My first Deal

hey everybody

I just wanted to tell you my experience in RE. First, as like most of us I tried assignment of contract, but it was not easy at all. Most companies I spoke to either wanted everything for nothing or just they played games. So, I did not find any investors. As, I expected they are not just laying on the street and waiting for me. I went to RE meeting in my area, but result was the same. A few people looked serious, but they were not ready to deal with me, they have plenty of properties and here just for fun.

I decided to try different approach, straight forward. Find money and to buy. But, again not that easy, as it seems. First category, hard money lenders. A, lot of paper work, application fee, credit report checking, income checking. First question was how good is credit, second, what is your source of income. Do you have a job, do you own a house, 3 years tax return and etc. Property what we have in mind was not not enough as collateral, they wanted more and interest they were giving not bank interest. I made a mistake and let a few people get in my credit report and my score from very good dropped and still no loan. We went to the local banks. I made probably 25-30 phone calls, people were polite, but nobody was in the rush to give us money. Finally 1 banker said he might think about, but again asked a lot of papers. We went to meet him and he did not tell us yes or no. But it was kind of encouraging. Of course we did not expect 100%, but he said he may be think about 65-70%, but for us it's the same as nothing, because we have to come up with 30% + rehab + closing. We send him all papers, but went on vacation. I was just thinking this is my luck. We still waiting what he is going to say, but started to look for the rest of money. First and last source friends and family. This is most discouraging, because you put you friends in the position when they have to tell you something. Do they afraid for their money? Definitely, do they want to loose it? Of course not. They don't want to say no, but afraid say yes. When money comes, friendship might end. If I would have a job, than it would be easier, but without any real income, they have to believe in me and take my word, that I'm going give them back. In today's economy hard to blame people, when they say no. Nobody knows what is going to be tomorrow and it's better to have money even under the mattress, than loose it. So, this calls left a bitter taste in my mouth. I don't have reach friends or relatives, they are just hard working middle class people. The same story was with my partner. We find some money, but now we really depend on what is banker going to tell us. If we did not convince him to give us 80%, + rehab, than I just don't know any other way.

Tomorrow, our banker should be back from vacation and going to tell us his decision.