Roger's REI Journal - Twin Cities!

Hi Roger! I am a Twin City DG'er too. I will be attending the meeting tonite so hopefully we can meet. I know a couple of other DG'ers will be there too. See you tonite!

Cathy

Thanks Cathy,
I'm looking forward to it. I will be there.

Roger

My first MNREIA meeting was a great experience. I was just amazed at the variety of people involved in their various Real Estate niches. I met two DG'ers, cathyb and erikd so that was an extra bonus. Thank you so much cathy for your encouragement during that meeting. There are a lot of positive people in this business. So much different than my previous job! I need to get some sleep I am pushing 40 hours without sleep now. I have my real estate agent stopping by at 8:30 am tomorrow. We think we have identified a property that we can down-size to and everyone will be happy with. We'll see how that goes.
Also today, viewed about 5 properties and then met with a financial advisor in the afternoon. Now my financial advisor (first time meeting) was incredible. I don't think I have ever had a business person until today that took time to actually PRAY for our situation. That was interesting! And much appreciated. We'll be meeting again.

gotta catch some zzzzz's. Thanks everyone. Later!!!

Roger

It was nice meeting you too. Good luck with your deal tomorrow.

Cathyh

Just arranged my flight today. It will cost me $5 for the flight by using my travelmax rewards. I have also reserved a room at FireSky Resort in the Patio Guest Room area (2 queen beds) at $110/night plus tax so if there is any other guy out there going solo I would be glad to share a room and the cost.

Still working on the first deal here. Although I am working both ends (business and personal), my first deal will most likely be for my family. Due to change in employment situation (read job elimination) we will be moving to a different location in order to reduce expenses for the short term. I think this will also be good for my business.

I do not know if I am allowed to do it otherwise I would give you a link to my current home that is up for sale here in Minnesota.

We are trying to move to a place that will get us on good footing for the next step forward. A couple of weeks ago, we put up a cash offer up for a 3,000+ sq. ft bank-owned townhome that we thought had a lot of potential. We offered at about 37% below FMV and were outbid by a "substantial amount".

Yesterday, we found a very similar property (short sale) that we placed an offer on at 32% below FMV -- It has an unfinished basement so the actual amount offered is less cash out of pocket up front than the previous deal. If we get it, we will live there for a couple of years and I will finish the basement turning it into a 3,000 sq. ft townhome. I plan to use equity in this home for further deals going forward... though it will not be my only resource for doing those deals. We will find out in two weeks whether we are successful.

I am very, very excited about attending the E.D.G.E. 2010 event. I am especially looking forward to getting in on the tips and techniques (e-mails/signs/craiglist/lease options/assignments/whatever!) of the speakers and coaches that will be there.... and meeting Dean! I will be studying hard to find my niche and put the knowledge into action.

This may seem a bit unrelated to some, but one of the things that has changed on the poker scene over the last few years is that the players that make the quickest progress these days have coaches. There are poker coaching sites popping up all over the internet. Some poker players like to compare their industry to professional golf which matured over the years in the same way. In the past, you could survive on raw talent but today, few are able to make the cut without some kind of excellent coaching about the game and also learning how to handle the psychological aspects of the game. I only say that to mention that I have no doubt that I need to take advantage of the talent and wisdom of the DG coaches and community to make this work.

Blessings!

Roger

I know, it happens to everyone. You created a journal entry and somehow lost it before it got posted.

I finally took things in hand today and got busy. I am finally putting together a buyer's list. All I did today was get phone #s and web sites off of a Google search, then also pulled a few phone #s off of bandit signs I saw out and about today. Will try to use tips on DG to turn it into a list of serious buyers. Plan to also throw together a Craigslist ad soon.

Next, I went to two remodeling trade shows, ahem, even though I will probably be doing the work myself (basement remodel) on my first property, I am still interested in knowing what's out there from the various contractors. The most exciting thing to me at the trade show was establishing contact with a couple of local community banks so I can talk to someone about their REOs. I did not realize that there are probably a ton of community banks nearby. The first one seemed more promising because it had 3 branches while the other one has only been in existence for 3 years.

Next, I went to look at 3 properties (for a total of 4) that I am interested in seeing how they fare at a 90 property real estate auction that will take place at 9:00am Sunday morning in Minneapolis.

I think I may have run across my first property that I would consider a "fraud". I may be wrong but I have been looking at quite a number of houses in the last few weeks all the way from 1,700 up to 3,500 square feet, including our own home which is 2,700 and there is no way on earth that this house they are selling is 2,600 sq. ft. Yes, I can believe that there are probably 4 bedrooms and 3 baths (full 3/4 1/2) somehow stuffed in there --- I did not actually get to walk inside the property --- but I just can't see how they could possibly come up with their space. The auction is both live and online so woe to the online participant that has not done his due diligence.

I am hoping to attach some names and phone numbers to real estate investors that might be taking part in the auction.

That's all today.... Oh, and I also continue to read my copy of Dean's Profit From Real Estate RIGHT NOW!

That's all.

Roger
Jaguar Investments, LLC

I went to the Real Estate auction on Sunday and I succeeded in getting a couple of Real Estate investor contacts there. I also followed the auction very closely. I ran the SOLD (under contract) properties through a spreadsheet comparing PRICE SOLD to each county’s latest ASSESSED VALUE and the average property sold at auction and placed under contract was 53% Below Fair Market (county assessed) Value. I realize that the county's assessment is not gospel. But because I see some people say what a rip-off the auctions are and to stay away, I plan to do a follow-up on one of the properties and talk to the successful bidder. I am also going to talk to my real estate agent about it. I want to find out what the property is really worth and verify that the sale went through. The county says its worth $534,900. I looked at the property pre-auction and it is a nice property. It is only a few years old. It is certainly not the nightmare property that some fear. The winning bid was for $270,000.

Regarding the Townhome for our own use that we put an offer on last week, we are first in line for this short-sale, it has been signed off by the owner's representative and is now at the bank and we should have signed documents on this one within 10 days. I will have six months to finish the basement!!! (or i will be sleeping on the deck).

Since the auction I have made a deal with one of the other real estate investors, he will go 50/50 on one of his deals if I can find a buyer for it. Here are the details:

This twin home is in Woodbury: Owner wants to sell them together
2 side by side twin home units
Each are 3bed/2bath/2car(attached)
1682 Finished sf in each.
one unit has a 2 year lease for 900/mo that started last month.
the other unit's lease ends at the end of may. Market rent ranges from 1100-1300/mo <---- would have to verify that given just rented one out for $900

I am thinking this might be a good Lease Option property.

Work needed is 2 new garage doors to improve the look of the exterior, a couple of front exterior doors, and a roof will likely be needed in the next few years but not an immediate concern.

Comps show value is $270K ($135K ea.) I think it would be ideal to advertise this property as a rent-to-own available in July but I do not think the present owner wants to wait that long. We think we can make this work with a buyer at $215K+.

Roger

Roger you have been busy. Great job hooking up with another investor. Could be a good deal, but will definitely be a good learning experience. Interesting thing that auction, I didn't go, but will be interested to see what comes out of your spreadsheet evaluation.

Cathy

I am now one month into my new life post job elimination and it feels great! I learned that I am an entrepreneur~!
Tonight I just don't feel like talking much about what I am doing... I just want to DO IT.

That's all.

Roger

Now that I have completed one month of Real Estate Investment, I thought I would just make a quick recap of some of my accomplishments.

#10) Went to a Real Estate Auction for the first time in my life.

#9) Attended an Entrepreneurship class "How to start your own business" and discovered that I am already an entrepreneur.

#8) While reviewing a number of properties, I was able to immediately recognize an overly priced (and perhaps even fraudulent) property.

#7) Went to my first local Real Estate Investment Club meeting.

#6) Sat in on my first Dean Graziosi conference call.

#5) Attended local Profits RIGHT NOW forum put on by Dean's own "Russell Mays" (he said Carol Stinson was one of his students). Signed up for the 3 Day Profits in Real Estate RIGHT NOW Training.

#4) I set up a Real Estate friendly IRA that I will roll 401K into.

#3) I was able to place myself between a Real Estate Investor and a Buyer for the first time ever. This happened 100% because I have gained some confidence that allowed me to put myself out there.

#2) Signed up for E.D.G.E. 2010.

Drum roll..... #1 accomplishment my first month in Real Estate Investment:

#1) Using my newly acquired Real Estate knowledge, I was able to help a friend with their own personal real estate dilemma. Although I did not make any money on it, it was one of the most satisfying things I've done so far.

CASH IN: $0.00

Just want to say that this community is amazing. I am so thankful for the willingness from others to share their knowledge and experiences. I hope I can do the same.

Roger

You have accomplished a lot! You should be very proud, and feel good about helping your friend. The foundation is there, you just have to go out and make it happen much luck and hope to see you at MNREIA on Tues.

What a whirlwind of a month. If I had one word to describe the month it would be EDUCATION. I started out small, but by the time the end of the month rolled around I found myself enrolled in Dean's Success Academy. What a HUGE change for me from April 1 to April 30. First, I went to a free offering in our city from Dean's team... and from there I signed up for the 3 day RIGHT NOW training. But I was SOOOooo nervous going to sign up for the 3 day RIGHT NOW training that I was literally shaking when I signed up and put the $495 on my credit card.... but I am happy to say that I did sign up despite being nervous... and did so before I learned that I just had to make 1 deal in 6 months to recoupe the investment.
I have one word to say about the 3 day RIGHT NOW training. INVALUABLE. Our trainer was awesome and really challenged us to change our mindset. From the RIGHT NOW training I signed up for more Advanced Training which I will be starting Tuesday May 4 with Wealth Masters Online. And to round out this package, I signed up with the Success Academy to take advantage of the one-on-one mentorship and accountability. I think I have point #1 of my business plan covered.... "I must commit to my specialized knowledge".

Other stuff in April.
We finalized a contract to purchase a short sale townhome for our personal residence, and we will be closing on that May 11 or May 13.

I've also focused a bit on setting up a "real business" and am now ready to walk over to the MN Secretary of State office to file for a business name that I am really interested in. It's such a right name for us and the domains are all still available except for the short catchy one which is also available... but for a good price. Maybe someday I will get that one too.

I think that should do it.... best of luck to everyone in the month of MAY. I may get to meet some of you at the E.D.G.E. 2010.

Roger

Missed you at the MNREIA mtg last nite, you weren't there were you? Good meeting about seller financing. My cash out re-fi isn't going as I wanted, my banks I had lined up have changed their story since I spoke to them originally. Without 6 mos seasoning, the best I can get is 75% of purchase price + repairs. I didn't buy low enough to get a full cash out. I am now looking for seller financing or subject to deals where the out of pocket is minimal. Take care, and see you at the edge.

Thanks Cathy,
I missed you guys too. I would have liked to have been there at MNREIA, however I had my first Advanced Training Online class last night from 8:00 to 10:00 so I stayed home for that.

I am having similar issues as you trying to get cash out of properties owned. The mortgage specialist I talked to cannot do anything until 6 months from now. That is a lot of cash just sitting there. If either one of us resolves this problem we will need to share and share alike!

This will not be an issue when our RE businesses are profitable. The banks just don't have the same vision as I do to turn NO EXPERIENCE, LIMITED FUNDS, and NO JOB into a PROFITABLE REAL ESTATE BUSINESS. !!

Roger

Just read your post in Cathybs journal and decided to pop over and say hi! First - congrats on all the steps you are taking with the training - it will all definitely fast track you to success! I look forward to meeting you at the EDGE, and can tell you that Rina is the QUEEN of cash out refi....you will be drooling when you hear her speak haha! Not long now....cant wait! Cya there

Hi Laura,
Thanks for stopping by! I am looking forward to meeting you and Rina at EDGE. SHhhh... don't tell anyone but I did see you and Rina at a MNREIA meeting a couple months ago.
Regarding the cash out refinance, just knowing something is possible is huge. Since you stopped by here last week, I have since found a reputable, experienced Mortgage Broker that is more than happy to do a cash out re-fi whenever I am ready, for 80% of purchase price on our townhome.
We should be closing on this townhome (for our personal residence) within a couple of days.

Roger

Congratulations! through this website i am seeing that persistence is a major key in this business.

Hi Linda,
Thanks for stopping by my journal. I was thinking yesterday about "perseverence" the sister to persistence. If you have planted the seeds then you should expect something good to grow!!

Roger

There is really no good way to express how this weekend has affected my life. I am on the flight back from the E.D.G.E. 10 event. Since around the beginning of the year I have been on a website that just simply asks one question. How was your day? And it asks you to rate it from a 1 to a 10, and add comments if you like. Well, I have to tell you that since I joined that site, I have never had a 10 day. At least not until this weekend. I’ve got “10” days now and that’s what E.D.G.E. 10 will always mean to me.

You all have added so much to my life and I don’t know if you realize it. If there is one thing that I have learned this weekend, it is that I NEED you guys. It is not just the things I am learning which are awesome but it is also the people that you are. I have never known of any people anywhere that just gives, and gives, and gives, like you guys do. I can tell you put your heart and soul into this and I know it will have a huge payoff in my life. I am talking about the presenters, but not just the presenters. I am talking about the students/participants too. I’ve met some incredible people here and I hope we can continue to keep in touch and help each other to reach whatever goals that we have.

This is a life changer. I even had tears coming to my eyes listening to Carol Stinson’s story. It’s a mindset change. You know, I don’t know of any other organization that would look at someone like myself with NO JOB, LIMITED FUNDS, and NO EXPERIENCE, but with some AMBITION and say, “Hey, join us!”. But I have been lucky enough to have found just such an organization and for that I feel truly blessed and want to say Thank You.

Roger Schafer
The Jaguar Investment Group

OK. I just closed on a property last week Wednesday that we payed cash for. Although the seller did not come to the closing, we found out that he had 3 more properties for sale and one is very close to the one we bought, so we set up a showing for the next day (one week ago). We really liked the property a lot so now I am looking very very seriously into working a Lease Option on the first property and buying the second one as soon as I can get the financing. I intend to buy this next property 100% OPM so its now time to beat the bushes for financing. I will start contacting commercial lenders tomorrow to qualify them. I am excited to find out which bank(s) I will be making money with for the next decade or more.

Roger Schafer
The Jaguar Investment Group

...Congratualtions on your recent deal. Sometimes one deal can leads to others. It sounds like you may have more opportunities available wit hthat previosu seller. Sellers are becoming more and more motivate to creative financing. Looking forward to reading about your future real estate deals! Believe and Achieve! - Joe

I see that you achieved 15000 points exactly with that post on my journal. What a wordy guy!! Anyway, thanks for stopping by. I am just curious what big plans you and Stacey have now that the EDGE 2010 event has closed. I'm sure those gears were spinning again on your return flight from Arizona. I will be watching your progress as well!

Roger Schafer
The Jaguar Investment Group

how awesome. you did it despite what anyone else might think.

I will get the opportunity tomorrow to talk to a commercial banker in person and also another person I will try to line up at another bank because they said they would finance 80% of my next project. I already have most of the ideas of the case I want to make for this real estate business to the commercial banker.... I just need to put the pieces together in a way that makes sense to them.
I also have a property management company stopping by our townhouse tomorrow, I want them to let me know what it will rent for. (I already know that previous owner rented it for $1,550)
I had a list of about 40 banks and I just went down the line one by one yesterday and got to about 15 of them but have not actually talked to too many of them yet. Of course, lunchtime was not the best time to call!
All it takes is one to give me the right deal (based on FMV) to get started and I am in business. (I want a cash out refi on the townhouse we purchased for cash 2 weeks ago to fund deals going forward - have already identified another townhouse we like --- need to run the numbers on it to make a good estimate of cash flow)

Finally, over the weekend I fixed up the garage of our new townhome mudding and sanding the sheetrock in preparation for painting and finishing. All that is left in the townhome to be ready for renting or rent-to-own is 1) finish garage 2) clean carpets 3) Paint all walls 4) general cleaning. That is it! The cherry wood floor (side dining room, kitchen, main dining room, hallway, bathroom) looks great after refinishing. That took a week.

Roger
The Jaguar Investment Group

You are going full force since the EDGE! It is an amazing experience that really fuels your determination and drive to be successful. And I agree with you 1000% about the people on this site. Without it I would have never gotten to where I am today for sure. Not just the knowledge either, but the support and encouragement when I had none around me starting out. I know you are going to go to great heights! And forgive me for not remembering meeting at the MNREA meeting - if I knew how to do a blushing smiley face I would lol. I dont have a great knack for remember names and faces until I've met several times. Not the best trait to have in RE but I'm still working around it haha. So I look forward to seeing you at another meeting soon

Not exactly on cloud nine type of day. I just feel I should be honest.

Having a few challenges of my own going on right now related to financing.
Despite all that, my biggest supporter is my uncle who farms near St. Cloud, MN. Many years ago when he purchased his farm there were a lot of incredulous people... "you've got to be kidding! you're getting in to farming?" Now those same people are asking him, "How could you have had such incredible vision?" LOL. He just tells me you need to have a passion for what you are doing even if its shining shoes. Did you know there's a lot of money in that?

Roger
P.S. I even feel embarassed talking to my coach - these guys are successful at it and makes me feel like a slug.

I know what you mean. I'm not lighting the academy world on fire either. Most importantly, you are in the game and moving forward, even if it is baby steps. Just keep going, it will come.

who better to have in your corner than your uncle, a man who did what everyone thought was impossible!!! you have it in your blood!

The RE world is like every other part of life - a roller coaster ride! We all hit the lows - but thats where your determination and focus on your goals and dreams will come into play! Remember - what your mind focuses on is what you are going to attract. It sounds far out, but its true. I am living proof of it. When I taught myself how to erase all the old tapes in my head - "I cant" "I'm not smart enough" "I'm not good enough" etc, etc, etc, etc...and changed them all to positive, present tense thoughts "I AM successful" "I AM intelligent" - the world around me changed. For me to be where I am now in just two years time is absolutely incredible, both with RE and in my personal life. Looking at each obstacle as a challenge to overcome and conquer makes taking action easier. Well, gee, i guess I philosophized (spelling?)enough LOL. And dont EVER feel embarrassed to call the coaches! I made that mistake....dont do it! Call, call, call. Its what they are there for, what you are paying for, and no question is a dumb question - EVER !!!

Here we go again!!! Thanks everyone for the encouragement. I hit a roadblock with financing behind Door # 1 (cash out refi) and so now it is time to try Door # 2. I will keep trying doors. This weekend someone showed to me that they got their credit limit on AmEx raised to a substantial sum by just keeping knocking on the door and getting past the roadblocks by never giving up. Very interesting. There is always a way.
I had a great weekend. I learned a lot about real estate. Someday I would like to invest in a mobile home park. I hear there's good money in that if you do it right!
My first deal may be a purchase/fix/sell... I have some very good connections now with someone here in town that is doing that.
Last week I spent a good amount of time interviewing a good many realtors. It was pretty interesting. I even found one that worked EXCLUSIVELY with INVESTORS. He was not very interested in taking on someone green because he already has these cash buyers lined up for his gems. That door is not closed though. I will be talking with him again.
Another interesting contact I have is through a hard-money lender. It seems as though this guy is willing to spend some time with me to get me on "thee straight and narrow" as far as investing. I thought, if this hard money lender is experienced... what a great way to learn which deals are going to be profitable. If he has enough experience, he is going to want to counsel me somewhat about how to recognize the good deals because if he is wanting to build his business, he is going to want repeat business I would think. Meaning, if I am able to turn a profit, I am going to keep coming back to do more business. I mean unless he was a total sham that is trying to stick you with a house that you can't handle, in most cases I would think a hard money lender would want you to be successful.
There is another real estate agent (who is also an investor themselves) that seems pretty motivated to work with me. I think he would be great on the buy side. His market evaluations seem spot on. Then there is another real estate agent (also an investor) who I think would be great on the sell side. From everything I can tell she really knows investing and she is also very friendly and attractive. She beats my current non-investor realtor --- not even close. She was twice voted some kind of Super Realtor by the Mpls/StPaul Magazine.
I will be making the same kinds of calls for mortgage brokers this week to get a feel for what's out there and choose some likely candidates to work with.

Thanks again for the helpful comments. We'll get through this!!

Roger
Jaguar Investment Group