Chris McPherson's Journal

I haven't posted for awhile as I don't feel I've progressed and feel a little embarrassed. It's not through lack of trying and effort but I feel I've been neglecting my Success Academy Action items became a little lost in it all. Did I bite off more than I could chew? Should I have spent money setting up an LLC? The doubts came back to haunt me. It felt like my progression was at a stand still which is frustrating. I need to look at properties 300 miles away to evaluate which kept me stagnant. I live in a multi unit brownstone which is for sale so it's vacant apart from our apartment so I got the landlord to let me into the other apartments to practice evaluating property. Small step forward but at least its something We've hit the 'busy period' at work which has sucked me back into the everyday routine a little. So, I went back a few steps in the Academy which helped to clear a path for my next step. I think I wanted things to happen so fast that I forgot the process and went a little off the rails so I'm glad the Success Academy is available. The market in NYC is super competitive so I've after re-evaluating am looking in other areas within a days driving distance and have appointments to look at properties in Pennsylvania next Monday. For some reason this gives me butterflies in my stomach but it's the next step for me to do my first deal. Unfortunately my business credit card was rejected due all expenses so far going on my personal card so I chatted with the bank, explained the situation and they're trying to reverse it. I found a great bank that has no seasoning for refi and applied for pre qualification but was rejected due to my small credit history. Being a non-resident is an obstacle but one I feel I can get around. I asked my girlfriend if she would mind me using her credit as an option. I'm also looking for hard money lenders as a way around this. Where there's a will there's a way. I live in a multi unit brownstone which is for sale so it's vacant apart from our apartment so I got the landlord to let me into the other apartments to practice evaluating property. Small step forward but at least its something I have found 4 properties to focus on and have done comparable sales and market calculation - once again, small progression but progress! I'm a little anxious that being a newbie to this the agent won't feel as though I'm wasting her time.
It's great to read through others journals and see people progress through challenges and come out the other side successful which is motivating. Hopefully I'll have more progression news with my next post.

Woke up at 6.00AM Monday and drove 4 hours to Pennsylvania to meet with my agent for the first time. Couldn't sleep the night before as I was anxious. Got a call along the way from my landlord to tell me they had sold our building and we have to be out in 2 weeks - ironic! Met the agent and headed to the first property to take notes. The owners were home which added to my nerves but it was great to finally move forward on the action item that has been pinned to my notice board for weeks! We looked at 5 properties overall, 2 with potential. One is a short sale which would need more research into how that works. Turns out that the agent was very new at this only getting her license a few months ago so a pro and a con on that. Pro she is happy to learn whatever and con that she hasn't dealt with investors before. Still, I felt comfortable with her. Spent the rest of the afternoon driving around the town to get a feel of it and to see which areas most of the college kids reside. I have it down to a four block radius which should give more focus. My agent took me to a row house they had for sale and noticed the FSBO sign next door. Took down the number and will call tonight to find out the deal.

Nice last name! Have you read Randy's Journal? His way of buying properties "subject to" check it out if you haven't done so. Great inspiration & motivation...
Good Luck,
Barbara

Thanks for the tip on the 'subject to' technique. I'll definitely be doing some more research on that. Any recommendations of books on the subject?

Up early today to determine the repair costs for the properties I viewed on the weekend. They went from minimal to plenty so it'll be a good learning exercise. I will learn to use Hammer Point function in SFL too get an list of repairs. My agent said she had plenty of contractor contacts in the area which is a good starting point.

I went through as many FSBO ads last night and called them all to get the hand of asking questions and to build my confidence. I spoke to a guy selling his house in NJ that he has renovated. Doesn't need any repairs and he wants $94,000 for it but is flexible. He mentioned he has had a lot of enquiries for Rent to Own but he just wants to sell it to move onto another property so I'm going to do some comps for the area and start to market there for Rent to Own. I haven't really thought about lease options but if it can work it can't hurt to dig deeper to find out.

I received a call from my mortgage broker last night who said I had been pre approved - I nearly fell off my chair as the previous 3 had said my lack of credit history and that I'm a non-resident held back my chances. One told me to buy my own place, wait a year then leverage against it. I thought about it but I don't want to wait a year to begin. So I have pre approval but want to work out how to do these deals with no money down.

I received another call from an agent who saw one of my ads on CL asking if I had any multi-unit properties in Brooklyn as he has 5 or 6 keen buyers that are hungry to purchase. Being a newbie I want to start small but if the market is there I should explore it so I told him that I don't have any right now but am always looking. He emailed me his info so now I'm looking for Multi-Units. Living in a multi unit myself that has been for sale I have a constant stream of contacts being left at my door step, contractors, agents, etc so I have kept all their info and will offer an incentive if they provide me with leads to multi unit properties that lead to a deal. There's loads of construction going on in the area.

I could go on but need to knuckle down and get these repair comps done before heading to work today -

Have a great day!

Last nights conference call was just the kick in the pants I needed after a sluggish start to the new year. Life "sucked me back in" as Dean says but listening to Matt speak last night was a great spark.
Out of bed early this morning to find buyers in Philly and Williamsport. I'm trying a new approach and have contacted the 'for rent' ads. Sent out about 30 emails so hopefully we can get this ball rolling again.

Now to complete the action items of the 'property inspection' class from the RE Academy.

To this? Did you get any properties or ? Thanks for your posts ~ it's great to see your progress.

Thanks for dropping by. I put in an offer on a section 8 property. The numbers worked but unfortunately the bank was structuring a deal with the current tenants to make it more affordable for them. They were a large family and took great care of the house so hopefully they managed to become home owners themselves.

The search continues!

Long time between posts but I've been reading up, learning and working everyday to get my first deal done. Moving house a couple of months ago I noticed a deserted Brownstone on my street which has been vacant ever since so I found the owner from the court house files and gave him a call to see what was up. Turns out he has owned it for some time and wants to sell it. It needs a complete rehab but it's in a great neighborhood and he has offered to give me 3% if I can find a buyer for it. One of my buyers stood me up when we arranged to see it and have another coming to look at it tomorrow. If anything I'm making some great contacts. The owner is a contractor in the area and has many properties here. Hopefully some good news tomorrow

Turns out the client coming to view the property is a good friend I my brothers that I was talking to only last week about Deans program and what I'm doing. In a city the size of New York that's just freaky! He was interested but it's his first purchase and I think the building required scared him a little. I ran an add in the local paper out in PA looking for sellers and got a call immediately from an older gent wanting to retire. It's a double asking 65K in a small town rented out for $350 each side. I need practice making offers so after running some numbers called him back and offered $40K. He has only just began trying to sell the place so didn't go for it. Contacted a new agent and he sent me a great little short sale for $50K. Valued at $36K so I offered $20 but the owner is too far upside down. Finally getting the confidence to make offers!

Focussing on marketing this week, getting into a routine. CL and local papers. I've had a few responses FSBO, particularly the print ad so will continue with these ads. Had a seller with a reverse mortgage of 380,000 with a property valued at 280,000. Wanted 50,000 under the table and 180,000 on paper. All a little confusing to me so called the coaches for some clarification and need to get in contact with a professional in Reverse Mortgages. The fact that he requested 'under the table' money seems suspect to me. Really want to finish Deans 3rd book this week!

Cheers,

I've started this journal up again to keep me focused and on track after a hiatus.

Bandit signs have arrived so I will put these out and see how they go. A little concerned about the legality of it but have decided to put them after Friday night and collect Sunday night. Haven't had much response from the title companies re: double closing so I'm going to contact the transactional funding company today to get referrals for who they use. I was told by one company it must be 'simultaneous closing' to be considered legal. Still waiting on the banks reply to my offer - it's been over 3 weeks now which is a little frustrating but gives me time to get things organized if it goes ahead.

Keep moving forward