OfflineI can't believe we can finally add this post. Dan and I have been working very hard to get this far. Thank you, thank you thank you!!!!!
We resently closed and funded on our first 2 flips!
Deal #1
4 bedroom 2 bath; we purchased for 85k terms were private money at 6% for 12 months. interest only loan, and no money down required.FMV 130k
Deal #2
We sold the same house for 102500.00 This sure is not our best deal but we learned a lot. We held it too long. Fixed it up as a rentalinstead of a flip. At the end of the day we netted around 2500.00
Deal #3
3 bedroom 1 bath purchase price 55k FMV 140k purchased with private money at 9% interest only, no money down, 2 pts, guarneteed 6 months interest.
Deal #4
3 bedroom 1 bath purchase price 48k, FMV 130k financed in the same loan and deal #3,we purchased them at the same time.
Deal #5
We rehabbed and sold deal #3 for 120500.00 this paid off our entire loan for both deal #3 and Deal #4,we own deal #4 free and clear, and received a check for 3900.00 We will put house that is free and clear on the market and sell it with a potential net profit of 80k after all rehab rehab costs are deducted. This will occure in the next 45 days or so.
Deal #6
3 bedroom 2 bath NICE house purchase price 136k purchased with private money 9% interest only for 24 months,first lender would only do 120k, sencond lender of 30k, we gave him 1k up front,nothing else. We ever borrowed the 2 k for earnest money. it is now fully rehabbed and on the market
Deal #7
Lease option on Deal #6. They are giving us a Non refundable consideration money of 30k, on a 12 month contract. 350.00 positive monthly cash flow, sale price 220k. Potential profit of 45k at closing.
Deal #8
this is a Lease option on one of our rental houses. Non refundable consideration money of 5k for 2 years, Sale price 125k. We will make about 10k at closing. It needed 5 k in repairs to move in.Cash flow 50.00 a month.
We have another LO in the works as we speak!
I cannot say thank you enough Dean, for giving me the tools and the courage to do this. We are not finacially free yet but we are headed in that direction. Without the shared knowledge in your books, from information on your site, and from guidance from your success team Dan and I would not have been able to do this.
Again Thank You!!!!!!!!!!
__________________
"Don't tell me I can't, Tell me how I can."
Keep it up, you guys are doing phenomenal! How many months has it been between your first deal and 8th? Congrats on your success!!!
On your first, you said it was a mistake to rent it out? I'm doing my first flip and had intended to rent it out or lease to own. What was the biggest mistake you made with your first deal?
Wow, you are doing BIG amazing things. All these deals going on, flips, lease options, you are doing great! Congrats on everything and keep up the good work!!
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
Thank you Jeremy and Tammy
First Tammy's question; The mistake is we fixed it up as a rental first and then decided to flip it. which means we only added some new carpet and new paint in a few rooms, we didn't do any updating at all.On our rehabs they end up being fresh everywhere. On our other flips we put in all new paint appliances, sinks, lighting etc. I would suggest changing all of the carpet and painting all of the rooms at least.
so we did minimal repairs and then we decided to sell it. We didn't want to put any more money into it and it really was a dog with fleas as Bill O'Raffety would say. So we ended up sitting on it for 8 months ugghh!!!
I got involved in with DG in march of 09, joined the academy in Septemer of 09. Made our first purchase in Octorber 09. All but one are REOs.
A few people have asked how we found the money. It has been all private money. one source is a long time friend that has extra cash who trusts us and we have borrowed 10-50k from him on short notes about five time now.
We found another private money guy from this same friend because he had used him before.
Another source is an Aunt of a friend, my husbands mother loan us some money.
The one I found from an advertisment that I placed in a nickle ads paper which said; private money needed, secured by real estate in first position. And the latest one we are using is an Attorney in our area that our agent introduced us to. Private money is out there.And another 50k we borrow from a co-worker of mine. We structure our deal so that we have one big money lender and a smaller money lender. The smaller amout cover any down we have to come up with and the rehad expences.
We have found that the more exposure you have them more people will trust what you are doing. We are right up front from them and offer them 9% with 2 pts up front.
It wasn't easy at first we had did a lot of marketing asking family and friends and were not successful at all. But after reading Deans books we added in things like guarnteed 6 months of interest. We had more confidence I believe in our selves which came acrossed in our sales pitch.
thanks for your interest.
"Don't tell me I can't, Tell me how I can."
Hi Donna - what a great story to read. Job well done. And lots of lessons learned. Thanks so much for sharing. It's always great to hear about success stories that come out of solid work.
Question: when you say "non refundable consideration money", is this the lease option money that you are collecting from your tenant buyer??? Just want to make sure I understand who's paying who. Thanks.
Hello Donna,
First of all congratulations for the deals you have done.
I have a question:
I have tried to approach people at work that I know they have money to invest with me on some deals but it seems like is difficult for them to just trust their money to me even I mention it will be secure by the property, any more advice?
Thanks.
Daniel
"Don't compare your life with others. You have no idea what you are getting into."
"No compares tu vida con otros. No tienes ni idea de lo que se trata tu travesÃa."
HI Ronnie,
Question: when you say "non refundable consideration money", is this the lease option money that you are collecting from your tenant buyer??? Just want to make sure I understand who's paying who. Thanks.
to answer you question.
Yes, NON refundable consideration money is the same. It is the donw the buyer gives to you to move in. Good question. Just make sure they know it is NON REFUNDABLE.
"Don't tell me I can't, Tell me how I can."
It is hard to approach people for sure it has taken me a long time. The best advice I can give you is to tell everyone you know what you are doing. I talk about different strategies and or deal at work, speak loud enough that those nearby can hear you. and always in the presents of other. This get the word out to those around you. soon people will approach you. I work in a hospital andnow after everyone know you are the one that does real estate. I also give them a little speel about "9% return on thier investment, now thats pretty goood Don't you think". They must know you are confident. But do not hound or push them. after a while they will approach you. FAKE IT TIL YOU MAKE IT BABY!!!!
"Don't tell me I can't, Tell me how I can."
That is the best news i heard all day, that you have made money on the
lease option from your new tenant buyers???
Keep reaching for the stars Ronnie.
wilson,IL.
Do not let no one stop you from knowing more knowledge and initiative.
HI Ronnie,
Question: when you say "non refundable consideration money", is this the lease option money that you are collecting from your tenant buyer??? Just want to make sure I understand who's paying who. Thanks.
to answer you question.
Yes, NON refundable consideration money is the same. It is the donw the buyer gives to you to move in. Good question. Just make sure they know it is NON REFUNDABLE.
"Don't tell me I can't, Tell me how I can."
Things just start snowballing. Last Thursday I signed up a tenant buyer for 5000.00 cash and then today!!!!!!!!!! I still can't believe it we got the Money for our biggest lease option Deal #6 a cashiers check for 31250.00 as NON refundable consideration money
Credit cards look out I am paying them off!
Now I have to find another one. Right after tying up the TB (tenant buyer) from the last deal, I get a call from another guy. He is looking to move into a fixer, he has 20k cash.will I hold the note, yes and I will get the cash. And It will financed it with private money. this is very fun.
"Don't tell me I can't, Tell me how I can."
You know most of the time I wonder if I really know what I am doing. But if you are out there the deals will come and I am out there at least 5 days a week. I reaaly love thie.
"Don't tell me I can't, Tell me how I can."
Thank you very much for your advise, I will keep trying until I succed.
Daniel
"Don't compare your life with others. You have no idea what you are getting into."
"No compares tu vida con otros. No tienes ni idea de lo que se trata tu travesÃa."
I loved your post, you spelled everything out so well. Congratulations! Glad to see you doing so well.
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...