Closed on my 2nd deal using NONE of our own money! (On an auction property)

Closed on my 2nd deal using NONE of our own money! (On an auction property)

FINALLY, my deal is closed. There were many things that went haywire in this transaction. Being my first HML, I switched from one lender to another because terms were better and it backfired. Good thing I bought it with enough equity to be able to absorb the cost.

Its a 1751 square foot SFR, 3/2 on a 7200 square foot lot in a nice neighborhood with good schools. Needs $11K in repairs. Appraised for $315K. Bought for $199.5K. Total holding costs will be $47K for 3 months. Its a Fannie Mae, so it records on the deed it can't be sold for more than 20% until after 90 days.

So, profit potential of $57K minus any buyer's closing costs and seller's closing costs we'll pay.

This property was bought on Never thought it would get approved because it was well below the reserve. But, end of year means they want to unload properties! This home was listed at $295K. We talked to the realtor and he couldn't believe it was accepted. We even asked him had we put in an offer at this price, would you have submitted to the seller and he admitted he wouldn't (that's how it is out here in CA Sad ) He couldn't believe it either.

To do this with none of our own money we used other people's money at the cost of interest. I first secured a relational private money loan directly with another real estate investor. Created my first set of documents for a real private money loan so gained some experience there. Set it up to be an unsecured note. This was for the downpayment and rehab.

Secondly, we got a HML to fund the rest of it. We paid a lot of fees on our HML that were not expected, but still covered by the PML. It turned out to be a very stressful closing with a lot of animosity created because the lender was referred to us and it caused a big stink when the terms were changed. My husband was able to work things out very well with the parties involved, if it were up to me, I would have just paid the $2K in referrals so as not to rock the boat, but my husband would not have and did not.

Called RESA, they agreed with my husband, so that puts my mind at ease a lot! Kinda goes hand in hand with my Bill Cosby quote below now that I read it again!

****Lessons learned, GET A GOOD FAITH ESTIMATE from your HML! No exceptions, even if the terms were witnessed and heard by another person.**** Don't refer people unless you've actually done deals with them and know their business tactics well. ****

BTW, I used a Coastal Funding letter for POF for a cash offer!!! (I had several other's on hand JUST IN CASE that one wasn't accepted) It was accepted! And, we had to put up a $10K EMD as well (Which WAS our own money as I hadn't secured the PML yet, but my company paid us back the funds after closing). Also, when you register for, I told them I was using a HML, and asked if I should put cash or credit buyer, and they advised cash, otherwise I'd have to prequalify with their people, which are traditional lenders. You can't negotiate terms and clauses in properties, so it is a very risky way to buy properties, just as a note to those who haven't used them before.



Way to hang in there kiddo. Proud of you on your 2nd deal. Hey, if there wasn't any stress involved it wouldn't be any fun !!!!! Yeah Right.
Much success to you and your husband...Jan

Great Job!!!

I wish to congratulate you on a job well done! Keep up the good work!


Bryant Slade


Congratulations on 2nd deal! Think with every deal we learn something new to better prepare us for the next! Smiling

Best wishes and much success and fortune be yours!


Congrats Tam

hurry up so we can congrat you on #3, 4, 5, 6, 7, etc


Congrats ... persistence pays off !


...Congratulations on your Deal # 2. It sounds very creative, way to go. Keep up the good work and continued success on your future real estate deals. Believe and Achieve! Smiling - Joe


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Joe Jurek CPA

Congrats to You

How exciting for you! I don't know how you do it with all those children and all your obligations. You are an inspiration and deserve a BIG pat on the back!


Awesome job, way to stick with it. The most important thing is that you and your husband closed. You guys have even more experience and you know that if the scenario comes up again in the future, you are already equipped to handle it. And as you know, I love using other people's money, I think it is the best way to go.

Jeremy K.


wow alot of things going on but you guys pulled through way to go

Congrats Tammy!

You earned it!



"You're never too old to be what you were meant to be!"

"Shining Like a Star & Dancing on Sunshine"

"Shoot for the moon! Even if you fall short, you'll still land among the stars!"


CONGRATULATIONS Tammy! You have learned a LOT on this one and will be all the better in your future deals Smiling


Congrats Tammy

Way to Go--Just stick in there and solve ANY issues that arise. NEXT ....Mike


Mike Free tools


Wow Tammy!!! This is great to hear that it can be done here in Southern California, I'm inspired seeing that you are persistent.
I love the teamwork as well, Woohoo!!!!!!! Smiling


My goal is to pick myself up and get on solid ground so that I can overcome any obstacle or FEAR! And that I can Help someone else to do the same


Congrats on your second deal, you're right about getting a deal like this is surprise to a lot of Californians. Glad you stuck with it and made things work. Hope I can also lock in my second deal, I got so addicted after my first that I am pushing myself SO much harder. Also sounds great that you were able to use the Coastal Funding POF letter bcuz I use to use those but kept getting rejected. Maybe I'll try it again:) Can't wait to hear about your 3rd deal and so on definitely will see you at the top just save me a seat okay;)


Congrats Tammy!

Congrats Tammy!


Check out my journal:

My free website from Dean:

The Sky's the Limit!

Awesome Tammy

Congrats Tammy on the hard work & doing whatever it took to get going.
I guess my last post to someone that Coastal funding POF's don't work anymore, was


Jason S.
San Diego, CA.
**All CASH House Buyer!**
Refer Us To Neighbors, Friends & Family, Earn $1,000
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I am so proud of you for pushing forward on this deal even when it may have seemed at times the cards were stacked against you in this deal. You did excellent! NNow do what you got to do and make some profit and on to the next one.




Happy for you Tammy

I know this was a tuff one at closing time Tammy. Every thing should work out for the best. Thanks for sharing with us on this deal so we do not have the same problems hopefuly at closing with HMLs.

Very Happy for you.

Steve and Veronica.


Big congrats! I look forward to getting to that point sometime very soon. Its nice to see someone succeed and I wish you even more success!!



"I now realize there are millions of self-made millionaires who started with nothing. They dug inside themselves to find the answers and they succeeded. There is nothing anyone else can do that I can't do."
~ Dean Graziosi

Congrats Tammy!! I like how

Congrats Tammy!! I like how you had back up plans in place with the POF letters. enjoy the rewards of your hard work and many more.




congratulations on this deal and continued success



Tammy, you earned it. I think with every deal we learn something new to better prepare us for the next.Don't slow down, so we can congratulate you on #3, 4, 5, 6, 7, etc. See you at the top If I get there before you I'll be keeping a seat for you.
Best Regards,


Thank you for your post. It was inspirational and I am very happy for you. Keep up the good work. Best Wishes!



Thank you for all the positive encouragement!

Today I a much needed break from REI. Was glad to see all the encouragement on this thread.

Went to the house tonight briefly to check all the systems since the utilities are on.

To Elix and Veronica, I'm working on 3 more deals for assignment; hope to have good news on these soon! Sticking out tongue

NEVER allow naysayers and pessimists to tell you you can't do this. Because you CAN!

It is certain you will succeed too! I still have to get this one sold!

Congrats Tammy

Very proud of you, you are an inspiration to me and I know you may be to many more. Keep up the good work. Cant't wait to hear about your sale and other assignments deals. All the best.



"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.

Awesome deal...

Looks like the hard work is paying off. I hope to have similar results before too long. I'm working on my second deal now.



Jason Gill

Congrats Who did you use as

Congrats Who did you use as a Lender.


You're not kidding you learned a lot of lessons. That will be experience you can take to subsequent deals. Glad to see your husband jumping in (or at least sticking a toe in!) and helping with the negotiations. On to the next!!


No long winded post here, just a simple congrats.


I congratulate you on a great accomplishment!
I was wondering why your holding costs were so high?


Marcus La Salle

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