Last April I started reading Deans books. In September of this year Dan and I started using Deans stategies.
Today we closed on our second deal! Yippee!! This the biggest deal we have done yet and I can't wait to tell you about it.
For those of you that have read my posts you may remember that in September I finally found a realtor that would work with me. We started making offers 5 a week not exactly what I wanted but I was a little scared, Because I don't have the money and I cannot qualify for a bank loan. Dan and I have too much debt. Our debt ratio sucks!! And we have too many mortgages in our names. My Realtor, Chris, was on board and excited too.
Chris and I go look at houses and discussed stategies every Friday. On October 30th, we had a list of 6 houses to go see, He likes to visualize the houses and since I am learning from him, I like to go with him. We both found this house. It was the 5th house on the list. The house is a REO listed for 7days. The listing said it was a 2 bedroom 1 bath 850sqft. Vandilized.
I want you to know I have lived here a long time and there was something about the house as I looked at the listing, I knew I knew the house. As we drove closer, my heart stated racing ... to my surprize I knew the house well, it was my husbands old boss's house.
I have learned that many times the listing agents for the banks do not actually go look at the properties. So, The listing data can be totally wrong. And it was really wrong here.
The house is 3 bedroom, 2 bath . The master bedroom is upstairs and it is a master suite with a heart shaped jetted tub and a seperate shower. Off the master bedroom there is a 300sqft loft with an office area. The lower level is a full basement that is a game room with french doors that open onto the lower patio. the main floors has two bedrooms, a full bath, kitchen, living room with a fireplace, and a 2 car garage,totaling approxiamatily 2300 sqft. I will try to attach some pictures. The house sits on about a half acre. It has 4 full hookup RV sites. Bonus..
I was so excited! There is so much to this story. Inside the house someone had spray painted everything, every outlet, every wall, every room in the house, I mean everything except the fire place. Someone has also cut all of the electrical wires from the breaker panel. Oh boy!! I instructed Chris to write up an offer now. which we did. A day later the banks agent called and said give us your best and highest offer. Our offer was 135000.00. 2 days later they acccepted our offer. FMV is 220k.Fantastic!
Our closing date was set at 12/14/09. Our plan was to fund the whole thing including repairs with private money. We talk to our private money people and the said yes.. Oh my I couldn't believe it. Two days before closing he( our private mney lender) called me at 7am and told me he wasn't going to do it. WHAT! 2 days before closing. Now what?
After a day of calming down, With Chris pushing me, I called him and asked "what could we do to make this happen" He told me he would lend no more than 120000.00 and no more. I said OK
We borrow another 30k from a personal friend and today we closed on it and we have the keys!!
Now the work begins. Our plan is to rehab the property and put it back on the market hopefully turning it by March 2010.
Oh, I wanted to tell you our agreement on the private money lending. With the lender of $120000.00 we agreed to interest only payments at 9%, 6 months of interest guanteed. The term to be up to 24 months. the second lender of $30000.00 we agreed to $1000.00 flat fee up front, with 6 month of interest guanteed at a 10% rate payable in 18 months.
Thank you all for the word of encouragement. It really does help.
"Don't tell me I can't, Tell me how I can."