Minnich Journal - Success academy 2/16/09

Minnich Journal - Success academy 2/16/09

Hello everyone,

I guess I will start with some background about myself. My name is Lonnie and I am a disabled veteran (it was a back injury so able to function normally just can't do heavy lifting). Anyway, after my 8 yrs in the military, I went back to school and got dual degrees in finance and accounting, became an auditor with E&Y for 3 yrs, an auditor with a regional firm out here in Rockford, IL, and then got laid off recently.

I am on unemployment and really do not want to go back to auditing, it bores me to friggin tears!! After being an MP in the military, I just can't do some boring job again. So, I have been applying to these boring jobs for a while now and one day my mother tells me that she bought me this book about real estate investing because we were talking about buying tax liens. Oh yeah, I also purchased my first property a few months ago while I was still working because I knew I wanted to get into real estate. I paid too close to market value for it, I know, but luckily it still gives me about 300-400 in cash flow a month, a section 8 with 4 units.

Ok, so, I have read the book three times so far and I really want to do the assignment deals. While I have been reading the book, I have dragged my mother into using her available credit to try and buy a HUD home so we can fix and flip it (actually, she offered and wants to get involved but I am scared that I will screw up somehow and mess up her credit and leave her with a mountain of debt). I didn't mean to write for so long so I will break story here and continue in the next post.

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


Background continues

Since I received the book, here are some of the things I have been doing:

1) I have been debating if I should call the coaching number or not, still debating on that one. Not sure spending more money right now is the best course of action.

2) I have been calling or e-mailing every "I buy houses" number I see and try to talk to them about assignment deals. I am not sure that I am approaching it correctly because they don't seem too interested.

3) I have been meeting with various RE agents to try to find those that are driven towards the kinds of deals I am looking for and willing to low ball bids. I have found two so far that seem promising and helpful.

4) Just to do a dry run, I had one RE agent take me to a foreclosure and I had a home inspector come in and take a look at it. It cost me 250 bucks but I walked through with him and learned some interesting things about rundown homes and things to look for. Also, I now have a detailed inspection report to refer to on this guy's website. I might keep using him, seems professional enough although he only has 6 yrs experience. He is ex-military, probably why I like him.

5) After my mother offered to use her credit like I mentioned previously, we started looking at these HUD properties and have found a couple that we might be able to buy for around 10k, spend 15-20k on her credit (doing a lot of work ourselves), and sell in the 60k range.

Now, I know this goes against the not using your money philosophy but this process is our comfort zone right now. If anyone has ideas or things to consider how to not put ourselves at so much risk, just slap me.

This is where I am so far. We are probably gonna make a bid next week on something. One of the problems with what I am doing here is that I have to wait around 30 days to close on the HUD b4 I start fixing up and then at least a month to get it up to par to sell and then need to find a buyer.

I know I am doing some things in the wrong order here but I feel like I have to do something. I can't just do nothing about it anymore. Fear is not an acceptable obstacle for me. Fear can be overcome and I can solve the ignorance with learning as much as I can from deals you people have talked about and keep re-reading the book until I have it memorized.

Thanks for reading my spiel, I'll let ya know any future progress.
Lonnie...

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


Lonnie,

minnich54 wrote:

I know I am doing some things in the wrong order here but I feel like I have to do something. I can't just do nothing about it anymore. Fear is not an acceptable obstacle for me. Fear can be overcome and I can solve the ignorance with learning as much as I can from deals you people have talked about and keep re-reading the book until I have it memorized.

This part of your post I love most. This shows that you will make it no matter what. Congratulations!!! on buying your first property, and with great cash-flow!
Also, the part about shelling out the $250 to walk through with the home inspector What a great learning experience! I'm sure you've already gained more than $250 worth of knowledge to put to use in your REI. Keep it up, and as you gain more knowledge and keep taking action, you'll get better and better at it.

Proud to have you as part of the DG family,

Rina

P.S. Thank you SO MUCH for serving our country!

P.P.S. Call the coaching and see what you think of what they have to offer.

__________________

"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


some clarification

Thanks Rina, I'll give the number a try.

Just to clarify for readers, I purchased the multi-family while I was still employed and some vacancies have caused me to not see any of that 300-400 cash flow as of yet but it soon should. So, I am basically starting over while breaking even with the one property and cc bills. Therefore, any money spent (including the 250 for the home inspection) is taking a gamble on information learned for future deals.

Also, with regards to the two RE agents I found, I went through probably 8-10 different agents before finding these two. I looked up real estate offices in the areas I wanted to buy/sell and set up appointments to talk with them. Some just didn't seem motivated and others were just too busy to get back to with information as quick as I think I will need it. Another thing I did was look at current listings in my areas and set up appointments with those selling agents to talk. One agent I found the first way and the other I found the second way, just so you know.

I think the main plus in my current situation is all the time I have on my hands right now. Basically, I am doing the required amount of job hunting for unemployment while trying to do REI with the rest of my time. I am looking all over this site to find those ways I can mass market my intentions in the most cost-effective and efficient manner.

The ads seem like a decent idea, one for investors and one for people looking to get rid of properties. I just need to draw them up and send them in. To be honest, I haven't even put anything on craigs list yet. That's just retarded because it's free to do.

Ok, enough for now, talk later.

Lonnie...

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


Follow up on a HUD.

Today, we looked at some HUD properties at around 10k and they were just too much work. There is still one out there that has yet to go to "all bidders" that we plan on sending in a 10k bid (on a 3br/1ba house in poor area) on when it opens up end of next week.

We have put together a basic estimate for repairs and it looks like it would take about 15(mid)-20k(high) to rehab. If our bid is accepted, we plan on getting better estimates and inspections to clearly identify the costs. We will have 2-4 wks before we would close on that property. Now, once the bid is accepted, I plan on putting together the rehab package for cash buyers in the area. Does anybody think that these numbers would be a good deal?

13k cash paid for house/ agent fees/ closing with HUD, 15k for rehab, so 25k total costs, would sell for 60's as FMV, I would sell to cash buyer for 35k. Would a cash buyer want this kind of deal? To me, the buyer could end up making 25k or more on this.

Another option that I am not sure a rehabber would do is this: we pay the 13k for house/agent/closing costs initially, then we ask rehabber to perform the 15k fix up, if he holds the costs of that until we sell then we split profit above all costs. Would someone do that one either?

In the meantime, I am looking for anything I can find to do an assignment deal.

Thanks,
Lonnie...

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


Joined today

Okay everybody, here we go. I called the number and joined the academy today. I am nervous, excited, and pooped a little in my pants, just kidding. I have to view a previously scheduled property today but I have a follow up call at 5pm today to get more info. I am really looking forward to the learning process, I am pumped, I hope it lasts.

Lonnie...

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


property showing

Realtor called and said there was a sale pending so the showing was cancelled. That's ok, I am starting anew anyway. More later.

Lonnie...

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


In the meantime

The orientation call is thursday so I am bouncing off the walls ready to get started and had to do something. So I read the rich dad last night and this morning, went on the web to look up reic's re attorneys in my area. Unfortunately, rockford area is not a real hot bed of investment clubs. I did find a couple within driving distance so I will be checking those out. Also, found 3-4 attorney websites that have a real estate focus to check out as well. Just trying to think of any other things i can do before thursday.

Later,
Lonnie...

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


assignments

Here's an update.

Completed overview,assigning contracts, buyers 1/2, basic, assignment 1, and the following action items:

1) Created company logo and slogan "Superior real estate solutions for both buyers and sellers"
2) Ordered business cards
3) Set marketing budget for the month
4) Since I had an out of town number, I set up a separate local business number
5) Set up separate business account at bank to keep track of finances
6) Have 6 possible buyers on list, still need to qualify 4 of them
7) Set up business email through different provider to keep separate (worked with provider that I can get push through service on my new phone)
Cool Bought domain name that matches business name, sweet!
9) Created basic website through hosting service.
10) Have 2 re agents and one home inspector on my dream team.
11) Went to my first RE club meeting end of last week. The organizer seems like the kind that has been burned a lot in real estate but some of the other members seem nice and optimistic.
12) Have my four target areas picked.
13) Put together excel spreadsheet to keep contact info on dream team and to do list.
14) Read rich dad

To complete assignment 2-5.

Remaining action items from previous lessons:

1) send in paperwork for LLC
2) find ten properties in target areas
3) Add more functionality to website, forms, etc.
4) Create marketing pieces, craigslist ads, etc.
5) finish reading automatic millionaire
6) Build appraiser, attorney, and handymen/contractor team members
7) Qualify other 4 buyers on list
Cool Order bandit signs
9) Need to customize voicemail message that works for both buyers and sellers. Having trouble with this one.

Ok, that's it for now.

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


forgot

Oh yeah, i forgot to mention that the HUD property i wanted to buy and fix up was snagged by an owner/occupier, bummer! If i didn't already have an owner occupied FHA mortgage for my multi-unit, I could gotten this property earlier. Oh well, back to the drawing board.

I also listened to my first phone seminar last night on surplus property, interesting topic.

Cya later.

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


WOW, talk about a busy

WOW, talk about a busy week. congrats. I've been throught the overview and the assignning contracts. That's about it right now. This weekend I will dive into it more. Where dod you get your business cards at? I wish you the best and hopefully I'll see you in our summer homes living the lfe in 5 years. LOL.

Keep pushing on. It's good motivation for me.


biz cards

In one of your upcoming assignments they give you some example places to get them. I went with vistaprints.com, they give you 250 free just have to pay for shipping. Think about your logo too because you can design it while you are doing your cards. It worked out pretty sweet for me, just got the cards yesterday, they look good.

Hope that helps,
Lonnie...

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


HUD property

Since some people have asked me how to find the HUD properties, I thought I would give the address I have used.

www.hmbireo.com, once there you can look up listings by bid in your particular city.

Lonnie...

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


Minnich, find yourself a

Minnich, find yourself a good accountant that can do the books. I made the mistake of going with what the coaching suggests and i'm $20000 in the hole.


lynx

Hey Lynx,

I am actually an accountant by trade but I appreciate the tip nonetheless.

Lonnie...

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


New book and proptrend

I am having issues at the moment. For one, I can't seem to buy the new book online and I don't know what phone number to call to get it. Second, I have just now tried to look at the property pro software but it is for a pc. Does Dean have it for the Mac?

Confused,
Lonnie...

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


Been a while

Hello all,

It has been several weeks since I have updated here. I hope everyone is doing well and making those deals happen. In the last couple of weeks, I have been slowly but surely moving towards my goals. I do have to say that I wish it would come sooner but I am learning a lot regardless.

No offers have been accepted yet but I have put in 10 offers in the last 14 days through an investment friendly agent I am working with. The latest was an REO I was trying to get at 130k but the bank would not go for it. Right now I am looking to get a three house deal for under 100k with two of them rented. We'll see if that one comes through. I just found another agent that invests himself and wants to work with me so I am starting to build a network.

Also, I have been looking "hard" for hard money in my area and found one private money guy who does appraisals for a living. Hope to use him soon. The coastal funding proof of funds rocks! It has let me put out offers to banks that I otherwise could not have done.

Ok, that's it for now.

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


Update on fear factor

From end of March to mid-June, I was basically a deer in the headlights. Spinning my wheels thinking about what I wanted to do instead of acting on it. It is amazing how easy this can happen, I just want to kick myself repeatedly!!!

So, anyway this is the update since mid-june. I have been calling on for rent and for sale signs whenever I see them. A lot have been upside down or not quite motivated yet but at least I am talking to people. Now, having said that, I did run into one lady who has been investing in re for the last twenty years and wants out. She has two 4-unit buildings and 10 sfh that she just wants to get rid of.

I have been talking to her about trying to get her to sell them to me on contract (what a sweet boost that would be for my business) but she is not willing to take the chance that she may end up with the properties back on her lap even if they have been improved by me. So I am now in a position where I have to find a buyer for the whole package or she said she will just give them back to the bank. Uggghhh!!! Hellppp!!!

To be cont...

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


To be cont

After working on my buyers list for the past few weeks, a seller called the bat phone (888 telephone number that sifts, sorts, and screens, hehe) and said that he had 8 properties that he wanted to get rid of (he is in his sixties and wants out). Three of the eight are condemned, lol!! Well, what do you know, it just so happens that on my buyers list is an investor that has no problem in dealing with condemned properties, woohoo. I met with him today at dunkin donuts and showed him all the properties from this seller and we are going to work out a bird dog fee for the ones he wants to take.

We talked about all kinds of stuff but when I mentioned how I was trying to get my "team" together so I can concentrate on doing deals, he said, "I wish I would have done that twenty years ago, sounds like you are gonna make it!" Now how cool is that, this guy is just looking for someone to bring him the "good" deals and he is willing to do as many of these type of properties as I can throw at him.

Needless to say, this minor victory is enough of a boost to keep me on track for some time to come. Good luck to everyone and keep at it, later.

Lonnie...

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


Lonnie,

This is great news. Congratulations!

Lea
SPR Property Solutions, LLC


It's a major victory for you!

Lonnie,
You called meeting your investor a minor victory but instead I see it as a major one! I think it's fantastic and you are really making things happen. The more you do, the more things will come to you!

Now, as for that lady who would rather give all of her properties back to the bank instead of taking a chance with you on contract...did you have enough time talking with you that you were able to figure out what she really wants, her magic button? I'm curious as to why she want to get out and get out of it so badly that she'd consider giving everything to the bank as one of her primary options. For some reason, just based on what you wrote, I have a feeling there's something there that could work out for the both of you. I hope so!

Nancy D.

__________________

Help feed the hungry - www.freerice.com

This is true for RE..."The best way to learn this business is to do this business." - John Addision, co-chief executive officer, Primerica

Aerialist's Journal - Because Life Is a Circus
http://www.deangraziosi.com/real-estate-forums/investing-journals/18857/...


Thanks Lea

Hope it all works out.

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


Thanks Nancy

I guess it is major because it feels like things are moving in the right dirx. With regards to the lady that is contemplating giving the prop back to the bank. I agree that I am not hitting that button yet. The fact that she is willing to just let them go tells me that, one, she doesn't need the money, two, she is at a comfort level where dinging her credit doesn't matter at all to her as well.

She has told me several times that she wants no responsibility with these properties, i.e. tenants, anymore. So just putting them on contract for me is not enough for her, she wants out! Having realized this, I am trying to work on finding that PML in my area willing to pick up the whole package and cash her out now. I have some more leads from last nights REI meeting so we will see. But she is also very disorganized and I am patiently waiting for the numbers on all the prop. It just feels like if I can't get her to commit that much then there is no way I can help her out. (whew)

Time will tell on this one, see ya', good luck.

Lonnie...

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


Hey Jose

Congrats on joining, take advantage of all the resources you can, it really helps with the confidence level when it comes to talking to people and doing the deals. The company I use for the "bat phone" is COA Network. (This is the one that the group recommends) There is a monthly fee but I really like it because you can create tons of extensions, one for each marketing piece you put out there. Also, there is a initial message you can create and messages for each extension before they leave a voicemail.

These messages should be designed to screen out the people you don't want without having to pick up the phone for every call, I love it. The way I have it set up is the voicemails go straight to my business phone so I know I got it and that reminds me to get on the computer soon to listen to them. Hope that helps, good luck.

Lonnie...

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


Great work!

Lonnie,
Sounds like you're doing all of the right things in regards to the woman with the properties who just wants out. The fact she hasn't just shut you out completely is a good sign. On the other hand I'm also a firm believer if "if it's meant to be it will be" so even if it ends up that she does something else with the properties, you will have learned a lot and made great contacts while searching for a buyer and that can lead to great things that may not have happened if you hadn't done all of the things you are doing now!

All the best,
Nancy D.

__________________

Help feed the hungry - www.freerice.com

This is true for RE..."The best way to learn this business is to do this business." - John Addision, co-chief executive officer, Primerica

Aerialist's Journal - Because Life Is a Circus
http://www.deangraziosi.com/real-estate-forums/investing-journals/18857/...


I agree

Yeah, just working with her on this has given me a reason to talk to investors that I otherwise would not have. So, I agree, even if it doesn't happen.

Oh, congrats on the "promotion" icons, your journal sounds like you are really doing the good deals, keep it up.

Lonnie...

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


Six months later

Hello everyone,

It has been a long time since I posted here so I will give an update. The woman that had those properties a while ago decided to have her son manage the props for her for the meantime. So I left her my card and told her when she was ready to give me a call.

In the past six months, I have been putting ads in the paper for my 800 number, going to investment club meetings, calling pawn shops and money stores for possible buyers, and placing bandit signs (placed 22, 8 are still up). Unfortunately, my first deal has not come yet.

I am getting discouraged now because my biggest fear has come true. My mother's credit cards are maxed out, mine are nearly there, and she is living her retirement paycheck to paycheck now because of me. Because of me, she is unable to get her home refinanced to get rid of her high interest 2nd that takes up a lot of her monthly income. I can see that she is stressed out every day and her health is deteriorating because of it. It is all my fault and I feel terrible about it. All I wanted to do is be able to help her like she has done for me all these years. She is a selfless woman that only wants to do good by people and I am making her life worse instead of better. I only hope I can figure out someway to make this business work before I do irreparable damage to her life.

I needed to get that off my chest since I always have to keep a happy face on around her or it only makes it worse.

Thanks,
Lonnie...

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


Lonnie

What area have you hit roadblocks?
Is finding sellers the hard part or finding buyers?


SoCal

Finding sellers mainly. Don't get me wrong, the marketing and driving around calling on FSBO's has brought some sellers. It just seems that none are willing to accept low offers or follow through on deals.

I need to step up my efforts and start thinking more outside the box, I guess.

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


I always say....

Finding the sellers, especially low price sellers, is the most difficult part. But most people on this forum complain that finding the buyers is the hard part. They claim to have sellers lined up and willing to sell up to 50% off FMV

I am a cash buyer/investor, but I still can't find anyone in the Los Angeles area who has a property under contract. They can't seem to locate sellers who are willing to sell below FMV. In fact, not one seller contact to my many months of craigslist ads!


Hmmmm

Ok, well I don't feel so bad then. I actually used to live in Huntington Beach, San Diego, and the LA area so here you go. When I start rolling here with contracts I will come to LA and find the contracts for you myself.

Good luck and stay at it,
Lonnie...

P.S. Thanks for listening to my little pity party, lol.

__________________

Don't forget to play hard after you work hard!!!

Why team building is important, "You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive." DONALD TRUMP


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