SD's Success Journal

Half Asian / Half Amazing – My mom is from Vietnam and my dad is Caucasian. After my parents divorced when I was 8 we moved to the "projects" and we were on welfare because my mom couldn't read, write, and her English wasn't that good. Growing up she instilled in me and my siblings to go to college so that we could have a “good” life. So did that, earned 3 business degrees, including my MBA, and I did become more successful than most everyone in my close association but knew that there was still plenty of more achievement that I had to do.

So from humble beginnings, to getting business degrees, to working for some very large corporations (which I still do and I am blessed to have a "good" job…I’ve always hated working for someone else from my first job at McDonald’s as a teenager), I became introduced to an outside the box business opportunity at the age of 23 when I met some successful network marketers and was coached by someone a couple years older than me who was a millionaire. This wasn’t my first experience with entrepreneurship as at the age of 16 I started my own DJ company that I ceased operations on the day that I graduated from college so that I could now get a “real” job. Well, in network marketing I learned the value of real success education unlike what I learned in college by reading books, listening to CDs, attending seminars, and associating with other successful people. Although I didn’t/haven’t built a 6-figure a year income, I was very close at one time and I still make residual income and I have had an organization of over a 1,000 people over a 6-year period. I do not actively build this anymore; however, the business itself is still a great opportunity and most importantly the work ethic I developed and the value of real business education I carry with me into all my new ventures is priceless.

Through my entrepreneur education process I became a huge fan of Robert Kiyosaki and Donald Trump among others. As I read their books on how I can become a better business owner in network marketing, I took attention to the fact that all of their books placed a high emphasis on real estate in their teachings. I knew that one day I would venture into Real Estate Investing, but my focus back then was putting all my efforts into my current network marketing business. So anyway, what’s already become a long story about my previous business experience, I’ll just say that my skepticism on joining Dean’s Real Estate Success Academy was probably a lot lower than most other people because of everything I’ve already experienced.

Before selecting Dean’s program I did study 3 other systems that I was going to select for mentorship in REI. They were Trump University, Rich Dad Coaching, and Investor’s United Real Estate School. I knew whatever system I decided to use that I would become successful in if I followed what other successful people did. I really didn’t know who Dean Graziosi was until I listened to the audio book “The Real Book of Real Estate Investing” by Kiyosaki and a panel of over 20 other investors, one of which was Dean. Dean’s section in that book really stood out more than most of the others so I decided to research him more. I ended up listening to two of Dean’s books on audio book “Profit From Real Estate Right Now” and “Be a Real Estate Millionaire”. I chose Dean’s program because I found that his books already told you exactly what to do to pin point accuracy, whereas the other systems did give great info; however, I found it not to the same level as Dean’s. I officially joined the academy on March 11th 2010 and so I begin my journey to becoming one of the best and I plan to be one of Dean’s close associates very soon.

I am 31 years old and married to my beautiful wife Heather of six years with our two young daughters Ava (almost 2) and Eden (5 weeks)…both of whom are future REI millionaires too.

I really enjoyed Scott's post....I wish him the best in the future...Danny

Welcome to the DG community, you are going to find as much info here as you will anywhere. Use the search bar in the top left if you need info, alot of can be found there. Although I've been on the site for a while, I joined the academy a at the end of Feb. So we can support each other. Congrats on the new(5wk) baby. Keep us posted with your efforts and your deals.

Cathy

Hello & welcome to the DG family. Thanks for sharing your story (a very interesting one) in such detail. I wish you lots of success in REI and look forward to following your journal.

Lea
SPR Property Solutions, LLC

Welcome to the DG family and your new life of real estate investing. Your decision to become a millionaire is reachable and attainable. You are already equipped to act. May you achieve your goals through action. God Bless.

Sandra

Welcome to the best real estate site on the internet.

I have no REI experience prior to getting started in the Success Academy. I have never purchased an investment property before. I have only purchased two owner-occupied homes in my lifetime, one in 2003 during the beginning of the last boom, which I sold at the end of 2005 when the balloon was just starting to pop, and my second home purchase is my current residence in 2007. I sold my first home after counseling with my then business mentor and profited probably around $100K. The huge profit we made 5 years ago was just more of an incentive for me to venture into REI as a career.

I’ve been studying different REI systems like I mentioned in a previous post. Trying to filter everything that I’ve researched so far had me to the point where I was just about to put an offer on a 4-unit property that was going to produce positive cash flow. The only downfall was that a traditional mortgage that I was pre-approved for required me to pay a 25% down payment and with closing costs and some money for minor repairs and cosmetic clean up I was to come out of pocket about $35K. Now I know the days of 100% financing have come and gone, but both my wife and I have credit scores over 800 and we still were required to put down 25%. Well I remember in Dean’s books that he said his coaches are always available so I thought maybe I should call and see if I could get some free counseling on a way to finance the down payment other than using my own money. Well after I got through to an advisor he made me realize that my whole strategy was the traditional way of doing things and that all of my cash resources would be wiped out after my first deal and essentially my new REI investing career would be put on hold until I could build my cash up again—this was definitely not the way I wanted to get started, so I finally listened to what the Success Academy had to offer in terms of mentorship and decided to invest some of the money that I was going to put into my first deal into signing up for the Success Academy program.

The reason I wanted to purchase the multi-family home was that the cash flow generated would help me get closer to my first major big goal, which is to make between $8,000-8,500 passively as that would replace my job income and then I could flush my job goodbye forever. But after talking with the advisor I know that I need to build up my capital first using other techniques like Assignments then pay cash for properties that I will use as rentals. Makes sense to me. I’m ready to learn these techniques; my first call with a counselor is in about 18 hours from this post. Let’s get this thing popping!

I found a CMPS (certified mortgage planning specialist) mortgage broker after querying “mortgage broker” in the search box on the DG-site. I found a post with a link to cmpsinstitute.org and found a local broker who seemed to know what she was talking about and helped me calculate some metrics like CAP rates on some the properties that I was interested in. She led me to a Realtor who did some investing at one time who I used to look at some properties that I had interest in. After looking at one particular 2-unit home for $35K I told her that I wouldn’t pay more than $10K for this and what she thought about sending the seller’s agent an email for this price and if accepted I would pay cash. The Realtor strongly advised against this and I started to realize that she limited herself from thinking outside the box. I talked to two other brokers through Quicken Loans and BOA and none could give me better financing or less of a down payment than the CMPS one. I’ve called a few seller’s agents directly to try to get the real scope on some properties that I’ve looked at because the Realtor that I was using wasn’t always fast enough. I’ve attended a monthly meeting for Landlords in the county that I want to buy some properties in and have come across a local REI club that I’ve signed up for to get their emails and I plan on attending their meetings. I’ve read and heard about buyers and sellers list and have started to put together names of everyone I know who may want to buy and sell a house. So I’m eager to get started, can’t wait to see how everything unfolds.

Amen to that.

Thanks all for the well wishes so far! Getting up an hour earlier than what my body wanted to go work for someone else is for the birds! Especially when you already don't get any sleep b/c you have a newborn.

Off to a great start, talked w/my primary coach Charlie Fuller, got rolling on the training site, completed my first interactive training, set my 3 personal goals...I've learned to check the fruit on the tree whenever getting advice or learning from someone and I was very impressed with Charlie's background w/30 yrs RE experience, certifed professional coach, 15 yrs stock broker, life coach; I'm excited to learn from people who are the real deal

So been crazy busy getting my business up and running. Aside from completing about 4 interactive lessons, I’ve been working on developing my buyers list. In my local area, I think I’ve discovered who the current real estate investing players are. Long story short, about a month ago I scheduled to see a 3/1 SFH new listing priced at $40K, but the realtor I was working with said that it was already on contract. I thought the story ended there, however just a few days ago I’m on craigslist.com looking at some listings and I see this house listed now for $80K. Well I had to inquire about it to see who snatched up what I thought was a good deal. The new owner was a guy whose name I’ve seen a few times in my local research of investors who happens to run the REI club monthly meeting that I’m going to for the first time this week. I’ll introduce myself to him in person and tell him this same story and plan to develop some networks with him and the other people at this meeting. But this won’t be the first time that we will meet as I went to my first real estate auction last week and this same person was there as well as some other names that I’ve also discovered as the local investors. I kind of played it cool at the auction as I didn’t register to bid as I primarily wanted to see how it worked, but this week I plan to see how many names I can add to my buyers list.

Even though I have some capital to invest and excellent credit, I decided to start out doing assignment deals. I can be a “grunt” and learn the ropes and this is probably the best way to get my feet wet. But I see some excellent rehabbing opportunities that can put 100’s of thousands of dollars in my pocket. Any advice on how a new investor who has never done a deal before can jump into a huge deal or how to find a good experienced investor to partner up with I’d love to hear it.

Checking back in, here’s some of what’s been going on the past 5 weeks since my last post.

Worked on setting up an Assignment deal that turned into a potential Bird Dog deal with a big time RE Investing company…I won’t say their names, but they have a show on TLC…deal didn’t go through though anyway, but learned from it.

Building my Buyers List like crazy, if you are a Cash Buyer or DG’er in the Western MD, Baltimore, DC, or Philly area, let me know and we can network together.

Looked at over 25 properties with various real estate agents. Ready to put in an offer on either a 4-plex or some homes that I’ve found under $20K to keep these for cash flow.

Scoured local neighborhoods for FSBO’s and called them up to check motivation level for potential quick flips/assignment deals, previewed one in person today.

Found an owner willing to give owner financing via craigslist, checked out property, priced way over FMV, working on numbers and backup to justify the low offer I’m going to make him.

Built my website but still needs some work, check it out, http://www.antietamproperties.com/

Setting up my 24 hour number, call 1-877-HOME-801

There’s much more that I’m sure I’m forgetting, but right now I’m so FOCUSED on making my first deal(s) happen. After that the flood gates will open.

Thanks for reading.

I’ve focused my strategy to buying starter homes at around $20-40K and doing a mostly cosmetic rehab (no more than $15K) and creating an ARV of $90-120K. My first deal is officially on contract (List Price $35K, FMV $82K, on contract for $23.6K). Now I just need to do my inspection to know the extent of what my rehab costs should be and then follow my rehab plan to bring the value of the property up.

I’ve watched a lot of properties that I looked at end up being purchased by some local investors that I’ve met, which tells me that I know that I’m finding the right deal…I’ve just ended up being to late to put in my offer.

I figure that I have 3 options for an exit strategy. 1st would be to refi and pull out the equity to recoup all of my investment (acquisition costs, rehab costs, etc.) and then I could rent it and make positive cash flow. 2nd would be to just sell it like a traditional flip. 3rd would be to refi and then do a lease-option sell. Option 3 sounds like the thing to do…I’m going to hit the PMI coaches up to get their insight.

Anyway, there are more opportunities available for me to continue to make these type of deals. I’m still looking at wholesaling and have 2 potential wholesale deals coming up. I just want to make deals…I’m an entrepreneur…I’m at my best when I’m making deals…this is exciting.

Purchased and closed on my first investment/flip on 7/13…ended up buying a different place than the one I mentioned in my previous post as this new one had a major price drop on it and I had an opportunity to withdraw my offer on the old place…so we are now 2 weeks into the renovation phase and I’ve been fortunate enough to find some quality contractors at very low prices…so the stats look like this: Purchase price $23,600, Reno costs approx $8,000, ARV $85,000, net profit after I sell and pay all the selling costs is around $25-30K…I have about another week left in renovation and will prb sell at this point, but may still explore a cash out refi and using it as a rental…I’m ready to buy my next one and do this again, fun stuff

Reno includes 10 replacement vinyl windows at $100 apiece and $25 ea to install; Refinished the kitchen counter tops and bathtub and surround for $750; new stainless steel appliances (fridge $479 and stove $500); new carpet and sheet vinyl flooring for a $1,000 and $700 to install; new interior paint and exterior paint on the trim; and the icing on the cake was about 10 new light fixtures for about $500 and $20 ea to install and installed a back splash in the kitchen for about $200 in material and $100 in labor...the place is looking beautiful

Cash-out ReFi complete on deal #1, ended up making a rental; 4 more to go before my 1 yr is up