Deal # 6 - Bank Provides 100% Financing on REO!....Dean Graziosi’s books, website and information made this happen!

Deal # 6 - Bank Provides 100% Financing on REO!....Dean Graziosi’s books, website and information made this happen!

Hello DG Members,

On May 7, 2009, I started the following thread “Getting a bank to Finance an REO!”

This can be found at:
http://www.deangraziosi.com/real-estate-forums/my-deals/20527/getting-ba...

The old saying of patience is a virtue is so true. I posted my story starting on May 7th, and I remember it like yesterday. We were so pumped up from Dean’s Live Gain the Edge Event 09 that we were on a mission to get on the path to success and financial freedom. On the 4 hour flight home from Dean’s Edge event, my wife and I made an action plan list of everything we needed to do. My list included the following action item “contact at least 3 local banks and inquire about REOs”. Thus, that is exactly what I began to do.

I found a local area bank that had a 4 bedroom 2 full bath single family home with an attic, basement, fenced in yard and a two car garage. I looked at the property and drove away thinking about what Dean would do in this situation. The bank was motivated and the asset on their books was really a liability to the bank. Thus, I did some research and presented an offer requesting 100% bank financing and an additional request forthe bank to provide to me $10,000 in cash to complete cosmetic repairs. The bank was asking $120,000 for the home.

I did not provide a firm set offer amount to the bank. I stated that I wanted to create a win-win transaction for both parties and I could either offer a higher purchase price with great terms or a lower purchase price with good terms. The choice was up to the bank. I did not hear anything back until June 4th and the Bank President indicated he was busy and apologized for not returning my call earlier. They offered me the home for $115k with no additional $10,000 in cash for cosmetic work that I requested and an interest rate of 7.25%.

I fell off my chair thinking this deal may actually be 100% financed, but I still wanted the home to have a positive cash flow. I ran my own numbers comparing change in interest rate to purchase price and the amount that would be paid over time. Thus, I wanted a lower interest rate. I contacted the bank and expressed my gratitude for their counter offer but I still presented an argument about homes in the area, the sluggish economy and home sales, and a recap of the monthly expenses I believed the bank was paying each month to keep the REO home. I stated that I still wanted to create a win-win transaction for both parties and I could either offer a higher purchase price with great terms or a lower purchase price with good terms. The choice was up to the bank, but I was unable to offer a high purchase price with bad terms (high interest rate). Thus, I cut to the chase and stated if they would not provide the cash at closing for $10,000 for cosmetic repairs then I would only offer $94,000 with a rate close to the "prime rate" and I desired the rate to be fixed for at least 5 years and each 5 year block the rate would be tied to an amount slightly higher than the prime rate. The prime rate at the time was 3.25%. I also requested that my first payment would not be due to the bank until 60 days after closing because I wanted ample time to complete the cosmetic work and secure a renter for the property.

To my disbelief, that is exactly what we received. A purchase price of $94k (this amount with probably be $88k after the credit for property taxes) and a fixed interest rate of 4.5% for the first 5 years and the mortgage would be amortized over 30 years with the first payment due 60 days after closing. I still can not believe it! We are ordinary people achieving extraordinary things thanks to Dean Graziosi! His books, programs and website is what provided the knowledge, direction and inspiration we needed to succeed.

I want everyone to know that they can do this too! That is why I am providing the amount of detail to help you in your local area do the same type of deal! Dean, thank you for all your inspiring guidance and we really appreciate all the inspiring members on the DG website too! Good luck on all your deals! Believe and Achieve! Smiling - Joe and Stacey

------------------------------------------------
"I am naive enough to think that I can do my part in helping change the world, and if that's a bad thing, then, so be it, the Question is....who's coming with me?"
- Dean Graziosi

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Wow!!

All I can say is WOW! This is awesome. You are doing amazing! Bank providing 100% financing???? Does it get any better? That is just so great. Keep on pushing and impressing us all.

Jeremy

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Joe

Thats awesome and wish you the best !

Paul


Congrats Guys

you are doing realy great. I am glad to have met you and I wish you uys all the best

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amen Anita

Smiling

P


Thats an awesome deal Joe

Thats an awesome deal Joe and Stacey congratulations! Good job at sticking with it and being firm...the investor has the upper hand in REOs!


Way to Go

That sounds awesome.
I just completed reading my first book. now on to the 2nd. When I tell Friends they look at me like I got 2 heads lol. I will except no excuses because nothing ventured/ nothing gained. That sounds like you took control of (fear of the unknown) instead of it controlling you.
So Gratz to the both of you. Smiling


Jeremy,

Thanks for the congrats and nice comments. I feel with Dean's books and information anything is possible. Thanks again and continue success with all your real estate deals. Believe and Achieve! Smiling - Joe

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Paul,

Thanks for the kind words and congrats. We really appreciate the support of all the DG Members. The website has helped us in so many ways and we are so excited to share our progress with everyone. Good luck on all your real estate deals. Believe and Achieve! Smiling - Joe

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Anita,

Thanks so much for the nice comments. I can't believe it was around 2 short months ago we were sitting at the meet and greet the night before the start of Dean's Gain the Edge 09 live event and we met and talked. Thanks again for the words of encouragement and inspiring us to be a part of the DG website community. Continued success on all your real estate deals. Believe and Achieve! Smiling - Joe & Stacey

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Amazing!

I can believe it Joe! Your Amazing! Your pesistancy, your motivation, your willingness to help others along the way! I can believe it! Congratulation's, you desrve it. You believed, You Acheived! I'm so happy for you. Go Joe! Continued success to you and family always..........Lubertha

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Thats whats up!!

Stories like yours inspire me so much...I cant wait until I have a success story to the extent of yours. Keep up the good work.

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"People Build People"


What a hoot!

Joe! You're the bomb.com! Such an inspiration. Thanks for sharing!
All the best, Kara


way to go joe!...

That is awesome that you stuck it to the bank and told them what you wanted and stood firm. Were all excited for you joe!

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you never know until you find out...


Great job Joe with the home

Great job Joe with the home and I think it's just like a good game of poker. You adjusted yourself to make the deal work without walking away and the payoff was great.

By the way are you doing all that work yourself on the property?

You really will need more hours in the day. Smiling Take care

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Vern,

Thanks so much for the congrats and kind words. I really feel like persistance paid off and I had this REO property on distant radar. We are so excited about this home and hope to hear more stories just like it from other DG members as they approach their local area banks. Good luck on all your real estate deals. Believe and Achieve! Smiling - Joe

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jerryisconfused,

Thanks for the kind words and congrats. Congratulations on reading Dean's books they are packed with information, tips and techniques. It is great you are also taking that step into real estate investing. Good luck on all you deals. Believe and Achieve! Smiling - Joe

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Lubertha,

Thank you very much for all your kind words and continued support. I appreciate how you have been with us on the DG website (day and night) as we talk strategy, learn more information and pursue our dream of financial freedom. Thanks again for all your input and support during the past few months. Good luck on all your real estate deals. Believe and Achieve! Smiling - Joe

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shanegore08,

Thanks for taking the time to share your comments. I believe anyone can do the same type of deal and I really hope to hear many more deals such as this from other DG members. Dean has provided all the information we need, and as we take action we can make things happen. I know you can do it too and I look forward to reading about it in the near future. Good luck on your real estate investing. Believe and Achieve! Smiling - Joe

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Kara,

Thanks so much for the kind words. We really appreciate the support of all the DG Members and are glad we can share the details of our deals in hope that some of the information will be helpful for others to try in their local areas. Good luck with all your real estate investing. Believe and Achieve! Smiling - Joe

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Robasciotti,

Thanks for the comments and congrats. Everyday we learn something new about real esttae investing that better prepares us for tomorrow. The lesson I learned here is be patient and ask for a little more than you may really want because you may have some chips to bargain with. To my surprise we were fortunate to get a little more than we had hoped, which is always a good thing. Good luck with all your real estate deals. Believe and Achieve! Smiling - Joe

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Hoosierman,

Thanks for the comments and congrats. We are very happy that we were able to negotiate a win-win for all parties. I also hope to be considered in the future if this bank does have any other REOs available. I really feel that persistence paid off. Most of the cosmetic work I will probably do myself, such as painting, cleaning and hanging window blinds and there are a few odds and ends such as new carpet I will contract to have done. I would like to get the unit rented in less than 30 days to increase my cash flow in this unit. Thanks again for the support. Good luck on all your real estate deals! Believe and Achieve! Smiling - Joe

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Patient is virtue.

Patient is virtue baby! I've learned that a long time ago, and i'm excercing that right now. I've been going back and forth about this house that i've been bidding on, and after re-countered offers five times, i've decided that i will take the non response route and lay off for a week or two and see what happen. I have a strong feeling that the agent who represent the bank may be calling back and say we'll take your last offer. That's when i play the hard ball and lower my offer again. You never know, but i believe that "Patient is Virtue" Now go close another deal Joe! "Work without Faith is Dead" and with little work on your part you can go a long way.

Lloyd


Thank you so much Joe

Joe your support is always greatly appreciated. To be able to see you succeed in the short time that you have been a member it's amazing. Doesn't it seem like I have been here for months. I guess because of the amount of info we have been made aware of. In actualality it has been a little over a month now for me. I am so excited to see how I have grown from a person with no direction and hope to a person full of motivation to succeed financial freedom! Thanks again Joe, Rina, Anita, Lloyd,Sandra for being living testimonies! I'm just one step away! All the best. Continued success..........Lubertha

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Awesome!

Congrats again REO-JOE! Continued success to the both of you, I can tell you deserve it and have earned it! Keep it up and keep the motivational, inspiring posts coming our way!

Thanks and good luck! Smiling
-Mike


Awesome!

Your story is indeed truly awesome. And I so appreciate that you have detailed it here for others to know, learn and duplicate your success. After an unexpected break in my real estate pursuits, I've jumped back in with all of the great things happening now on DeanGraziosi.com. This community rocks!

I have always lived by the words "You don't get if you don't ask." And you two certainly asked and you got! Congratulations!

--Nancy D.

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REO

Superstar, That's awesome. I guess my only question is, what is your credit score. I can't see a bank doing that with a bad credit score buyer.

rfreeman


Lloyd,

Thanks for the comments and the insight. I think that is a great approach with lowering your offer when they call. That will set the tone for future deals. I hope this one comes your way at a great price. Thanks again and continued success on all your deals. Believe and Achieve! Smiling - Joe

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Lubertha,

Thanks for the reply. You are 100% correct, I feel like you have been here for months and you joined the site in early May. How time flies when you are learnign and having fun. It is like reading a great book or watching a good movie, you do not realize how much time has went by. Kepp up the good work and the great posts. Continued success. Believe and Achieve! Smiling - Joe

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Mike,

Thanks so much for the kind words and comments. We appreciate it. It is great to know that hard work and persistence still pays off. Good luck with all your real estate deals! Believe and Achieve! Smiling - Joe

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Nancy,

Thanks so much for the nice comments and the congrats. Welcome to the DG website community (DG Family). It is the best real estate website anywhere. The information and the people on this website are tremendous. I am sure you will enjoy and benefit fro mthe wensite. Thanks for joining in. Good luck with your real estate investing! Believe and Achieve! Smiling - Joe

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