OfflineLast April I started reading Deans books. In September of this year Dan and I started using Deans stategies.
Today we closed on our second deal! Yippee!! This the biggest deal we have done yet and I can't wait to tell you about it.
For those of you that have read my posts you may remember that in September I finally found a realtor that would work with me. We started making offers 5 a week not exactly what I wanted but I was a little scared, Because I don't have the money and I cannot qualify for a bank loan. Dan and I have too much debt. Our debt ratio sucks!! And we have too many mortgages in our names. My Realtor, Chris, was on board and excited too.
Chris and I go look at houses and discussed stategies every Friday. On October 30th, we had a list of 6 houses to go see, He likes to visualize the houses and since I am learning from him, I like to go with him. We both found this house. It was the 5th house on the list. The house is a REO listed for 7days. The listing said it was a 2 bedroom 1 bath 850sqft. Vandilized.
I want you to know I have lived here a long time and there was something about the house as I looked at the listing, I knew I knew the house. As we drove closer, my heart stated racing ... to my surprize I knew the house well, it was my husbands old boss's house.
I have learned that many times the listing agents for the banks do not actually go look at the properties. So, The listing data can be totally wrong. And it was really wrong here.
The house is 3 bedroom, 2 bath . The master bedroom is upstairs and it is a master suite with a heart shaped jetted tub and a seperate shower. Off the master bedroom there is a 300sqft loft with an office area. The lower level is a full basement that is a game room with french doors that open onto the lower patio. the main floors has two bedrooms, a full bath, kitchen, living room with a fireplace, and a 2 car garage,totaling approxiamatily 2300 sqft. I will try to attach some pictures. The house sits on about a half acre. It has 4 full hookup RV sites. Bonus..
I was so excited! There is so much to this story. Inside the house someone had spray painted everything, every outlet, every wall, every room in the house, I mean everything except the fire place. Someone has also cut all of the electrical wires from the breaker panel. Oh boy!! I instructed Chris to write up an offer now. which we did. A day later the banks agent called and said give us your best and highest offer. Our offer was 135000.00. 2 days later they acccepted our offer. FMV is 220k.Fantastic!
Our closing date was set at 12/14/09. Our plan was to fund the whole thing including repairs with private money. We talk to our private money people and the said yes.. Oh my I couldn't believe it. Two days before closing he( our private mney lender) called me at 7am and told me he wasn't going to do it. WHAT! 2 days before closing. Now what?
After a day of calming down, With Chris pushing me, I called him and asked "what could we do to make this happen" He told me he would lend no more than 120000.00 and no more. I said OK 
We borrow another 30k from a personal friend and today we closed on it and we have the keys!!
Now the work begins. Our plan is to rehab the property and put it back on the market hopefully turning it by March 2010.
Oh, I wanted to tell you our agreement on the private money lending. With the lender of $120000.00 we agreed to interest only payments at 9%, 6 months of interest guanteed. The term to be up to 24 months. the second lender of $30000.00 we agreed to $1000.00 flat fee up front, with 6 month of interest guanteed at a 10% rate payable in 18 months.
Thank you all for the word of encouragement. It really does help.
"Don't tell me I can't, Tell me how I can."
sounds familiar go to a home to invest in and find the vandals have stolen the wiring and the plumbing I helped a couple of friends remodel after tenents did a number on the home
sounds like you got a good deal here I will try and call you on Wednesday
Later Fred E
I am excited for the two of you! I was wondering if you could give me some insight on the offers you are doing of 5 a week. What proof of funds do you submit with these offers and earnest money funds. I am just starting out and not clear on this part. What paperwork or documentation do you have to give with your offers. Thanks! -Moses
Way to go guys and hang in there. Obstacles are just bumps in the road on our way to success and success you will have when the house is sold. Great Job, now go and enjoy Christmas and New Years......Jan
Congratulatons to both of you. You did not allow last minute issues to stop you from doing the deal. You took the action necessary to close. I am sure this helped you gain a higher confidence level in real estate investing. Keep up the good work.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
Excellent job making it happpen, I like how you worked around the road block and the way you set the terms of pay off with both PM lenders. Question: didn't the HML ask you for a % in the deal? every one I speak to wants me to have atleast 30k of skin invested to do a deal.
good luck
Richie.
To answer you questions. We have used no money out of pocket. The extra funds from the 30k will pay for most repairs and 3 months of interest payments. We may have to use 5 k of our our own to complete repairs. We gave no proof of funds other than a credit check and offered him to see our books but he didn't review them. the 30k guy has loaned us money before. The EM was 2k that we borrow also.
At times with this one I was tearful and discouraged. But My Husband (especially)and my realtor and very positive and kept my focused.
When making offer we consired how much is owed on the house, how many days on market usually over 90 days, and my realtor is good with finding out if there is a "story" and of coarse location but that isn't really a big deal. We are finding that after REOs (the banks) are more agreeable after 90 days.
thank you for your comments and questions. This is fun isn't it.
"Don't tell me I can't, Tell me how I can."
As a newbie it's great to read abot others that are just getting started and how they make the deals work.
Thank you for sharing.
Bob
Very good job guys, what a great way to bring in the new year. You will clean up when you sell this thing. Keep on doing what you are doing, and let the new year bring you a ton deals.
Jeremy
This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
Meet me in the Land Of Hope And Dreams
Bruce Springsteen
Congrads on your 2nd deal!Keep it moving!
Happy Holidays!
Serena
Glad to hear of your great success! Keep up the good work and many more deals will follow!
Rick
Rick Merritt
Trident Realty, LLC
Weak is he who permits his thoughts to control his actions; Strong is he who forces his actions to control his thoughts. --Og Mandino
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Great deal and perserverence! I wish you many more great deals!
Lea
SPR Property Solutions, LLC
Thank you for your kind words. This one was kind of difficult to put together.
WE have started rehab and plan to be done by the end of the month.
Thank you,
"Don't tell me I can't, Tell me how I can."
I'm very proud of you. What a great way to make it happen. Your story is the perfect example of not letting road blocks stop you. Can you share what you have learned?
Makes my heart happy!
"Faith is taking the first step even when you can't see the whole staircase."
~ Martin Luther King, Jr. (1929-1968)
www.beaconinvestorsgroup.com
thank you all. I will keep you posted on the rehab of this property. Oh, my picture is the kitchen of this house. We call it the Ohio house.
"Don't tell me I can't, Tell me how I can."
HAPPY FOR YOU GUYS.Good going. You will absolutely fine. Just believe that. All will work out. Your story is very motivating and extremely encouraging. Proud of you guys and I don't even know you!!! Keep us posted and keep on moving forward.
Kingjuss,
I got my mind made up.....
www.Kingjussinvestors.com
www.jussinvestors.com (buyers site)
It is wonderful to get positive feedback. No one close really has a clue what we are doing so getting an a message like yours in encouraging. The business is a challenge and very exciting to me. I just do not take mo for answer. I find a way to get the deed done.
Again thank you
"Don't tell me I can't, Tell me how I can."
Congratulations on your second deal. It really helps that you have your husband and realtor both keeping you focused and encouraaged. Great job problem solving to get that $30k to get the deal done. Keep it going!
Congrats Donna and a job well done. All the best on the rehab. Can't wait to hear the final details. We appreciate you sharing your transactions with us.
God Bless.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.