B.C.'s journal

No answer yet from 2 and the 3rd is just that we are missing each other somehow. frustrating but I will connect on one of these homes with no money out of my pocket.

Keep hanging in there. Plan. Do. Check. Adjust.
Someone just reminded me of this again today.
http://www.deangraziosi.com/node/3531

Don't get frustrated. Turn that into brainstorming instead, ok?
You know you're gonna make it. TOMORROW might be the day. Don't even think of swaying from your course.

Rina

Thanks Rina, I am definatly frustrated but I will NEVER give up!
I can't seem to get in touch with the woman after i missed her call.I am kicking myself for not hearing the phone or being on the phone when she called. I am afraid the opportunity passed me up. Like i said in my other post. I dont want to keep calling and become a nuisance to her.
Then I was thinking about it for a while and have decided to try calling one more time.

I finally spoke to the woman. Appearently she was away for a death in her son in laws family. I ran into her at a local store and spoke briefly. She has a brother and sister involved in the house also which makes it harder on me. They wont accept less then 200k. I told her I will look at the house and do the numbers and get back to her. I don't think It will work because FMV is around 234-245 right now. Then the other thing is it needs some work.
But like i said I will look at it and if they will hold the mortgage at the rate i suggested I can still make $300. cash flow on renting it. When the market turns i can still sell for 250k arv. I will update you later on it.

I am Going to look at the house Saturday at 11am. The woman will meet me there. I will make a list of repairs and figure out if it is worth it. I know I can do the repairs myself but will still have to figure out if the house is worth it. I am also Thinking about going with a HML If they wont hold the mortgage if I decide to take it. Alot of decisions to be made. I am pretty sure in the good market I can sell it for 240-250k ARV.
I sent out a bunch of e-mails to most of the HML'S that Anita had on her post. Just to see if I get any to bite on what i am offering. They might think i am crazy offering THEM terms but you never know!!

Oh I spoke to her again. She said she is exclusive MLS so she can sell it her self also. But her contract is up in March anyway.
I am a bit nervous about doing this but i am going foward if it makes sense and the terms work out.
Any advice is welcomed.

I spoke to a MHL today. He called me because of the e-mail i sent out.
He said the first deal was not good enough which is the house for 200k. They go by your credit also and any equity you may have .You also don't pay anything for 6 months. He said they would like you to refi them out of it at that point. And when you do the money go's back into a fund for you to use again. I think it is useable for 18 mnonths.I have to speak to him more via e-mail. He was very up front and honest as i was with him. I told him i prefer it that way. If not anything else I got a better understanding on how it works.

I went to see the house today. I sat and spoke to the woman about the house and things. As soon as I walked into the house i realized it would not work. This house was still in the 1920's. I told her i thought it would need anywhere from 60-100k to fix it up. But it was still too small to make anything of it. So I wished her well and left. I would only have offered 100k tops so i didnt even do it because she said they want 200k. That house will not sell no where near that price. Gotta move on.

Keep going Richie, we are going to make it. Don;t give up. Failure is NOT an option. Jeremy

Yea thats one thing i never do Jeremy. I never give up. sometimes that is a bad thing lol. I see a lot of deals but won't bid until I get my HML that i am comfortable with.
These particular properties were owned out right which made it easier on me if i could have gone with the owner finance. I am too stuborn to do an assignment. I want to own to rent. That is the bad part about being stuborn
I will keep looking every day there is so much out there that i know i will hit on one.
Good luck and i will speak to you soon.

Going to look at another property with my agent on Saturday.
My only problem is if i can get my offer accepted and go through a MHL how do i refi in 6 months with not so good credit. That is my bigest fear.

Dean is definately the real deal. Just need to get going and it will all fall into place.

I cannot seem to get a loan.(credit issues that i am working on). There are great deals all around me. I am too stuborn to pass them on. foolish but thats me. I can't say that i can't do this my way.
A quote that Matt wrote is stuck in my head and is bothering me.
He said the people that are doers are getting it done and the others are pretenders. something in that line. He is correct! So I find myself changing strategy and having to find a partner with good credit. I know what i want to do and have a plan in place. I know 100% it will work. I just am not comfortable partnering up. Short term may be the answer. I still feel i can reach my goal of 5 properties this yr.
So I guess in the end, I owe Matt a thanks.

I looked at 2 homes today. One is on the market 3 days can be 1,000 a month cash flow. I put a offer in on it and made a call to someone to partner up. turns out his Father just came in to some MONEY and might be my cash partner!!
It needs some work as Dean says it is the ugliest house on the block. top floor is 2 beds 1 bath .It has a 1 bed and bath basement apt.They are asking 99.9k. comps are from 250-400 in the area. I will offer 70 cash so the 30k will pay for the work that needs to be done. It is hidden in an area i thuoght was bad. but turns out that area inside the bad area is a nice Jewish community. 4 blocks from the yashiva school and 14 blocks from the tempel.
The other home is for personal reasons. They were asking 475 for a total renovation. property is 37 x 133. unheard of in my area. also overlooking the water and manhattan sky line. beutiful view!! I offered 150k its been on the market 300 days.

Keep us posted. (I love hearing about hidden treasures. )

Rina

Partner backed out. But I have sent a bunch of letters to HML'S in hope one gets back to me. Tomorrow I will approach another guy I know who has a HML connection.
If not I will try to get a loan myself through my agent who thinks his connecton can get one approved. If not I will see if I can get an assign on it. Yes I will give in to the assign thing:)
Really want this deal for the cash flow but I will do what ever works.

I have a new partner!!
We worked out the partnership details and just put an offer in of 70k. They are asking 99.9k.
It needs around 10-20k in repairs(high end estimate). But my partner and I can do all of it our selves. I figure we will settle at 80k which will give us around 10-15k for repairs after closing costs.But I may ask them to pay closing costs just to see what they say. should cash flow around 7-800 per month after all is done.If I can figure out how to make it a legal 2 apt I can cash flow 1800 per month. But I am not sure how to do that and how much it would cost.

THAT is some AWESOME cash flow!
Hope it is a GO for you, Richie.
Will you post some pictures when you get it?

Again, Congratulations on the find, AND on the new partner!

Rina

Yea I will post them. I need to take some first lol I forgot my camera when i left my house Saturday. I have a picture i printed from the agents sight. But i don't have my scanner hooked up anymore. But i can take some and upload them. I won't do anything until I hear from my agent.
I dont want to jump the gun. Someone has been buying properties in that area. There was another house i had my eye on that was scoopped up already.

Proof of funds is holding me up. They won't entertain my offer without it.My agent said other people are looking at the property also so i have to move fast on this POF letter.

Still not able to get the app to go through.
I am going to call them. I can't believe a guy from work just came into my office and asked me to get him a house. He is pre-aproved already. Now i AM SCRAMBLING TO GET BOTH THINGS DONE!!. There is not enough time in a day to keep up with this lol. But its a good problem.
Thanks DEAN!!!!

Unbelievably my new partner backed out yesterday!!He had a fight with his wife over it. She is afraid it will hurt the financing help they get for their kids college tuition. I told him thats crazy because in a yr He can make more then they are receiving .I am now embarrased to speak to my realestate agent.
He submitted the offer in my partners name too.
I spent last night trying to get a partner. I wont give up but my credit score is a little below what i need to get a loan. Down payment is a problem also. FHA is the best way for me to go but i don't know if they do investment propertys.
Any ideas please throw them at me.

Never mind ,the house is gone.

Richie, just shake it off. I know it's frustrating, but to me EVERY experience is a learning/growing experience. Did you watch Dean's blog from this week? I couldn't agree with him more.

How goes the contact with the HMLs?

Rina

P.S. if you stay positive, so will your realtor.

I will move on. Just ticked because i found it first day on the market and 2 people backed out on me .That is more frustrating then just loosing the home.lesson learned 1-have pre-approved letter in hand if going with a conventional loan. Or have a proof of funds letter if doing a double close or cash purchase.
I spoke to my agent this morning. I told him about the possible double close deal I may have.
I also e-mailed a cousin of mine who is wealthy and knows alot of biz investors. Last time i spoke to him they wanted me to commit money so i have a stake in it/something to loose .
Hopefully at the end of the month i will have around 10k to invest.
The credit repair thing is slower then i antisapated.But it will come together.

I TOTALLY understand.. And getting mad actually helps sometimes. (well, I mean getting mad temporarily. lol)

I'm glad you are determined. And thank you for sharing the experiences.. high AND low. It's good to be there for each other in EVERYTHING.

You're right. It'll come together.. Wishing you luck on the backing.

Rina

Thanks again Rina for the support. I just gave my end buyer a house to look at.
I plan on doing a double closing. I think i have Matts advice on that saved on file.
I hope I don't screw it up. I gave the guy the address to look at the house. He and his wife are pr-approved already. I know she will want the house I found because it is where she wants to go. My problem is its listed on a MLS. I told the guy to call me after he speaks to his wife so i can set up my agent to go with them to the house. If they like it I want to make a deal with the owners then use coastal for a double closing. But I don't have it under contract which is probably wrong because I think they can go around me to get it.any advice would be appreciated.

Wow I havent posted in a while! Been busy calling fsbo. not much luck but i found 3 decent looking deals tonight in the paper.
Also found a renter but I need the home to put him in.thats a good problem to have lol. He's a guy who works for me.I started a conversation with him by asking why he doesnt move closer to the job. So he tells me he is looking to move closer to the job but everone is asking for 3 months a credit check plus a service charge. So I told him i am in REI and I may have a place for him and his expecting wife soon. So he was happy. now I am in a mad dash to find a place and partner to handle the dp. So tonight i think i found a good home that is a duplex for a great price. They are asking 165k but i will offer 125k.This house fits the description my renter wants That would bring in about 1100 a month cash flow safely. Now I have to find a partner then go for the house. it will be a great money maker if it( the house) is decent.I figure i can fix the one apartment for him that will cover more then the mortgage, then work on the second apartment.

never give up!!

Still trying to find a partner for the home i found so i can get my renter in.
It is harder than i thought. I also am a little gun shy since i was burnt twice. Well yesterday i spent 4 hours sifting through CL for HML'S and for more investors to wholesale to. I have a meeting with a guy (on Sat)to talk about things. I responed to his add just out of chance . I think he is trying to get me to buy a program and i told him i was looking for someone to back me with cash . So I told him i would come talk to him anyway. I figure i have nothing to loose but time and everthing to gain since they seem to be a big company that buys houses.
I have a books worth of paper for HML's I printed out also and will see what they offer. although i have been calling fsbo but haven't found anything that made sense but i will keep going that route also.
Gotta step it up because I want results sooner then later. Its going on 4 months and I am getting mad at myself for not finding a way to get it done.

Can you post the numbers here again? What kind of cash-flow, what you are offering to a partner? Thanks.
You are one of the most determined people on this site. I appreciate your heart and you will be taking off once you get past this hurdle. Gotta get it done, right?

God bless,

Rina

I offered 50-50 split on all deals with both partners that backed out,with the understanding that I would do all repairs i am capable of doing and handling all other things as well like out sourcing jobs i could not do and making sure it was done right and efficiently,of course they had the option to help if they wanted but not required.They were the funds and credit I was the brains and project manager. The property i am looking at is a 2-fam asking price is 265k, I want to offer 170k, has potential to have a 3rd apt 1 bed. 3rd floor 2 beds 1 bath. 2nd floor 4 beds 1-bath. bottom floor 1 bed 1.5 baths. full basement.detatched garage also. taxes 2900, comps are median 450k, 20% sold at 350k and under. that is property shark estimates. I am sure it needs some work. But rent for 2 beds is 1300 safely. 4 beds 2000, 1 bed 600.