OfflineHello DG family! Well, I've been working multiple deals at the same time, and was going along quite well, but such as it goes with Southern CA real estate, something always comes up.
First property I am working on I've wholesaled 15 times. But the issue is always the same. So I looked into it, after ALREADY looking into it, and the city changed up their requirements for parking. So, this property I'm trying to find a solution to the lack of ability to put in the city required parking that the city told me PRIOR I could use part of the yard for. That all changed. So working on a solution for that one.
Fighting a title issue on another property.
Another one I had wholesaled for $27K; sold it subject to it being vacant. Well the step son who's living there (his mom passed and he doesn't get along with his step dad), after promising to move out in exchange for $2K, at closing time he refused to leave. He reasoned if we'd give him 2K, we'd give him 10K. Well, we didn't know where THAT would end, so I canceled my contract and got my EMD back.
Another one I'm awaiting court confirmation on a probate.
5th one is an out of state deal that we are looking for a buyer on.
6th one I had wholesaled for $60K. This one the husband passed away. I collected a$10K NON REFUNDABLE deposit. They did their due diligence and we changed it from a double close to adding him to the contract and selling our interest in the property. I made a HUGE mistake on this one. I'm SO accustomed to putting in offers on REOs and Short Sales, that I missed that this offer didn't have and/or assigns on it. The agent refused to amend the contract with 4 little words 'this contract is assignable'. I made a major ROOKIE mistake.
So, this guy wastes down my contract until closing time, it comes time to fund and he demands that I cut my fee to $30K and that what I'm doing is completely illegal. Oh brother, not even and agent; another investor saying this. Well, I know I'm not doing anything illegal, but this guy was using hard money and the hard money guy CONVINCED him what I'm doing is illegal. I was paying another investor $10K on this deal for bringing in the buyer; and told him and the buyer I would only wholesale this one if its worth my while. Meanwhile, I had a backup plan in place to close this one with a partner and share profits 50/50, I do the work (VERY VERY minor work, not even really a rehab), and we'd share profits.
He pays 100% of all costs. First years insurance. Initial taxes, closing costs. Supplies and material. Labor. $0 of my own money. $0!!! So, this deal is already smoking without doing ANYTHING to it. My contract is $385K with a $5K credit for repairs. So I bought the property for $380K. Its value, as it sits right now, without doing ANYTHING to it, is $650K. It is a 5 plex fully rented, but its been mismanaged. Rents are all at $900/unit and should be at $1200/unit. The owner was paying all gas and electric even though there are separate meters. So, what I'm going to do is make it perform much better than it is and raise the CAP rate from its current 8%.
Then I should be able to sell it for $750K-$900K. And so, I told the guy buying it to go fly a kite, he was a complete A Hole, I gave him back his money anyways, and I have a smoking deal of my own. (In CA we have to have the monies put into escrow and its illegal to keep a deposit without a great fight.
Rehab will be no more than $20K max, and that's if I go all out crazy and encounter every possible problem known.
On to the next!
Anything you put your mind to, you will SUCCCEED at!
Lessons to take to heart: Always have a backup plan! DON'T let people bully you around because they think you're 'just a girl' 
! Don't let people take advantage of you. Choose your battles. (I could have fought to keep that non refundable deposit... but what price of stress and time?) NETWORK. Find partners and private lenders so you have many options available for any given situation. 
Dean students are really on the ball now doing those great deals.
GOOD JOB!!!
Do not let no one stop you from knowing more knowledge and initiative.
Congrats on this deal Tammy! I am starting to recognize your and Michael's posts from the titles alone
Def sounds like the buyer was a loser, glad you push through and decided to keep it.
Lenee
www.allstarhouses.com
~Act successful! And you'll draw it to you.~
~Every achievement, big or small, begins in your mind. It starts as a thought.~
Way to go Tammy!!!!
That was a lot for me the newbie to follow but I get it. Good for you!!!
Karin
Hi Tammy,
Congrats......WTG.......Thank you for posting these deals, I like the way you took the time to break them down for us....
......we can ALL learn from these deals.
As I said before.....it bares repeating......The DG Family knows more than Brokers, and Agents....
We will never be pushed around........We Are Women.....We are Strong......Hear Us Roar ( than get out of our way).......
......
Regards,
Sharon
Life Hands You Lemons.......Make Lemonade......
It was once said, “religion is designed to comfort the afflicted and to afflict the comfortable.”
Oh what can I say, Jim ( isnt life fun)
jbischoff
I tell you, nothing is cut, dry and easy. But I still persist anyways. That is how to succeed! Thank you everyone!
Keep your goals in sight and you will achieve them. I've had 'own a commercial property' on my goal list for the past 3 years. I said I would attain the goal in June 2014. So, I'm a year early.
=D
Do you have any private lenders you can refer?
I Exist. I Am That I Am. I Know That I Know.
Well done, Tammy. I like your spark. I like your can do attitude. I like your successes in Southern California. You absolutely did the right thing by returning the nonrefundable for two reasons, actually three. First and foremost you found this person to be an absolute idiot and not worth working with. Second, as you said: Choose your battles. Third, you took the high road with a person who showed himself to be disreputable, but if you had fought it, you may have been the person who got the reputation for being hard to work with, instead of him.
By the way, I live and work with a number of strong women like you and I say You Go, Girl. You are making it happen and I am a huge fan of yours. You deserve all kinds of accolades for your persistence and positive attitude. Keep going.
With appreciation,
Patrick
Way to go, Tammy! There's just no stopping ya.
Tammy,
I love your tag line:
"Anything you put your mind to, you will SUCCCEED at!"
You are doing such a great job with all of your projects. Every project is different which means you have to be flexible but you are rolling with the punches and are really making things happen. You are not waiting for things to happen. That's great to see.
This commercial deal looks like a great windfall. Can't wait to see how it turns out.
Chris
"Faith is the eternal elixir which gives life, power, and action to the impulse of thought.
"Faith is the starting point of all accumulation of riches!"
- Napoleon Hill, Think and Grow Rich
Tammy, I saw you at the Edge event and have been noticing you since then. You are really doing well in a difficult market. You have put together some amazing deals. I talk with a lot of students in your area about one of your last deals where you made 100K. You are really an inspiration for me and for others, and the consistency of deals is what makes you a great investor.
I look forward to seeing your success. Great job.
Mikessler
I always say Keep Moving Forward! Never Give Up On Your Dreams!
As Matt Larsen says "Feed the Need" - Edge 2013
Follow my daily investing journal and read about the deals I've done and am working on at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/117493...
This deal definitely put me over the top. I am finishing up the rehab this week. EXACTLY one month! I DID IT!!!!
Check you out! Seems like a great deal, and the drama just makes it that much Sweeter!!
I know if I keep at it, I'll hit some bigger pay days.
Keep inspiring us Tammy!
John
Quitters NEVER win - Winners NEVER quit!
"P.U.S.H. = Persevere Until Something Happens" Dean
“Opportunity is missed by most people because it is dressed in overalls and looks like work.” Thomas A. Edison
Check out my Road to Redemption journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/88171/...
www.windfall-properties.com
I tell ya real estate is building stories for you that you'll be telling for a rest of your life. Thanks for sharing the info on having a backup plan. That and the way you laid everything out is one heck of a golden nugget for all of us DGers!
Moving forward daily will get you to your goals!
"You become what you study" - RTK Rich Dad Poor Dad
http://bulkassets.com
Yes, if you persist, you will DO IT! I have so many that don't work out that I don't post about. But; hard work and persistence always prevails!
Harry Thank you! It isn't easy; but it is getting easier and more seamless. Even with all the crazy stories.
Did I ever share about the time I went to see a house and the seller (a guy), who made an appointment with me so he knew I was coming, answered the door in a towel and then dropped his towel in front of me (yes, hew was buck naked). Does that ever happen to anyone else??? LOL That one's from a long, long time ago. But just one of my MANY adventures in real estate.
I love reading your post! LOL. You seem to have problems that come about when doing a deal. But guess what?........YOU ALWAYS MAKE IT HAPPEN one way or another. I LOOOOVE A SOLDIER LIKE THAT! You go girl. Keep fighting. Congrats!
To get something you've NEVER HAD
DO something you've NEVER DONE.
The best part of doing this is that I can inspire others and PROVE it works. There is no better feeling than knowing I helped someone. I want to be a teacher for others, its a deep part of my why.