Cathyb's REI Journal

everything you need to know is in Deans books, you just have to overcome your fear and get in the game. Check out freeindeed and randy428 journals, they were in your situation and have come out on top. Best of luck. Start a journal to keep yourself accountable.

I am finally closing on the cash out re-fi of my most recent purchase. It took over a month, but a second appraiser gave a much better appraisal and I will be getting back just short of the 117k I paid for the prop. The repairs unfortunately are not included in that, but at least I replenished my HELOC and can move on to another deal.

My tenant buyers are moving in this weekend. I already have their first rent check and am looking forward to many more. After taxes and insurance I will be cashflowing 495/mo which brings my total to $750/mo between the two. Properties.

They are interested in having me buy their home on short sale so I will get my agent rolling on that. I also had a guy contact me from my CL ad about the prop he is currently renting, is in foreclosure, and they want to stay and rent to own it back. It is currently listed, so will have my agent pull comps and see what I think can work.

now u can move on to the next deal and u have some great cashflow....which is the name of the game ...good going !!
jay

Jay, thanks for your support, I really appreciate it. I have been in contact with someone who has a house that they want me to buy for them, and then I would sell it back to them on contract for deed. The house is listed for 49k
it was in the middle of a rehab but didn't get done. They SAY they need about 6 months to get the financing, they are planning on doing the rehab themselves. I am trying to think of a way to make sure that I am protected here. I think my best bet will be to get the home for a ridiculously lowball amount. I was thinking of offering 15k. ARV is around 100k. I am going to call academy tomorrow to get some advice. I don't want/need to make a killing on this prop. but a couple of grand would be okay, plus it will be deal number 4 and 5.

I also am working on a couple of short sales. One person contacted me when I was advertising my last rent to own. The house they are living in is in foreclosue (they are renters) and I am trying to buy, and they are going to
rent to own from me. It is a really nice house, owned by an investor.

Any opinions regarding the house I talked about in first paragraph is appreciated.

I made my offer for the 49k house and offered them 25k. They countered at 43k. I was hoping to get them under 40k but it doesn't look like they are budging. The future owners of the house said they were willing to go to 50k so I accepted offer at 43k and am waiting to hear that the bank is good with that. Here is what I have decided to do with the deal, I am going to sell to the people on a lease with option to buy. 3k upfront (most of my profit) and then rent with a generous rent credit (that comes off the purchase price), for 6mos. If they haven't bought me out in 6 mos the rent goes up and the rent credit goes down. I don't want to sit on this that long, I need the money for other deals in the pipeline.

I decided I didn't want to sell on C4D in case they didn't pay and I had to foreclose, it takes too long in MN.

I am having property inspected for both my sake and future buyers sake, but she knows that all my expenses will be added to the price I paid for the house
in addition to a small profit. They are very excited and I am glad I could help. Hope everything goes according to plan.

Great to read about your most current deals - the refi and new properties....you are doing awesome! Very creative deals, too - love it - way to go!

keep on going cathy!! looks like Laura and I are playing follow the leader tonight lol.
Cathy I am really amazed on how much you have accomplished lately, keep up the drive.
Richie

Cathy, what do you mean by "cash out re-fi" and "C4D"? Sorry for my ignorance.

cash out refi, means I am refinancing the home with a bank and getting the money I used to purchase out of it. C4D is a contract for deed. Not dumb questions, just some abbreviations you have to learn.

...for your response. I'm sorry that I still don't understand but how does that work? Thanks again

i have been out of town so much lately i had to catch up on all that is happening with you. you are doing such a great job! congratulations! i am going to PM you with a question. have a great weekend.

I just wanted to stop by and say hello. I have to run off to my JOB and I will catch up with what's going on in your REI world later. Thank you for your support.

Blessings to you,
Cathy L

Cathy,

I am so impressed with what you are accomplishing! I have read your whole journal this morning. Keep up the good work!

Karen

Karen thanks for your kind words, I love your quote, I am 45 and discovered I was meant to be a real estate investor, how cool is that. Thanks so much for reading my journal, and best of luck in REI to you.

Cathyl Thanks for stopping by and for your support.

Got all bank papers back signed by the bank. Next up is inspection then crafting the deal with the tenant/buyers. And of course after they sign on the dotted line, contacting the academy to get my refund!!!!

Today is a good day. Plus it is November 9th and a balmy 60 degrees in Minneapolis!

Just stopped by to say WOW girl you have the ball rolling Good job! I love reading your journal.

The inspection did not go well, the house is a tear down. The end buyer was there, and she did not seem phased by it all. I wanted to run away. I told her I could not rent to own this to her, my liability would be huge. The only thing I could do would be to sell to her on contract for deed, and have her sign off on the inspectiona report saying she was aware of all the issues. The truth was I did not want to be involved in this project. Later in the afternoon I called her back to discuss and asked her if she was in love with the house or the price? I said I was still willing to help, but I suggested that maybe we look at more expensive homes with less work, although it would increase her payment a little it would save time and money in the long run. In the meantime I listed all the undetectable things that were wrong with the house and we sent an amendment back to the bank, saying we are only willing to pay 25k for this house. I am sure they will reject it, but hey if they don't, then the 1 acre of land the house sits on is worth more than the 25k I would pay for it. The plan is to wholesell that for 2k.

On another note I got an accepted offer on a home today, 1 block away from my very first aquired home. It is really nice, it was remodeled, and has fresh paint and new carpet. The bad part is, it's missing kitchen cabinets and a bathroom vanity. There were 6 offers, mine was the highest by $500. One trick to putting in offers especially when banks are asking for highest and best is to not use round numbers, I could have said 100 but instead said 100,500 and tht was the difference. Anyway, my bro in law is a beautiful cabinet maker,so he will be able to make them for me at a greatly reduced cost. Inspection is tomorrow am not anticipating any major issues.

Here is a salute to all veterans out there, without whom, we could not be doing what we are doing in the greatest country in the world. You too dad!

Cathyb

Thanks! I love reading your journal too.

Good luck with this new deal and with what sounds like a rather tumultuous but still profitable learning experience (with the tear-down!)

So exciting! All you have going on is awesome! I'm going to catch up with your journal tonight before bed....I've gotta run right now, and realized....whoa...there was too much to catch up on here! Excited for you!
Louisa

Just checking in and catching up this time. Wow good going. It's great to hear about all that you've done and are doing.
Take care and congratualtions,
Cathy L

I was wrting that it was balmy and in the 60's, today there is already an inch of snow on the ground and they say we could get 4-8 today. It's a little early for this.

Had my inspection at the new house yesterday, everything I was concerned about turned out to be no big deal. The only thing I couldn't check for sure
was for freeze damage, city took the water meter, because of the missing kitchen and vanity. Inspector said he didn't see any freeze damage, and the plumbing looks new. This is such a gem of a house I can't wait to start showing it.

My end buyer found another house she wanted me to offer on. In the meantime I spoke with my mortgage guy who she is working with, and there are some discrepencies and issues that we need to clear up. She is definitely a rent to own buyer as opposed to a contract for deed buyer. I decided not to make the offer on the property until we talk and she can clear up a few things for me. The house she wants is not in an area I normally look to invest in, so I don't want to offer on it, if it turns out she can't afford it.

Been playing phone tag with my banker, just wanted to check in and see if I can still do more properties.

great going!!wow you are really kickin it !! sorry i didnt get back to your post a few weeks back....been crazy here with many things going on !!! glad to hear you are really rolling !!! hope this deal works for you and when is your deadline for your refund ????? keep up the forward momentum,you have it going your way !!!!
jay

I am closing on deal #4 on Friday. I have decided to pass the deal to my bro-in-law for 2k over what my costs are. It is a fabulous house. He asked me to help him get the tenant buyer in and I said of course I will....for half the option consideration. So that will be another 2-2.5k in my pocket. I had listed the house on Craigslist after I had it under contract as a rent to own, and I have a couple people coming to look at it on Friday. It doesn't even have kitchen cabinets or a bathroom vanity.

The reason I decided to pass it on to him was that he is doing the kit. cabinets and he wasn't going to work on them until his son came back from college in 2 weeks. So the wouldn't get done till the end of Dec. In the meantime I am still trying to get a house for the family that I have been working with, and would need to pull my money out of the fabulous house to purchase the family's house. but can't get an appraisal without kitchen cabinets. I decided it was important to follow through and help them and not leave them haning. My hubby thinks I'm nuts giving up this house. But when I first started this I asked him,"what if I only make 500 on deal?" and he said "it's all good, as long as it's in the black" Now he sees the dollar signs and wants me to keep it. i don't think selling to bro in law will count as my 5th deal since he is my relative. But thats okay, I should have
the 5th one done by the end of Dec to get my refund.

The tear down house mentioned above has been a pain in the butt to try and get
my EM money back. After having my agent make numerous email/phone calls I finally got my check today and it was $1900 more than what I gave them! Now that's a return on investment!!! Just Kidding, actually, I will deposit it and once it clears will write them a check back for the difference.

I am working toward doing some co-operative lease options, have some systems in place and am ready to roll. Will keep you posted when those start to hit.

I am closing on deal #4 on Friday. I have decided to pass the deal to my bro-in-law for 2k over what my costs are. It is a fabulous house. He asked me to help him get the tenant buyer in and I said of course I will....for half the option consideration. So that will be another 2-2.5k in my pocket. I had listed the house on Craigslist after I had it under contract as a rent to own, and I have a couple people coming to look at it on Friday. It doesn't even have kitchen cabinets or a bathroom vanity.

The reason I decided to pass it on to him was that he is doing the kit. cabinets and he wasn't going to work on them until his son came back from college in 2 weeks. So the wouldn't get done till the end of Dec. In the meantime I am still trying to get a house for the family that I have been working with, and would need to pull my money out of the fabulous house to purchase the family's house. but can't get an appraisal without kitchen cabinets. I decided it was important to follow through and help them and not leave them haning. My hubby thinks I'm nuts giving up this house. But when I first started this I asked him,"what if I only make 500 on deal?" and he said "it's all good, as long as it's in the black" Now he sees the dollar signs and wants me to keep it. i don't think selling to bro in law will count as my 5th deal since he is my relative. But thats okay, I should have
the 5th one done by the end of Dec to get my refund.

The tear down house mentioned above has been a pain in the butt to try and get
my EM money back. After having my agent make numerous email/phone calls I finally got my check today and it was $1900 more than what I gave them! Now that's a return on investment!!! Just Kidding, actually, I will deposit it and once it clears will write them a check back for the difference.

I am working toward doing some co-operative lease options, have some systems in place and am ready to roll. Will keep you posted when those start to hit.

Cathy,

Looks like you have really gotten into the groove! I love reading your journal! You keep me excited.

Karen

Thanks for the kind words, I love reading about other peoples journeys too, including yours.

Signed PA with my bro in law on fabulous house that he is buying from me. Should have my money this week. I am putting into trust and will be signing over the beneficiary interest to them, to avoid another round of closing costs.

Had an accepted offer on an REO that I trying to get for a family that will be renting to own it back from me. Had calls from two other people I previously talked to that also would like to do that.

My bank is cutting me off at 4 deals. am hoping I can pay off a loan or
two by doing co-operative lease options, so that I can get some more deals.
Was contemplating getting equity partners on the houses I already have, but my hubby thinks it is a bad idea. One of the short sales I had offered on had a response back from the bank saying they wanted my offer to come up 50k to even consider it. I said I was standing on my offer. Am anticipating a complete rejection. I was planning on wholesaling the house if I was to get it under contract. Still have one more house that I offered on, that is a short sale, was planning on keeping, as the current renters would like to rent to own it from me. Not sure when that one is going to shake out.
Kids were out of school today, end of quarter/trimester or some such, didn't get much done except housework.

how much time can pass, reading other peoples journals without, writing in
your own. Have been trying to get inspection done on the accepted offer, but
the utilites haven't gotten turned on yet, so the inspection can't happen until then. Was hoping to close before Christmas so this family could have a new house for Christmas but doesn't look like it is going to happen.

Making offers for another person, looking for a rent to own as well.

Have been working on my website and getting that going. Also have been contacting rentals and fsbo about doing rent to own on their property. I have one under contract now that I am just starting to market, and of course the house my bro in law is working on will also be under contract soon.

Just found out from my hubby that we will be having an exchange student from Turkey living with us for the next couple of days, so need to get the spare room ready to go. I am sure my boys will be thrilled with a "big brother" to hang with. I guess his English is poor, but video games are a universal language so they will enjoy him. My sister is coming next week from Texas too. Always have fun when she is in town.

Just in case I don't post before next week hope all have a blessed and safe
Christmas.

cathyb

Gald to see you are staying busy with REI Cathy.

We hope you and your Family have a nice Chistmas.

Steve and Veronica.

Cathy!! Hey there! So catching up with your journal...

Awesome on the brother-in-law deal....my question to you is why shouldn't that count as one of your "refund" deals? I definitely think it should!! If it weren't for Dean you wouldn't HAVE the deal to be able to pass on to anyone....that "anyone" so happens to be your brother-in-law and GOOD FOR YOU!!! That is great news! I would at least try to get that one through...I didn't know just because family buys something from you, that the coaching camp doesn't count it? (I do see what you are saying, but I say kudos for you for getting a deal that happens to work out for family too!!)

Interesting on your bank and 4 deals...I have heard about that cut off limit too. I say try other local banks! (I know that sounds obvious...but want to run something by you that I heard at our local REI meeting a couple weeks ago regarding this)...there may be a way around it. I have more questions about a couple of the deal situations you have shared above...in a good "brainstorming" way.

Maybe we can talk sometime over the holidays....after your Turkey exchange student leaves or something. I'll shoot you an email.

Have a Merry Christmas!!!
Louisa

Merry Christmas and the Happiest of New Years!

Karen