Cathyb's REI Journal

But it doesn't all work out like you wished. The current tenant/buyer moved out, and left a mess. There is small problem in qualifying current applicant AND the house across the street is too upside down to take sub2. Unless I don't worry about it being upside down and just collect the money up front and in the middle. Eventually it will be worth it, just not now.

I am still making and countering offers, but I must say the banks are not willing to deal much with their REO's. I think my RE agent is getting a little frustrated, she was telling me my offers are too low. I explained to her that I have to get them at lest 70% of FMV in order to get my money out on a re-fi.

I signed the lease option with the new tenants today. Am depositing checks totaling $4750 as option fees and deposits. They move in sept 1. I have collected 7k in option fees on this property between two different tenant/buyers. Not bad money. I used part of the first option fee to reside the garage. But this 4k I will use to pay down some debt. I am cashflowing 350/mo on this property.

Way to go cathy! I like the way you keep moving forward no matter what happens. I dont think offering 70% of FMV is bad at all. I cant see why your agent is not happy other than the fact the banks wont budge yet. resubmit those offers in a month and see if they changed their minds

good luck with the new tenants.

Richie

Thanks Richie, I dont think 70 is bad either. I will be revisiting the longer they stay on the market. They aren't motivated sellers yet, I guess.

i agree with Richie. here they are offering 50% of FMV, so your REA should be very happy with your offers.

Cathy,
I just read your journal and even though you have had some struggles and set backs, you are still moving ahead. That is why you will continue to move on up and look at all the "education" you are getting. It is priceless and that "education" will help you on into the future. I pray that you keep charging ahead and making things happen. We are here to help and encourage any way we can. Remember how Indiana Joe closed on some deals with remarkably low prices because he stuck with it. That REA will see that although you may not close on many, the ones you do close will be more than worth the work. Keep going!
Tim

Dropping in to say hi and catch up with you. Like the others have said...stay firm with your offers, and wait to see what happens. Its amazing to me how stubborn the banks can be, but just wait them out. Thats one of the most important things we learn from Dean - and thats how to be a SMART investor. You know what numbers will work for you to come out on top - so stick to em and keep up the good work!

Thanks for stopping buy and the encouragement. I agree that knowing the numbers is key, that and not getting emotional.

Yesterday my sister and I drove for two hours, to an audition for the Price is Right. It has been her life long dream to be on there so I said I would come, We just had a 30 second interview and done. Hope she doesn't get mad if I make it and she doesn't, not that I think I would, but I don't care about it as much as she does.

I am waiting to hear back on a Contract for Deed offer I made late yesterday. My RE agent has had the property listed since Jan. They recieved a full offer in March, but the VA financing fell through at the last minute. It had appraised for the full offer so that is good news (even if it is 6 months later) I am offering them 20% less than what they listed for and are getting pretty good terms, if it works out right, it could be a no money out of my pocket deal, since I have several people lined up who want it, and I would be using their money for my down payment. Will let you know how it works out. My husband keeps saying I don't understand how you are going to make money on this, you are paying too much. I keep trying to explain that my money will be coming in the middle and on the back end, and that I will be getting the house for little to maybe nothing out of pocket. Not sure when he will see the light.

Hoping all works out for you on your Contract for Deed, and that your husband will see the light The best proof is in the profit. It convinces people way more than any amount of talking can do - I know that first hand! I also hope your sister gets on the show! If you do and not her perhaps you should trade ID for the day so she can fulfill her dream

I would but, I'm 5'11 and she is 5'6.

the owners of the home I'm buying on contract are signing and delivering the contract today. So that means deal #2 is on it's way!!!! Since the listing agent is my re agent, she's allowing me to show it whenever, to get my tenant/buyer ready to roll at closing. I may close earlier, if the right tenant buyer needs it earlier. I also posted a question under forum topic, I'm wondering if I buy on contract for deed, if I can sell on contract for deed? I talked to a coach at the success academy he didn't see why not, but I am looking for other opinions.

from my re agent about a short sale offer I had submitted may go through. The house was one I talked about in earlier posts, where I originally wanted to do a subject to but couldn't because it had already gone to the sheriff's sale. Well we are getting down to the wire, the redemption period ends on 9/15. The BPO is getting scheduled. It would close 2 days prior to the contract for deed listed above so September could be a big month. Talked to my bank about using their money for closing this deal. He needs 2 weeks to get it together. and we are about three weeks out right now. He said the would use 70% of the appraisal or the tax value which ever is less. The tax value for 2010 is 226k the tax value for 2011 is 202. ARV would be around 200. It needs 10-15k work. The bank bought it back for 157k in the sheriffs sale. My offer is 117k. If they accept my offer, and I use banks money I should be able to get money back at closing for rehab.

Congrats on things rolling along! And wow - the short sale deal you posted above sounds like a great one! What is your end strategy for that - rent, flip, lease option? Really happy for all thats happening for you
As far as the contract for deed question, I've never done it but here are my thoughts on it from what I know. I'm thinking since the owner still retains title and ownership until agreement is fulfilled, I dont see how you could do a new contract when you are not actually the owner and dont have the rights to sell. I'm thinking you would have to have the original contract between you and owner be assignable. Or maybe all parties know and you do a double close? I'll be interested to see what others post!

Thanks, it is exciting this REI stuff isn't it. My plan with the short sale was to hold and sell on Lease option. There would be so much equity, I could flip to another investor for about 10k fast cash.

I PM Bill O'Rafferty about the double contract for deed and he mentioned a quit claim deed, although I know what it is, I'm not sure how it could be used in this situation UNLESS I quit claim my interest in the prop and am out completely. I'm not sure. I did ask for clarification because I didn't understand his response.

On a side note just got an email from my RE agent re: an REO listing agent wanting to know if I was still interested in a property I offered on for the last time on the fourth of August. I said yes but my offer still stands. Will see what happens.

Cathy - you should have LOWERED your offer on that REO Happens all the time and that they came back means they are anxious. But I'm sure whatever you offered in the first place makes it an awesome deal

As far as Quit Claim I dont know how they work either. But you can google any of these and find really good explanations. Maybe that would help?

Although I didn't lower my offer on the REO when the agent called to see if I wanted to submit a best and highest...but I did lower my offer almost 19k on the contract for deed after having the inspection done and looking at rental rates. I told my agent who happens to be listing agent that I would like to reduce my offer she told me to email it to her so I basically spelled out all the things the inspector pointed out to me, and then I broke down my offer with dwn payment, principle left at buyout and interest earned and added them together so she could show the clients that the total comes within 1k to the original offer. We shall see....

How's it going? Glad to see you continuing to chip away at these deals you have found and push forward. I am trying to do the same. Not trying to hit any homeruns but to just execute a deal when I find it. Have a new goal for September that I will place on my blog.

I have been busy with family stuff, my oldest turned 12 on Aug 27 so we had an additional 6 boys with us Friday and Sat. Family reunion on Sunday and Nephew came to stay Monday until Wednesday.

On the REI front. I haven't heard back from the REO from last week. The owners of the contract for deed house didn not appreciate my new offer so the deal died. I'm okay with it though because I felt the new price I was offering was the right way to go. The short sale I have been working on is scheduled to close on the 13th of Sept. Still don't know if they accepted my offer yet, but my agent says it is looking promising. Placed an offer on a different REO they countered I countered back and haven't heard. Received a call from a motivated seller, unfortunately he's motivated to sell his town home, and I am not motivated to buy it. The numbers don't work for me. He convinced me to help him rent to own it (I explained how that works)so I am doing the posting and beating the bushes to find him a tenant buyer. He is willing to sell for what he owes, and although he is not upside down, there is not enough equity for me. If I am able to find him a tenant or a tenant buyer, I get 1k, I wonder if that qualifies as a deal in the eyes of the academy?

Holiday weekend with the family, and school starts on Tuesday. I will be taking care of my niece on Tues and Thursdays, I sure hope she likes looking at houses......

The deal is going through!!! I am closing on Monday the 13th. (Deal #2) Received approval. Minor hang up is the prev. owner refied property many years ago but the satisfaction was never recorded. Title complany that was used is no longer in business. Current title company is deciding what they are willing to cover under the title insurance. Should be getting my HUD statement to see exactly how much will need for closing. Am getting bids on paint and carpet, as well as minor siding repair. Am thinking about getting a home warranty, because the furnace is around 30 years old. Will put ads on Craigslist today looking for tenant/buyer or contract for deed buyer. Am also going to call my banker to get the cash out re-fi.

Cathy

Congratulations on the acceptance of your short sale offer.
Would also like to say it was nice meeting you at the MNREIA meeting last night. I'm learning quite a bit on this site, and through your journal.
Wishing the best to you in REI.

Jerome

I was looking for you on here, but didn't find a journal. I enjoyed meeting you last night as well. I hope you were paying attention during that have/want section last night, it sounded like there were a few things your buyer could use. Good luck to you, and let me know when you start your journal.

Cathyb

I just wanted to stop by and read your journal. I hope your closing goes well.

Steve and Veronica.

Is still proving a problem, hopefully they can resolve by tomorrow for closing on Monday. I have already scheduled visits from, painters, carpet guy, cleaners and exterior repair guy to give estimates. I have put my bank on notice and they are getting the loan rolling, hoping to close that the week after I close the house. Am lining up a few people who are interested but don't want to show it while its, in it's ugly. Why o why did they use such dark wood in the eighties?

Another prop that I offered on where my offer was rejected after one counter, just lowered the price another 10k. Advised my agent to resubmit at my original offer, will see what happens.

Had a shortsale offer accepted on another house. Agent rec'd multiple offers over the weekend higher than mine, but mine was all cash, so he told my agent if I would come up 10k he would work with mine. The sheriff sale is next week so the agent is trying to get it postponed so he can work this offer. Apparently one (of the two mortgages) does not negotiate after the sheriffs sale or some such nonsense. Dont know if it will go through but the numbers are fantastic. Nearly 50% off and it is a 3000sq ft rambler. Nice house and nice neighborhood.

Way to go Cathy!! happy to see the SS going through. get it done and onto deal# 3

Richie

Is ready to go for the closing tomorrow. I wired my funds on Friday, got confirmation that they were received that afternoon. I have my flooring guy and painter ready to go. Deal #2 will be complete this time tomorrow.

Recently my husband and I were out to dinner for our anniversary (20th) and we were talking about real estate and he asked "would it be out of the realm of possibility for us to have 10 houses by this time next year?" I wanted to say, you mean by the end of this year? but didn't want to scare him. Dare I think he might be coming around?

Cathy

I am impressed with the progress you are getting on the several properties you are after. I believe you will have success tomorrow on the deal that closes then. I finally got the chance to get caught up on your journal. Great job!!!

Tim

For stopping by and the well wishes. I look forward to hearing more of the deals you got cookin'. Don't give up!

Cathy

Closing day tomorrow - hooray! So happy this has gone through for you. Good work! And with the other things you have cooking you could have multiple deals closing soon! As far as your mention above about making 1k in finding a tenant buyer for the townhouse - I believe that is the magic number for it to count. Easy to check tho - give the coaches a call. Again, congrats on all you have going!

The closing of the short sale went off with out a hitch. All were happy including my agent since she got to double dip on this one! I'm happy for her, and she is just that much more motivated to continue with me. I think she may have been getting a little frustrated with my low ball offers.

Have the painter and landscaper lined up to start on Wenesday. Carpet goes in on 27th. Hoping I can start showing once the painting gets underway so it doesn't look so dirty. The new landscaping should help too. My refi is underway should be able to close on that before the end of Sept.

Got a email from a lady who saw my craigslist ad about the 2/1 townhome I'm trying to sell for that guy. Turns out she is 5mos behind on her house payments, heading for the sheriffs sale in NOV. Did a ton of work on the home. Lives there with a renter, but would like to get out from under. Explained how I could help by catching her up and taking over the payments until it sells, she said it could work for her. Because I am not too familiar with this area, I reached out to the president of our REIA to see if he would like to partner on this deal with me. I'm looking for a bird dog fee that qualifies for an academy deal and the learning experience. It is too far away for me to show etc... but he lives in the area. Hopefully we can come to terms. She is a little upside down. But maybe can work a short sale too. AND she is interested in the townhome so maybe can get that deal rolling too. So far a good Monday.

wow Cathy, you are really rolling along. It seems everything just busted open all at once for you. awsome!!!
Keep it up you are on your way.
Richie