Cathyb's REI Journal

has anyone ever taken such a long time to write something only to have it disappear? UUUGGGHHHH!

I really hate that to, You see I a pecker not a type. I had rather be doing deals than setting here.But on the positive side if it helps someone its time well spent.

Randy

I'm going to write those long ones on a word document so I can stop and start, then just paste them to my journal. I'm trying to watch my new empowering converstions, but cant get it to start.

Cathy

I'm glad you started your journal and look forward to following your journey and wish you lots of success.

I'm no expert but I think that when a lot of people get on this site it slows it down & does strange things. Good idea about cutting & pasting from a word document. I do that now if I have a lengthy post.

All the best to you!

Lea
SPR Property Solutions, LLC

Thanks for the kind words, your journey is one of many I follow and gain inspiration from on this site. Thanks for stopping by.

Cathy

You guys really inspire me!!!....Keep sharing....Danny

I enjoyed reading your opening post on your journal. Will continue to follow.

Sandra

My brother is losing his house to foreclosure, I have been offering to help him for a year, saying my husband and I maybe could buy it on shortsale, or we would be willing to buy an investment prop, that hey could live in until their youngest gets out of school. He refused my help over and over. Last Tuesday he called to ask if the offer still stands with regard to me buying him a property, I said I was willing to do that if the numbers worked. He lives about 3 hours north of me in northern MN. He called two hours later, and said that he and his wife(she hates me, and I don't have a lot of regard for her)found a house that was perfect for them, it had been on the market for two days, (REO) and thier "real estate agent" told them there were multiple offers on it. I told him that it was already to late for that property, I didn't have enough time to research etc and get an offer together. We decided they were going to rent-to-own from me and they have a specific amount they can afford to pay, which means in order for this to work for me, I have to get it at a price I and they can afford. I told them the price I would sell to them for would be 15k over my total costs, to give them a deal. WELL, he called the next day with another property they had their eye on it was going on the MLS the next day (his wife works in RE office as receptionist so inputs the new listings.) This house is a FMV 250k being offered at 107,500. Why you might ask? Because the previous owners took EVERYTHING out of the house. There is not a cabinet, (kitchen or bath), a fixture (except recessed lighting) or wood (except floors) in the place. They even took the water heater and cut the hoses and took the central air unit. Can you believe some people? I told my brother that people this vindictive, may have poured cement down the plumbing or the well. We will need to be very cautious when we proceed with this deal.

I am glad that you have decided to post your journal for the DG world to see. You have just started and Im already getting excited to what adventures you have in store. From your previous post on other facets of this site, I can tell you are someone who takes REI serious and Im sure to learn alot from your daily action. Well keep up the good work and I will see you at the TOP!

Best Regards,
Shane Gore

Sorry double post. I should know better than that by now!

Thank you for the kinds words, I am a big admirer of your journal. I do take it seriously, every day. Thank you for stopping buy my journal.

Cathy

When I originally posted the above post I meant to tell you all of my adventures with this house and my brother and his wife. I am amazed at the sense of entitlement some people have. Somehow they (read wife) have got it into their head that they deserve to live in a house as nice as the one they are losing. This house without amenities is on par with that. I get daily phone calls and texts about things like, "since it needs a water heater, we would prefer a tankless one. The boys (my 3 nephews) would really appreciate it if you would put in a tar driveway. My wife would like to pick the fixtures and cabinets. Your offer better have been close to full price cuz there is alot of activity on this house" Or the famous my wife and I want you to accept the banks counter offer, there is alot of activity on this house"

I know what you all are thinking....RUN AWAY CATHY RUN AWAY!!!! But I have to
say I am pretty proud of the way I am handling this with him, I keep telling him remember this is my money it needs to work for me. I spoke to my brother at length about possible thinking about looking at houses that are smaller, that will still work for them bedroom wise etc. buy cost alot less, so I can reduce the rent I am charging them and they could maybe save some money? Makes sense right? I saw online there is a 4/2 in town REO ugly, that I could get cheap put a little money into and they could afford it. My brother told me "that's just not gonna work for us" I don't know where this sense of entitlement comes from, we grew up in the same family, 8kids my mom died young lived on benevolence of others at times. We are a year apart, I know our childhoods were not that different. But yet even though he/they have made some bad decisions they feel the should be able to live in a house much like the house they built. When I told him I would get my agen to make an offer he said to me " Well what do we do about the agent we have been working with up here?" I said, well I know my agent has got my back, I don't know yours and furthermore why are you working with an agent when you cant afford to buy a home and can only rent?

Okay enough about family issues, sorry for the diatribe,just needed to get this off my chest.

Cathy

P.S My offer for this house was in the 80's. When I was about to make it I called the academy to discuss, they told me they would be lucky to get 80 for it. I was told you can't even get a bank loan if there is no kitchen in a house. The bank got another offer today, and I was to submit my best and final, which was exactly the same price I submitted before with additional contingencies, like my inspection period doesn't start until the accessabity problem is resolved. Did I mention there isn't access to the property? If not will have to wait, I don't think post scripts are supposed to be this long.

My brother called to say that he and his wife have been talking about what I said to him yesterday (mostly about living in reality, and living in what you can currently afford) and they realize that maybe they should be looking at smaller houses that are less expensive and could use a fix up. Yeah!

Now watch, the bank is going to accept my lowball offer on this house.

Cathy

This is great news about your brother & his wife. Glad this is moving in the right direction now.

Well if the bank does accept your offer you'll have 2 deals in progress

I'm glad things are going good and am looking forward to hearing about how this progresses.

All the best,

Lea
SPR Property Solutions, LLC

you started your journal. I have just read this late tonight as I got home from work, and I've been wanting to check out your journal since you started it! Now I know I'm going to follow it ALL the time!

Hope the bank accepts your offer! And glad your brother and his wife have entered reality. You know, everyone could use a little dose of Dave Ramsey and living within your means! I know after my recent rehab, I keep thinking...wow, my husband and I could buy a cheap home, rehab it completely (to a very very nice level), sell our current house, and live in our rehab, and be almost completely mortgage FREE within a few years!! Then save for our dream house and continue to invest in more real estate. And we're not in a foreclosure situation...but I SOOO see how you can really "put your money to work for you" in addition to having security in completely owning your own house, with no worry of anyone taking it from you.

Thanks for all your detail you are providing. I'm thrilled you are starting your journal so I can follow your journey. Thanks so much for your encouragement in my journal too...will write back to those soon (yes, love that sink!!)

I really hope this works for you and for your brother. Love your sense of humor as well.

Cheers!
Louisa

Thanks, I will keep you posted on the progress of the great "up north" as we call it in MN.

Cathy

I can see why journal posts get so long there is just so much to say!! I haven't even gotten started on all the stuff going on. It's always been hard for me to get my thoughts out into the written word, (I'm a little worried I might overshare) Thanks for stopping by my journal, I look forward to seeing you at the edge. (you still going?)

Cathy

Back in Jan. I was looking at props and made 4 offers one week and got two accepted, I could only afford one of them. That story is referenced at the beginning of my journal. I closed on the property, of Feb 5th. The property needed light rehab, so I wanted to get it turned and ready to sell on Lease with option to buy by Mar 1. The city had other plans, they were holding my water meter hostage, and they wanted permits and things completed before they would release it. In the mean time I hired my out of work bro-in-law to paint the interior,(he is meticulous) and we settled on a price. Turns out his "attention to detail" was my demise. 10 days after closing on the property, I was leaving with my family to Florida and told him it needed to be done by the time I get back so I could advertise and get a tenant buyer in there. When I got back, it wasn't close to being done. I think the painting was finally finished on March 4th. I was washing windows and floors in the meantime. My ads on craigslist drummed up some interest and I had someone coming to look at it on the fifth. My bro-in-law, left the place 15 minutes before the prospect showed up. Although she didn't take it
, I think I have found my tenant buyer, we are meeting again on Sunday to hash things out.
Things I've learned so far,
-Families want 2 bathrooms and a finished basement.
-Get the plumber working on the water issue at the beginning
(difficult to clean paint without running water)
-Buy even lower.
-2nd half of month is better for advertising (people are procrastinators)
-wood trim isn't cheap
-ask your team members about other people in the trade
(electrician knows and has worked with tons of people in the trade, they know all the good ones and the bad ones)
-don't forget to factor appliances in your budget

I look forward to getting this lease option done. It is scary when you buy and have all this money going out and none coming in. I thought finding a tenant buyer would be easier, granted it's only been 2 weeks, but I thought people would be flocking to rent to own. I'm now feeling the buyers list thing, I have made many contacts in fielding the inquiries on this property, and have great info on what these people are looking for. Believe me they will all get an email, when I do the next one. I will post deatails when I lock in my tenant buyer (don't want to jinx it)

Cathy

Congratulations on your progress so far.. even though slower than you had hoped. I like your list of things you have learned! We did not get the property I talked to you about at the MNREI meeting.. We offered cash at 37% below FMV but were outbid. We have looked at a number of properties since then and finally made another offer yesterday on a similar property.

News flash.... I signed up for E.D.G.E. 2010. I have a lot of catching up to do to hopefully be as prepared as I can for that.

Keep up the good work... I am taking careful note of the value you are getting in these properties before you get into them. I have not forgotten your "go low" comment.

Roger
Jaguar Investments, LLC

Good luck with your offers. Have you made your flights yet to the edge? We could fly down together if you wanted. Share a cab to the hotel.

Cathy

I had many phone calls and two showing this weekend for my lease option. The first was a couple selling their townhome, (hoping to PA signed towmorrow on their townhome) they are looking to move closer to her husbands work. The reason they can't buy is her hubby has a medical bankruptcy on his credit and they won't qualify together. They knew I had a second showing with guy from Wednesday and called this afternoon, to make sure he hadn't locked it up. He hadn't but is very interested and is taking money out of his 401k to do this. (makes me cringe) It looks like the early bird it gonna get the worm on this one. Neither party can move in April 1st which is what I would like, so I told both tenant/buyers that an additional 1k option consideration would be required for me to hold it for them and not take someone who wants to move in, in April. I am required by law to take the first QUALIFIED person that applies. It's a race to the finish, and very exciting.

Cathy

Congratulations on getting 2 qualified LO tenants and you already have someone lined up for your next one

Lea
SPR Property Solutions, LLC

Other things going on besides the investment prop and trying to find my bro a property are....I joined the academy!!! I joined at the beginning of this month and I am loving the lessons, but agree with everyone when they say there is so much information! I was also contacted by a friend of mine, who wanted me to look at her parents house, to possibly buy. They have recently moved them to assisted living and will now be starting the "cleaning out the hous" part of the phase, it's a very difficult time for them, her parents have lived in the home since 1955. The house is in great condition. The bathroom is pristine, but is from 1955 pink tub, toilet and sink as well as pink tiles on the floors. I told her that I would be willing to purchase the home, but am more interested in the terms than the price. She said they don't need the money right away so we talked about contract for deed and what that would entail. They need to come up with a price, and then we will work out the details in the terms. Am looking forward to striking a win/win deal with them. Home is in a great rental or rent to own area, shouldn't be a problem getting tenant buyers as long as I can get in and have it turned around before August/school starting in the fall.

Cathy

Congratulations on joining the academy!!!

Roger

congrats on your progress and joining the academy.keep moving forward,rob

I got another buyer on my buyers list. Although my husband is supporting me 100% He is on the periphery of my real estate adventure, he feels he has too much on his plate running his own business. Although he does assert himself into the business and want me to change the way I am doing things (hasn't read the books, so doesn't understand what I'm trying to do) Example: my bro-in-law and I struck a private lender deal for 50k, I will pay him 7% and pay him quarterly, interest only, and he gets the final payout when tenant/buyer exercises his option to buy. My husband thinks this is a terrible idea, I should be paying principal and interest, paying down debt and gaining equity. I'm willing to give up the extra couple grand I'm losing by not paying down principal on the back end, to get better cashflow and get more money for deals in the middle. We go back and forth about this all the time, he doesn't see my perspective at all. ANYWAY, I digress, tonight I wanted to listen to the MNREIA webinar on land trusts, but a prospective tenant/buyer wanted to come and look at my property during the time of the webinar so I asked my husband if he would please show the house to them. Since he didn't know the terms of the deal, I just wanted him there in as a doorman. The couple was very interested and my husband told them to call me later, but if this doesn't work out for you, I'm sure my wife can find something for you. Yeah! Will add them to my list. Thanks dear.

Cathy

I got a message on my phone from a man who said he heard I buy houses and he's behind on payments and wants to get out from under. Because I couldn't believe my ears I called him back left a message that said, I didn't quite understand what your message said but I am available if you would like to call me back.
Here is the bizarre thing.... I haven't been advertising yet. I just finished the "finding sellers" lesson with the academy. I am going over the profile questions from my notebook cuz I just finished the lesson this morning and I wanted to sound like a knew what I was talking about. He wouldn't tell me how he heard about me, which must mean he heard from someone I know because random people don't have my cell phone number. His house was built in 2000 modified 2story, he paid 176k for it he says he is behind two payment, but hasn't received the NOD from the bank yet. He also says he owes 84k? And he just wants to walk away, his payments are 1000/mo including the taxes and insurance? Something doesn't sound right here. Any way I called the academy, to see what to do, and I flat out asked them if they crank call the students to see if they are paying attention in the lesson. Matt, the guy I was talking to got such a kick out of that. He said they do not babysit. I'm still kind of reeling trying to figure out what I should be doing here, any and all advice is appreciated.

Cathy

I am getting the application back from my tenant buyer tomorrow, I'm sure it will go through without trouble, they have been pretty up front about the medical bankruptcy, I'm very happy to be getting them. I met with mortgage guy today, to see what kind of product they have. Looks like he can hook me up at 5.75% which I think is good, but the closing costs! I spent $536 when I closed on this house. This refinance has closing costs of like 4k. Everybody needs their piece of the pie I guess. I am still shopping it though.

Cathy

The couple sent in their appliction, but unfortunately the buyer to their house fell through, so they are unable to move at this time. I told her to keep me in the loop, I may have another property for them when they are ready to go. They are still on my list, just need to keep in touch. In the meantime I called my #2 buyer, and he said he would have a definite answer for me on Friday, he is trying to see if he can qualify earlier than the 1st 18month lease we talked about. He has a IRS lien he is paying off. Had a young couple look at it last night they are in foreclosure, trying to short sale their house. He is a master plumber, I told them that if this buyer fell through I would give them a call, also am keeping his card for future plumbing needs.

With regards to the above "bizarre" story, I looked into the property on the county website, talked to my RE agent, she did a compartative Market Analysis and sent me all current listings in the area. After looking things over I called the seller this a.m. and told him this. Here are two ways we can do this, I can get you currrent, and give you around 7k cash, and have you sign the deed over to me and I will take over your payments OR you can get with an RE agent right now get your house on the market and probably walk away with alot more than I am offering you, but it may take a few months for that to happen. He said will take option 1. I said my next step is to come and see his property which I am doing friday,(taking my bro-in-law in case he is an axe murderer, although did run a criminal,and judgement search on him and only turned up a speeding ticket) I need him to call his lender and get a current statement of what he currently owes including any back pay and penalties, he said he would. I also double checked that his wife is on board with this, and would be willing to sign any and all paperwork. So here is my plan; visit property, do a title search and have inspection, write up PA subject to (don't know that part yet) have him sign over the deed (don't know that part yet either) and I am going to list the house with my RE agent for under what everything is currently selling for to get a quick contract, maybe even a first time home buyer using the 8k credit. If I can walk away with 10k I will be happy, I know seller will be happy he's out from under and they buyer should be happy, they are getting a house with some built in equity.

Cathy

there is something else going on with this property that I am missing. When I spoke to the seller today, he would say "so you're going to buy it right?" then we'd talk for a while and he would say it again. I don't know if there is something I should be looking for that I'm missing or if he's just that desperate or what it's kinda strange.

Cathy