Steve and Veronica's Journal

Steve and Veronica's Journal

Steve and Veronica’s Real Estate Journal. I have said in the past, I did not want to post anything on a deal, until the deal closed. I felt that it is not a deal until it is closed. I see so many other DG Family members writing about offers they make trying to get a deal done and I realized that is part of the deal so I should write about our real estate experiences good and bad. I have a lot to say to catch up here with this first post.

We started with real estate back in 1985 my soon to be Father-in-law told me if I wanted to marry his daughter I had to buy a home for her to live in. To save money to buy this house, we built a room in my Father in-law’s garage for me to sleep in. For 6 months, I worked two jobs to save the down payment money. At this time, I did not earn enough money to go with a VA loan and we had to use a FHA loan with my in-laws co-signing. In Jan. of 1986 I bought my first house for 80k at 10.5% interest. Our payment was $850.00 a month.

I had to rent bedrooms out to friends to help pay the mortgage. Then in August of 86 we got married and Veronica moved in. With my wife working and me working two jobs, we still did not make enough money to pay the mortgage without renting to roommates. After a year of living with roommates, we decided to move back to Veronica’s Mom and Dad’s home and rent our house out to one family.

The last day of 1989 we were blessed with a little girl. I was from the Midwest and my wife and I thought it would be better to raise our daughter in Indiana where my family lived at the time. Veronica’s Dad told us he would give us 40k to buy us out of our home after one of his other homes sold. So off to Indiana we went. It took a while for my in-laws home to sell to give us the 40k and we were down to having no money, no job, and bill collectors calling. Veronica went back to California with our daughter to work and help get the house sold. I said I would not move back to California and I could make this work out here. One of my brothers in Northern Indiana said he could get me a job up there in Elkhart. Finely in December of 1990 our home sold Veronica came back to Indiana with our daughter and the money. We were able to get ourselves out of debt.

We moved to Elkhart Indiana and I started working at an aerosol packaging plant as a maintenance mechanic making good money. In 1993 we bought our first no money down home using a VA loan and seller paying all closing cost. It was a great place to raise our daughter but Veronica was getting tired of what she called "12 years of long winters." She wanted to move back to California. We left Indiana in 2002 with 60k from the sale of our home.

In 2002 the prices of homes in California were going through the roof. We bought a 255K home with no money down, again using a VA loan and seller paying all closing. The week after we closed on this house Veronica and I got laid off from our jobs, we worked at the same place. Veronica was able to get a job right away but it was harder to find a job that paid me what I was making as a maintenance mechanic. We still had money in the bank from the sale of our house in Indiana so we knew we would be okay for a month or so. I have worked for over 20 years without taking any unemployment benefits. So I took the school benefits and put myself through a 23 week Sheriff’s Academy. After I completed the Academy I worked as security at a mall until I was hired on at a Sheriff’s department. During this time houses in California were going up in value like crazy about 10k or more each month.

We moved to Northern California and sold our house in 2004 for 410k that was a 155k profit. We paid 17k in commissions to the real estate agent. We still had over 100k in bank. We bought a house in Northern California with 20% down for 385k. Due to not being on the job for 2 years I could not use the VA loan.
In 2005 the area we lived in was hard on Veronica’s allergies and we knew that if we were going to sell it would have to be very quickly because we knew that the housing bubble was about to burst. We sold that house for 399k. We moved closer to Veronica’s work and into a better high school district for our daughter. Again, we felt that the housing bubble was about to burst so we rented a home for the next three years. The house we rented was close to the high school which was convenient.

In 2006 we started watching Dean’s programs on TV and Veronica read Rich Dad Poor Dad. Veronica told me we needed to start buying homes and renting them out. By 2007 we had been to a 3 day class by Rich Dad but we did not want to pay the 24k-40k they wanted for their advanced training classes.
Veronica knew my Mom and Dad had never owned their own home and were great renters. Homes in the Vermillion County area of Illinois were not affected by the housing market like California was. We bought a house to rent to my Mom and Dad and in 2007 you could buy a house with no money down using a 80/20 loan. 80% on the first mortgage and 20% on the 2nd. We wanted my Mom and Dad to have a nice house to live in that they could feel that it was their own. My Dad takes better care of rentals houses than most homeowners.

In 2008 I bought the book Be A Real Estate Millionaire by Dean Graziosi. We paid $ 495.00 for a 3 day class by Rich Dad. Dean’s book cost $24.95 at the bookstore and had better information on real estate investing than the 3 day class we paid $495.00 for.
In the spring of 2008 our daughter graduated from high school and we felt it was time to buy a primary home for us again. Using Dean’s techniques we bought an REO home that previously sold for 655k we got it for 365k no money down with the seller paying 4% toward all closing cost and enough money left over to buy down the loan. The home was built in 2003 so it was only 5 years old plus it was a 4060 sq ft. We did not need a 4000 sq ft home but all the other homes in the area were smaller needed more work and were priced higher. This house was vacant for a year. The fence in the back yard was down from a windstorm and the neighbor's big dog had left big messes all over the back yard. So we told our realtor to request additonal money form the seller for for repairs. The REO bank said they would give us 1k for repairs in addition to having the fence repaired before closing. All the things Dean says to ask for on a deal the bank was saying yes to. We walked out of closing with so much money we had to have the seller put ther rest of the funds into an escrow account. I guess the seller cannot directly give money to the buyer at closing. However, we did get a check for over 1k at closing and the remainder was placed in an impound account wich was applied to insurance and taxes. Thanks Dean.

In August of 2009 we joined the Success Academy. The On Demand classes are great and the Coaching staff is terrific. We were on fire to get our real estate business going so now we opened a LLC and started making offers. We started with a duplex in the small town of Covington IN...FSBO. I have a sister that lives in that town and she looked at the property for us. The owner did not want to do seller financing so we talked to a small town bank about a loan. The bank said they would consider making a loan to us and needed a purchase agreement. The sellers were asking 38k for the duplex. We sent the sellers a purchase agreement that we printed from this DG site. We gave the seller 5 days to respond. The 5 days went by and we had not heard back from the seller. I called the seller and was only able to leave a message. Since there was no response to our voice mail my wife and I decided to move on to other deals. The seller called us back about ten days later saying she wanted a different contract. I had to tell her we have moved on from this deal. So we did not get that house. It was a duplex, one bed one bath each which had rental income of $550.00 a month together. After the mortgage payment it would cash flow around $150-200 a month. But we did not get this one.

We started working on a two home deal in Danville IL for 34k. I had my Dad go with the realtor to look at the houses for us. Remember we live in California. So my Dad said with a little work they would be good rentals. Both houses were two bed one bath homes that would rent for about $400.00 a month each. We had the down payment money and we wer talking to banks for the rest of funds. We got to the end of the time frame for the loan contingency and all the banks said our debt to income ratio was to high. That crushed us. ( Don’t let this happen to anyone of you reading this post.) We dropped out of the hunt for a deal for a few months.

We tried to see if the stock market would give us the capital to buy homes out right. That did not work out so well.

We refinanced our primary home and dropped our payment by $400.00 a month. I bought the book Profit from Real Estate Right Now. We were back in the game but I wanted to study the classes put on by the Academy and maybe get out of our comfort zone and try something else than just buy and hold. We bought the book Your Town Your Real Estate Profits and we are on fire again making this real estate business work.

I was talking to some coworker of mine about real estate and they said they would be willing to partner up for some deals. This was in May of 2010. We looked at a lot of houses and agreed to go for a house listed for 60k it is the worst looking property in the area in this part of California. The other houses in the area were selling for 150k. It was a two bedroom with one bath on a third of an acre lot. We put an offer in for 55k with the seller paying closing cost. The seller countered with 58k and we said OK. The bank we were working with told us they could not give a loan on this house due to a report of mold. We were dead in the water. We talked to a few so-called Hard Money Loan people and they wanted 30 to 40% down telling us there is no hard money 100% financing. Well with the mold issue which, in my opinion was not that bad we still decided to move on.

A few days later our agent called us and asked if we still wanted that house. The bank was willing to pay $2,100.00 for mold abatement if we would pay 60k for the house. It was worth it to us if the bank could give us something in writing that the mold was removed, so we said yes. Now our partner on this deal moved on to another deal so he would not be able to go through on this deal with us. Veronica and I decided to do the deal on our own. After the inspection report, we felt that there was too much work to be done to this house. The kicker was that the person the bank sent out to remove the mold ended up just wiping the walls down with bleach and not producing a clearance report for the removal of the mold. We countered with a 55k offer with a contingency that the house would appraise at 55k. The bank said no so we exercised one of our exit clauses ad canceled escrow. I just received information that we would get our earnest money back as I am writing this post. There are a lot of deals out there so we know that we don’t have to settle on just one house.

We now have the Set for Life program and are going to try some wholesale deals.

Sorry this was so long but we had to do a lot of catching up.

Steve and Veronica


Linda

Thank you Linda for the information.

Steve


12/17/10

I have to say that this last week has been hard to respond to post here on the DG site. There have been so many fake people posting you do not know who to believe or not. In the past I have been so positive wanting to help everyone when I can but this last scandel with the manny paul jimmy mike mlap stuff just took the wind out of my DG sale.

I hope all the real investors and students here on this DG site continue to have great success.

Steve.


Steve

me too. i know exactly what you are saying. one thing i have started doing now is looking for more information. thanks to you and others i'm much more cautious now; i'm usually pretty trusting. i have made some great friends on here though so i will continue to post and try to be more careful at the same time.

you and Veronica are doing so well. i'm so happy for you.

__________________

Linda, Army EOD Mom
you can follow my journal at http://www.deangraziosi.com/real-estate-forums/investing-journals/45351/...
IT'S ALL GOOD AND EVERYTHING IS WORKING OUT PERFECTLY FOR ME!
Fear equals:
False
Evidence
Appearing
Real


Thank you Linda

For your responce. Yes there are a lot more good people here on DG.com than the bad ones.

Take care Linda and stay warm.

Steve.


Well now they are gone!

At least they are gone under those names. We will just have to be careful. They can always reappear under another alias.

Karen

__________________

"You're never too old to be what you were meant to be!"

www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...

"Shining Like a Star & Dancing on Sunshine"

"Shoot for the moon! Even if you fall short, you'll still land among the stars!"


Karen

Yes Karen you are right.

Thanks for responding.

Have a great day.

Steve


Hello Steve & Veronica How

Hello Steve & Veronica

How are you guys today? Seems like you can hold your own, despite all the deception floating around.Keep up the faith.

I think there are another one on one of Joe's threads about the banks all selling the same site.


Jim

Thanks Jim. We are doing OK thanks for asking. I watched Dean's blog and it always brings me back up.

I hope you are doing well also.

Steve


12/21/10

Up date on this Indiana deal. I just received information from the small town bank we are working with that this house that we bought for 15k appraised for 61k.

We have put about 20k into it for repairs but we are very happy for the appraisal coming in at 61k. I know this may not look like a lot of money to some here on this site but it is a big deal to us. We can take out a loan for 80% of 61k and that mortgage will be covered by the rent payment from our renters plus cashflow monthly. In my book that is a good deal.

This is a no season loan.

Steve and Veronica.

__________________


Steve and Veronica

sounds good to me!!! congrats and Merry Christmas!

__________________

Linda, Army EOD Mom
you can follow my journal at http://www.deangraziosi.com/real-estate-forums/investing-journals/45351/...
IT'S ALL GOOD AND EVERYTHING IS WORKING OUT PERFECTLY FOR ME!
Fear equals:
False
Evidence
Appearing
Real


Linda

Thanks and Merry Christmas to you and your Family.

Steve.


Steve,

...We got more snow in the Midwest. It is just in time to celebrate the Bears clinching the NFC Central Division. Christmas came early in Chicago. Have a great week. Believe and Achieve! Smiling - Joe

__________________

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Joe

Thanks for stopping by. What a great game and season for the Bears so far.

I have talked to my family out there and they said they have received a lot of snow.

We have been getting a lot of rain here. We will have a wet Christmas.

Merry Chistmas Joe and Family.

Steve


Steve,

...We have close to a foot on the ground and they are forecasting a White Christmas. It will be Bear's weather as the NY Jets visit the Bears at Soldier Field on Sunday for the final regular season game. I am glad to see playoff football in Chicago again as my hopes are for a trip for the Bears to "shuffle" all the way to the Super Bowl! It's hard to believe 1985 was 25 years ago! (I feel a little old or time just went by too fast) We wish you and your family a very Merry Christmas and a happy, healthy and prosperous New Year! Believe and Achieve! Smiling Your friends, - Joe and Stacey

__________________

YOU TUBE CHANNEL - Follow me on my You Tube Channel at Joe Jurek Real Estate Investing Adventures
https://www.youtube.com/channel/UCiko62V79zLKX_owbirAYNA

TWITTER - Follow me on Twitter at Joe Jurek CPA
Joe Jurek CPA
https://twitter.com/JoeJurekCPA


Steve and Veronica

Merry Christmas and the Happiest of New Years!

Karen

__________________

"You're never too old to be what you were meant to be!"

www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...

"Shining Like a Star & Dancing on Sunshine"

"Shoot for the moon! Even if you fall short, you'll still land among the stars!"


Steve & Veronica Just wanted

Steve & Veronica

Just wanted to wish you guys and your family a safe,and Merry Christmas.

And look forward to a great 2011


Karen and Jim

Merry Christmas and lets make 2011 the best year for REI.

Merry Christmas to everyone that reads our journal.

Steve and Veronica.


Hi you guys!

Glad to hear you got your refi done an and your renter in! Smiling The key is to screen well, call references, have someone check their current residence, and call the local police station(s) to see if there were any reports about their previous address. Another good trick to finding a good tenant is to see how honest they were on their application vs the accounts listed on their credit and what they did and didn't reveal. The other thing I do is run ratios much like the banks do, only much more lenient.

I've always gotten great tenants using those techniques! Laughing out loud

Great going!

Wishing you the best in 2011 and many more deals!

__________________

Come and see my video! SEND ME AWAY 2011 WINNER!!!! http://www.deansmedia.com/play.php?vid=243
Follow my JOURNAL (journey) here: http://www.deangraziosi.com/real-estate-forums/investing-journals/99510/...
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“The way to get started is to STOP talking and to begin DOING!!!" ~Walt Disney
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SUCCESSFUL PEOPLE DO IT WITH A HEADACHE! (~Dean Graziosi)


Thanks Tammy

For the info. We hope you have a great New Year.

Steve and Veronica.


12/30/10

W are still waiting on the closing of our refi on the Indiana house. All the work has been completed. Now we hope we can get a good renter in the house. We have lost some renters due to how long it took to finish some of the work. We have been looking at a lot of applacations with some renters not able to pay $500.00 a month. We will wait to get the right renter in there.

If you want to put a face to our name you can watch our send me away video in Dean's media. The link is at the bottom of this post. It is only of this mug Veronica had to work the day I took the video.

Steve


Hi Steve & Veronica How are

Hi Steve & Veronica

How are you guys doing, hope all is well. Steve you should have let veronica do the video,I know she's better looking then you.

You Guys have a safe and happy NEW YEARS And I'll drop by again next year.


Steve and Veronica

I cked out your video. Good job!

Keep up the good work. I'm sure you will. You have been bitten by the RE bug!!

If you get a chance, stop by my journal. Always good to have some new visitors.

Karen

__________________

"You're never too old to be what you were meant to be!"

www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...

"Shining Like a Star & Dancing on Sunshine"

"Shoot for the moon! Even if you fall short, you'll still land among the stars!"


James

you are right about Veronica.

Happy New Year.

Steve


Karen

Thanks for stopping by ans checking out our video. I will stop by your journal soon.

Take care and God bless. Have a Happy New Year.

Steve


1/04/11

Well the new year is here. We want to pick up 5 more properties this year and if we get more great.

Here is to 2011

God Bless everyone.

Steve and Veronica.


1/05/11

One bad thing about working with a small town bank it seems that they work a little slower than the big banks. The wait on our loan is killing me. It will be worth it when it is all done.

Looking foreward to the 2011 Edge Event in May. We will be there.

We hope everyone in DG land is doing well.

Steve.


01/07/11

I don't know about everyone out there but I think it is fun just looking at houses trying to fined the next great deal.

I hope everyone is doing well in thier REI hunt.

Steve.


Steve & Veronica I'm the

Steve & Veronica

I'm the same way, I looked at 9 yesterday and three this morning. Tried to put offers in on two but was to late. You guys have a nice weekend.


Jim

Thanks for the nice weekend same to you. My weekend will start on Sunday I have to work every other Saturday. I only have about 3 hours left on my shift at the time of this post.

Steve.


steve and veronica

checked out your video,it was great !! when you share what you have so passionately learned and taken action with,you inspire others to take the same action and get the same results !! I hope all your deals bring the joy of learning re to you as the very first one did !! keep pulling and the next deal will fall right in your lap.............way to go steve and veronica !!
jay

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need to sell ? http://www.jayhousebuyers.com
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