Bimal's Journal

At 11.56 AM Thursday 8th October 2009, called the homeowner to get the lenders information but had to leave a message.

I may either go for an assignment contract or put down money from my current Home Equity and then try to have it refinanced on the equity in the house to intially pay for the mortgage and buy time to find motivated Buyers. My plan sounds little murky to me but what the heck it will a learning process. I may start stupid but end up little wiser.

Subsequently, follow the tips by Indiana Joe on how to find motivated buyers, primarily Investors or people with ready cash.

I could be totally of with this strategy but at least I will learn something.

Thank you for sharing your journal. The best way to get good comps is a real estate agent. Zillow is substantially higher in our area than comps from our agent.

I understand what you mean about retaining what you are learning. Keep reading Dean's book, read it again. Come to this website & ask questions.

I wish you much success.

Lea
SPR Property Solutions, LLC

Thank You for your input about running comps through REA's, I didn't know this at all.

I do visit the site daily, also read Indiana Joe's and Rina's journal. I will visit your journal too. Read about the recent success and deals by various different people anf of course Deans Blog and his emails.

Bimal

I am self employed and in this position I have faced many rejections and this has hardened me to take rejections in life. Fall 9 times get up 10 times.
As an individual I have to taken care of 10 people in my extended family.

I do not get rattled by people's opinion about me because except me nobody knows me, Whether I am ready for a task or not.

Today I had one more rejection and I Thank that individual for rejecting me because today he had just strengthened my resolve and I bless that individual for rejecting me and wish him luck in his endeavors.

And this is true about real estate. Out of 25 offers 24 will be rejected,
Matt Larsen 25:1.

A few minutes from now I will be going to visit two properties for an initial walk through. price 200K and 504K, I will see what happens. Assignment contract is in my mind.

My Goal before EOY 2009, one deal. I am in no rush.

Haven't heard from the pre-foreclosure individual, I had left message for. Will call him again today.

Bimal

I'm interested to hear how the walk through goes. You are right, every no puts us one step closer to a yes .

Lea
SPR Property Solutions, LLC

Yesterday I went to see the properties, one turned out to be vacant lot, I am not interested. The second one REA had to take care of some pressing issue.

I have an appointment for 11.30pm today and already have my list of questions.
ready. My strategy with this property is to buy and rent. It is priced at 200K, 7K below FMV. There are some signs of this property needing some rehabing, I will estimate that to be 4K to 7K. Subtracting that I will take off 30% to 40%.from fmv to put the offer contingent to finding a renter.

I will post my finding before tonight as I am going to look at another property but the sellers themselves are real estate investor and would not budge on the price as they had rehabbed the property, this will also give me a chance to network with these people and learn what their strategies are.
I may go for a lease option with this individual contingent to finding a renter/owner in six weeks no money down.

Bimal

Congratulations for reading Dean's book and starting your journal. It sounds like you have done a good job thus far and your taking action. Keep doing what your doing and good things will happen. One key is patience and learning and before you know it a great deal will be there waiting for you. Good luck with real estate investing. Believe and Achieve! - Joe

Saw the property here are the details:

Quoted price: (200K, Seller prepare to work on the price)
Year built : 1946
Muti family:
Here is the run down;

1) House is unoccupied
2) Don't know when was the last time somebody lived there.
3) Very Old Wooden flooring covered by carpets but not upto the walls.
4) Cracked walls
5) Cracked ceilings, caved in ceilings.
6) One room have stucco walls looked very ugly and it had signs of
concealing a window or an opening.
7) Foundation walls partially covered with brick needs to be reworked.
Unfinished driveway (Just Gravel but unevenly spread).
9) Unkept lawn.
10) Basement looks like a dungeon/Entrance to basement scary to enter
poor lighting.
11) Three sheds, all the sheds are useless , rat infested
12) Propane gas on hte outside of the house both exposed.
13) The front house has two bedrooms/ugly small closets/old acceptable
cabinets / Small bathroon / no leakage / old gas stove / Refrigerator.
14) The rear house is renovated, one bedroom, new flooring, A/C.
15) Total both houses 5 ceiling fans.

I told the REA that I will bring a remodeller with me to estimate the cost to
work on the house and make it livable.

The REA is prepared to do bird dogging for me already showed me an REO which both of us will go and see.

At 1.30pm I have another appoinment to look at a house.

GOAL: One deal by end of the year 2009......

Bimal

to me like the price this multiplex should be more in line with $135k with the amount of repairs you describe. God Bless with your REI.

My Goal: 1 deal by EOY 2009

Joe and Altcamel,

Thanks for taking time to read my Journal. I will keep eveyone posted with my progress.

I just came back from my second walk through please read my journal that follows this.

Altcamel, before I went in to look at the property I wanted to out in $120K, now I may offer 50K but this could be prematured . So I am going to give it a thought take a hanyman or a remodeller and then be pratical and make an offer.

Bimal

My Goal: 1 deal by EOY 2009

Property No: 2
Price: $547,850/- (Negotiable, already had an offer 470K, they declined)
Currently owned by agroup of investor team. They made 8 deals this summer.
The individual I spoke with handles acquisition within the team.

At 1.30pm I went to look at the property

It is 4 bedroom 3 bath , with jaccuzi in the Master bedroom, designer tiles in each bathroom, unfinished basement but wood framing in place. Two car garage. Two made to order fire place, I was impressed by one of them.

The current owners bought by paying off tax lien of $96K, currently except for paying PTax and maintenance they do not have any cost.

The orginal owner who is the home builder built this house and also built other houses in the area. So the overall cost I assume to build the house is in 300K.

This is not a motivated Seller.

Bimal

Bimal, you definitely know what it means to plan and take action. I know reading Dean's books you will not remember all the info all at once, because it takes time. You, however, learned the the most important thing, PLAN, TAKE ACTION, and you are doing that. It is just a matter of time, until you hit the jackpot. Congrats on getting in the game. God Bless.

Sandra

Additionally,

During my first property visit today I really connected with the REA and she pointed me to an REO and both of us will be visiting the property next week. I also asked her to send me leads to which she agreed.

Can anybody tell me what fees we pay for each materilaized deal.

She herself has two rentals in Arizona and is a very sharp individaul.

Next week I have to come up with building a buyers list.

Two individuals in my office are looking for houses, one to rent and other to buy a 3 bedroom. So I have my small buyers list.

I will continue reading Deans book in the weeks to come as many times as possible. Weekends are allocated to visiting properties and making contacts.

My Goal: One deal before EOY 2009.......

Bimal

Thanks for your time to read my journal and for your comments.

I am waiting for the day when I can write about my deal.

My Goal: One deal before EOY 2009....

Bimal

your own the right track get estimated (make sure your general contractor is accurate in estimating his repairs) repair cost then plan for 40-50% overage for any unknowns with the multi-family. Things you can't see until you open up the walls. Find comparable homes sales for Property No. 2 in a fully finish condition. Ask them if you can run an Ad with general description of their property to attract some buyers for them.

Great suggestions.

Thank You.
Bimal

My Goal: 1 deal by EOY2009

Agent's commission is paid by the Seller, which is already set in stone when the Listing Broker takes the listing. Usually when you're working with a FSBO (private seller) you can negotiate with your agent what you will pay the them for whatever they do for you on the deal. I would say any where from 1.5 to 3%. 3% is usually what an agent can expect on selling a MLS listing, again, it's dependent on what the Seller has agreed to pay. God Bless with your REI.

I got your point of seller paying the commission always.
Bimal
MY Goal: 1 DEAL by EOF 2009

Just another note on the "agent's commission" ---agent represents both sides, seller and buyer. So in this instance seller has the agent. Upon the sale of the home, seller owes agent approx 3%. If the buyer does not have an agent then the seller's agent will represent the "buyer's" side too, which is an additional 3% (FROM THE BUYER - not the seller). Just key to note...if you are assigning it, you need to build in the 3% (or agreed upon commission with the agent) fee for your buyer. Be sure to be up front with the agent that you are assigning the deal as I have seen a few on here "get burned" with not being up front, and things taking them a little longer than they had planned to get a buyer involved.

This is why many times, it is best for YOU to go get your own "buyer's agent" lined up that will work with you over and over again knowing you are on your way to success as an investor and will line a buyer up for these properties ---a buyer who will pay THEM their commission upon the purchase. This is Matt Larson's whole 25:1 deal with an agent.

If you line up your own agent, they will have your best interests at heart. A seller's agent will be more skeptical of this "assignment" stuff because many do not understand it anyway, and if you are not going to buy the home yourself, they may not get it, nor want to deal with assignments (as I've seen others on here share their experiences).

It sounds like you had a good repor with that seller's agent. I would sit down and see if they want to work with you over the long term and represent you full out knowing you will be assigning deals, etc... It is just much easier once you are upfront with everyone about this "assignment" stuff so that there are no surprises, etc...

Awesome with these property walk-thrus and meetings!!! Isn't it fun!?

Louisa

Excellent information, Thank you for taking time and providing with the input.

Seems I will have to revisit Matts' 25:1 again to brush up.

During weekdays I have very little time to go around in the neighborhood as it gets dark. During the bus ride to work today, I saw some properties on sale in an area I would not have gone. Some more places to look at.

This weekend is a wash for me as I am travelling out of town but prior to that I will Call the REA and the general contractor to fix a date for Tuesday next week to get the repair estimate on the 200K house.

And Yes the walk throughs were fun and informational. You get learn what each seller is saying to get their house sold.

Regards,
Bimal

My goal: 1 deal by EOY 2009. (This is just to maintain focus and not let go)

Hi All,

Little tied up, but I have continued reading with whatever spare time I got.

Haven't taken my eyes of the goal.

Bimal

thanks for the update last week! Any new news!? I've been a little down lately, so trying to check in with my friends here and see if I can smile due to THEIR successes!

Anyway, hope you are great and still plugging.

Let us know your latest steps or reading insights!
Cheers!
Louisa

Hi Louisa,

MY GOAL 1 deal by EOY 2009

Thanks for dropping aline.

Here is the latest:

I left a message to the realtor and intend to place an offer for the property that is at 200K. But haven't heard back yet. I will put the offer at 130K and subsequently if the offer gets accepted, rehab it and rent it.

Also reading some articles by Peter Conti on Lease option, it is very interesting.
If you want I can email his ebook to you.

There is a house on sale in my neighborhood since two months, last week they had an open house but seems didn't find any buyers yet. Will be exploring an opportunity to do a lease option or assignment on that house.

With Deans three part articles I go a tremendous insight into how to find sellers and buyers.

On November 19th may attend a Sheriff sales for a 600K house with a 20K judgement.

Of late I have been little slow with RE as office workload this days is tremendous.

I wish you the very best and I am sure for a detailed oriented individual like you success is just an arm stretch away. It is a matter of time.

Regards,
Bimal

Love your goal! Great to see you are going for it! And thank you for your nice comments!! More soon! Louisa