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!)

__________________

www.adeptpropertiesllc.com


Glad I took the time

Hi Randy,

Glad I took the time to read your journaling. Your stories are so inspiring and I will keep reading and moving forward. You have really put your all into making this
happen. You have definately earned every penny from your effort. You kept going no matter what people said. Thanks for taking the time in sharing your stories.

God bless

Shelly

__________________

Shellsell


Hi Randy

I have not done anything with this yet, but I will. I live in Norfolk, VA. which has 5 Military bases surrounding me. I would love it if you could explain to me what to do with all the military people here, and I am a part of the Academy. I know I am lame but I still want to work this REI. I have read all of your entries but need HELP

Sincerely
Karen

__________________

"All Your Dreams Can Come True If You Have The Courage To Pursue Them" Walt Disney

Karen


SHELLY

Thanks, You know the way I look at it is if me doing this can be a positive Thing to help someone get over the fear factor IT's worth the time of me doing this.And if it had not been for RINA i would not be posting today. And one thing a lot of people don't understand is FEAR and Believe me I had it and Bad. I just choose not to let it stop me. If I can ever be of Any help let me know.

Randy

__________________

www.adeptpropertiesllc.com


Karen

I would love to help you anyway I can. But I am not really sure of what you are asking. I think that in the beginning of my journal I covered everything. But then again maybe I didn't. I have sleep since then, so who knows what i wrote. If I can be of any help just let me know what you need. I am always willing to help someone going through the Academy. And I am sure the coaches are to.

Randy

__________________

www.adeptpropertiesllc.com


ERIKA

Believe me i do understand that I mean it took me over 9 months to do my first deal and I was doing this 60 to 80 week. But by not giving up it has payed off as it will with you.

Randy

__________________

www.adeptpropertiesllc.com


RICHIE

When you take the Ya out you will be in trouble. IT could cost you several deals. I sure wish you get this word down so I can teach you a new one. And good luck even though the odds are against you since you have a language barrier. But remember My FRIEND I am always here for you.Can't wait to see you again.

Randy

__________________

www.adeptpropertiesllc.com


Roller coaster Ride

YESTERDAY was diffident a ride. It went up and down all day long. The bad side to this is it had to stop at the bottom. That's OK, Got the coaster going again today, I work on the brakes so maybe I can get it stopped somewhere except for the bottom' Well I guess if this was easy and all days was good everyone would be doing this.

Randy

__________________

www.adeptpropertiesllc.com


Randy,

At our Real Estate Investment Club meeting last night our prez was talking about lease options, and someone asked a question about the due on sale on a sub2. Mike (the prez) said that although he has had some banks send him notices that they are invoking the clause, he has never had ONE actually do it. The reason? He just keeps paying the mortgage every month and they can't do anything as long as it is current. He said don't panic, and don't stop paying! As long as it's current you are not in breach and they cant call it due, isn't that something!

__________________

Cathy B

Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...


Cathy

Its funny you brought this up, I just got another call from a mortgage company wanting to know why I am making his payments. I explain to him I was trying to help him out since he is overseas and his wife left him. They ask me if I was going to refi on the loan. I said in know way. But that I had people in the home in which I hope someday that I can. He stared asking some more questions and i told him I was sorry but I did not have time for this nuisance And that I could move my people to another home, That I have plenty of these that i do this with. And if would could he please send my check back to me and I would send no more payments and he could have the house back. His attitude change so quick it would have made your head spend, and he apologize for been a inconvenience to me. When it was all said and done he thought this was a great thing I was doing and that maybe in the future we could work together.

Randy

__________________

www.adeptpropertiesllc.com


Yeah,

The truth is they don't want the dang house back either...and like Talmadge or someone at the edge said, they would have a hard time explaining to their boss, about taking back a home where the mortgage was performing and up to date. Just keep paying.

__________________

Cathy B

Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...


lol that is great Randy, you

lol that is great Randy, you are a quick thinker. I have a grin from ear to ear over that conversation. Cathy, I think it was Bill Rafferty that said that.
That is one line i will have to remember lol.

Richie.


Hi Randy..

Gotta say I REALLY ENJOYED talking with you last night. I promise I didn't hang up, my phone ran out of juice!!!! Thank you for taking the time to listen and give me a new goal! I LOVED hearing about your deals! Now I'm armed and hopefully dangerous!Sticking out tongue I need to get my butt in gear, thanks for the push! You're awesome!

Dawn

__________________

Life's a Dance you learn as you go...GET HAPPY FEET!

"Most of the important things in the world have been accomplished by people who have kept on trying when there seemed no hope at all." ~Dale Carnegie


Richie

I actually got another call from the mortgage company this morning at 7.30 am. Someone just call to apologize for the miss understanding, and wanted to know if their was anything they could do for me and to think me for keeping someone payments caught up until I could find someone to buy the home. I luv this. I must admit I was a little nerves when they called yesterday. But in no way was I going to show them any fear and let them know right of the bat that i was doing them a favor. well I guested it work.

Randy

__________________

www.adeptpropertiesllc.com


DAWN

Really enjoyed talking to you. After talking to you last night, Even if you did hang up on me. The only thing standing in your way is fear. And i promise you the more you do the less it will be their. If their is ever anything I can do let me know. Get that action plan going.

Randy

__________________

www.adeptpropertiesllc.com


Randy

way to show who's in control, even if you were maybe faking it a little. i love it. i hope that one day soon i can think that fast on my feet. i'm doing good if i can think of it an hour or two later. Smiling

__________________

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


Randy,

LOL! I love it! Your response to the the guy at the mortgage company was fantastic Smiling

Lea


LEA AND LINDA

Thanks, This is something that I am learning with time. And I use this attitude with everything that I do in REI. I mean I may come across aggressive, But what can they say. the most is no. And since I have started using this approach I don't get near as many no"s. And using this approach sure doesn't leave much room for fear. So I guess I just keep doing what working. So who cares if they think I am a ass, as long as i get what i want.

Randy

__________________

www.adeptpropertiesllc.com


That is so cool, They

That is so cool, They actually called to apologize lol. You are too funny. I kind of do the same thing when I am asking for no seasoning refi's. I put them on the spot when they say no and then sometimes they say wait let me ask someone else lol. Its kind of fun watching the big bad banks panic when you turn the table on them.
good luck Randy
Richie


Richie

I know but sometimes when it rains it pours. I have been at bank of America all morning. I had one of my people call and said I missed his Feb payment and now its showing on his credit report. Long story short the bank now knows I have 11 house subject to. I did make the payment and i have my cleared check. But for some reason they change the account numbers and my money is floating around some were. They stared question me about my contracts. I told them that i was sick and tired of they bull ****. That i was doing them a favor and making the payments till I could find someone to buy the house due to the fact that the people moved and could not afford the payments due to the economy. I had to even show them my power of attorney. I explain to them not in a very nice way that i was sick and tied of making these payments and the only reason I was still doing it is i gave my word, But if they could.t get this matter resolved they could have all houses that I had to much to do. Problem Solved and i was Mr Vaughan when I left. I have had enough scares in the last week to last me a life time. When I left they ask me if I would be interested in some REO. And I told them not at this time. That They had done runt them peoples credit and my goal was to try to save peoples credit. But I will keep that window open but just not at this time. Me being the smart ass that i am sometimes i did give them my card and said if I can ever help someone before they lose their house give me a call. I guess i wait and see if they call'

Randy

Randy

__________________

www.adeptpropertiesllc.com


I'll Say It Again....

All hail King Randy Smiling Smiling Smiling Smiling Smiling Smiling


Bank of America huh, They

Bank of America huh, They are the worst to deal with I hear. That is too much that you had to go and talk to them. How the hell did you start that conversation lol. Excuse me but I am paying the mortgage on a few dozen properties you own, do you want to call the notes due Smiling Listen dont take no S_it, tell them next time to meet you with a cup of coffee at the door. They obviously dont know you are royalty and have your own thrown ;0

good luck Randy
talk to YA later


Randy,

Richie's right, it didn't dawn on me it till he mentioned it but Bank of America is tough. And little old you got them to apologize,this just cracks me up. They pushed you to the limit and you showed them what you are made of. Laura's right too they can just address you as "King Randy" LOL Smiling

Lea


Thanks

what a lot of people don't realise that in the corp world a lot of people are train to intimidate. And this is something I don't have time for. I still try to treat them with respect until they cross the line, And then they do I just say to myself GAME ON. And if you really think about it what does anyone have to lose if they are doing the right thing. I mean if you really think about it who is going to say no if they were getting payed. I almost wish they had called the loans It would have been fun getting on the phone and I would have stayed with it until I found the right person, To find out why they would call 11 loans unless they were trying to get in the real estate business, which I don't think banks can. So for anyone that runs across this don't let fear take over. Remember they-put their pants on the same way you do and they cannot eat you, so what do you have to lose. All you guys are great.

Randy

__________________

www.adeptpropertiesllc.com


MOVING ON

Well i have got three house that I need to get people in tomorrow. If i can get two of them i will be happy due to the fact that I am headed back to KC tomorrow night.

Randy

__________________

www.adeptpropertiesllc.com


big day

well I have been up for about two hours, It just don't seem like I have time to sleep. For some reason I can't make money sleeping. I kinda laugh to myself when people say they are taking the weekend off are its to hot. And you know their is a lot of people like that. But O well it just leaves more for me. Hope all of you have a great weekend.

Randy

__________________

www.adeptpropertiesllc.com


Hey Randy!

Is it possible you havent posted in 9 days??? Or am I missing something somewhere else? Not that my track record is so good for keeping regular either....well as someone I admire greatly always says "worky worky" Smiling


This is bad

Well i did start another post but you are right i need to get this one caught up and that is what i will do tonight.

Randy

__________________

www.adeptpropertiesllc.com


Needing to get caught up

I really don't know were to start at. I got 4 houses that i am trying to get people in on a Leese option. I still haven't got Julie moved yet. I am working on 4 flips. still got my 5 trailer parks i am trying to put together. I have got a 14 house package deal that i am trying to see how much I can get the owner to carry She has agreed just don't know how much yet,I am doing this thought two realities. So see owner financing is possible. Got some stuff In KC still working on.

randy

__________________

www.adeptpropertiesllc.com


You are moving on all fronts

You are moving on all fronts my friend!! awsome! How is Julie, tell her I said hello. The KC stuff sounds exciting. where did you dig up that package deal from the lady with 14 houses? that is incredible.
You really are moving along, hope to hear good things soon.
Talk to YA later Smiling
Richie.


Richie

Great to here from you. I didn't get to finish my post. My phone would not stop ringing. O well I love it. One of them was a connection for fort brag military base, Share about that later. Well I guess I will try to get caught up on my post tomorrow.

Randy

__________________

www.adeptpropertiesllc.com