Okay, I'm finally doing it! Every night I think, wow, if I had a journal, I could put down that I did this and this and that today! And, I haven't done it. Procrastination time is OVER.
Here's a recap of where we're at (we, being my hubby and me. He's the money maker with the credit score, and I'm the homemaker with lots of time and fast internet connection!):
Got Dean's BARM book in December - hubby wanted to, I didn't. Tired of getting all excited about new ways to do things, and never seeing results. But, hubby's the boss so got it, and I dutifully started reading it. Fast-forward to 3am, and I'm way excited! Devoured the book, and started poking around online here.
Went home for Christmas (we're living about 400 miles from home at the other end of the state because of my husband's work), and just for kicks, I drive my mom by some apartments up by the high school that I always thought would be cool to buy and fix up. They have been druggie dives for years and years. Guess what - they're vacant and have a for sale sign out front.
Long story short, we're closing on them in a week or ten days! I had to educate my agent about what's cosmetic and what's really a problem (she was so negative!), and educate myself on loan options, and then find a new mortgage broker when the first one couldn't figure out a 203k streamlined rehab. (She has now figured it out and has gotten herself a lender that will do them, LOL!) We've figured out the down payment, the astronomical inspection fees and appraisal fees ($1000, and $850, respectively!), all the pre-paids at closing, and are ready to go. We'll be eating top ramon for a few months!! We have a general contractor, but he's mostly on paper, and I will manage the subs, and hubby will do a lot of work himself. WE're hoping to have them ready to rent by May 1st, after about $30k in repairs.
I'm also trying feverishly to do some assigns. I've got ads on Craigslist both down in Medford (Oregon) and up here in Portland. Trolling for buyers, and responding to sellers, and people looking for homes to rent. I've got the voice mailbox line set up like Dean recommends, although I haven't done any fliers or marketing for that yet.
Obviously have the new book - LOVE IT!!
Have advertised on CL up here for real estate agent, and have had a few replies. One is all over it and another I'm supposed to do lunch with next week, and he's going to introduce us to a HML friend of his.
Almost did another deal down in Medford, a triplex, would have cashflowed about $600/mo once everything was said and done. We were going to do it, then brother-in-law wanted to do it (we owed him a favor since he kicked up the down pmt money for the apts), but then he just pulled out, so now I'm trying to assign it. We are just so tight on capital that we don't want to run the risk of holding and rehabbing both of them at the same time, and getting spread too thin financially to carry them both. Have had no repsonses from investors down there (ad on craigslist) that are interested, but two investors up here said they'd look at them.
This morning I put together a "summary" of what I thought the important points and data were. Did it in Word, but then converted to pdf so it looks more professional and transfers via email faster.
I'm following up with the contractor today to get his license and bond stuff back plus resume and references for the FHA lender. I had to wire him a grand yesterday so he could get the bond and insurance back up (he let them slide because there's been no work all winter - so we made a deal on the side - he's a good buddy). Waiting to hear from the mortgage broker for a solid signing date and seeing if we can sign up here, rather than take a day off work and go down there.
I've got a bunch of listings from up here that one of the potential real estate agents sent me - they should be from the areas up here that sell the most and sell the fastest, and she is going to include comps and let me know why she picked those comps, so I can follow her line of thinking and see if we mesh well. I think I really like her -she's all over it.
There are also about 4 sellers who replied back to me when I contacted then about their craigslist ads (for sale by owner). I talked to one yesterday, and they just don't have enough room for an investor to get in. I did learn their magic buttons, though, so I was happy about that. It's true - if you just let them talk, they'll tell you ALL KINDS of things - way TMI, LOL!
There's two more that I haven't really researched yet, and another one I'm all into. It's in one of the nicest areas up here (turns out it's one of the best selling, fastest selling according to the agent, woo hoo!) - my hubby and I were just up driving around up there last weekend and commenting on how we should look for an old place up there to assign! It's all small acreage lots (like 2-3 acres) with killer houses on them - like little estates up in the hills above Portland. Awesome. This deal is an OWC, nice house, older but totally redone, with a possible lot split that makes it out of this world! I'm waiting for confirmation of the split details from the planning depatment and then will make a summary and send out to the buyer's list.
I also need to make up the final project list, timeline and budget for the apartment rehab, so we can get everyone in there in the right order (so they don't mess up each others work or get in each others way), and make sure all the materials are available. We get half the rehab money up front and half at the end, and the materials alone make up almost all of that. It will be tight to say the least! As soon as we close, we're going to apply for a home depot card and try to raise the limits on our other cards. Could work out well, and boost the credit score after the second draw is out and things are paid back.
So, today's tasks are to go through the new agents PDX listings, either assign or give up on the Medford triplex, and nail down the plan for the apartment rehab. OH, and take care of the baby, make some dinner, clean the oven, and laundry and grocery shopping would be nice, LOL!
I will be pretty faithful about updating this, because I am just jumping all over the place trying to make something happen! I can't wait to get some cash and join the academy so I can get some help and direction and not do all this A.D.D. investing, LOL!
Tracey R. aka Mouse Bandit