. but am working on getting it now. Its so great to here from you. And yes I am already pumped for the edge.

Randy

randy

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YOU ARE ROCKING!

Your story is amazing! I can only dream bigger after reading your journal...Where I live there is a Coast Guard Base. Your story has given me ideas to help people get out of their homes when they get transferred! I too would love to get more information on your sales packet.
KEEP UP THE GREAT INSPIRATIONAL JOURNAL...THINK ABUNDANTLY ENERGY FOLLOWS INTENTION!
Barbara


Barbara

Am glad you stopped buy. Hope you stay motivated and take action. I always enjoy seeing people posting their first deal'

Randy

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PAY DAY

Well its first of the month and time to count $ signs. Well this will be a full day but this is the fun part especially if everyone pays on time.

Randy

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Hey Randy,

Since I'm following your strategy and just tweaking it a little, I wanted to come to you! I enjoy your journal so much, but I'm still about 51 posts behind.

I have my subject to almost complete. It took me a while because I took a trust class, learned how to do and write up a trust and all its separate forms, and am taking this home, with a tenant in it, an the owner covering the 150ish that the rent from the tenant doesn't cover with 0 down. The tenant has given his 60 day notice and now I am advertising my first lease option! This home too is also near a military base (Moody) and I've advertised it on all the free military sites thusfar. (I also have a home in NC I bought in 2004 near Camp LeJeune, but I rent it to military families (very quickly, always!))

When you advertise, do you leave off details for the most part? Because this is an overbuilt area, I really want to target my marketing to get it filled and lease optioned by the time the tenant leaves. I saw you gave a few examples. I'm going to put that basic info on a craigslist ad as well as try a more detailed one to see which one has the best results. But, any advice you can give, I'd soak up! You're doing great and such an inspiration to all of us! Smiling


Hey Randy!!

Cha ching$$$$$$$$, I was just curious if you actually sit there with the miser visor on while you count your rents Smiling
whats going on bud? I havent heard from ya lately. I guess you have been busy filling homes. Hope all is going well for you and Julie, you owe me a packet one day so I can look it over and try it here Eye-wink
I will talk to you soon, good luck on all !!
Richie


KEY note ZION

I TARGET THE MARKET MOST PEOPLE DON'T. I go after the people that have a good down payment but credit issue. MOST OF THESE PEOPLE ARE GOOD PEOPLE THAT HAVE GONE THREW BAD SITUATION. The down payment is their credit check. I get my best response from for sale by owner no bank qualifying or credit checks.

Randy

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www.adeptpropertiesllc.com


Richie

Send me your e-mail address. and i will get them to you this weekend.
HOPE ALL IS GOING WELL.

rANDY

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Sat Oct 2 2010

WELL SETTING HERE ON A SAT MORNING AT 5 AM. Like I said in another post early for anyone that wanted to succeed, Get started with a action plan this weekend. well now I am taking my on words of advice and am getting started on my next action plan. It amazing how it changes as my REI changes. But I guess that's the key in succeeding. being willing to change and move forward.

Randy

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www.adeptpropertiesllc.com


Sat Oct 2

OK 3 hours of work on action plan. Their is no setting around So I am out the door and getting started on putting into action. No need to put off till tomorrow when I can get it done today.

Randy

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Randy

I hope your action plan is working out for you.

Randy I just watched your video in the success story area of this site. You should post the link of the video to your thread. So everyone can watch it, I think it would motivate other students.

Steve


You Get A ******** THUMB DRIVE ******** shaped badge !!!!!

Randy ~

I am catching up with reading things on the site.

And I have just read your story today !!!

Nothing short of incredible !!!

It is such a grrrrrrrrreat success story that I promptly saved it to my own personal
**** THUMB DRIVE **** to keep forever (in case a flaming meteor ever hits the planet and the DG website somehow crashes, but I still have my laptop !!!)

I simply must preserve that testimonial of yours ... and that's a first for me here!

Thank you for spending the time to write all of that.

You (and Julie) have all of my respect for your risking and perseverance.

~ Sherri


Steve

Thinks, I guess I need to take some time and figure out how to do that. To be honest I don't even know where its at or how to post it. I am sure someone on here will share that with me.

Randy

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Sherri

THANKS FOR ALL THE KIND WORDS. If I can ever help just let me know. KEEP UP THE POSITIVE ATTITUDE AND YOU WILL GO FAR'

Randy

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Steve and Veronica

You guys are awesome thanks for the help. I guess since their is no TV for a week maybe I can work on my computer skills.

randy

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Randy,

GREAT video! I saw this a long time ago and loved the video and everything you said (very informative) but didn't realize this was you. Smiling THANKS!

Lea


Randy

Your welcome Randy. You don't have time to watch TV anyway with all the money you have to count LOL.

Wish you all the best.

Steve.


Lea

You know this was one of my down falls. when I sent the video in I had not been posting are using this site. If it wasn;t for Rina I still would not be using this site, Hope all is going well for you.

Randy

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www.adeptpropertiesllc.com


Randy,

I'm glad Rina suggested you use this site and happy that you are an active participant sharing your knowledge and experience to help others. Smiling

Lea


Randy,

I just read through you journal. I also went to the video that you sent in. It reminded me about the homemade signs again. I have a bunch of signs that I purchased back in 2004 that I am going to finish using,but I have decided to make up some like yours to see which ones bring in the best traffic. Thank you for sharing with us.

Tim

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Tim
Keep on Keeping On !!! Expect it, God has already given it to you. You just need to get out there and grab it!
If you want to follow my journal:
http://www.deangraziosi.com/real-estate-forums/investing-journals/33874

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


Randy on post #350

I am glad Rina talked you into using this site. If it was not for you and Indiana Joe, we would not be here on fire again like we are.

Thanks Randy.

Steve


Steve

As always thinks for the kind words, But I guess you need to think Rina. Hope ll keeps going well and always luv to here from you guys.

Randy

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I just re watched the video,

I just re watched the video, I forgot how awsome it was. I even learned how to talk like a southerner from it too Eye-wink (little inside joke people) Randy has been teaching me how to be southerner so I can do better in my deals down south.
Hey Randy, I pm'd you my e-mail the other day. No rush. When you get time that will be appreciated tremendously.

Richie


Richie

Thanks for the reminder. Will get Julie on that asap.

Randy

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Tim

I have tried several different signs, And I don't know why but the hand written has always got me the best results. Hope all is going well for you'

randy

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Randy

Hello Mr. Randy I have to say that being out here in North Carolina there is a lot of competition with signs everywhere. I almost felt like it is no point to put up signs and find homes but after reading your journal I felt charged and energized to get out there and make it work. I want to thank you for sharing your story so that everyone can see it is possible if you believe that it can happen. If you can I would like to see your sample packet to make sure as I find deals I can protect myself and the people I work with. Can't wait to hear more from you.


Investor22

So glad you stopped by. And yes it will work if you are willing to keep taking action.

randy

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Rocking with new action plan

Well I guess when you set down and do a action plan it really makes a difference. I have been putting mine into play since the weekend. I just get more amazed when I do stuff like this. and then turn around and see were it takes me.

Randy

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