http://www.flipitbig.com/blog.php en Fri, 05 Dec 2008 09:51:43 GMT vBulletin 60 http://www.flipitbig.com/images/bluedemon/misc/rss.jpg http://www.flipitbig.com/blog.php http://www.flipitbig.com/blogs/brwbmcinc/74-over-1-million-1-month.html Mon, 30 Jun 2008 02:37:07 GMT Over a Million dollars has been raised in 30 days for clients in the Buisness needs. Log on to the website for free classes in July. Topics: Business Credit Tax Liens Real Estate Money Matters www.bmcincnow.com (http://bmcincnow.com) :common001: Over a Million dollars has been raised in 30 days for clients in the Buisness needs. Log on to the website for free classes in July.
Topics:
Business Credit
Tax Liens
Real Estate
Money Matters

www.bmcincnow.com
:common001: ]]> brwbmcinc http://www.flipitbig.com/blogs/brwbmcinc/74-over-1-million-1-month.html http://www.flipitbig.com/blogs/investorswntd/73-revision-original-post.html Sat, 28 Jun 2008 18:28:37 GMT A few days ago I posted a blog looking for $100k in capital to purchase a deli and also to incorporate a business but I've since made a revision to my plans because I've figured out a way to acquire the deli later once I get the bigger deal taken care of, which is securing capital to do another business transaction.

I am simply needing someone to place a lien against my property in the amount of $25k since I already have roughly $30k-$35k in equity in my property that I own. It will take me less than 6 months to pay this loan back to whomever chooses to help me and I am open to negotiable terms on the loan itself. We can either do a flat fee above the borrowed amount, or do a hard money/private lender type loan where I pay interest only payments to you and possibly points to make this deal happen.

If you know anybody that can help me with this, please send them my way as I am eager and ready to get started moving in an exciting direction from a real estate investing standpoint. Thank you! ]]> InvestorsWntd http://www.flipitbig.com/blogs/investorswntd/73-revision-original-post.html http://www.flipitbig.com/blogs/investorswntd/72-looking-open-minded-private-investors-lenders-asap.html Sat, 21 Jun 2008 00:38:04 GMT I am trying to secure $100k to purchase a deli and also launch a networking website for mortgage/real estate professionals. I have an investment property that I can use as collateral that is worth $80k (I currently owe $46k on it on a 2 year hard money loan, so I have roughly $30k in equity left above what I owe)to secure the funding and wanted to see if this is something you can help me with. I can purchase the deli for $65k and would use the other $35k to expand the website as well as incorporation of several entities to generate corporate credit. Upon incorporation, I would be able to leverage the corporate credit upwards of $1 million in less than 2 years, thus freeing me up to pay this loan off faster than the alloted time of 2 years. I have $5000 to cover the points and closing costs, and I would only need this loan for 2 years max, interest only. I am trying to secure $100k to purchase a deli and also launch a networking website for mortgage/real estate professionals. I have an investment property that I can use as collateral that is worth $80k (I currently owe $46k on it on a 2 year hard money loan, so I have roughly $30k in equity left above what I owe)to secure the funding and wanted to see if this is something you can help me with. I can purchase the deli for $65k and would use the other $35k to expand the website as well as incorporation of several entities to generate corporate credit. Upon incorporation, I would be able to leverage the corporate credit upwards of $1 million in less than 2 years, thus freeing me up to pay this loan off faster than the alloted time of 2 years.

I have $5000 to cover the points and closing costs, and I would only need this loan for 2 years max, interest only. ]]> InvestorsWntd http://www.flipitbig.com/blogs/investorswntd/72-looking-open-minded-private-investors-lenders-asap.html http://www.flipitbig.com/blogs/nolights-nocameras/71-commercial-lending-question.html Thu, 12 Jun 2008 00:39:34 GMT I oftentimes get questions from investors I've worked with in the past. Yesterday I received a question through email I thought everyone could benefit from, so I'm going to answer that question for all of you.

Question from investor:
Hi Stacy, me again.
I'm running into a bit of a problem trying to get a commercial/blanket loan, or something similar, to put all my properties into. I want to get them out of my name and into my company name. I understand a year ago we could put them under a commercial/blanket loan starting at 1million. I can't quite find those anymore.
Any suggestions on what I can do?

Response by Stacy:
Where have you inquired thus far??

Response from investor:
Various folks who have come across the yahoo groups. They say they can do stuff and end up not being able to do anything. Mainly because I'm still new in the business and I don't have a W-2. I thought business loans didn't require all that and are based on what the value and cash flow of the properties are.
Maybe I'm confused. Just looking for some help with this one.
I'm still calling around.

Response by Stacy:
I would suggest calling lenders directly and inquiring as to what their lending criteria are.
The loan will always take the borrower into consideration. The difference is that the commercial loan will focus more on the property itself than the residential loan, however both look very closely at the borrower and the financial stability of them.



What this investor is referring to is what we call a commercial loan. A commercial loan is loan for properties that are either five or more units, commercial property (such as office or retail) or a mortgage that covers multiple single family homes (otherwise referred to as a blanket mortgage).

I've worked with several people who are under the mis-understanding that because the lender's focus is more weighted toward the financial performance of the property, they are not concerned with the borrower. From my response above, you can see that is not the case. The main difference is that with a single family home, or a residential loan, the bank is completely relying on your ability to pay the loan, rather than the property's ability to pay the loan.

In all cases, the borrower needs to be in a strong position in order to qualify for a loan. How do you know whether you're in a strong position? Call a handful of lenders (directly...not mortgage brokers) and ask them what their criteria are for making the type of loan you're looking for.

If you don't fit the bill, start the search for a partner that does and LET THE GAMES BEGIN!! ]]> NoLights-NoCameras http://www.flipitbig.com/blogs/nolights-nocameras/71-commercial-lending-question.html http://www.flipitbig.com/blogs/nolights-nocameras/70-taking-fear-out-writing-offers-part-2.html Sat, 07 Jun 2008 07:35:28 GMT In the last article we ended with the question: But, how can we write an offer with only preliminary numbers? Aren’t we going to lose our shirt? Absolutely Not!!! We will never close on a deal without doing our full due diligence, but understand, approximately 90% of your offers will be rejected. But… you’re not afraid of your offers being rejected, you’re afraid of your offer being accepted! Let’s blast this fear out of the water – it’s holding you back and it’s time to put it in its place! For starters, you will always have an inspection period, meaning you will review the contract to ensure it has an inspection clause that allows you to back out of the deal if your inspection is unfavorable. During your inspection period, you will use that time to tighten up your other numbers (ARV, rental amount and rehab). With all of that being said, what are we risking? What if we miss the deadline on our inspection? In general, the earnest money deposit is all we’re risking. In real estate, there is no remedy for the seller for specific performance, meaning that if you decide not to buy after you’ve gone past your inspection period, the seller can not force you to buy the property. The extent of your risk is the amount you place as an earnest money deposit (EMD). If you are placing significant EMDs, then you have a higher risk should you choose to back out of the deal after your inspection period. If you place smaller EMDs, you are mitigating your risk. I have several students who have recently started using EMDs as low as $100 with bank REOs and either received acceptance or had the bank counter back and settle on only a few hundred dollars. Investing is not without risk, but there are actions we take to mitigate that risk. In summary, start writing offers!!! If you get an acceptance, you have a period of time to have an inspection and back out if the inspection is unacceptable. If you decide later in the deal to back out, your only risk is the loss of your earnest money deposit (make it small and you’ve decreased your financial risk). Twelve months from now, you will be one year older, one year will have passed. Make this year be defined by your willingness to put fear in its place and move forward, knowing that you have options to keep your risk low. You have now opened up the potential to start doing what it is you entered the world of real estate investing to do…securing your financial future. www.nolights-nocameras.com In the last article we ended with the question:

But, how can we write an offer with only preliminary numbers?

Aren’t we going to lose our shirt? Absolutely Not!!! We will never close on a deal without doing our full due diligence, but understand, approximately 90% of your offers will be rejected.

But… you’re not afraid of your offers being rejected, you’re afraid of your offer being accepted! Let’s blast this fear out of the water – it’s holding you back and it’s time to put it in its place!

For starters, you will always have an inspection period, meaning you will review the contract to ensure it has an inspection clause that allows you to back out of the deal if your inspection is unfavorable. During your inspection period, you will use that time to tighten up your other numbers (ARV, rental amount and rehab).

With all of that being said, what are we risking? What if we miss the deadline on our inspection? In general, the earnest money deposit is all we’re risking.

In real estate, there is no remedy for the seller for specific performance, meaning that if you decide not to buy after you’ve gone past your inspection period, the seller can not force you to buy the property.

The extent of your risk is the amount you place as an earnest money deposit (EMD). If you are placing significant EMDs, then you have a higher risk should you choose to back out of the deal after your inspection period.

If you place smaller EMDs, you are mitigating your risk. I have several students who have recently started using EMDs as low as $100 with bank REOs and either received acceptance or had the bank counter back and settle on only a few hundred dollars.

Investing is not without risk, but there are actions we take to mitigate that risk. In summary, start writing offers!!! If you get an acceptance, you have a period of time to have an inspection and back out if the inspection is unacceptable. If you decide later in the deal to back out, your only risk is the loss of your earnest money deposit (make it small and you’ve decreased your financial risk).

Twelve months from now, you will be one year older, one year will have passed. Make this year be defined by your willingness to put fear in its place and move forward, knowing that you have options to keep your risk low.

You have now opened up the potential to start doing what it is you entered the world of real estate investing to do…securing your financial future.

www.nolights-nocameras.com ]]> NoLights-NoCameras http://www.flipitbig.com/blogs/nolights-nocameras/70-taking-fear-out-writing-offers-part-2.html http://www.flipitbig.com/blogs/nolights-nocameras/69-taking-fear-out-writing-offers-part-1.html Sun, 01 Jun 2008 00:39:06 GMT Over the past several years, I’ve seen many new investors not yet having investing success – because they have fear about just getting started. Many success coaches will tell you that you must know your “why”. If your why isn’t big enough, there is nothing compelling enough to get you to act in spite of your fear. Regardless of whether or not you know your why, allow me to create a realistic perspective that will free up your fears of stepping into the game of investing. A mentor and friend once said to me, “Real estate is a game, but it’s a big game and should be taken seriously.” I completely agree and do not take lightly the need for you to be educated as you move into your investing to assist you in making solid, sound logical business decisions that will ultimately move you forward toward your goals. With that being said, I have met students who have read books, listened to audios CDs, attended workshops, wealth retreats and bootcamps and yet, they still haven’t stepped into the game. Why? Most commonly they are stuck at the beginning. What is the beginning? Writing offers! Many beginning investors are afraid of writing offers. Why? Generally speaking, it is a fear of losing significant amounts of money. “If I write the wrong offer, I’m afraid I’ll lose money”. It comes down to risk mitigation. How do we mitigate (lessen) the risk of losing significant amounts of money by writing the wrong offer? In future articles, we’ll be looking at the details and specifics of going through the analysis of the offer. For today, I will summarize risk mitigation in the following way: - Know your exit strategy. What are you seeking to accomplish by purchasing this property? - Get a preliminary estimate of the numbers you’ll be using to calculate your offer (ARV, rental amount, rehab, holding costs, closing costs, selling costs, financing costs and…the most important…PROFIT) - Write your offer!!!! But, how can we write an offer with only preliminary numbers? See my next posting for the answer… www.nolights-nocameras.com Over the past several years, I’ve seen many new investors not yet having investing success – because they have fear about just getting started.

Many success coaches will tell you that you must know your “why”. If your why isn’t big enough, there is nothing compelling enough to get you to act in spite of your fear.

Regardless of whether or not you know your why, allow me to create a realistic perspective that will free up your fears of stepping into the game of investing.

A mentor and friend once said to me, “Real estate is a game, but it’s a big game and should be taken seriously.” I completely agree and do not take lightly the need for you to be educated as you move into your investing to assist you in making solid, sound logical business decisions that will ultimately move you forward toward your goals.

With that being said, I have met students who have read books, listened to audios CDs, attended workshops, wealth retreats and bootcamps and yet, they still haven’t stepped into the game. Why? Most commonly they are stuck at the beginning. What is the beginning? Writing offers! Many beginning investors are afraid of writing offers. Why?

Generally speaking, it is a fear of losing significant amounts of money. “If I write the wrong offer, I’m afraid I’ll lose money”. It comes down to risk mitigation. How do we mitigate (lessen) the risk of losing significant amounts of money by writing the wrong offer?

In future articles, we’ll be looking at the details and specifics of going through the analysis of the offer. For today, I will summarize risk mitigation in the following way:

- Know your exit strategy. What are you seeking to accomplish by purchasing this property?
- Get a preliminary estimate of the numbers you’ll be using to calculate your offer (ARV, rental amount, rehab, holding costs, closing costs, selling costs, financing costs and…the most important…PROFIT)
- Write your offer!!!!

But, how can we write an offer with only preliminary numbers?

See my next posting for the answer…

www.nolights-nocameras.com ]]> NoLights-NoCameras http://www.flipitbig.com/blogs/nolights-nocameras/69-taking-fear-out-writing-offers-part-1.html http://www.flipitbig.com/blogs/jaredfromindiana/68-another-day-another-lead.html Fri, 30 May 2008 14:49:48 GMT Well, the house that the other investor is trying to sell me probably isn't going to work. We found out that his mortgage is assumable, but only for owner occupant. He advised me to do it anyway, move in for a week and then I would be an owner occupant and could then lease option the house. Um, no. Not only is the unethical in my book but could probably put my ass in a ringer.

Once I told him no he kept pushing. He told me I need to learn to bend the rules and "make things work". I get that you need to be creative in this business but if I start doing stuff like this what else am I going to end up doing? He then asked if I would buy it on a land contract from him. A big hell no there because I want control of the property. I am going to call him back and offer to do a subject 2 on it otherwise we are moving on. Any thoughts on this from anybody?

The $35,000 house in New Haven that had an ARV of $60,000 was a huge flop. Not to mention it being in a flood zone, you could also see the basement from the bathroom. It was a mess. I wouldn't give them $5,000 for it. They owed $35,000 so we shook hands and walked away.

We got another great lead on a house that a guy inherited from his father. Owes $0 and ARV is $85,-90,000. It's actually a block away from the first house I ever did. He says it needs lots of updating and a new roof and is asking $62,000 but would take $55,000. We'll take a look today and make him an offer on it.

I tell you what, the more possibilities we are seeing and the more phone calls we are getting, the more confident we are becoming. We definitely were getting discouraged when the phone wasn't ringing and when it was they were people trying to sell ghetto houses and stuff, but persistence is paying off!!



]]> JaredfromIndiana http://www.flipitbig.com/blogs/jaredfromindiana/68-another-day-another-lead.html http://www.flipitbig.com/blogs/nolights-nocameras/67-portfolio-building.html Thu, 29 May 2008 02:36:53 GMT When I started investing in 2003, I remember thinking that it was be the ultimate achievement to have a ton of rental properties. Creating wealth through real estate is done through the long term buy and hold strategies that goes along with having rental properties. I have worked with hundreds of beginning investors in the last two years. A common misperception by my students (and I was no different in the beginning), is that because our ultimate goal is to create passive income, we need to jump immediately into buying apartment buildings. As I learned through my own investing experiences as well as through watching my students on their investing journies, you must, must, must start with an actual plan for building wealth. Some people come into investing farther along in life and father along financially. Others come in with no resources to their name. When I started investing, I had no money, poor credit, lots of debt and a massive passion for creating success through my new venture of real estate investing. As a result, my investing experience would be different than someone coming in with $250,000 available to invest. Of all the exit strategies out there, I find that the ones including rental tend to be the easiest to do, and thus the easiest to find yourself doing. The key critical point I want to make to you is that you must be in a very solid financial position before venturing into the world of portfolio building. As a mentor once said to me, real estate is a game, but it’s a serious game with a lot at stake. We have to make good, solid financial decisions that will support both our short term and long term financial goals. As you’re moving forward with your real estate investing career, you need to create three plans. The first is a Short Term Cash Needs Plan; the second is an Equity Building Plan; the third is a Passive Cash Flow Plan. Each of these plans need to be designed with today and the future in mind. First, you will start with how much short term cash you want to build in the next twelve months; then you decide which exit strategies produce short term cash, how much cash you plan to make on each, and how many of those deals you must do over the course of the year to produce the annual income you need. Next, you will decide how much equity you want to build over the next twelve months, and which exit strategies produce equity, and how many of those deals you must do over the course of the year to produce the annual equity increase you desire. Last, you will decide how much passive cash flow you want to build over the next twelve months, and which exit strategies produce passive cash flow, and how many of those deals you must do over the course of the year to produce the annual equity increase you desire. Once you’ve completed this exercise, you will have an idea of how many deals you need to do this year and what type of deals you need to focus your time on to accomplish your objectives. Now, go work on creating your plans! You will find yourself moving forward with confidence and at a speed that will help ensure you meet your financial goals! www.nolights-nocameras.com When I started investing in 2003, I remember thinking that it was be the ultimate achievement to have a ton of rental properties. Creating wealth through real estate is done through the long term buy and hold strategies that goes along with having rental properties.

I have worked with hundreds of beginning investors in the last two years. A common misperception by my students (and I was no different in the beginning), is that because our ultimate goal is to create passive income, we need to jump immediately into buying apartment buildings.

As I learned through my own investing experiences as well as through watching my students on their investing journies, you must, must, must start with an actual plan for building wealth.

Some people come into investing farther along in life and father along financially. Others come in with no resources to their name. When I started investing, I had no money, poor credit, lots of debt and a massive passion for creating success through my new venture of real estate investing. As a result, my investing experience would be different than someone coming in with $250,000 available to invest.

Of all the exit strategies out there, I find that the ones including rental tend to be the easiest to do, and thus the easiest to find yourself doing. The key critical point I want to make to you is that you must be in a very solid financial position before venturing into the world of portfolio building.

As a mentor once said to me, real estate is a game, but it’s a serious game with a lot at stake. We have to make good, solid financial decisions that will support both our short term and long term financial goals.

As you’re moving forward with your real estate investing career, you need to create three plans. The first is a Short Term Cash Needs Plan; the second is an Equity Building Plan; the third is a Passive Cash Flow Plan. Each of these plans need to be designed with today and the future in mind.


First, you will start with how much short term cash you want to build in the next twelve months; then you decide which exit strategies produce short term cash, how much cash you plan to make on each, and how many of those deals you must do over the course of the year to produce the annual income you need.


Next, you will decide how much equity you want to build over the next twelve months, and which exit strategies produce equity, and how many of those deals you must do over the course of the year to produce the annual equity increase you desire.


Last, you will decide how much passive cash flow you want to build over the next twelve months, and which exit strategies produce passive cash flow, and how many of those deals you must do over the course of the year to produce the annual equity increase you desire.

Once you’ve completed this exercise, you will have an idea of how many deals you need to do this year and what type of deals you need to focus your time on to accomplish your objectives. Now, go work on creating your plans! You will find yourself moving forward with confidence and at a speed that will help ensure you meet your financial goals!

www.nolights-nocameras.com ]]> NoLights-NoCameras http://www.flipitbig.com/blogs/nolights-nocameras/67-portfolio-building.html http://www.flipitbig.com/blogs/jaredfromindiana/66-3-more-possibilities.html Wed, 28 May 2008 13:46:12 GMT Got a call from another investor who is trying to retire but has one house left. ARV $85,000, he owes $65,000, is $3,000 behind on payments and was going to let it go back to the bank because he is tired of dealing with it and doesn't care anymore, but then he saw one of my signs and called.

He has an assumable mortgage on it so that is the way we would go. We are actually meeting him in 15 minutes and I am going to let him know that we will do the deal but only if he brings his mortgage current. We would then lease option it out and list it on the mls to see if we could sell it outright.

Have an appt later today with another seller. ARV $60,000, asking $35,000 and she says it needs some work. That one is either going to be a wholesale (if we can talk her down more on the price) or a sub 2, we do the rehab and then lease option or sell outright.

The 3rd is not as great, but still might work. The guy is a tired landlord that wants out. No work needed to the house. ARV $60,000, asking $45,000, is open to sub 2. The problem is that he is selling the house to another guy on a land contract. The guy with the land contract then leased the house out to somebody else. I told him that if we were to consider doing a deal with him he would need to figure out all that crap ahead of time.

Just a quick update, time to run. ]]> JaredfromIndiana http://www.flipitbig.com/blogs/jaredfromindiana/66-3-more-possibilities.html http://www.flipitbig.com/blogs/jaredfromindiana/65-more-calls-comin.html Mon, 19 May 2008 20:37:01 GMT Well the junker wholesale deal has gone away. We told her we couldn't touch her asking price of $7,000. She said she would think about our offer of $3,000 and we haven't heard back from her and don't expect to. That's okay because that house was a huge POS anyway. :)

Haven't heard from our guy on the 85 ARV house either. I'll give him a call this week and see how things are going with his buyer.

We got our second box of bandit signs last week and I have them all put up already. We got a great call from them on Sunday night. The message on the voice mail was as follows:

"Don't you ASSHOLES know there is a sign ordinance in Fort Wayne?????"

I love people!!

We have a subject to/lease option possibility we are going to look at tomorrow, not sure on that one yet. We also got a call from a guy that has a house his dad owned that he needs to unload. ARV is $105-110,000 and he is asking $50,000. He said it needs quite a bit of work but if he is asking $50,000 right now my guess is that he will take a lot less. He is also a very busy man that needs it gone. We'll see if we can help him! :)

Have one more deal we are working right now. This poor guy had a house fire 5 years ago. He ended up gutting the entire house, and that is still how it sits. The insurance company paid them some money, but this guy got hooked up with a crooked contractor. The contractor told him he could do the complete rehab for $33,000 and the owner agreed and then made the fatal mistake. He had no contract drawn up and he paid him in full before the guy even started. I think the contractor worked for a week or two and then took off.

It's stories like this that really suck, but what can I do? I'm not running a charity. Michael Rossi (propertymanager) said that in this business of real estate investing... "No good deed goes unpunished". Great words to live by.

The ARV is $65,000 on this house, and it's in a bit of a slow area. I offered him $15,000 today, which is $30,000 less than what he was asking for it. The budget on it is going to end up around $25,000, which is bigger than any budget I have had before. He said that he needed some time to think about it and I really think he will come down to at least $20,000. I'll let you know!

]]> JaredfromIndiana http://www.flipitbig.com/blogs/jaredfromindiana/65-more-calls-comin.html http://www.flipitbig.com/blogs/jaredfromindiana/64-been-while.html Mon, 12 May 2008 17:26:16 GMT I haven't post to my blog in a while so I thought I would let you know where things are for us. We finally sold the Fairoak house a few weeks ago, big piece of **** I tell ya. It's good to have it gone and have our money back after that whole fiasco.

Our second house is closing tomorrow. I have never in my life dealt with a bigger idiot realtor and buyer than on this house. I could tell you all about it but I don't have the desire to relive it. Let's just say that this buyer has been asking for the world. Ridiculous. I'm not going to this closing because I don't think I can be in the same room with the buyer and agent because I might have to go Rick James on their ass... :)

We have two deals in the works right now. One is a huge junker that we are trying to wholesale. Going to get it under contract tomorrow. ARV is around $40-45,000, needs about $20,000 in repairs, owner is asking $7,000. I am going to get her rock bottom price tomorrow (probably $3-4,000) and already started marketing it at $14,000. I figure even if we can get it from her for $7,000 and wholesale it for $12,000 that would be worth it to make $5,000 on our first wholesale.

The second one is a house that this really nice older man owns outright. ARV is $80-85,000, needs paint and maybe some updating, plus furnace and A/C, so the budget is around $10,000 or less. We offered $52,000. He has it listed right now with an accepted offer but he thinks the buyers financing is going to fall through. I hope it does!! I think he will take our offer if it falls through...

So that is where we are. We sent out around 200 postcards this weekend to FSBOs, divorce filings, expired listings, obits, and bankruptcies. I am really surprised the bat phone hasn't rang off the hook! Our next order of bandit signs should be in tomorrow so I'm sure that will help. I think we might also sponsor a softball team!

I got to tell ya, this whole world of sub 2 and lease options and wholesaling has really made me feel alive again. It's been a while since I was out of my comfort zone. Feels good. Oh, and a little scary too! :)



]]> JaredfromIndiana http://www.flipitbig.com/blogs/jaredfromindiana/64-been-while.html http://www.flipitbig.com/blogs/flipitbig/63-moving-up-east-side-i-finally-got-piece-pie.html Fri, 11 Apr 2008 14:32:11 GMT Thanks everyone! What do you mean thanks… What have you done right? Well, just for being a part of FIB and helping me learn and grow. For posting on the site…That’s why! LOL.. I have always wanted to get into real estate investing but always had this fear in the back of my mind that it isn’t possible for me to be successful. I mean, you can’t own a house without spending money, you have to have great credit, and you need credit cards and money in the bank. Well, for someone that might be true. For me it isn’t. My first thoughts were how could I minimize my risk…then it hit me…Start a Real Estate Investing community and build my network…. I think we can CHECK that one off the list! Thanks to the launch of FIB and its great members I have learned a lot. I learned the terminology, the strategies that will work for specific situations, how to market, etc. Last year I took a home subject-to (valued at $147,000) and made that my primary residence. Two weeks ago I took over a house (valued at $536,000) and made that a rental. I owned the Helena, AL home for less than 2 weeks and had it rented, check in hand for 6 months in advance. In 5 months I will receive another check for the remainder of the year and making a little over $700 a month on this home. I have $41.00 invested in this home and it has right at 60k equity. My primary residence is rented as of last night. This one is rent-2-own with a much larger deposit. I will make a little more than $150 a month on this property and I have around $27.00 invested in this home. Property has 30k in equity. So at this moment I have two rentals and looking for more. All with under $100.00 out of my pocket. I didn’t advertise these properties in the papers or anything. Strictly craigslist. I have learned a lot from you and your experiences and posts. So for that I thank you and now I am on the right path to a great real estate investing career. Did I mention I am 27 years old, father, husband, employee, website developer, and now landlord? If I can do it…..I know you can! Thanks everyone! What do you mean thanks…

What have you done right? Well, just for being a part of FIB and helping me learn and grow. For posting on the site…That’s why! LOL..

I have always wanted to get into real estate investing but always had this fear in the back of my mind that it isn’t possible for me to be successful. I mean, you can’t own a house without spending money, you have to have great credit, and you need credit cards and money in the bank.

Well, for someone that might be true. For me it isn’t.

My first thoughts were how could I minimize my risk…then it hit me…Start a Real Estate Investing community and build my network…. I think we can CHECK that one off the list!

Thanks to the launch of FIB and its great members I have learned a lot. I learned the terminology, the strategies that will work for specific situations, how to market, etc.

Last year I took a home subject-to (valued at $147,000) and made that my primary residence. Two weeks ago I took over a house (valued at $536,000) and made that a rental.

I owned the Helena, AL home for less than 2 weeks and had it rented, check in hand for 6 months in advance. In 5 months I will receive another check for the remainder of the year and making a little over $700 a month on this home. I have $41.00 invested in this home and it has right at 60k equity.

My primary residence is rented as of last night. This one is rent-2-own with a much larger deposit. I will make a little more than $150 a month on this property and I have around $27.00 invested in this home. Property has 30k in equity.

So at this moment I have two rentals and looking for more. All with under $100.00 out of my pocket. I didn’t advertise these properties in the papers or anything. Strictly craigslist.

I have learned a lot from you and your experiences and posts. So for that I thank you and now I am on the right path to a great real estate investing career.

Did I mention I am 27 years old, father, husband, employee, website developer, and now landlord?

If I can do it…..I know you can! ]]> flipitbig http://www.flipitbig.com/blogs/flipitbig/63-moving-up-east-side-i-finally-got-piece-pie.html http://www.flipitbig.com/blogs/jaredfromindiana/62-time-newspaper-too.html Thu, 27 Mar 2008 11:33:43 GMT Well... the phones sure aren't ringing off the hook right now!! We decided to put an ad in the newspaper under Houses Wanted

Need 2 Sell?
Need2sell.net OR
call Amanda at
704-BUYS!

We'll see if that drums up a little more traffic. Time to order more bandit signs too. I have also decided to start wholesaling REO properties as well. I'll let you know how that venture goes.

I think it's just awesome where things are right now... so many opportunities! I just know that the more we open our minds and the more we put things out there, the more that we'll learn and the more $$$$ we will make!!
]]> JaredfromIndiana http://www.flipitbig.com/blogs/jaredfromindiana/62-time-newspaper-too.html http://www.flipitbig.com/blogs/jaredfromindiana/61-quick-update.html Tue, 18 Mar 2008 21:08:29 GMT We have still been getting calls from our signs, but nothing even close to a deal yet. We have received a couple of calls from other investors so that's been pretty cool networking with them. Plus that's just another buyer on our list!!

I was driving downtown and saw a vehicle that wasn't quite wrapped like Steve's cars, but has some pretty cool designs on the doors. I called him and scheduled an appointment to have him to up my truck a bit. I'll put up some pics when he get's done with it.

I had an "A HA!" moment the other day. If any of you know me personally you know I'm somewhat of a people person, always talking to whoever I see. I was getting license plates the other day and was talking to these two guys for a while. I ended up shaking their hand and walking to my truck. Then I was like WTF??? Why the hell didn't I give them a business card? Made myself laugh on that one. I talk to so many people while I'm out and I had been forgetting to hand out business cards! I think I have just had a lot on my mind lately...

Anyway, that's the update. Pardon me while I go answer the bat phone! :telephone: ]]> JaredfromIndiana http://www.flipitbig.com/blogs/jaredfromindiana/61-quick-update.html http://www.flipitbig.com/blogs/stevebuyshouses/60-day-life-office.html Mon, 17 Mar 2008 00:32:56 GMT Ok, so how about a day in the life? Well here goes for everyone.

Up at 6:45 check email via blackberry by 7:30 in the office by 8 at morning prayer by 8:30, back at the office by 9. Short sales meeting with sales staff. Meet with my buyers about appointments for the day. By 11 looking at a house we got under contract yesterday. Signed a sales contract on a retail sale for 75k (got about 28k in it). Went to lunch with an investor and talked about the biz. Played around on flipitbig.com for a while after lunch. Worked on a contract addendum for a particular deal that we are working. Followed up with one of my buyers after one of his appointments regarding a house that he looked at. Talked to my sales girl about some of her leads with retail buyers that are pre-qualed. Talked to a couple of investors about lines of credit and how to establish them. Met with a private lender regarding transactions coming up. Got earl (the rottie) and packed up the laptop and called it a day (5:15).

Kinda’ normal day. I spend a lot of time on the phone, mostly networking and talking to lenders and investors (8000 minutes/month usually). But I only look at houses that are deals and are under contract after my buyers have completed their part of the deal. I basically manage my system and manage my people at this point. However, I do have bad days and days that I run crazy all day etc. I am sure we all do. But let me give you a day in my franchise/business and what goes on around here all day overall.

We usually start showing up at the office around 9 am as a group. I usually spend a little time with each of my buyers and sellers to see what they have working at the time. My buyers will go over the paperwork and comps for their upcoming appointments for the day. We generally schedule appointments at either 10 or 2. This gives the buyers time to prepare emotionally and with their paperwork etc for the meeting with the sellers. We have 3 buyers and each of them will have 2 appointments on the average each day. My coordinator will pull a comp report on each house that we will look at. On each house she will pull at least 10 comps and then narrow them down to the three closest and in size to the subject property. She then puts each one of them into our proprietary program which includes an estimator program for repairs. Once it is all entered, a packet is produced and given to the buyer on that house. Along with a credibility packet the buyer will take all of this including a laptop to the appointment.

We normally have at least 15 or so line ads in the local paper, or thrifty nickel type of paper. Because of this, the phone rings about 10 or 15 times an hour on average! So needless to say my coordinator is busy every day just with that part and the paperwork for the buyers, but she does a variety of other things as well. She is responsible for our reporting to HVA, as well as the daily managing of the comings and goings of the office. She coordinates between all of the members of our team. This also includes requesting title work and maintaining a file on each property that we have under contract. She will push our deals from a communication standpoint and make sure we are all on the same page. She will make sure that everything is on schedule with rehab jobs as well. Basic tracking of invoices as well as ordering of office supplies and deploying garbage cans etc are covered by her as well.

My buyers of course are the ones who go out to the appointments and meet with the sellers. Their job is to negotiate for the purchase of the houses with them and convey our position as the industry leader to them as well. This gives them confidence in our abilities as professionals and lets them know that we are their best choice in the market for them. They will drive the area that they have the appointment in and look for vacant houses before leaving the area. Once back at the office they will pull the subject information of the vacants and mail them a letter. They will also place door hangers on all of the houses within a couple of streets of there as well. Then do that all over again for the second appointment. Two of my buyers will also sell houses wholesale for me to our investor database, they have a group and list of buyers that are their clients.

Our retail sales person schedules and has appointments with potential buyers where she will pre-qualify them with our FHA lender. Once pre-qualified, she will give them a list of property that they can go and look at, this happens about 3 times a day on average. There is of course a big pile of paperwork that will need to be gathered on the buyer including two years worth of W-2’s, two years of tax returns, verifications of rent, deposit for down payments, and verification for the 3 necessary trade lines as well. Her job is to manage all of the gathering of the info to send to the lender along with the selling of the houses retail. She normally talks to 4-6 potential buyers a day and meets with at least 3.

I have 2 property locators that drive neighborhoods daily looking for houses that are vacant and need work, which we will pull records on and mail to them to attempt to get a lead and set an appointment.

Our construction superintendent oversees the rehab process on our rehab projects. He of course has to procure supplies for the jobs and manage the subs that are on the jobs, which is one of the hardest jobs in the business. We normally work 2-5 rehabs at a time, so all of it is in multiples. He normally is at Home Depot at least 2 times a day, and is at each rehab at least once a day.

Our bookkeeper is responsible for the day to day management of the financial part of our operation including maintaining the daily balances, booking invoices, and HUDs from closings. We also have a CPA that oversees her process and we meet with him monthly to go over our P&L and he lets us know exactly where we are at financially.

We have one full time short sale person along with my wife who oversees the department. She talks to banks every day and usually have at least 4 or 5 hours on the phone daily either talking to banks or holding for banks. She deals with people about to lose their houses and has to maintain a communication level with the sellers to ensure the deal will go well.

My wife’s main job function is to oversee the sales department of the office and make sure that part is moving in the right direction. She oversees the short sale department as well. My goal for her is the same as myself, doe us to work on our business not in it. this gives us the ability to develop our business and take it to the next level.

All of these parts are moving daily in conjunction with each other, sometimes they move well, sometimes not as much, but that is what we do around here. ]]> Stevebuyshouses http://www.flipitbig.com/blogs/stevebuyshouses/60-day-life-office.html