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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You said you were going to use Greg Murphy's lease option on this one, they want to do subject to's. I'm a little confused, I thought you were already doing subject to's. Why is this one different?
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
No they will not do subject too. I am doing the lease option for two years. I am still getting the deed. On the subject too the loan never goes in my name. On the lease option I will have to do something at the end of 2 years.
Randy
www.adeptpropertiesllc.com
Well I finally broke down and spent the money to have a attorney go over my contracts. I spent a little over 3 hours with him last night. He was really impressed with my contracts, And didn't make any changes. I sure wish I had had the money to do all this in the begging. I probably wouldn't have had so many sleepless nights, And fear of my contracts not being right.
Randy
www.adeptpropertiesllc.com
Looking forward to meeting you and picking your brain at the edge. Have you had any of your tenant buyers cash you out yet? I would like to know what the ratio is. 1 in 4?
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
I have 3 that's working on IT right now, But from the research I have done i think 25% is pretty close. I did have one home that I got 5000 down and they moved out 6 months later, And i just received another 5000 down on the same house last month. Like I said all down payments are non refundable
Randy
www.adeptpropertiesllc.com
Popping in to say hi. Well, you cant argue the value of that house getting you multiple non-refundable deposits! Did Rina contact you yet to let you know she's still alive haha? She is one busy and amazing lady I'll tell ya! Its so fun working with her out here - we have multiple things in the works together as well as on our own....well, keep up the great work my friend and have an awesome weekend!
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
Great to here to here from you. I am sure going to miss not meeting you at the EDGE, And yes I hear from her and called off the diving team. I have actually hooked up with someone from Nashville that is a DG member. We are trying to get Hooked up Wednesday if we can, She also has a few deals under her belt is also going to the edge. I have set my goal to have 30 deals closed by the edge. If I keep fear out of the way I will succeed. Have a great week end.
Randy
www.adeptpropertiesllc.com
You will have your thirty deals done by the edge, I am sure. Fear, thar word shouldn't even be in your vocabulary, your fearless. Now don't take yourself off this pedastal we put you on. Look at all you have accomplished in such a short amount of time. I would love to come down and spend a day with you so I might be able to pick your brain and see you in action. I think what you have done is magnificent. The system you have put together works great and the results are fabulous.
If you don't get the thirty deals done by the edge I will be surprised. No matter what, you have accomplished such a tremendous task to date. I would love and believe any other member out here in DG land would love to duplicate what you have done in the same amount of time. Randy keep doing what your doing and your thirty deals will be there. I'm pulling for you.
Thank you for stopping by and visiting my journal.
Kolby
Thanks for the encouragement. Bur I have to admit fear is still their. But the difference today i try not to let it stand in the way as much. But then again as Laura said early maybe it not that bad it does make you really look at the deal. But Deep down I do hope someday it is gone. And GOOD LUCK to you. If I can ever HELP out let me know.
Randy
www.adeptpropertiesllc.com
I just wanted to stop in to say that you are AWESOME my friend! I have been reading your journal though I have not been responding much. You are truly amazing.
We need to connect again soon
I kind of got sidetracked a bit with my Short Sale Deals but will be ready to jump in again with your techniques as soon as I wrap up these deals.
Hope to talk to you soon
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
I will try to touch base with you Monday, I am really glad to here from you. I keep up with your post daily will make sure I do call. I still want to get something going with you before the edge. Have a great weekend.
Randy
www.adeptpropertiesllc.com
Well i got a few homes to look at today. And am still trying to get all my taxes squared away. Hope to be done by Wed. Thanks to Dean at least I have got the money to get all this done. I guess by Wed At least i will know my true cash flow and what all I have made down to the penny. As soon as I get all the true numbers I will share this. Like I said early I was post numbers to the low side. I really hate to see my bill from the CPA. I think they like money to.
Randy
www.adeptpropertiesllc.com
I am actually getting to meet my first DG member tomorrow for coffee. This has been a long time coming. It was kinda like my first deal. It seam like it took for every to find someone from around here. And the best part of this she has some deals under her belt to and is also going to the edge. i will keep everyone posted on how this goes But as always it seems when I have patience great things happen. Like I was told once long ago good things will not happen when I want them to, But they will happen when they are suppose to.
With my type A personality I always want the suppose to, TOO HURRY UP.
Randy
www.adeptpropertiesllc.com
My meeting did not get to last as long as I wanted it to, Due to the fact I had so much going on but it was great. We are going to meet again when I have ore time.
Randy
www.adeptpropertiesllc.com
Really have had a busy sat. Getting real close on getting some more deals closed. will set down and feel in on all details latter. The EDGE event is getting closer.
Randy
www.adeptpropertiesllc.com
Stopping in to say hi! How awesome you have connected with another DGer! I just love how friendships and partnerships are popping up all over the site. Its truly amazing. When I tell people here in Wisc that I quit my job, sold my house and moved out here on an invitation from someone I met on a real estate investing internet site the looks are priceless! You gotta be in the DG fam to get it
Keep making those deals!
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
Its so good to here from you. Sat was pretty wild here. I took my wife to go look at another house for us and we got caught in the middle of a storm. Long story short we did not get to look at the house ti was covered with trees. I had a lot of damage around my homes, But was pretty lucky. I actually didn't know a vehicle could shake so much and stay on the ground.
Randy
www.adeptpropertiesllc.com
Randy,
Had a freind at a ball game this weekend in Clarksville and she said they had to spend time sitting in the hall of the school because of the storms you had there.
Hope ya all didn't get to much damage there. Makes for an interesting afternoon!!!
Tim
I hope your storm damage isn't to excessive. We went through a tornado a few years back, we had some damage but not as much as some other people got. It is amazing to see the path thaat the storm takes and the destruction left behind. I remember driving around after the tornado, there was a refrigerator up in a tree, a motor home that had been picked up and flipped over and set back where it was only upside down. In one neighborhood there was one house completely destroyed except for one wall with a shelf against it with items still on the shelves. The two houses on either side of the destroyed house were untouched, There were only maybe 40 to 50 feet between them. I hope everything is going well and you get your 30 deals before the edge event.
I have to go now.
Kolby
Just wanted to think everyone on all the great post. I just hope what I am doing will make someone out their understand that this can be done with O down no matter how bad things are. If I can do it with my back against the wall so can you. And what ever you do don't forget about the success acamady and all the great coaches.
Randy
www.adeptpropertiesllc.com
I have been working on this deal for a couple of weeks, This gentleman lives in New york. I actually filled out a dummy contract with john Doe to send to his attorney, Everything went well. Even talked to him on the phone. I am getting all my paper work filled out tonight and going to the court house to get the deed in the morning, And am going to overnight it to him. On this one i have got someone waiting to move in. This is my first subject to by mail.O well I have maid my mind up I will do what ever it takes to put a good deal together. This is my 5 different deal from 5 different state for my subject to. And none of my deals are off of the Internet. I just don't understand how my Bandit signs travel so far. I have actually got two homes to look at that I can see out of my front door. These two were by word of mouth. I have got one of them sold if I can get the deal worked out. I was thinking tonight that I have actually done deals in 7 states now if i count were they live now. Well I have babbled enough for one setting. Still trying to have 30 deals by the EDGE. Thanks for all your help Success Academy and wonderful coaches.
www.adeptpropertiesllc.com
Well I am still here, Just haven't had time to post. Have really had two tough weekends due to weather, But that's OK nobody hurt.will try to get caught up soon. I have alot to do before the edge. Looking forward to seeing everyone.
Randy
www.adeptpropertiesllc.com
Well my wife and carol finally got to talk yesterday and I mean talk, Till my phone went dead. She is really motivated to get started on wholesaling. This is going to be her and Carol's deal i will just helped out were I can.I think Carol will freak out once we get started out on how many deals will be put together. It was really enjoyable to talk to her yesterday with what little I got to talk to her. Talking things to a different level will be fun and challenging. GOOD LUCK TO ALL And hurry up EDGE
Randy
www.adeptpropertiesllc.com
Well we have set a all time recorded for flood stage. Its to the point now that you can not even drive. I did make it to dinner tonight to meet Tim from North Carolina, We had a great meeting. I had to beg A cop to let me drive though the water to get home. It was my last route that was possible but I made it. Hurry Up Edge. Looking forward to meeting everyone.
Randy
www.adeptpropertiesllc.com
i pray for your safety. at least you are able to be at home. that is wonderful. just reading through your journal again and you are doing so well. neat that your wife is going off on her own a little. sounds like she is caught up in RE investing too. how fun!
i hope i can say that about my "partner" soon. i'm heading to Fort Knox this weekend. if i remember correctly, you are only a couple hours away? this is a quickie trip to see my son, but i hope to be back down there before long. maybe one of these trips you and your wife can meet me half-way or something. i would love to visit with the 2 of you sometime. well, i guess i better get ready for my coaching call. i have lots of questions today. successful wishes to you and your wife!
Linda, Army EOD Mom
you can follow my journal at http://www.deangraziosi.com/real-estate-forums/investing-journals/45351/...
IT'S ALL GOOD AND EVERYTHING IS WORKING OUT PERFECTLY FOR ME!
Fear equals:
False
Evidence
Appearing
Real
Things have been really hectic around here and will be for a few weeks. Everything is going great. I did have Dinner with TIM from North Carolina Monday night and it was great. We are staying in touch my e-mail right now and are trying to do a few deals together. Man what a great guy. I will try to get caught up on my journal this weekend.
Randy
www.adeptpropertiesllc.com
glad to hear things are going well in the midst of such chaos. been trying to keep track of the DGers in TN, etc., whose journals i read.
Linda, Army EOD Mom
you can follow my journal at http://www.deangraziosi.com/real-estate-forums/investing-journals/45351/...
IT'S ALL GOOD AND EVERYTHING IS WORKING OUT PERFECTLY FOR ME!
Fear equals:
False
Evidence
Appearing
Real
It has really been tough around here for the last three weeks. Week 1 flat line winds in excess of 90 miles a hour. week 2 flood and rain fall that broke all records. Week 3 Base ball size hell. This one got my house, One thing about the last three weeks maid me wake up and realize that I have to still change. With all this going on I had to call my property management company, my lawn maintenance company. My general contractor. The problem I ran into was when I called these numbers my cell phone rang. Get the Hint I am all of theses. Plus I am working to get 4 more deals closed by tomorrow. And I did make time to go to Deans seminar in Nashville TN. I think I am to the point now that I need some help, So after the EDGE event Change is on the way.
Randy
www.adeptpropertiesllc.com
OK my goal was to have 30 done by the EDGE event. That means I have till Friday. I am arriving In Arizona Wednesday morning. I hope they have a fax machines and I can find me a notary. If this all works I will make it by Friday.
Randy
www.adeptpropertiesllc.com
What a night, It really amazes me how deals come rolling in when yo think you don't have time. But the one thing I have learned when they do make time. we will be leaving here at 5 am in the morning heading to the EDGE. I guess Rina will be arriving about the same time we will. What a great way to start off the weekend meeting her.
Randy
www.adeptpropertiesllc.com