Joe Terry's REI Journal

Joe Terry's REI Journal

I have a full time job as a software engineer. With such a demanding job, I have to do my REI on breaks, during lunch and the evenings and weekends.

I formed an LLC for all my business activities with The Company Corporate ( They are a great support organization for small corporations, like myself.

After reading the BARM, I now am pursuing distressed Single Family Homes, purchasing them with Private/Hard Money. Rehabbing them and then refinancing the private lenders out ... leaving me with a low LTV mortgage, which is ideal for selling the property, on Contract 20 year fixed rate mortgage.

I like the Contract sales approach, because during that time ... I'm not a landlord ... I'm the bank, holding a mortgage from a good family with good income, that for whatever reason cannot get a traditional mortgage, usually it's bad credit.

This allows me to charge an above average interest rate and collect payments. Mailbox Money" as one of my RE instructors has said.

Also, often over a period of time, I'm told, many of these families will have a life event occur whereby they will not be able to complete the mortgage and will want to be released, which is something that I only do very hesitantly because of the enormous economic advantage it is to me.

At that point, I simply fix up the place, and sell it again, on contract, take a small down paymennt, and the cash keeps on flowing!

I don't like selling assets that can make me a good living for 20 years. I like 20 year mortgages, because it partly justifies the higher interest rate.

Well, I've begun ...

I have a list of private/hard money lenders ...
I have a list of properties and agents with more ideas for properties that meet my criteria ...
I'm now looking for Credit Partners that can assist me in qualifying with these private/hard money lenders, that now want people with decent credit, because they want you to have the addtional exit strategy of being able to refinance.

One private/hard money lender was telling me that before the credit crunch ... only 15% of his deals exited the private/hard money phase with a traditional refinance ... most were sold on the open market.

Today, 91% of their deals exit the private/hard money phase with a refinance, because of the tough RE market out there.

Anyone want to make up to 3%, just for buying properties with me ... where we get 100% financing using private/hard money ... do all the rehabbing work ... and then we refinance and you quit-claim to me for your fee?

What do you say?


Joe Terry, CEO/Founder
email: joet at virtuola dot com

Just joined Dean's Automated Foreclosure Finder!

I thought I wanted to buy distressed Single Family Homes with private money, rehab them and then ...

1) Exit strategy one would be to refinance them and sell on Lease Option or rent them ...
2) Would be to sell them outright ...

Well, it's a little harder out there than I thought. My credit FICO is below 640 and that's not all ... one of the private money lender's I talked with ( wants the investor to have 15% in cash or assets before they do the deal.

That's not what I was thinking when I started looking at private/hard money lenders. If I had 15% in cash or assets, I wouldn't need them.

So, while I continue to search for the right private/hard money lender ... "An obstacle slows everyone down, but only stops those who step on the brakes!" ... similar to a BARM quote!!

I signed up for Dean's Automated Foreclosure Finder ( ). While I'm building up my rehab business I've got to start generating cash flow, so I'm going to pursue foreclosures.

I'm going to ask around the forums, but I'm new and would appreciate pointers/tips on best strategies surrounding a foreclosure deal, once I've found it!

That's it for the journal ... onward and upward!


Joe Terry, CEO/Founder
email: joet at virtuola dot com

Hey, Joe.

I wish you well in your ongoing, SUCCESSFUL (yes, hard at times Smiling ) REI career. It's nice to have you as part of the DG family and we do look forward to hearing more from you.

Read up on the three phases of foreclosure and how to profit from each. Then you'll be able to ask questions more specific to what you want to get into. It's great knowledge to have, one way or the other. Smiling

Again, I wish you well and it's great to have you here. I'll be following your journal and watching for GREAT news. Eye-wink



"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link:

More pre-foreclosure strategies? Book Recommendations?

As I increase my marketing efforts to attract homeowners that may be in pre-foreclosure. I realize that I'm unsure about the strategies to be used under various circumstances.

I could use some help in finding resources ...

1) Book recommendations?
2) Websites?

Joe Terry, CEO
Virtuola Real Investments, LLC
p: (310) 379-9822
f: (310) 347-4334


Joe Terry, CEO/Founder
email: joet at virtuola dot com

I'm ready, willing and scared ... It's time to meet some sellers

It's time to put some classified ads in the paper ... "I buy Houses" ... and get some calls to my 800 number per the Graziosi Automated Forecloure Finder System and meet with some sellers ... It's scary.

The economy is terrible.

There is a lot of uncertainty out there and I'm adding to it ... by putting myself on the line, in front of some seller ( pre-foreclosure ) that's having a lot of problems in their lives.

Just a note to my journal that ... this is not easy.



Joe Terry, CEO/Founder
email: joet at virtuola dot com

Hi Joe,

Sounds like you got some great deals going on there! Sounds like you have the kind of service that I can share with my network of investors. We should chat soon. TTYL.


"If you think what you've always thought, you'll do what you've always done. And if you do what you've always done, you'll get what you've always got" [Napoleon Hill]

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