Tammy's journey to refinement and FREEDOM. GREAT THINGS ARE HERE!

Please let your husband read this post from me.

Remove your head from your @#$%# Dude!! You know nothing about doing deals and how things work in the real world. I have followed what Tammy has been doing and have seen what she has learned along the way. By the way, the things she has learned can't be learned sitting on the sideline afraid of failure. She has taken action!!

Not every deal is a home run, few go exactly as planned. I don't know the exact numbers on the deal that the HML was not honest, but look at it this way.

I don't know what your actual out of pocket expenses are, but with earnest money and interest payments and points, I don't know if they will be collected at closing or up front or monthly. Even if it is $50,000 and you net $50,000 at closing do realize the return on investment that your WIFE has accomplished??? Don't complain about what could have been, be VERY happy with what you get! She will take you on to the next deal, HELP and ENCOURAGE HER!!!

Oh, I forgot to remind you, all this while taking care of the KIDS!! Some one needs to put their foot where the sun don't shine!!!

Tammy, the sky is the limit and you know it! Don't let anyone slow you down and, a great big congratulations from me!

Michael Mangham
MD Home Acquisitions LLC

And will ALWAYS get things in writing even if there were witnesses to conversations and others involved.

My husband actually came on the site and posted here! Of course it was because of the post put on here and he wanted to make sure the record was straight. Admin must have pulled the thread as it was gone this morning. He helped me a lot with getting this deal closed.

With all the stress from the night of receiving the docs through to funding, I was a wreck!

And, the day we got the docs it was around 4:00PM; just prior around 3:30, I had another one of those sudden nasty ovarian cyst attacks. (Murphy's law) This one was terrible! Lasted an entire day, and I was on so much Ibuprofin to combat the pain to get the docs signed with the notary and driving them down to the lender that night. (2000 MG!!) (I still feed the 2 year old milk so I can only take Ibuprofen)(In this business sometimes you have to keep going despite things like this happening.)

The cysts always show up in a weird location, right on the inside of my leg; on the left side. The last 5 I've had have been there and I had all my veins tested to make sure it wasn't blood clotting, its just the cyst each time gets lodged there and must be right ON the nerve. The WORST timing ever of course, or maybe it was caused by the stress?

My husband really helped me to get this deal closed. I've gotta give him credit. He busted his butt to help with things, especially on Tuesday when its my day to be out with the kids. He knows I don't do stress very well, and after him talking to the broker and grilling him, he got to the bottom of things. He handled it a lot more stern than I would have, but when it comes to money he becomes a bear. No, he's no Vinny as someone suggested, but he puts his foot down. But, I have to deal with the repercussions of it, which is why he signed up and posted on the forum with me when that post was here. He was also on the phone and email A LOT to make sure this closed with me.

After all is said and done, we ended up paying $7.7K more in fees than we were approved for. $12K more than the original loan we had with the other HML we were approved for prior to switching. My husband got $2K (1pt) knocked off when he was on the phone that evening I was hurled up. But, like I said, *I'M* the one that had to reap the repercussions of that workout. However, I put myself in the same position, and I couldn't ethically take a referral fee if someone I referred caused the person to incur a significant difference in terms like that. The guy was ethical enough to realize this and made sure the point was removed. (I still think the broker who messed up should have bit some(many) of his fees) But, the guy's partner was VERY upset about losing his half of the point. And that's where it got squirrelly. My husband finally ended up calling him and working things out with him in a civil manner today and intervened in the situation.

The loan was changed less than 3 working days before we needed funding, so we either go with it, or lose the deal. Even tried to get another lender in last minute, couldn't do it that quick. Especially with the holiday. An expensive mistake! Luckily there's enough wiggle room in the deal to cover the extra costs.

So, I called RESA today to go over the whole thing, and coach Curtis' (I believe, or was it Charlie? Now I can't remember!!!) sentiments were right on with the way MY HUSBAND handled it and NOT paying the fees, and the way I handled it afterwards offering to compensate after making the money on the deal even though nothing should be owed to alleviate the tension and show no hard feelings if there are still tensions. (He actually said 1/2 of what was originally going to be paid as a referral fee for good measure.) So, it was an interesting conversation with the coach. It gave me some peace of mind that my husband did the right thing in putting his foot down.

Thank you for the kick in the butt as only man to man can do.

Tomorrow I've got to work on getting the house looking clean again (the one we live in). Its the least I can do at this point. Its been neglected with the hussle bustle of the closing and everything else that transpired.

Jim, you are SO right on the peace of mind issue!

Thank you Steve and Veronica! Faith in Jesus can move mountains!

Dominic, thank you for stopping by. I put SO much work into this, you are very right. I don't think hubby realizes how much; well maybe he does now after helping with the closing. There's a lot of behind the scenes stuff that goes on that people don't see from the outside.

Regina, thank you for the kind words. I was really in a depressed mood; and that's NOT how it should be. This is my FIRST BIG DEAL, and it SHOULD be celebrated! Talking to the coach at RESA really helped me get through this, as well as the words from all of you here!

you definitely are not greedy. it's so easy to get caught up in what you think you have lost, but you have gained so much and will still have a hefty profit. you won't make these same so-called mistakes again and you will get more agressive (sorry, women are only allowed to be assertive). this is business and that's how you have to treat it. do you think Donald Trump goes crazy (hubby) over losses? he just finds a way to make it work to his advantage and finds another deal. as for your husband, it's real easy to criticize someone else's hard work, but you don't have to take it. refuse to listen to it or take it to heart. you know what you are doing and it's all about making a better life for your family. if he can't handle the details, i wouldn't share them with him. i have to do the same; i don't tell much about what i have going on, only bits and pieces. don't be willing to let someone else run you down and insult you, etc. be confident in yourself and what you know!!! just a thought.....i wonder if your husband is afraid that if you continue to invest and are successful, you will leave?

If I left him, I think he'd be throwing a huge party. There's a comment he made that really stays in the back of my mind, and one of the many reasons I cannot fail at this. But, I want the FREEDOM that comes with it, the time with the kids, and I want this so he can actually retire as well.

There is definitely a way to make sure not to make mistakes; and that is learning from them! And I hope EVERYONE learns from mine! My husband was actually right in getting the fees cut according to the coaches, but I didn't like being the one left to fend for his actions on my own because I guess I'm too wordy and it causes more trouble than good. I end up giving in when the pressure becomes so great, so that is something I have to improve upon. I did feel just the same about the situation as my husband, but I would have never handled things the way he did. I guess there was a REASON I had the cyst attack! I do have to treat it like business and not personally. You are absolutely right!

He has actually has been involved in our prior real estate deals, and he is much better at putting his foot down than me (and with tenants, I tend to be much too understanding and look at them as people living in hard times). He has to be involved in the deals because we are both on the financial end of it, and when it comes to money, he's very involved and scrutinizing. (He's Scottish after all!) But, he doesn't realize AT ALL what I've had to put into all of this. He comes in when the deals are going, but all the groundwork behind getting to the deals part was a heck of a lot of work that shouldn't be downplayed the way he downplays them or ignores my concerns about the foundation and reputation of the business itself. WE have to be a team, and understand where each of us is coming from. Maybe he'll chime in here on my journal, I know he's been watching it.

Just working out the detail of the first Private Money Loan was a big accomplishment! It would be nice to be given a little credit for it and a little less pessimism. That is just the way he is; very pessimistic about everything. I'm hoping the whole journey to success will change that around as well. It will take a while to completely prove we'll end up with more financial freedom and less stress as we go through the learning curve.

Working on building that confidence in myself! I think that is what scares my hubby the most.

since we bought the house, the whole ordeal. He doesn't want me doing any more RE deals until the other one is sold. Despite that, I negotiated with a seller who is moving out of the country and wanting to sell his properties. I negotiated a price with him that he would accept and wrote up the offers and submitted them today. Never got the opportunity to follow up with a phone call afterwards because I had to clean up the house with the kids, and then the evening began.

I don't watch much tv; very little, but I need to watch my Biggest Loser.

Since we negotiated beforehand the contract should get signed. I left it open so I can assign it, but they are GREAT cash flow properties, and I may end u keeping them myself! I'm in contact with some conventional lenders on them. One is a duplex, the other is a fourplex. Already rented out. The only thing that needs done to them is to separate the meters. Right now they are contracted with utilities included. Even using actual numbers, the cash flow is $750 per month, INCLUDING the property management. The properties are very old though, and that is my only concern. We're talking 1914 and 1889, but well kept and maintained. They are in the downtown area close to jobs, so do not have any problem re-renting once a tenant leaves.

I will update as I get the signed contracts back what I decide to do. I already have someone to partner up with if I assign them. And, I've even found a few buyers via the internet! If I partner up, I'm just going to give the buyer's names to my partner as he will be doing the buyer end of the deal, a 50/50 split. But, with the amount of cashflow on these, it would need to be a nice assignment fee for me to have motivation. I am buying them over 50% below the market value. NOI $12,100 between the 2 of the them, CAP rates of 17.1% on the fourplex, 32.9 on the duplex. DCR is 3.02 on the duplex, 1.57 on the fourplex. All the other numbers are really sweet too. Once they are re-metered and the tenants pay their own utilities, the numbers are even sweeter!

I just got a fax in and have received the SIGNED sales contracts for BOTH properties. YEESSSSSSSSSS!!!!!!!!! Here's to a better closing this time, and if I assign them, here's to an uncomplicated transaction!

Oh, guess where I found this motivated seller? Good ol' CL!

Way to go girl!

You sure got back on that horse pretty quickly!

Karen

No gathering moss for you, Missy! That's great. Keep moving forward and your hubby will surely follow!

Jenny and Karen,

That's the ONLY way to go in this business, get back up and do it again right away. Gotta learn from mistakes, can't dwell on them and keep bringing them up!

Well, today I met with the contractor, got all the contracts signed and final estimating complete. DId my first set of documents to work with my independent contractor, including the scope of work with all the details of what is agreed to and what is included in the price (I've worked with so many contractors, that I know if it ISN'T in writing, you go through the 'he said she said', and especially after an issue with not getting things in writing, I'm over zealous about it now! Also did the contractor services agreement and now have a contract for the contractor. He was willing to sign anything with my terms, which is what a good contractor will do. Many of these things I know by making other mistakes earlier in my investing career. So, mistakes aren't necessarily a bad thing; but rather a means for learning. Its all in your perception. Hope my husband comes around to seeing the valuable lessons learned in the closing as much as I have.

Excited to get moving on things

Hi Tammy,

I'm always encouraged by your posts. And I always find a tidbit to tuck away for later!

"Oh, guess where I found this motivated seller? Good ol' CL!" Care to share what your ad looked like? I've posted a couple CL ads but have yet to get a serious response other than spam.

Thanks so much for sharing your experiences... it helps so much!

Tammy:
you're just a bloodhound! Great for you! And for all of Tammy's "followers", take heed with any contractors and get their contractor's license number and check your state's board website to make sure they don't have any complaints BEFORE you even meet them, otherwise you could be in big doo doo.

Also, you surely want to make sure they have insurance!

Go, Tammy, Go!

i love that "quote" from Jenny above. it fits. you are doing so awesome and getting better and better at this every day. way to go!

BUSY is a word that describes me right now! It looks like my partner for the IN properties is not a go. I don't know if I'm doing something wrong with my NCND forms and joint venture contracts, but I just took them straight from this site. I need to find a form that works that people aren't afraid to sign? I am diligently researching the names and addresses of the buyer's for my IN property. (I decided to assign these to get quick cash because the age of them will probably mean a lot of extra repairs, and I don't know if I'm quite ready for that). Now, here's a little tidbit. I posted this info on someone else's link, but I'll share it here as well.

I was going through trying to figure out how to find a lot of buyers in a short time (online only) and after searching several places, I decided to check out the county sheriff's site and the sales. Waaalllaa! Sales records of all the properties since 2006! Well, I didn't want to go back THAT far, so I just took info from 2010 and 2009. There are 36, yes 36 pages of buyers in small print (1/2 of which are banks buying back property) but the OTHER 1/2 are bonifide buyers! The only thing revealed is the buyer's names, however. So, my job is to research and find the contact info for all the names on the list. I was going to split that job with my partner and give him 50% of the proceeds from the assignments. I could go online to the recorder's office, but its $5.95 per record to look them up!!! That will add up quick. Its a last resort. I'm utilizing sources such as yellow and white pages, super pages, web searches that are free for now. If anyone here is in or near Evansville, IN and can get to the recorder's office, I will give you 50% of the assignment fees and put it all in writing; whether you find the buyer or I do. I want to get this assigned BEFORE Christmas, and I'm so busy with the rehab right now that I really need a partner in this! If anyone is interested, please PM me!!!

Today, the ceilings were scraped and I am preparing for the recessed lighting and ceiling fans on the house. Tomorrow early AM the electrician will be there getting the lights in before the ceiling is primed and painted. Had so much fun picking out the color scheme for the paint! This is a creative part of me that is hidden and tucked away that I haven't gotten to use in a while! LOVE IT! My husband got all the sprinklers working and trimmed the shrubs and chopped down the dead tree. I took all the measurements for the interior doors and will be buying them tomorrow. Picked up a fan on clearance at Home Depot and a wall light for the master bedroom. Lots of good deals right now! Its amazing how fast the costs add up, but I'm looking to be RIGHT on schedule for the $11K rehab costs. Have the only RE agent that gave me a chance as an investor prior to getting this deal looking for buyers and/or renters for me. Am looking to refi to a regular mortgage with non seasoning for a possible hold to rent the property (It will easily rent for $2200-2300/month after more thorough calculations!) and sell after a year or two to reduce capital gains taxes. (I also have 2 TB interested ) (but can't do that with the current HML rate!) Have 4 that can do it!!!! We'll see about that, I'll believe it when it actually happens. Getting all my GFE tomorrow.

On our way home from getting our truck repaired, we passed the county courthouse, and they were having an auction! I had my husband take the kids across the street to Wendy's and I went over with my business cards and had a look see. After a while, I mustered up the courage to talk to one of the guys buying a lot of the properties. (by no means an easy feat for me, one of THE hardest things for me to do, approach strangers and talk to them!!!!) I was a bit awkward and I sounded horrible in my presentation and asking questions about who he uses for a HML. Turns out he uses his own money and IS a HML himself. Got his #. Sat around and observed for another 20 minutes and couldn't get the courage to approach another person, before my husband came up honking and disturbing the auction. The auction is held right there in the front, and its right off a busy street. It was just by fate that it happened to be going on when I was in the car with my husband and got to go there w/o the kids. That wouldn't have lasted more then 10 minutes with the kids. I must go back, but don't know how I'm going to do it with all 4 kids with me!!! I'm going to freak out about the busy street and the noise they'll make.

Even though I only talked to one person (and felt like a total dork), I DID IT! This is a HUGE thing for me to do. SO NERVRACKING! But, I DID IT!!

And, I have another HML for it. He and his partner were buying 70% of the properties! (although he will only lend 60% of purchase price like the majority of HML out here). But, he doesn't charge a ton of points, which is a great thing! (BTW, I do have a HML that will do 80% of purchase price PLUS the rehab costs here in CA for 5-6 points. If you ever need a HML in CA, I can give you their info. I don't get a referral fee, but I am more than willing to give their information!)

Good for you, approaching the guy and getting his info.

I have that same problem. I went to my first REI meeting in Culver City last week and I could not bring myself to walk up to anyone and just start talking. I think that next month I will be a little more comfortable and will force myself to do it.

Sounds like you found a good prospect. Did you ask if you could add him to your buyer's list?

Karen

Congrats on finding the courage to talk to the REI at the auction. I'm sure you came across a lot better than you felt at the moment. Maybe if you keep in mind when approaching other investors that you have a valuable service that is a benefit to them you will feel more confident.

Great going on the rehab and glad you are enjoying the creative part of it. Is there a Habitat for Humanity in your area? Sometimes (not always) you can find fantastic prices on their things but you have to know your prices (which you do.) Some of their things are new and some are used. The money also goes to a good cause.

Keep on keeping on you are doing fantastic!!

Lea

Way to take advantage of the opportunity to approach this guy. You never know what it'll lead to. You encourage me to step out of my comfort zone as well. Keep going, girl!

is approaching people out of the blue and start talking to them....I'm terrible at this....I need to get over that hump and I think doors will open for me.......so proud of you because I know EXACTLY how you feel on that....

Went to the Home Depot, home away from home, got all the interior doors, ordered the windows, got the door hardware, picked up the remaining recessed lighting hardware, and all the paint for the walls. Work is progressing nicely at the house. I have made a requirst for the second draw of funds from my HML as we have spent the first draw coming on Monday. We are trying to complete for January for a move in of a tenant buyer or aggressive marketing and showing of the property.

Am working with a loan consultant to do some rearranging of our finances. We may be able to refi our 1st and 2nd together for a 4% rate fixed for 5 years, then adjustable to a CAP rate of 5% (wow!) This alone will increase our monthly cashflow by over $800/month! I am still debating selling our home and moving to another home, so am not sure if I will proceed with that, but we are pre approved! That is an amazing thing. I need to read over all the documents to make sure everything is on the up and up, and yes, everything is in writing!

Merry Christmas and the Happiest of New Years!

Karen

Tammy

Merry Christmas to you and your family and a great new year

And may everyone have a beautiful Christmas and the best in 2011.

MERRY CHRISTMAS EVERYONE!

Thanks for stopping by Karen, Lea, Grant,Regina, Nadine, Jenny and Linda!

The house is more than half way complete! The ugly popcorn ceilings are gone and textured beautifully with 18 new recessed lights throughout the house. The walls are all painted and the colors I chose look absolutely stunning! Beautifulllll!!! Things are really starting to look amazing! My hubby got all the sprinklers working and cut down the dead tree in the front of the house.

Wil has been helping me dealing with the contractors and keeping on them. The work we're going to ourselves comes next. We have 2 windows on special order that will be in after Christmas, we're tiling the entry and covering the fireplace with matching tile or stone, and may put some bamboo flooring the main living room, as well as replace the carpet in the master bedroom. Then we are removing the old baseboards and replacing them with stained wood that matches the existing ones in the family room (because they look great!) and installing the fans in the bedrooms. Have to unsquish the duct work in the attic and do a final cleaning, and service the AC and heating. Waaaa, then we will be about done!

COMPUTER ISSUES
Now, I've had computer issues since last Monday, and can't figure out what the problem is. What its doing is opening thousands of instances of Werfault.exe (which is the windows error reporting issue) and saying I'm doing something illegal! But, its driving me crazy! I've completely shut off the reporting system, did a system restore to an older point, removed my newest software additions. What's happening is EVERY time Windows does its automatic CRITICAL update, its seizing my profile only, not others, BUT, I also can't open SAFEMODE at all or, when I create a new profile, it won't allow me to open it up. So, something is seriously amiss. I need to hire someone to do my computers. It wastes so much time and I don't have access to my files. Why? No, not because I didn't back them up; the internet backup company had a problem and inadvertently erased everyone's backups! OUCH! And, mine has only rebacked up 35GB and not the entire 55GB. Got 6 more months free backup out of it, but it doesn't do me any good right now. I backed up many of my files about 2 weeks ago to a portable USB card, BUT, the last 2 weeks have had so many documents!

Tammy and I also wish the very best in 2011 for you and your family! It's going to be our best ever! Looking forward to seeing all the amazing deals we conquer.

Well, figured out the problem with my computer. The internet backup program I spoke of above is conflicting with the windows critical updates. I have to open yet another ticket with them and see what in their software is causing the problem. So, for now I'm backing up critical files on USB.

Went to the house today and my hubby worked with one of our contractors to hang the doors for the hall closet. They look great, what a big difference from the 70's style doors! I goofed off today. Well, that is actually the term for the stuff I used to remove all the excess latex paint off the trim and other areas it was left, not necessarily from this paint job, but from prior ones. My kids have made many friends in the neighborhood already and are asking to move there. LOL uh oh, didn't anticipate THAT! Sure would be a LOT cheaper than the current home I live in, that's for sure!

We've spent $7725 on the rehab thusfar. Things are right on schedule monetary wise and we have gotten a lot done. I really want to get the solar water heater hooked up again; for whatever reason they disconnected it. I took a class on how to make one of these a couple of years ago and they are not complicated at all.

Not having much luck finding a buyer for the Evansville, IN properties, AND NO ONE can loan on it because the loan amounts are TOO SMALL! Go figure! Not credit or debt to income problems here, but the amount is not high enough. :/ Crazy!

I'm sure it must be so much satisfaction in seeing the progress you are making--even though it is a tremendous amount of work.

At least if the kids are out making friends it frees you up to do something else.

Thanks for the update.

Karen

I hope your last deal is coming along well. On your Indiana deal did you find a small town bank to help you yet. I know some of the small town banks will loan low amounts.

Steve

I know it's satifying that not only is your rehab on track but also that your husband is so hands on with it. Great job!

Keep on plugging along..you are doing great!