OfflineThis spring and summer, I kept hearing about "the bad economy" and "the bad housing market" and record foreclosures. I knew deep in my gut that this HAD to be a good time for investors to get in.
Then, as my wife and I were on vacation, I saw this infomercial on TV- This Dean Graziosi guy was talking about this "window of opportunity" to get in on real estate. I told my wife Sarah about this "feeling" I'd been having, and how this Dean guy was confirming what was in my spirit. My wife graciously allowed me to order the book, "Be a Real Estate Millionaire." I read it through quickly.
I started looking at the paper for property for sale and rent, to see what was going on in our area. I called one lady I knew who was going through a foreclosure. I started browsing this website.
One day I got a call from my friend from church about a rental for sale. The owner was another mutual friend of ours, and was moving out of town. He owned a duplex with 8 bedrooms, RIGHT next to Bemidji State University. He owned the property free and clear, and was selling for $125,000. He would take a contract for deed with $25,000 down.
I took my wife and her family to see it. Everyone thought it was a good setup for college students, and helped to convince my wife Smiling. We took out a Home Equity Line Of Credit (HELOC) from the bank for $30,000. We used $25K for the down payment, and the extra $5K is for emergencies. We opened a separate checking and savings account for the rental. It is now full and things are going well, thank God!
There are many other details left out that convinced us that this was a good thing. God's timing was in it all.
As far as the bank is concerned, we are pretty close to maxed out with available equity. My goal, as soon as we can, is to pay off our mortgage on our current home (51K at 5% interest). Once that happens, we will have no more mortgage payment, and more equity to invest!
Now I am looking for investors (the property is all over the place!) I have my eyes on two foreclosures with an asking price of about $65,000 ea. As soon as I have access to a HML, I will make an offer for $30,000 for either (or both!)
I have the time and energy, skill and friends to buy and flip. I am a people person at a large church, and my network potential is HUGE. Dean's teaching and this site have been a great source of info and encouragement- God bless you all!
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
It was nice to meet you, neighbor. I guess it took 6 months to realize we were so close.
(thanks for the note)
Congrats on the 8-plex! And on the vision you have for your future!
I'll bet if you start getting some of those great deals locked up (with contingencies) you'll spark some interest from local investors.
God bless you and your family! Wish you well.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
I have a neighbor in a tough spot- he and his wife are overcommitted with 5-6 properties and failed partnerships. He offered me to come in and get a small, gutted, 2BR up and ready to sell, and he'd split profits 50/50! I told him I'd be more comfortable taking 40%. If he agrees to a minimum of $1000 profit for me, even if he takes a possible loss, that would make Sarah happy.
I met Tom, a local investor, who would work with me. I've still got my eyes on a 3BR close to the college. She wants $35K cash.
I need to commit to getting "all in" sometime soon.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Thu, March 5th-
There is a very active realtor in my investment area who called me up last Thursday (Feb 26th)with, "Andrew! I've got a deal for you!" His name is Matt, and he knows my situation. There is an elderly couple out of state, wanting to sell everything. They own about 5 rentals in Bemidji. Matt called me before the property went on the market.
My wife, daughter and I went to look at the property on Friday. It was wonderful for my wife to meet Matt, and see who I was "in cahoots with." The property is a 2 BR immediately next to the Technical college. It is in much better shape than the duplex, and ready to rent. Matt thought it was worth $40,000, and Sarah and I decided that was our max, after praying about it together.
On Saturday, Matt said the couple had come down from $49,900 and he countered with 38,500.
On Sunday, I talked to a friend at church about it. I knew she wasn't happy where they were living, and she is a tech student.
On Monday morning, Matt called and $40,000 was accepted. I went to town and put a $3500 downpayment on the place. I took the money from our HELOC. The couple was going to take contract for deed with a 2-year balloon. We set closing for March 12th.
Since then, I have been in to fill a few nail holes. I want to paint. My friend from church is coming to see it Monday. I told the other tenants (from the duplex) about it. Two of them might be interested.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
My goal this summer is to fix up the duplex, and jack up the rent for this next school year. Adding a furnace will allow me to take heat OUT of the rent. Then I can rent each 4BR unit for $1000/mo, which is avg $250/BR+ util., which is still cheap for a nice place. Cash flow, if all goes as planned, should be $900/mo from the duplex, replacing my need to do handyman work part-time:)
I could sell the 2BR to a tenant, if they are interested. A $5000 downpayment from them would replace my downpayment, plus some.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Second deal closed on the 12th as planned. I cleaned thoroughly, but still have not painted. The place is still empty.
I got access to a FREE house that is going to be torn down by the city. A convention center is coming to town. The free house is full of working fixtures, furnace, water heater, tubs, curtains, carpets, dressers, trim, etc. I am going to scrape up all I can to store in the basement of my duplex. I have considered moving the house/garage, but have not really looked into it much.
My realtor also showed me a church that could be converted into a duplex. Another investor already started converting it, but if someone doesn't buy it from the bank, he will go through foreclosure. $94K with about $15K improvements needed to convert it into 2 units with 3 and 4 BR. The bank wants to loan me all the money for 20 yrs. I am building great relationships, thanks to Matt, the best realtor I have met!
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Oh, yeah, and I've been keeping Tom (the other investor) informed as to what I am up to. Thankfully, he called me to make sure I check with the building official before I commit to buying the property. Thanks, Tom!
Tom moves like crazy and invests all over the country. He's not married with 2 kids and a full-time job. I'm not interested in anything outside the Bemidji area at this time.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
'Round and 'round we went on the old church building. My wife and I closed on the property August 13th. The downstairs is empty, but ready for 4 people. 3+ BR 1 bath 2024 sq ft. $1200/mo rent plus utilities. Less than 2 miles from college and vo-tech.
The upstairs we will rent as a commercial property for my wife's brothers and their wives. We are charging $200/mo plus utilities for a 2024 sq ft space.
Got a call from a friend today who wants to invest money with me, but doesn't want to "do the details."
Do I dare tell my wife? We have been so busy, the summer has slipped through our hands. I told her we wouldn't be getting any more properties 'til next year.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Congratulations on keeping in action! Thanks for coming back to post an update. Exciting!
Hey, I am going to be in Bemidji this week and next. I would love to meet you and your wife if you have any free time. You can Pm me.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
We bought the church because we love the building. We put what we could salvage of the old stained glass windows up for display in our house today.
The upstairs of the old church is a commercial rental, partly as a favor for Sarah's family, who run a very cool gift shop opening Dec. 5th. We are charging them MINIMAL rent.
The downstairs is a very cool apartment with almost 2000 sq. ft. We recarpeted everything. There are 3+ BR, 1 bath, huge kitchen, living room, rec room, and 2 soundproof offices! We are asking $1200/mo + util. Bemidji is a college town. This is under 2 mi. from the university. The pipeliners are in town, and places to rent are limited. It has been empty and rentable for 2 and a half mos. We hope to rent it soon.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
I have 2 rather large duplexes (Two units each), and a small 2BR house. Of the duplexes, three residential units are licensed for four people each and one unit is commercial. The smaller SFH is 2BR, and when it is available, it gets tons of calls! People say it is easier to rent a 2BR SFH than a 4BR apt, which makes sense, especially if the apt is not right next to the college.
Here's the gist of my newest ad to fill the residential part of the "old church" duplex: 2 Students looking for 1-2 ppl to share very nice, very large apt. No smoking, no pets, no parties. (My phone #).
The idea is this: When people call, I tell them I am the landlord and will do all the pre-screening and show them the apt. If that goes well, I will introduce them to two other people looking for housemates. My listing will run today for the first time. The students need to be out of the college dorms by Dec. 17th. The new semester starts in Jan. Let's see how it goes...
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Of course, I told my wife about my investor friend. She said it would be great if we could get $5K up front. That seems a little steep for a first-time flip, maybe $2K.
I'm meeting my realtor and a contractor over at a 3BR foreclosure on 3.5 ac with 2 outbuildings. Property is great, the house is horrible! Currently listed for $29,900, I might lowball ($10K) before the end of the year, and see how badly the bank wants to get it off the books.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Ah, the challenges of being a landlord!
Told the two guys there they'd either have to pay up or move out! They were planning to move out, so I advertised the place. When they looked around and saw the dumpy places out there, and met some of the other landlords, they said, "Please let us stay!"
So, it's good to be appreciated for who I am and what I have. But this is a business, not a social network. So pay the bills or move out!
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
I subscribed to Magic Jack. When I have an available rental, all my posters and ads have either my cellphone number or business number on them. My tenants do not have my home phone number.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Tenant's Grandma called today. She will pay his bills. This is good. See? If they want it bad enough, the tenant will come up with the money somehow.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
I posted some of this info on my profile, but for your info, we took out a $30K HELOC against our home to get started with the duplex. We used most of the rest of the line for downpmt on the 2BR.
Then we took out another $30k HELOC before we bought the church. The bank let us take over payments on the church building. We bought it for $97K and got $3K cash at closing!
We spent most of the next $30K on the church and other duplex. We separated electric on the church and added a second furnace to separate heat at both duplexes. We added a water heater and plumbing to separate water at the 8BR. We did repairs on both rooves, and sealed up the 2BR. We spent about $28.5K! That leaves $11.5K for emergencies or further investing.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
My investor, Mick, is most interested in a foreclosure deal to "cut our teeth" on together. I have been looking at various foreclosures with an open mind. One stood out more than others because of its location. It is a 3BR on 3.5 acres, very near a local school. The neighborhood is pretty good, with lots of nice houses and one "just better than ugly." (Maybe when this deal is done, I'll have to buy that one too!- Will it ever be for sale?)
I saw this house once with my realtor. Tomorrow, the realtor is showing it to me and a contractor. I will bring my digital camera to take lots of pictures of the house, property, and neighborhood.
As previously posted, I have about 11.5K available without an investor. The house is currently listed for 29.9K. I read that the worst time to sell real estate is between Christmas and New Year's. It makes sense. I might offer 10K of my own money if they sell it to me before 2010. Otherwise, my investor might make a better offer early next year. How badly does this bank want to get it off the books this year?
The house stinks really bad. The floor needs serious repair. It has an ugly wooden spiral staircase, which has GOT to go. Lots of unfinished stuff. I can see why lots of people passed on this one. When I get a bid from the contractor, I plan to add 25-50% to his bid, for the "Just in case" surprises. Seems like there's always some ugly issue that pops up its head halfway through.
Once I get a bid and an offer that seems to work, I will know what I'm in for. My realtor Matt said the ARV would be around $80-90K.
Oh, yeah- and would my wife agree to go ahead for $2K up front? Would my investor go for that? He didn't seem to shocked when I asked for $5K.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Oh, yeah- I will be seeing the 3BR Foreclosure (FC) at 2:00 tomorrow. I will also be showing the church basement at 1:00 tomorrow. A guy named Keith called from BSU (The college). He called on the ad for the 2BR. I told him that was taken, but could he find a few other people? Tomorrow I HAVE to remember to tell him there may be two more people interested if he can't find more.
I'm glad the ad was still up for the 2BR. I was going to get the ad down, but hmm... it might work to leave it...
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
9:00 Went to my day job- good stuff!
12:00 Had lunch at my job, the church- Love the ladies who make hot lunch on Tue and Wed!
12:15 Left for Bemidji (My money town)
1:00 Showed rental to Key (not Keith)- he seems pretty interested, knows a lot of people
2:00 Met Matt the realtor and Matt the new contractor. We determined the house was a bulldoze job. I hate to see all that material go to waste. Matt the realtor said he'd throw a $10K offer at them for the land (He's a go-getter- I sure didn't sign anything!)
4:00 Met Matt the new contractor and a different realtor (Michele the neighbor of mine)at a different house. Michele showed me a 2BR house on 2 acres. The owner is in a nursing home. Old wood stove, cool knotty pine walls- not been updated since the 60's. Listed for $39K. Realtor, contractor and I talked about what the house needed for resale. If my investors bought it for $32K, we put in $18K for repairs, total investment would be $50K. Resale could be about $80K, according to realtor. If we added a garage for $10K, resale could be about $90K. No more profit for a garage, but sale could be quicker. Also, more upgrades could make for a quicker sale, but less profit. Hmm.
I also told Matt the contractor to put in a bid for a new house on the 3 acres. A brand new house would sell quickly for the right price, huh? $10K for property, $50K for new house, $60K total investment. Resale for $90k? Hmm.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Tom Anderson (The 100mph investor guy) called and left a message at my home today. He found out about a house in Kelliher for $20K, and the lady will take financing! 2 car garage, 3BR in good condition- what? The market in Kelliher is pretty bad, but this seems to good to be true. I know someone who is renting, and may want a cheap house. I left a message for him.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
The contractor called back with an estimate today. For $24.4K, he will put sheetrock on walls & ceilings, paint, install 2 new decks- front 4'x4', back- 8'x12'; install new cabinets and peninsula, countertop, new siding, new roof, remove kitchen closet & entry door, remove archway, add new windows, new vanity, and flooring.
To refurbish the existing cabinets would cost $3200 less, at $21.2K.
These numbers do not include a new heating system. I will get some numbers together for that.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
We just got back from the "Family and Friends Sneak Peek" at the Yellow Umbrella. That is the name of the gift shop that my wife's brothers and their wives are opening. The gift shop opens to the public tomorrow, Dec. 5th. Y'all gotta come check it out! This is no ordinary gift shop! This is another one of the reasons Bemidji MN is becoming a destination city! I will give a 10% off coupon to my DG friends if you make it before Dec 25th!
The place was packed tonight. We are so excited for them.
In the van, I brought my wife up to speed on the "fix & flip" possibility. Feels good to let her know what I've been "secretly" planning. She's OK, if we get some paid up front.
The investor emailed me today, and wants to talk this weekend.
Woo hoo!
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Sounds like your really moving right along!
Keep up the great work.
Rick S.
..."Oh that you would bless me and enlarge my border, and that your hand might be with me, and that you would keep me from hurt and harm"
1 Chronicles 4.10
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My Success Journal:
http://www.deangraziosi.com/real-estate-forums/investing-journals/35813/...
Another realtor, Carol, sends me email listings all the time. I looked at my first property with her. Carol goes to my church, and does not live in Bemidji, which is my "money town." She sent me a listing today for a 3BR in Bemidji for $37.5. It has 800 sq. ft. Worth a look! Why is it a comp? It is on a small lot, .18 ac compared to 388 Bemidji, on .75 ac. Also, I'm sure with the smaller sq footage (1088 at 388 Bemidji, compared to 800ft2 at the one in town.)
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
[editing this post because now it doesn't make any sense since I changed it the first time. LOL]
Looking forward to meeting up with you and Tom! You are doing so fantastic, it'll be great to meet you (and hopefully your wife?). So cool to make connections face to face.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
It's nice to have so many realtors vying for my attention. I'm learning so much! Matt was the first realtor I actually bought something from, and he served me two deals on a silver platter. Nice way to get started! When I told him I was going to meet another realtor at 388 Bemidji, his last words were, "Remember, I'm your man!"
Now for my first buy and flip deal somewhere, I find that Michele is very willing to serve, and is quick with "from the hip" numbers with details. She and the contractor worked out the investment details before my eyes. I had a notebook, of course- they were going so fast, I had to write stuff down. Otherwise I was getting lost. My notes also proved very helpful when the contractor called back with his bid.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Great job on juggling all the REI! You'll have the whole town working for you!
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Thanks, Rina!
I am my own advocate... Those who join me are those who are helping me fulfill my dream!
I will do whatever it takes to reach my own goals. I will take full advantage of this world's system to make it a better place.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..."
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Amen to that!!
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
He wants me to draw up a floor plan- seems interested!
Woo hoo!
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
Wow! Thank God for a salaried job! It takes time and effort, planning and prioritizing to have a successful life! I'm putting tomorrow's schedule together- wow!
10:00 Long staff meeting
12:00 Meet a superstar for lunch
1:30 Meet realtor Carol at 625 20th St
2:00 Meet contractor Matt for coffee to talk about 388 Bemidji
Afterward- Repairs at duplex, collect rent & late fees
and any other landlord stuff
Suppertime- with my girls!
Evening- send final "stuff" to investor Mick so we can make an offer!
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus