Lauri's Journ(ey)al

Today I am going to use Carol Stinson's site to get my lot marketed. There are some great resources on her site. It is on the MLS with a realtor but it needs to be more actively marketed. I feel I need to get it sold so I can have that capital to work with. My husband had to go back to New Jersey for work. He was gone 15 weeks and is about to go back again. I saved what I could out of his checks and bought the lot at an auction. I love those! So we got a great deal and it is paid in full. The lots in that development are assesed at $16,000 and we paid $4700.
I tried CL but only got spam.
I have to groom a dog at 4pm so I better get marketing!
Lauri

"The only difference between successful people and me is they started before me."
by Shane

I must admit right from the beginning I love your go get it Attitude. As I was reading your first 2 post I expected to witness a gradual growth but right there in the second post your exact words were, "The lots in that development are assesed at $16,000 and we paid $4700." You are not wasting no time and you are putting your husband's money to get use. I am sure there are a lot of men out there in this world who wish they had a wife like you. Instead of buying pocket books, clothes, and jewlerey, you are buying education, lots and houses. Im sure he does not expect to see that money again, but imagine how he will feel when he not only sees it again but he also will see it invested. You go Girl! For some reason you remind me of Rina in the start of her career, "Putting the family money to good use!"

I know you blame me for the reason you started your journal, but I am sure as you proceed and you start meeting more great people in our illustrious DG Family, and you simply feel the accountability of having a journal, you will not regret it. I must say that I am looking forward to following your journal, I mean what the heck I am excited about your success already.

By the way....I am not sure where you are located but there are buyers everywhere. You were wondering how to get that property with no money down. Try checking out the area for RE clubs. One way that I find pretty straight forward is to call rental ads in the newspaper or CL and look for words like Newly renovated or similar words. Alot of times these are signs of investors that just fixed up or rehabbed a property. IM sure with this method you will find some that are looking to buy more property especially if it makes sense. If you establish the right relations, you could even partner up with another investor on that property or others. You handle all of the ins and outs, ground work, etc, and they just put up the money!!

I wish you all of the best and I will see you at the TOP!

Best Regards,
Shane

The trouble is this is a very rural area. Only 15,000 people in the town this house is in and about the same amount of people in my whole county. The people here spend their money very differently than up north.
I just finished listing the lot I have for sale on some sites recommended by Carol Stinson. Cross your fingers.
Someone from my REIC said get it under contract! I will and then I have to find someone to take it from me. I will also check out some of the funding companies that were put on this site under the title '65 hard money lenders'. I am not ready for Brookview yet but I will get there.
Thanks so much for the kind words regarding the use of my husbands money. It is not easy for a mommy to spend money that isn't directly for family members. Food, household bills, school clothes, etc.
It was both difficult and exhilarating to go get that cashiers check !
I am going to call the local building inspector to get contractor recommendations.
Lauri

"The only difference between me and successful people is they started before me"
by Shane

OK.
I got a chance to see the inside of the house I'v been watching. The inside is not trashed! I really thought it would be.
This is hard to explain but it was originally a two bedroom one bath ranch.
One day somebody said hey let's put on an addition and collect rental income. So, because of the slope of the lot they put another two bedroom one bath section on top of block walls. There is what could be a two car garage under the addition as long as you are not too tall. I really like it. It can be made in to a four bedroom two bath house just by putting in two interior doors. It has a lot of potential. Quiet, secluded backyard. Just under half an acre. Part way down a dead end street. View of Look Out Mountain.
Now the problem. Financing. I am not in a position to get a bank loan. The seller said no seller financing. Since this is a very rural area with not many people we are limited as to an investor pool. The realtor who showed me the house said the couple of investors in town have backed off for awhile.
I'm guessing wholesaling it will not happen unless I can find an out of the area person to wholesale to or partner with.
I would really rather see it through the rehab process since I have had this house on my mind for years.
Does anybody know of anybody in the Fort Payne, Alabama area or North East Alabama or anywhere else who might want to purchase this house or partner with me?
Asking price $32,000 ( I will offer less)
Estimated repairs $55-60,000
ARV $150-175,000
Even at max that's 150,000 minus
92,000 for a profit of
58,000!
yay!

Lauri

'The only difference between successful people and me is they started before me'
by Shane

I was just curious to know if you tried to find any other investors in the area by calling rental ads in the area that you might see in the newpapers or Craigs List or even on other homes that you might pass by in your daily commute. I am almost sure that if this deal makes sense and you can get it for the right price you will be able to find investors who would be interested so that you can assign the contract to them. Just remember that to be succesful at Assigning with no money down deal it will be important to build your buyers list in that area first. It makes your transactions much more smoother and time efficient.

Another option is Hard Money. There are companies that will lend you the money to purchase this property but it will be important that you have an exit plan in place that is lucrative for you, especially sense alot of these companies are looking for about a 12%-14% return on the money they lend you.

Wishing you all the best......

Best Regards,
Shane

I will call some rental ads. There are not many here though. The other day there was one. One. I will drive to get a bigger paper. I know there must be investors here just by looking at some of the houses outside of town. We also have two Edward Jones investment offices in town.
Gotta be somebody looking to invest. I will stop in those places and I have a grooming client in the real expensive section. I am going to talk to her as well.
I slacked off a bit because my husband went back to NJ on Friday. I didn't want it to be all work on his last couple of days.
Someone called about the lot I have for sale and he wanted my credit score. Has anyone ever heard of someone wanting you credit score when you are selling something?
The man I spoke to said he has two or three buyers in almost every state. I sure hope he is legit for future reference. The credit score thing was weird.
Anybody have any thoughts on that?
More later

I forgot.
Shane if you know of a hard money lender you can put me in touch with I would really appreciate it.
Thanks.

I've never heard of anyone wanting your credit score when you are selling property - why would they? Sounds fishy to me.

I wish you the best with the property you found and look forward to hearing how this progresses for you.

Welcome to the DG family!

Lea

Yeah sounded creepy to me too.
I didn't want to blow him off completely in case it's for real.
I'll keep ya posted.
Lauri

'The only difference between me and successful people is they started before me'
by Shane

When I was very little, three or four years old, My parents and I were at the zoo. One of the big zoos up north. There are pigeons all over the place walking around with the people.All day long I kept trying to catch one of those pigeons.
I tried and tried and tried. You know what happens if you keep trying, eventually you succeed! Well, I did get a pigeon by his tail but now what?
I don't know if that pigeon escaped my grasp or if I was so startled that I let go but he got away.
I have that same 'I caught the pigeon' feeling now that I had then.

Just venting.
Thanks for listening.
Lauri

Wow, Dean should use that to illustrate why you build your buyers list first. LOL (seriously). If you DO et a good deal "by the tail" what do you do with it if you don't have your exit strategy in place?
I'm forwarding that to Megan and Dean right now I love it!

Oh, btw, if you DO get a great deal locked up (that you can prove with good comps) and have a solid exit strategy IN PLACE, the PML WILL be there. Just gotta prove you're for real.
Congratulations on your deal, your energy, and your positive outlook, AND YOUR FUTURE!!!! YEAH!!!!! (lol. I agree with Shane. You remind me of me too)

Can't wait to hear more!

God bless,

Rina

I have a few buyers but not for my area. I need some right here. I asked a grooming client of mine. She lives in an upscale neighborhood. I asked her if she knows anyone who invests in real estate or anyone who might like to. She said no she doesn't know of anyone. The only person she knows of who has anything to do with real estate is a local agent who lives near her.
I know of a fantastic deal but I am having trouble getting anyone interested.
I'll keep plugging.
Lauri

Don't limit yourself to investors for this one. Like your REIC person told you, get it locked up! Put in an inspection contingency as an out, or financing or whatever, (but cash usually talks best!). Then use the best realtor you can find in the area (unless you're already working with one)to find a retail buyer. IF you have done your homework, and the numbers are right, you shouldn't have a problem finding someone else who loves the place as much as you do and will jump if they can get it at a steal after rehab. Heck, you're not out anything by trying. Matter of fact, it would be a good practice run. I think people are so afraid of rejection, failure, or conflict (that was ME, so I speak from the once-same boat) that they don't get the PRACTICE in they need. AND you will DEFINITELY learn the market first-hand by diving in.

You sound like I feel. I LOVE the adventure of learning every day. And if you cover your behind with the right wording in your PA, you're out nothing! I have to say that of ALL the deals I've done and all the exciting hands-on learning, I have yet to have one deal backfire. So more than likely you will MAKE it work. There's only one sure way of NOT making it work. not taking action.
Hope ya don't mind me putting in my 2 cents, but I sense you're the kind of person that will ponder and use the parts you want and not be offended by the rest.

Here's to LOTS of REI pigeons (but keepers).

Rina

I love it!
I am working with an agent, sort of. I have been emailing back and forth with a local broker for three years. At first it was just to buy a house but it became apparent over time that we would need to short sell our own house so no purchase down here. Anyway we recently sat down together and I outlined my plans. She decided to hook me up with one of her agents. The woman she put me with is very nice. I don't think she gets what I want to do though. She played along, I guess she assumed she knows what I am talking about because she has been in the biz for fifteen years. I don't think she does. I think the investors she works with are more the buy and hold type. A lot of people here just buy and hold stuff because holding costs are so low.Lower than you would believe if I told you. The property tax on the property we live on is NINE dollars a year. She keeps sending me listings that meet my criteria but she sent me a very nice 'blowing off' email because I have no funding. I really don't think she would make an offer for me without POF.
Twice I asked her if the investors she works with might want me to bird dog for them. I didn't want to hurt her feelings by asking if she knows what that means so I just briefly outlined it like I was confirming MY definition of the term. She said she would think about it and never mentioned it again.
Maybe I am not working with an agent.
The other agent I wanted to talk to works in her office. I will have to explain to the broker that I would like to make a change and hope there are no hard feelings.
I am starting a real estate class in that office so I have to keep the peace.
The listing agent let us into the house I have in mind. Should I have her present an offer?
Should I talk to my original broker about the situation so no toes are stepped on?

Your kind words and support are greatly appreciated.

Lauri

What's PML?

OK, you got me. I was gonna say look in the Glossary (to the left of the page), but I saw it wasn't in there (!?). (I added it now)

Anyway, a PML is a Private Money Lender. That is how you get your POF (Proof of Funds) and cash to purchase when you don't have enough $ of your own (or even if you do! I do it all the time!)

I would say yes, use the listing agent. They will probably be VERY happy to work with you (get two commissions) AND probably VERY likely to encourage an accepted offer since that place has been on the market so long. But remember, you also want to inquire if there have been other parties/familes/couples interested in the property if it was rehabbed (some people will go through and say "I love it! If only it didn't need so much work!" Or maybe the place didn't qualify for financing from their lender because of the disrepair.
Those are the types of buyers that will come back. I actually had a couple today come to an open house. They had been here months ago when it needed repairs and didn't bite. Now that the "fixing" is done, they're in love with it!)

ok, now what was the question again? lol (sorry. off on a tangent. lol)

Use your judgement about how to approach the other agent/agency. you'll smooth it over.

Well, I'll be watching to see how it goes for you. And DON'T feel like you have to do anything just cause I opened my big mouth. haha. Do your homework and trust your gut.

Good luck!

Rina

I love the idea of approaching past lookers. It needs more repair, because of having to re support the two bedroom apartment over the garage, than most first time home buyers would take on. I know how to fix it. The rest of the house is great and really only needs carpet, paint and kitchen and bath updating. It's almost half an acre on top of a hill. View of a mountain, secluded level backyard. If it had more land( I have a horse) I would love to have it for myself.
I am drawing up battle plans for Monday.
Nothing happens here on Sunday.
Lauri

If you make your bed you lay in it, so make that bed of success that will lead you straight to the TOP!

Do not be scared of this journey as you put on your boots and get ready for the climb.

Im sure as you proceed there will be 'tools that you already have' that will propel you along.

My son, his wife and my granddaughter were here for a couple of days. I haven't seen my 'baby' (he's 22) for a year and it was the first time that I got to see my four and a half month old granddaughter. So cute!
Anyway, we all went to the 10th Street house to meet the contractor.
Now don't get your panties in a bunch. The contractor is the listing agents Dad and the agent brought her ten month old son. That is how it is here.
The contractor impressed me. He seems to know his stuff. I guess I do too in a way. When I first saw this house I really thought that the addition should have had a double block wall and it should be ON the slab, not next to it. He said the same thing and I did not volunteer my thoughts yet. yay
The contractor is meeting with the building inspector on Monday to get his opinion and recommendations before the contractor gives me a repair quote.
I like that he wants to talk with the inspector first. This contractor had some design ideas too. Neat.
Now, if the numbers work, I only need to get funding! That's all.
Lauri

The broker who gives this class wanted ten people to sign up and only got four so she will not be giving the class.
There is an online course I can take but I was hoping for the contacts and commraderie of a class with other people. Plus since this area is so unique it would have been nice to work with people who understand.
Hey! In true DG fashion, I will ask the broker to put me in touch with the other interested parties. Maybe we can have our own little investment club!?

More on the 10th Street house.
As I have said it can be a four bedroom two bath house.
When the contractor and I went through it I kept telling him I need to know if buyers in this area prefer a media room or a dining room. I was only thinking of the bedrooms. Remember this was two full houses. Both with a kitchen. I had an extra room! We can do a four bedroom house with a
media/game/office space AND a dining room! This layout is actually easier because of the need for hallways and access to the rooms and ya know, the flow.

Call rental ads, call investment office and place new ads for my lot.

Weekends here are frustrating because nothing goes on except some kind of festival (360 a year) and church. ugh

Lauri

casually mentions that he has met three people this week who are about to lose their homes. Three people! This week!
Now to be fair the REI is my thing. I told him to get all their info so we can pass them on to Carol.
Any other suggestions? It would be way way easier to find investors where he is (New Jersey) than here. Only problem is his work schedule will not permit very much in the way of hands on stuff. That's why I figured we should pass them on to Carol.
I already pm'd Carol to see what he needs to do.
If anyone has done this will you share the process?
Thanks!
Lauri

Ok he's not a baby. He will be 14 on the 20th.
My son said to me 'so are you going to take the online RE course?'
As you know the local RE class will not be given because not enough people signed up.
I said I'm not sure. I was thinking of spending the money on the Success Academy with Dean's people.
Yes, most people in my life know who Dean is by first name.
My son then said 'He seems like a smart guy. I think you should do that.'
What do think of that?
So, now to convince my husband.
Maybe just tell him Murphy thinks it's a good idea?
That should be enough, right?

More on the house.
The contractor thinks it would cost $20-30,000k to fix the foundation and level the whole house. He didn't feel it would be a money maker. I am waiting for the listing agent to come up with a firm CMA.
I'll keep ya posted.
Lauri

So many people inquired about the class AFTER it was canceled that it is now back on!
It will start October 4th and run through December 13th with a couple of workshops in between.
yay!

I know I'm always complaining about the lack of investors in my immediate area. Secret club? I don't know the secret handshake? Who knows.
Anyway, I was trying to think what a DG'er would do. A real DG person, when given lemons, would make lemon bars or lemon meringue pie, or lemon chicken or something. Notice I did not say lemonade. Too typical. Gotta think outside the box.
So, I called a guy from my REIC who is a RE agent. Remember my club is an hour and a half away and that seems to be my only buyer pool. First I asked him how it would benefit him to give me expired listings. He said the only way was if he gets to list the house at the end. I asked him if he would send me expireds. Without really understanding why I wanted them or what good it would do me, he did! He is basically just trusting me to make something out of them.
In the subject line of the email he wrote 'My model is to be the kind of agent I would want.'
Wow. Powerful words.
Today I will have to figure out what which ones to send letters to.
I am also working on that long long list of hard money lenders that was posted on this site. I am going to post my findings when I am done.
Lauri

We had a local lawyer speak on foreclosures. He is a great speaker. He spoke on short sales not long ago.A lot of people on here like to do lease options. In Alabama there are some sticky points. When you combine the two - rental and purchase option - you change the relationship. You no longer have a 'tenant' who can be evicted in 4-5 weeks for $450bucks. I know, I know! Jealous?
NOW you have someone who has a 'land interest' in the property. If they are non-performing you have to foreclose and do an ejectment.
Messy, long, expensive.
So, you have to do two separate contracts. One for the rental and one for the possible purchase at a later date. You base the purchase contract timeline on what the mortgage broker feels is a reasonable amount of time to fix the credit. We have a great broker in the club.
You are also not allowed to take more than one months rent as a deposit on a rental. In order to get paid up front like, Mr. Murphy says, you need the second contract in place. That contract arranges for a larger deposit, higher than normal rent(I wonder if that is paid separately?) and first refusal to purchase at the end.

One of the members remembered that I find deals all the time but have no backing. Turns out he works ten to twelve hours a day painting cars at a dealership. He has dabbled in REI but can't do both. I said you need a project manager. He agreed and guess who he picked! ME!
So I turned to the agent who sent me the expireds and said we gotta find him a house. The agent agreed. yay
Busy day today, not REI, but I will do some research in between other stuff.
Lauri

Just stopped by to catch up with your REI progress and I think you are doing great. The idea of your husband finding leads in NJ and passing them off to Carol is genious. Its like they say if you just take action things will start to naturally fall into place for you. You were busy with other REI Bactivities and "BooM" you husband casually came through with the good news.

You are definately on your way. I know you are going to be just fine along this journey because whenever you have any doubts or questions you do not wait around, instead you do what it takes to find the answers and take ACTION! You know what Lauri you inspire me and I appreciate you for that. Keep up the good work and I will see you at the TOP!

Best Regards,
Shane

I had to groom today so I haven't had a chance to do REI.
Gotta go.
Be right back.
Lauri

I got a pocket listing.
Some of you may be asking 'what is that?'
Well it means that I have info on a property that is not yet on the MLS.
hah!
So now I gotta see who I can pass it on to.
I will put it in the classifieds on here.
It's a four plex in Huntsville, Alabama if you want to look.
Asking price $124,000. No that's not a typo. RE is very reasonable here. All four are rented for $450 a month.

I really need an example of a letter to send to expired listings. SFH for now.
I will look in the books but I get bogged down reading other things as I am looking for what I need.
Sometimes there is a link to a page on a particular subject. Any help out there?
Hungry.
Lauri

I have a client (listen to me-"I have a client"!) anyway this person is interested in a 112 unit apartment complex. I went up and did a drive by for him about a month ago. I didn't do more because he is a newbie and he is very uncertain. He may just be shy, don't know. I didn't want to waste my time or anyone else's time doing research and then have him not follow through. I sent him an observational report. Never heard back.
Well yesterday he emailed and asked if I had heard anything on that property and another one I thought would be good for him. Surprise.
I called the agent sending me expireds (he is still not convinced) turns out he knows the listing agent for the apartments. Actually they are not currently listed. By coincidence, they are an expired listing! I got lots more info and emailed my client.
So now what? How do I handle such a big deal? Asking price $1,450,000.
This guy is so new I feel he will want me to handle everything. Negotiations, finding a property management company, repair contractors, everything.
What do I charge?
I told him just giving him the property is a flat finders fee but the more work I do would change my fee to a percentage.He didn't ask how much. Good thing 'cause I have no idea.
Rina, I am starting to get that 'caught the pigeon' feeling.
ANY thoughts are anxiously awaited!
Lauri

This is just a draft of my letter to owners of expired listings.
Please feel free to critique or add or subtract anything.

08/19/10

Dear

Hello. My name is Lauri lastname. I am not a real estate agent.
I see that your property had been listed for sale.
If you are still in need of selling I may be able to help.
I find properties for cash buyers. Not only do they pay cash but they like to close quickly, usually thirty days.
I know from personal experience how it feels to be the owner of an expired listing.

If you are not quite ready to relist I would like to offer my services. We can get together for a design and staging consultation. I always notice things that are simple and easy to change that will make your property more marketable to a broader pool of buyers. I am not talking about construction just staging tips that will help a great deal and may result in a quick sale!

Please feel free to contact me if you would like to talk further.

Thank you for your time.

Lauri last name

I removed all of the contact info in order to post. I included only my full name and email and cell phone. No address.
OK?

On another note regarding the 112 unit apt. building.
A woman from their corporate office called. She asked me questions like how I found the property? What contact info was in the listing? Do I really have an interested party looking to buy? What do I want to know and why?
Then she said ok I have your phone number, let me get back to you.
huh?
Shouldn't we be setting up a meeting?
Tell me everything I need to ask her. Please.

currently a mortgage?
utilities paid by owner
utilities paid by tenants
property maintenance
trash disposal
insurance
taxes
vacancy rate
current rents
bedrooms/bathrooms
security
What else?

Lauri