B.C.'s journal

Since I am in waiting for the REO /HUD home to go on the market I have decided to make a move on a 3 family I have been watching. It is an REO also. 3 fam 2x 2 bed apt and one 3 bed apt. asking 200k last sold for 646k in 06. I will go sec 8 with it and already have tennants in waiting through a connection/ friend I made at my REI club. His company handles sec 8 housing assignments and he also does financing for HML and banks. I just have to get together 10-20% dp. I told my partner to put his feelers out and to offer anyone 10-12% return within 3-6 months safely. I plan on refinancing asap. I will get 3 months upfront and sec deposit which I can use to fix up (if needed) or use to pay back some of the borrowed money. each 2 bed they will give 1444 per and for the 3 bed anywhere from 15 -1700. I just have to get in the building to see what it looks like. It was built in 03. One apt is already occupied. So the bottom line is I have to come up with the dp after i look it over to make sure its ok. If this works out then I will buy another in the same area with simular pricing.
So if anyone knows someone who wants to invest and make 10-12% return in 3 -6 months let me know. I will have everything lined up before i accept any investment money,including the refi so i can pay back early.
good luck to all
Richie.

cool...nice job...That sounds like a possible great deal...Worth a lot more it seems like...

If I had the money, I wouldn't mind going in on something like that...The worse part is the down payment money...and closing cost...And depending on the bank, ya may need reserves too...

Don't know the exacts for this, but then again, since bank owned, maybe you will be able to work some of those details out...

Thanks Mark, I just got off the phone with my broker friend. I told him i want to make sure I can refi without seasoning in order to pull some equity out and repay the people I borrow from as well as take out some money to put down on another place. He said no problem as long as there is enough equity, and that we can do it one way or another. I don't want to pay 12% interest for 6 months if I don't have to.
So with that in place I feel better. Just have to find the people to borrow from, hopefully I can limit it to 2 people. I also told him I would like him to find a lender that will do 10% DP instead of 20%.
I have to walk the building this Saturday to check it out, hopefully it goes well and i will put a bid in same day.

awesome...That would be awesome...Get in, refi it to pull equity out, and pay back the people who gave ya the money...

then use the extra for another place...That is def my plan for the multi provided everything works out...

after all the bumps and everything, it could go either way...hopefully the good way meaning ill close on it...

That would be a great feeling to be able to buy a property, have it rented out, pull the equity out and buy another place...and keep doing that as much as possible...

Sounds like you and I have the same idea as far as that...

Along with our other stuff we continue working on to make things work...

Its nice to know that somebody has the same plan basically as I do...

Thanks Mark, just stay positive no matter what. If you put the effort in, you cannot fail!! Thanks to Deans strats I can see this working very clearly.
hopefully by Monday I will have good news. Working double shifts this whole week is killing me, I have no time to do anything, going in 8AM GETTING HOME AT 2AM all week. can't wait to walk away from this lol.
good luck and NEVER give up.
Richie

Good luck on the walk-thru tomorrow! Hope this is the one! And good job on getting all your ducks in a row. Feels better to have things lined up ahead of time instead of scrambling, like you said. Glitches can always come up, but at least you're as prepared as you can be.

Very impressive all the strides you've taken and confidence you show now!
God bless you, friend!

Rina

Thanks Rina for the kind words, Yea I really hope this works out. I jst got off the phone with the listing RE, I had to do a little research to find them and get around the guy I use to use since its his co that sends me the info on listings. So the REA told me that the place needs some rehab and even the one that is occupied will need it as well. Its in a bad neighborhood he said with an empty lot across the street where people are throwing garbage. MUSIC TO MY EARS!! So i am armed with my camera and deans list for rehab costs. I may be able to offer alot less now once i show the bank the pics. I know this is on a beach block and the area may get better in the next few yrs since they built all new homes like this there. normally you would not buy in a bad place but for a 3 family at a steal i am making an exception.The cash flow is too good to pass up. I will have alarms installed also so my tennants can feel safe at night.

Which alarm system will you have installed? Which alarm system do you use for your own personal residence if you don't mind me asking?

B.C. wrote:

Thanks Rina for the kind words, Yea I really hope this works out. I jst got off the phone with the listing RE, I had to do a little research to find them and get around the guy I use to use since its his co that sends me the info on listings. So the REA told me that the place needs some rehab and even the one that is occupied will need it as well. Its in a bad neighborhood he said with an empty lot across the street where people are throwing garbage. MUSIC TO MY EARS!! So i am armed with my camera and deans list for rehab costs. I may be able to offer alot less now once i show the bank the pics. I know this is on a beach block and the area may get better in the next few yrs since they built all new homes like this there. normally you would not buy in a bad place but for a 3 family at a steal i am making an exception.The cash flow is too good to pass up. I will have alarms installed also so my tennants can feel safe at night.

Not sure which system I would use, I would have to shop around.

Went to look at the the 3 family today, I arived 15 min early and checked out the block. It had some new homes like the one i want and some really poor bungalows
( small homes). The bungalows were in very poor condition.So I called the agent just to make sure he was on his way. Appearently I woke him up, He told me they had no access and are waiting for the lock to be changed and that he forgot to call me. I was so mad that i had to pause and think before i commented. I didnt want to go off on him because i still want to look at the home. He said he will call me on Monday. But I think i will call his office to make sure he wasnt bs me.
So i guess i wasted my morning, but i was also mad because i worked a double shift from 8am to 1am Fri night got home 2am and got up 8 am today to go meet him at the home. I guess I will see what happens Monday.

that sucks...I woulda been pretty angry too...better to pause and hold back, then possibly flip out and lose a possible deal, or contact with somebody...Hopefully you will be able to get in there soon though...

that would burn my cord too! Yeah get on it first thing Monday when you have time to check the property out. If he doesn't follow through you can always go to the Listing Agent (if he isn't LA) to view the property. He loses out on a possible deal.

Yea I will check on Monday. There are so many unfinished 2 & 3 family homes. If I can get one under my belt iw ill refi and draw on the equity so i can put another dp on another unti and keep going in that direction.

Still says they dont have a new lock box key yet. I think he wants this prop for himself or for someone he has in mind. I know this sounds crazy but i shifted to a bigger prodject that i found by accident, while driving home I decided to take a different way thru the neighborhood. I discovered 2 3 family homes on the same block but in the better part of town. They are not as new and need a rehab but will be better then the other house. So i went to work on them and spoke to my lender last night about doing a blanket loan for the 2 homes plus rehab money. I have to call him today after 10;30 to discuss it further, then set up appt to get inside take pic and figure out rehab costs.
Thanks Rina for the encouragement. I am working hard with this lender i met on doing a big deal. hopefully it goes thru.details below.
Hey, I went to a rei meeting last night after work and I was the spot light speaker,
So I kind of went into double closings and land trust as well as assignings ( only had 15 min of the floor). Well 3 people just looked at me when I brought up the DC method. The said it can't be legal and asked who i know that did this and if it is still legal currently. The lawyer at the meeting didn't know anything about it and said he is going to look into this.
So I caught a little sarcastic ribbing. They were saying did you buy this program at 2 in the morning from a scammer?
I told them Dean was a stand up guy and was not a scammer, I told them to google him and visit the web sight. One girl said she saw the infermercial and will now buy the book . She was impressed with what i presented and that i baffled the big wigs at the meeting, who i think were scepticle because they didn't know the strats Dean uses and felt they knew it all. so all in all it was a good meet up.

sounds like a pretty good night at the meeting...That is cool that you baffled the "big wigs" Like you said, they probably thought they new it all, and you showed them different...

As far as a blanket loan, that would be really cool if you end up doing that...And being able to get rehab money...

That would be pretty good if you can pull that off...Let us know what happens after you talk with they lender again...

Woohoo, way to go Richie!!!
Wish I could have been there to see the looks on their faces! And to see the smirk hiding behind yours! Feels good to know what you're talkin' about, doesn't it!? Can't wait for that attorney to come back and say "Well, I guess you were right."

Congrats on the bigger project! Hoping the bank says yes right away. Keep us posted Richie. (really proud of you, friend. )

Rina

Thanks Rina, I already contacted another RE attorney that i know and she said it is legal to do DC.
HAD TO FIND OUT ASAP
I just went to the latest blitzkreig e-mail from Dean. IT IS OUT OF THIS WORLD!!! Is he for real!!! all those sights and info are awsome!!!!!
Thanks Dean!!!!!

I know you have been around the site and stuff...just checking in to see how everything is going...haven't really heard from ya in a while with what you have been up too.

Hey Mark, Yea I took a little R&R with the family. good suggestion from a friend here. But I came back and went through my EDGE dvds. found some really good brokers through my cuz who is an investor. have a house i am wholesaling currently. I am also working on a deal but i wont post it until it is a go.
The other 2 homes i wanted to get went down the tubes as the lender i had told me he could only get me 80% financing which meant i had to put like 150k down. I havent given up on those as they are still available,
if they are still there down the road i will revisit them atleast 1 at a time.
I just have been observing the sight here and there,answered a few pms and so on.
Thanks for stopping in.
Your friend
Richie.

nothing wrong with some R&R with the family at all...it is NEEDED!!!

if you don't mind me asking, how did you get somebody to let you assign their property? FSBO or on the market?

The edge DVD's are awesome aren't they? I need to go through them again...just like the books...it is good to brush up on things I think...

You thought about partnering up with your cuz at all if he invest too, or just something you don't wanna do?

Partnering up is a no go with my cousin. He kinda does his own thing. He already is set so there is no drive for him to be aggressive. He already has 6500 a month in rentals coming in and is foreclosing on a home he sold and already made 200k on and will now resell for another 300k after foreclosing.
As far as the house i am wholesaling, It is one of his that he couldnt sell. SO i told him if I sell it for him i want 10k. He agree'd. He moved upstate so its an inconvenience for him to handle and he just wants to get rid of it. Just got off the phone with a guy that wants it. He just wants a place for his boat. He told me he doesnt work anymore just enjoys boating and needs a place to keep it when he is not around. Cant wait to meet this guy!! could be a good connection.
As a matter of fact I think if you lock up a wholesale deal it is another great way to build your buyers list, i recieved a few calls from investors wanting info on the house, and told them i will keep them in mind if i get another great deal. They come to you!!!!

hope that explains things for ya
Richie.

cool...

is his success one of the reasons you got into real estate?
he sounds like he is ALL set...thats good though..

what about lending money to you as a hard money lender?not really partnering, but just as the lender.

so even though you are wholesaling, he is going to pay you the 10,000...not your end buyer?

either way, a deals a deal...very cool

No he is not the reason I got into REI ,I really don't see or speak to him often. He is a loner & pretty much just keeps to his family and thats it. I don't ask him to be a HML because he is not like that. He feels he has what he needs and thats it.
I actually didnt know he did so well til just recently, I just kind of started a conversation with him about doing deals and he wanted me to buy the home from him to rehab. So I suggested I wholesale it for him using the connections I made with my RE clubs.
As far as the wholesale deal goes, He offered to pay me after the sale to make it simpler for him and me. I was going to draw up the contracts and go the other route. But I trust him because we grew up together as kids and know each other well enough that neither one of us would do anything to screw the other guy over.

I saw that you mentioned something about the comp that runs the Section 8 program. Is this at the national level? The reason I ask is that I have a 4-unit property in Rockford, IL that I am trying to keep filled with tenants and should be picking up two more 4-units that need half of those units filled as well. Does this pertain to my area?

Thanks in advance,
Lonnie..

Just popping in to say hi, friend.
Hope you're having a GREAT week! Thank you for being such an inspiration and so persistent. You have been an awesome encouragement and I wanted to say thank you.

Anything new happening on the East Coast??

God bless,

Rina

Now that I have your journal bookmarked I will be keeping up with you! You are working really hard and I know you are going to do great. Just keep pushing and before you know it the breakthrough comes! Keep me in mind for possible assigning and partnering too - we're not that far away from each other! Have a great day and thanks for making all your posts - very encouraging to everyone else to keep on keepin on!

Thanks for stopping by, its always a pleasure to hear from a friend
I am at work now but i sent Nathan a message to hopefully clear something up for me. as soon as i hear from him i will know how to proceed on that home i found. I hope he answers pm's.
That comment you made to laura about just going somewhere every month to do a deal actually gave me a boost. I can picture myself being free after a few good deals.
thanks:)

Hey B.C.,

I've got you bookmarked now too so I'll be watching, keep it at. I have an REI club meeting tonite and a large package deal to pitch to investors, so wish me luck.

Lonnie...

Awsome Lonnie!
Let me know how you made out. I made some good connections at REI clubs. I am not a real outspoken person so it was kind of hard but once someone breaks the ice i am fine. I even became the spot light speaker at one meeting, how that materialized ill never know lol. But it was fun and a good experience. Good luck on your REI journey just remember taking action = results. Never give up and you will be fine.
Richie.

Hey there...Been a couple weeks with no activity in your journal...Whats been up with ya lately?

LOL, Hey mark, I just have been lazy on posting in my journal. Went to a propetyshark event and their were 700 people attending! I made some good connections there so that was a positive.
I did make up letters and handed them out to biz owners i know. Rina has the only other copy, but i may send Dean one to file
I really haven't posted yet because everthing i am doing is still up in the air. I did speak to my buyer today and now just need to get a deal under contract with my escape clauses and then wholesale to him. I am hoping i don't need the escape clauses
waiting to hear back from potential PML'S from my letters but also found some HML'S that are interesting. I WILL BE CALLING THEM THIS WEEK if I don't hear from the biz owners. I am also waiting to hear back from my brokers on whether they can refi me on some multi's if i use HM to get them. I dont want to get stuck not being able to refi. If they give me the green then i will be diving in head first on the multi's.
As far as the flip goes I put it on the back burner until things get clearer on everything else.
unfortunatley for me I have to know my next move before i do the first, I dont like not knowing my exit before i open the door. I like to be thorough.
Richie.
Thanks for the push