Val's Journal

today I'm back at work... it is so depressing having to get up early knowing I was getting ready to come to my office instead of walking out of my room at the Firesky resort in sunny Scottsdale!!! ahhh, the pool(s) with it's water fall, the patio with the fire pit where I had my first smore (thank you Gina!), chatting with other amazing investors... I cannot wait for the next event!!!

Anyway, I opened my email today to find one from my PM in OH... house #3 is officially rented starting today!!! yeah!!! Rehab was just finished the week before, so I was a bit worried that it was going to sit empty for at least a month! Having an amazing PM... priceless!!!

Also, I closed on a house in MO last Thursday, before I left for the Edge. I refinanced house #3 and borrowed $ from my brother (again!) to buy this one (well, I had to pull out some $ from a cc because the refi check was still in the mail when we closed, but I received it now, so will pay back the cc). This is a partnership deal I'm doing with another DG member, and rehab started yesterday. At the Edge I learned from Matt how to calculate selling price, among other things!, so I'm doing my calcs today to figure out how we're going to sell it once rehab is complete.

Networking is crucial! but you have to do your own work first, you want to create a partnership with other investors, but not be a load on them. And the best way to learn something is by going out and doing something, anything!

The more I do, the busier I get! I am starting to feel the wind beneath my wings... the sky is the limit!

it was so great to meet you at the edge!! you r soooo nice!!! karen said to say hi too!! i have to catch up on what ya got going ...im behind a little:)) next yr we have to all get together a day or so early and do something fun !!!!
talk soon
jay

I am definitely going early next year so that I can hang out at the pool with you and Karen- maybe even doing the hike to Camel Back with Karen-we can make a goal to beat DG's new record time! ... you know, with the girls kicking butt and all

my love to you both-you are such an awesome couple! xx

So glad to see that you had such a great time @ The Edge! So sorry that I missed you guys!

Congrats on #3 rolling!

Let's talk soon. So much to catch up on.

Karen

Yes she is : ): ) always we are going to have to steal her away : )

and you are already flying Val. I can see it: ) Of course we all think of you as an angel so you were already flying in our minds : ): )

I would love to know your action items : ): ) Lets talk hehehe!!!!

Karen and Makeba,

one of these days, soon, we need to get together and celebrate!
Karen, you better not plan anything for next year Edge's weekend! The Ladies' night that Rina coordinated, was really great- even DG himself said that he's noticed that the girls are 'kicking butt' (his words!); so we will have to step it up for next event!
yep, #3 buy and hold done and rented, now working on a flip

Makeba, we have to keep plowing! I know you would like to know my action items, ehem, ehem,...
all I can say is that this year is going to be incredible!

Hi Val
I only saw you from a distance at the girls night meeting, but was very impressed with how earnest you are. Very exciting to think of you, Karen and Makeba getting together, a dynamite team.

I agree that this year is going to be phenomenal. Keep posting in your journal, so we can all keep being inspired and learn from you.

Judi

I did see you at the Ladies' night, and I was hoping to talk to you, but as you noticed, there were so many people there, and so much energy-it was crazy!
I guess we'll just have to go again next year so that we can meet!
I try to keep posting in my journal mostly because I learned so much from other people's journals, and I was so inspired by them, so I try to continue passing on what was given to me; if anyone can learn something from it, or be inspired by it, I am truly touched and honored.

to our success!

man now I know what I missed not being there too but it was just one of those things that it was not meant to be yet. Who knows what next year will bring though. My wife left this morning for dallas to go to school since she cannot find a job here in the area any more and no its not real estate, not one of her things and then the risk as well in it since I have yet to make any thing this has discouraged her so she wants to drive a big rig too like I can.

Shawn

I shall fear no evil as I walk through the valley of Real Estate Investing, no letting the nay sayers stop me from accomplishing this great task along the way to financial freedom they all want.

you have to keep your momentum... write down your goals and look at them every morning when you get up, and every night before you go to sleep.
The good energy at the Edge event is beyond words; it is overwhelming, so many people you want to meet and talk to, so many incredible speakers, so much to learn... you don't want to leave the place, but at the same time you can't wait to get back home so that you can start implementing what you've learned... but ultimately, it is us who have to make things happen. We have to create our own deals, we have to read Dean's books and take action. We have to overcome our own fears that keeps us from succeeding.

I know we will see you at the next Edge! Keep your momentum, don't give in to your fears!

I haven't written in my journal for a while, but I'm still taking action every day...

Since the Edge, I partnered with another DGer on a couple of deals in MO:
we did a 'Knock the Ugly Out of It' deal (if you don't know what this is, watch Greg Murphy, The Edge 2011)where we bought a really ugly house in a good neighborhood, cleaned it up, did a few minor fixes and then sold to another investor; this deal took us about 30 days and we profited 2K each.
We also did a small quick wholesale.
Our third deal is a flip; this is a nice house in a good neighborhood with great schools; with this property we had an unexpected EXPENSIVE problem; if you're reading this, take note: if you ever buy a property to fix and flip, make sure you get a lateral sewer inspection; it costs a couple hundred dlls, but if the lateral sewer needs to be replaced, it can cost you anywhere from 7K to 12K! Because of rehab delays, and expenses, this property didn't turn out to be a good deal, but at least we haven't lost any money on it... and it has been a great learning experience. What has saved us from losing any money on this deal, is the fact that we bought it way below FMV, so even with unforeseen issues, we still had wiggle room in the deal. (if you've read DG's book you know what I mean, you always buy below market value?)
anyway... we currently have this property listed for sale with an agent, and I cannot wait until it sells! hopefully soon!

this is pretty cool... Currently, I have no money to buy any more houses to hold, because all my funds, and then some, are all tied up in the MO property; but being a DG student... I thought to myself, I can't just sit here, and not buy any more properties until I sell the house in MO; I need to figure out a way to buy another property even if I don't have any cash right now...

So, on the eve of my Birthday, I go to Craigslist and look for properties for sale by owners... I found one that is in the area of my other properties in OH; so I sent an email to the owner to inquire about his property.

A day later I receive a response, and after talking to the owner on the phone, I find out that he has been trying to sell his property for at least a year because he moved out of state, and he's overwhelmed with two mortgages; so I asked him if I could assume his loan for a couple of years while I find some $ (basically until the MO property sells); he tells me that he will talk to his banker who is a friend of his and see what they can do...
A few days later, I'm on a 3-way conference call with the banker and the owner, trying to figure out a way for me to take over the loan of the property...
In the meantime I had my handyman do an inspection, and found out that the house is impeccable, rehabbed completely on the inside with only minor repairs needed on the outside.
Well, 24 days later, on Sept 28th, I closed on that property without any of my money!
The day I closed, I put an ad for rent on CL, and I already have a tenant ready to move in this coming Saturday. The rent will cover the mortgage, taxes and insurance...

The owner is relieved to get rid of his 'problem' property, I'm happy to buy a property with none of my money, and the tenant is happy to move into a beautiful, rehabbed property....

A win-win-win deal!

Did you "assume" the mortgage or did you do a sub2. What did the mortgage person say?

Way to make it happen, Girl!

Karen

Cathy - actually, I was trying to just assume the loan; but the banker asked if there was any way that I could come up with the funds to pay off the loan and he would do a 100% refinance... so I borrowed the funds, closed on the purchase and then the refinance the following day; a week later I received the check for the whole amount of the purchase plus the closing costs!

Funny thing happened... AFTER I received the certified check from the bank, I got a call from the bank processor... apparently the document that I had gotten notarized was missing my signature!!!! She told me that she was going to mail it to me, to just sign it and return to her.... whew! luckily, it didn't get caught before they sent me the check

Karen - we have certainly come a long way, but it's only the beginning! and it is so nice to share our struggles and our successes with each other

things are moving forward...

the tenant that was to move in the house in OH on Nov 1st asked me (on October 30th!) if he could move in two weeks later, but wanted me to pro-rate the rent; he said that he wouldn't get paid until then (not a good sign, if they can't pay the first month's rent), so when I said no, he asked for his security deposit back; I put a 'for rent' ad on CL, and within a couple of hours the house was rented to a nice young couple.

I got an offer on the house in MO, and it's currently in escrow

... and I just closed on another property in OH two days ago! it's my first REO, purchased it for $15K, needs about $5K in repairs, ARV is approximately $35K.

If you've watched DG's Weekly Wisdom this week (see link below), where he talks about refinancing properties 100%... well, that is exactly what I've been doing and will do with this property too...so I am proof that it does work!

http://www.deangraziosi.com/content/weekly-wisdom-211-how-get-fmv-loan

Needless to say, I am thankful for everything that I have learned and done in rei since I joined the DG family.

Yesterday was a very stressful day, to say the least... I made an offer on another property in OH, but that's not why my day was stressful... when I came home after work, I noticed that the gardener had been around to mow the grass, and when I went into my home, I noticed that my doggie was missing!! Looked in every room, checked the backyard, but no sign of her! First thing that crossed my mind was to put up some flyers around the neighborhood, but then my sister suggested I put an ad on CL... and so I did... then later in the evening a good samaritan replied to my ad telling me about a doggie that was in a shelter that looked like mine, but it wasn't her, snif snif... I walked the neighborhood, drove around it, knocked on doors, but nothing... I went to sleep thinking about her, wondering if she would be curled up somewhere in the nearby park, or if she would be walking the streets with no direction; I was also hoping that someone would have picked her up since she is a very sweet and friendly little dog, and that at least she'd be inside in a warm place.... I left the backyard gate ajar, just in case... This morning I got up after hardly getting any sleep; I looked out the window in the hopes that she may have found her way home... but her bed was still empty, no sign of her... I was so worried for her... I had to go to my office in the morning and was planning on leaving early to continue searching for my dog; as I was about to start creating some flyers, an email popped up; there was another email from the good samaritan; he suggested that I revise my CL ad to include my phone number; he also provided me with a list of things to do to find your lost dog, including calling the SPCA to find out if they had picked up any dead doggies...needless to say, I don't think I would have had the heart to do that, even though he said that it would give me hope if they said 'no'. His last suggestion on the list was that I check my spam email, so I did... and there was an email, replying to my CL ad; it was from a young woman, claiming that she had found my dog!!! I don't think I had read the entire email as I started dialing the number that was on the screen in front of me; it was early, 7:30am, which I hadn't realized, and I did wake her up, for which I apologized, but she said it was ok... and then she told me that she did indeed have my doggy with her, that I could come pick her up... and so I did, and of course thanked her profusely and also gave her some money as a token of my appreciation. She told me that she was going to put an ad on CL for a 'found' dog, and that's how she saw my ad... My little doggie (Lady, her name is)is now back home with me; we already went out for a hike after I got home from work, and she's had her dinner; and as I look over my shoulder towards where her bed is my living room, there she is, fast asleep as without a care in the world... and I can't be no less than grateful that there are kind people in this world that will help a total stranger... and to CL, because without it, I would have never found my little dog... and so... I have found out that CL has definitely worked for me, both for my rei, and for my lost doggy!

I am so very thankful that Lady is safe! She is such a pretty and sweet dog!

Thank goodness for kind people and Craig!

Karen

being lost, but so glad you found her! I have my first dogs ever in my life and they become so much a part of the family, so I know that must have been stressful. Sorry you had to worry, but again she is back with you now, so I know you are really happy about that!

as you know, it was a very long night... but positive thoughts did help

thanks again for your support! I think tonight I will sleep well...

I also put in an offer today for another property in OH! We'll see if the magic numbers work!

Life is good!

that is very nice that you have your first doggies; they do become part of the family, just like having young kids running around the house, always happy to see you! Enjoy them!

Hi Val, Sorry about your dog. But what a great story!!! It is so painfully heart breaking.
mine past on almost 2 yearsago and I still miss them everyday. Sounds like you are still rockin it in REI!!

Are you going to the EDge?

sorry about your doggies, I had one pass on almost two years ago too... he was 16, a sweet little guy that was my son's companion as he grew up; lots of cherished memories. We actually brought Lady home so that he wouldn't be alone, and as far as I could tell, he did like having her around...

a little over a year ago, when I visited OH to close on my second property, I was driving through a neighborhood with my agent, and when I pointed out some houses that I liked, she told me that those houses were out of my price range; the prices were in the high 50's and above... well, on Wednesday I put in an offer for a reo property in that neighborhood that had been listed for 39K then reduced to 29K and then to 24K within 45 days... today the bank countered my offer and we finally agreed on a price of 21K; the property needs about 4K in repairs, and will rent for min $650 since it's a 4bed/2ba. ARV of property is 45K.
I also had to ask for an extension for closing date, because I will be in England (visiting father-in-law) from February 17 through March 5th; so closing date is now scheduled for March 6th... It seems like every time I have plans to travel somewhere, I have a property closing, seriously... so I need to start booking some more trips!

Life is good, I am blessed!

One more notch in the retirement bedpost!

Karen

Karen,

I don't know if I will ever be able to stop doing rei! It is so much fun!!

... and we have just started... great things ahead for us

I was CERTAINLY not referring to retiring from REI! I meant that other place you go to every Mon-Fri!

Karen

Valerie, time to book some trips around the world, but not all at one time! LOL!

Karen,

you know how much I dislike getting up every morning at 5am to go to work, but every morning, when I start getting bad thoughts in my head, I immediately think of what Carol G. said (DG's book Profit from Real Estate Right Now, p.42-43) and I quote her 'probably the biggest mistake I've made so far is quitting my day job. The reason you don't quit your day job is because then you can't get a loan'.
I feel so blessed that I'm able to follow DG's strategy to buy and hold, and refinance the properties, and then use the money to buy another property. So far, it's working for me!

Tammy, so far I have two other trips planned for this year, so I'm sure I will have a bit of a scheduling conflict with closing again, but that's not stopping me! Also, doing business while traveling within the US is a lot simpler these days, with all the technology available... love it!