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Deal # 9 and Deal # 10 - Bank Provides 100% Financing on 2 REOs!....Dean Graziosi’s books continue to help us get great deals!

Posted on: Fri, 10/02/2009 - 04:10
Deal # 9 and Deal # 10 - Bank Provides 100% Financing on 2 REOs!....Dean Graziosi’s books continue to help us get great deals!

Hello DG Members,

I really enjoy posting in the "my deals" section because it is a chance to help other DG Members learn how we were able to find a real estate deal. The last few months have been nothing short of tremendous with real estate investing for us. We are having so much fun and enjoying doing real estate together. I see the glimmer of sunlight in the distance that is my journey’s destination to be able to leave my job and become a real estate investor 100% of my time.

I really enjoy my day job, but I have fallen in love with real estate investing. I often visualize my last day of work, saying good bye to co-workers that I have worked with for several years. Often I image my co-workers saying “I should have purchased that Dean Graziosi’s book last year when Joe told me about it!” This will feel better than winning the lottery and we have Dean to thank for sharing his knowledge and inspiration in his books, programs, events and the DG website!

After we completed Deal #6, the 100% financed bank REO, I knew I had to start contacting more local banks and asset managers about their REOs. I made an effort to contact at least 2 to 3 new REO bank asset managers per week. I had a total of about 8 new asset managers that I had established contact with either by a phone call or through email.

During the past few months that followed I have had a smorgasbord of REO properties presented to me from a bulk package of 14 homes, to single family homes, to multi units to commercial buildings, to a developed 40 lot subdivision foreclosure, to a bed and breakfast to a very large restaurant building with 2 additional lots and a home, to a 500 acre land parcel REO. I had been running the numbers and making offers. The key is starting with low offers, asking for 100% financing and including things in your offers that were bargaining chips to trade off with the banker.

This past Sunday we even went to look at a multi-unit property that had around 100 units. As I drove into the complex my mind was going a mile a minute because the value of the land was probably worth more than 75% of the asking price alone. I realize that a few more hours in the day would be my greatest asset for future acquisitions.

Once again I have to state that it is the old saying of patience is a virtue is so true! During the past several weeks I have been discussing a multi-unit building and a small commercial building that a different local bank owned as an REO. I went back and forth with a few offers and the bank wanted me to look at various other properties they had too. Thus, I was busy looking at their other REOs, several other bank’s REOs my realtor’s listings and a few dozen other properties I had on my radar.

The traffic on the radar was getting a little heavy so I realized I needed to land a few deals soon. I made various offers and I thought I would not get them accepted. I made an offer at 70% of their asking price with additional requested things I thought they would not agree to such as 100% financing and a 30 year locked interest rate tied to the prime rate currently at 3.25%. Then I got the email today that my 2 offers were accepted by the bank’s senior management. I honestly almost fell off my chair with excitement. We just acquired a multi-unit building in ready to rent condition and a small commercial building that does need some minor work.

You may ask how did this deal happen? I developed and cultivated a relationship with a local bank REO asset manager. I have made countless emails during the past few months. I even got busy with work during the past few weeks and the asset manager inquired if I could make another offer to be considered. Thus, I was not stalling but this delayed tactic created a little motivation on the bank’s part. I knew it was time to craft an offer. I crafted an email offer with 3 different offer options for each property. I offered an extremely low 30% of asking price all cash offer, a low offer price with higher interest and great terms and finally a slightly higher offer with low interest and great terms. Any of these offers would cash flow nicely as we planned to keep these properties for buy and hold rental properties. This was all done over email.

I did not receive an acknowledgement of my offers for almost a week and then the email arrived today! I am so excited because this bank has various other properties and this may be opening the door to several other properties

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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Posted on: Fri, 10/02/2009 - 05:54 #1
Wow that is awesome! 100%

Wow that is awesome! 100% financing? That's great! I do have a couple questions though. Would you mind sharing with me how you went about creating this relationships with the asset managers? Maybe a tip or two on what to say or ask about when first coming into contact with them. Thanks for all the information and inspiration Joe!

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Posted on: Fri, 10/02/2009 - 12:46 #2
jeez...that is

jeez...that is awesome...That is making me need to start contacting REO managers...and try to do things like that...I have considered doing that, but for some reason, held back from it...I don't know why...Time to get off my butt for that particular thing, and start doing that...Especially if there are going to be more foreclosures coming soon...

Luke asked about how you went about developing relationships with the banks, and I am wondering the same thing...

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Posted on: Fri, 10/02/2009 - 14:22 #3
So Excited

When I heard Dean talk about your email to him re: deal 9 and 10, I was so excited to read about them and you did not disappoint! Congratulations you two, that is awesome.

Joe in above post you say:The key is starting with low offers, asking for 100% financing and including things in your offers that were bargaining chips to trade off with the banker. What kind of thngs are you including that are bargaining chips, what kind of interest rates are you requesting, when they are very low, or higher? Thanks for answering.

Cathy

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Cathy B

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Posted on: Fri, 10/02/2009 - 15:50 #4
A hearty congratulations!

This is so fantastic! I'm so happy for you and Stacey. It really goes to show what can happen when you simply work your business! It's heartening to hear the great response you've had from asset managers and, of course, the results from it. I've spoken with two asset managers to date, the first was not forthcoming, seemed cold and his attitude was one that he wasn't interested in speaking with me. With so many banks and assets managers out there I didn't want to waste anymore time on him and I moved on. Another bank, another asset manager, and she was friendly and more helpful, but it turned out that this bank doesn't actually own any of the properties, but rather are the "backup" creditors to Freddie Mac and Fannie Mae. So she directed me back to their REOs. With your story fresh on my mind, I'm inspired to get back to talk with more asset managers.

Congratulations!
Nancy

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Posted on: Fri, 10/02/2009 - 18:31 #5
REO Asset managers???

I wonder if I should just call banks in my area randomly or is there a systematic way that one is more likely to find REO asset managers that are willing to talk to a low time investor. Can someone give me a clue?


Posted on: Fri, 10/02/2009 - 18:57 #6
Excellent Job Joe

That's excellent news. This business is all about building relationships. The more relationships you build, the easier it gets.

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Posted on: Fri, 10/02/2009 - 19:22 #7
Way to Go Indiana Joe!

Keep going! Don't slow down! The sky is the limit! Congradulations!

Robin


Posted on: Fri, 10/02/2009 - 21:15 #8
Joe,

I'm happy for you! You have been dedicated and worked hard now all of your efforts are paying off. You deserve it. I think your last day of work is not too far off for you Smiling. Thanks for sharing the details of how you work with the banks & asset managers and all the other info too! I'm interested to hear how it goes with the multi unit property.

Lea
SPR Property Solutions, LLC


Posted on: Fri, 10/02/2009 - 22:24 #9
Way 2 go, Joe & Stacey!

Great job! So happy 4 you guys. I'm next.

God bless,
Serena


Posted on: Sat, 10/03/2009 - 00:14 #10
Fantastic job!!!

Wow Joe, your moving at lightning speed in all this. Great Job..

__________________

Owen Properties, LLC


Posted on: Sat, 10/03/2009 - 01:31 #11
Go Joe!!!!

Hi Joe,
Congratulations! Your Amazing! You continue to show how dedication works at its best..........Continued success always. Lubertha

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Posted on: Sat, 10/03/2009 - 02:11 #12
woohoo!!!

Awesome job!!! Cograts! I also have been trying to contact the banks with no luck. here in California they are saying that I would need to have proof of funds before I start bidding. I would also like to know how to approach these banks and how to get the proof of funds. God bless both of you.

Arnold

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Posted on: Sat, 10/03/2009 - 02:35 #13
Hi Joe,

Congratulations! Thanks for sharing.


Posted on: Sat, 10/03/2009 - 02:57 #14
congradulations

Very inspiring. This motivates me to start right here. I wish you many more successes.

Yasiah

"Faith Without Works Is DEAD!"

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Posted on: Sat, 10/03/2009 - 03:50 #15
Thank You DG Members,

I appreciate all the positive great comments. Your support and inspriing comments mean a lot to us. I hope you can apply some of the concepts on REOs to find a deal in your area. If you have an interest in some additional tips when contacting the banks, you may want to reference my prior posting from 08/28/2009, "Indiana Joe's Guidemap to finding REO Gems...let the adventure begin!"

http://www.deangraziosi.com/real-estate-forums/buying-foreclosures-reos-...

To cultivate a relationship with an REO Asset Manager it justs take being friendly and nice and making steady contacts with the REO Asset manager. In the past when I have made offers I will usually offer one offer at a low say close to the prime rate (3.25%) or more on the high end say 6.5%. I always request for a 30 year fixed rate. I want to be able to ensure and project my future cash flow.

Some of my give away items include:
- ask the bank to pay for my inspections
- ask the bank to pay for an updated survey
- ask the bank to delay the first payment for 60-90 days
- ask the bank for cash at closing to do cosmetic improvements such as paint or carpet

I hope this additional information helps. I hope I answered all the above questions. If I missed one just let me know. Good luck on your future REO deals! Believe and Achieve! Smiling - Joe

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Posted on: Sat, 10/03/2009 - 05:46 #16
Sorry to keep with the

Sorry to keep with the questions, but when you ask for the 60 to 90 days before the first payment do they usually accept it? I can see how that would be a great way to get the property moved to another investor.

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Posted on: Sat, 10/03/2009 - 13:16 #17
Great story!!

Joe,
Thanks for sharing your detailed information on your post. I have just started with the success academy and it really helps to read these.It just gets my blood pumping!!

Thanks again,
Marty

Chosen Spot Property Solutions, Inc.


Posted on: Sun, 10/04/2009 - 01:50 #18
Joe

Thanks so much for sharing hope. When we seee what you have accomplished in such a short time we are encouraged that we can achieve too. Please keep the info and stories coming.


Posted on: Sun, 10/04/2009 - 04:28 #19
Joe and Stacey

Well Joe, I have taken notes on what you should ask from the bank. Those are great points to keep in mind. Congratulations Joe and Stacey for increasing your real estate portfolio. You all are such inspiration to me. I appreciate that you all share your journey with us. God Bless.

Sandra

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Posted on: Sun, 10/04/2009 - 05:27 #20
Marty,

Thanks for the nice comments. Good luck with real estate investing and congratulations for joining the success academy. I am glad the story motviates you to take action. The deals are out there and it is always fun to get one compelted. Believe and Achieve! Smiling - Joe

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Posted on: Sun, 10/04/2009 - 05:29 #21
Regina,

Thanks for the nice comments, we appreciate it. I am glad our story provides hope because real estate can truly change your life. If you stay committed to your plan of action and do all the right things, it will happen. I know you can do it and we look forward to reading about your progress and future deals. Believe and Achieve! Smiling - Joe

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Posted on: Sun, 10/04/2009 - 05:33 #22
Sandra,

Thanks for the nice comments, we appreciate it. I hope the points and tips will help you as you pursue some REOs in your local area. It is a numbers game and the more Bank Asset Manager contacts you make the better. The contacts are the key and the networking and follow-up can get you the deal. You and Lubertha have also been an inspiration to many others as well. I am so glad to hear abut your success and future deals. Keep up the good work! Believe and Achieve! Smiling - Joe

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Posted on: Sun, 10/04/2009 - 06:15 #23
congrats

congrats joe and stacy
You guys never seen to stop all that deermination you two have is motivating
keep up the good work


Posted on: Sun, 10/04/2009 - 14:33 #24
Thank you!

Joe, your posts proving again and again that diligence, focus and hard work pays off really make my day! I am so happy for you two, and look forward to being able to share specific successes with you and the rest of the DG communiity.

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Posted on: Sun, 10/04/2009 - 15:45 #25
Way To Go Joe!!!

Your stories and comments continue to guide and motivate on my path to success. I cant wait until my knowledge and confidence level is as high as your.

Future RE Millionaire,
Shane

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Posted on: Sun, 10/04/2009 - 18:38 #26
RickM,

Thanks for the cobngrats and the kind words. Determination does pay off. It is always best to keep doing the right things and good things will happen. Good luck with real estate investing. Believe and Achieve! Smiling - Joe

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Posted on: Sun, 10/04/2009 - 18:40 #27
Tom,

Thanks for the kind words and the congrats. It is always a great feeling to get a deal. You get satisfied because you know the hard work has paid off. Good luck with real estate investing. Believe and Achieve! Smiling - Joe

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Posted on: Sun, 10/04/2009 - 18:42 #28
Shane,

Thanks for the kind words and the congrats. I am glad our information helps to motivate you. Hopefully you will be able to use some of the tips and find similar deals in your area. I look forward to readign about your future deals. Believe and Achieve! Smiling - Joe

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Posted on: Sun, 10/04/2009 - 19:41 #29
Holy Moly! Congratulations!

That's incredible. I see many of your posts and you are always helping everyone to succeed. You definitely deserve this kind of success. Thanks for sharing these awe inspiring deals. They are motivating to see and helps me feel that I too can one day be as successful as you and other investors are. Congratulations again and thanks for all of your help Indiana-Joe.


Posted on: Mon, 10/05/2009 - 17:36 #30
Andres,

Thanks for the nice comments and congrats. I hope you and many other DG Members find similar deals in your local area. I am glad our posts are motivating and hpe the information helps others. Good luck with real estate investing. Believe and Achieve! Smiling - Joe

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