Steve and Veronica's Journal

Steve and Veronica's Journal

Steve and Veronica’s Real Estate Journal. I have said in the past, I did not want to post anything on a deal, until the deal closed. I felt that it is not a deal until it is closed. I see so many other DG Family members writing about offers they make trying to get a deal done and I realized that is part of the deal so I should write about our real estate experiences good and bad. I have a lot to say to catch up here with this first post.

We started with real estate back in 1985 my soon to be Father-in-law told me if I wanted to marry his daughter I had to buy a home for her to live in. To save money to buy this house, we built a room in my Father in-law’s garage for me to sleep in. For 6 months, I worked two jobs to save the down payment money. At this time, I did not earn enough money to go with a VA loan and we had to use a FHA loan with my in-laws co-signing. In Jan. of 1986 I bought my first house for 80k at 10.5% interest. Our payment was $850.00 a month.

I had to rent bedrooms out to friends to help pay the mortgage. Then in August of 86 we got married and Veronica moved in. With my wife working and me working two jobs, we still did not make enough money to pay the mortgage without renting to roommates. After a year of living with roommates, we decided to move back to Veronica’s Mom and Dad’s home and rent our house out to one family.

The last day of 1989 we were blessed with a little girl. I was from the Midwest and my wife and I thought it would be better to raise our daughter in Indiana where my family lived at the time. Veronica’s Dad told us he would give us 40k to buy us out of our home after one of his other homes sold. So off to Indiana we went. It took a while for my in-laws home to sell to give us the 40k and we were down to having no money, no job, and bill collectors calling. Veronica went back to California with our daughter to work and help get the house sold. I said I would not move back to California and I could make this work out here. One of my brothers in Northern Indiana said he could get me a job up there in Elkhart. Finely in December of 1990 our home sold Veronica came back to Indiana with our daughter and the money. We were able to get ourselves out of debt.

We moved to Elkhart Indiana and I started working at an aerosol packaging plant as a maintenance mechanic making good money. In 1993 we bought our first no money down home using a VA loan and seller paying all closing cost. It was a great place to raise our daughter but Veronica was getting tired of what she called "12 years of long winters." She wanted to move back to California. We left Indiana in 2002 with 60k from the sale of our home.

In 2002 the prices of homes in California were going through the roof. We bought a 255K home with no money down, again using a VA loan and seller paying all closing. The week after we closed on this house Veronica and I got laid off from our jobs, we worked at the same place. Veronica was able to get a job right away but it was harder to find a job that paid me what I was making as a maintenance mechanic. We still had money in the bank from the sale of our house in Indiana so we knew we would be okay for a month or so. I have worked for over 20 years without taking any unemployment benefits. So I took the school benefits and put myself through a 23 week Sheriff’s Academy. After I completed the Academy I worked as security at a mall until I was hired on at a Sheriff’s department. During this time houses in California were going up in value like crazy about 10k or more each month.

We moved to Northern California and sold our house in 2004 for 410k that was a 155k profit. We paid 17k in commissions to the real estate agent. We still had over 100k in bank. We bought a house in Northern California with 20% down for 385k. Due to not being on the job for 2 years I could not use the VA loan.
In 2005 the area we lived in was hard on Veronica’s allergies and we knew that if we were going to sell it would have to be very quickly because we knew that the housing bubble was about to burst. We sold that house for 399k. We moved closer to Veronica’s work and into a better high school district for our daughter. Again, we felt that the housing bubble was about to burst so we rented a home for the next three years. The house we rented was close to the high school which was convenient.

In 2006 we started watching Dean’s programs on TV and Veronica read Rich Dad Poor Dad. Veronica told me we needed to start buying homes and renting them out. By 2007 we had been to a 3 day class by Rich Dad but we did not want to pay the 24k-40k they wanted for their advanced training classes.
Veronica knew my Mom and Dad had never owned their own home and were great renters. Homes in the Vermillion County area of Illinois were not affected by the housing market like California was. We bought a house to rent to my Mom and Dad and in 2007 you could buy a house with no money down using a 80/20 loan. 80% on the first mortgage and 20% on the 2nd. We wanted my Mom and Dad to have a nice house to live in that they could feel that it was their own. My Dad takes better care of rentals houses than most homeowners.

In 2008 I bought the book Be A Real Estate Millionaire by Dean Graziosi. We paid $ 495.00 for a 3 day class by Rich Dad. Dean’s book cost $24.95 at the bookstore and had better information on real estate investing than the 3 day class we paid $495.00 for.
In the spring of 2008 our daughter graduated from high school and we felt it was time to buy a primary home for us again. Using Dean’s techniques we bought an REO home that previously sold for 655k we got it for 365k no money down with the seller paying 4% toward all closing cost and enough money left over to buy down the loan. The home was built in 2003 so it was only 5 years old plus it was a 4060 sq ft. We did not need a 4000 sq ft home but all the other homes in the area were smaller needed more work and were priced higher. This house was vacant for a year. The fence in the back yard was down from a windstorm and the neighbor's big dog had left big messes all over the back yard. So we told our realtor to request additonal money form the seller for for repairs. The REO bank said they would give us 1k for repairs in addition to having the fence repaired before closing. All the things Dean says to ask for on a deal the bank was saying yes to. We walked out of closing with so much money we had to have the seller put ther rest of the funds into an escrow account. I guess the seller cannot directly give money to the buyer at closing. However, we did get a check for over 1k at closing and the remainder was placed in an impound account wich was applied to insurance and taxes. Thanks Dean.

In August of 2009 we joined the Success Academy. The On Demand classes are great and the Coaching staff is terrific. We were on fire to get our real estate business going so now we opened a LLC and started making offers. We started with a duplex in the small town of Covington IN...FSBO. I have a sister that lives in that town and she looked at the property for us. The owner did not want to do seller financing so we talked to a small town bank about a loan. The bank said they would consider making a loan to us and needed a purchase agreement. The sellers were asking 38k for the duplex. We sent the sellers a purchase agreement that we printed from this DG site. We gave the seller 5 days to respond. The 5 days went by and we had not heard back from the seller. I called the seller and was only able to leave a message. Since there was no response to our voice mail my wife and I decided to move on to other deals. The seller called us back about ten days later saying she wanted a different contract. I had to tell her we have moved on from this deal. So we did not get that house. It was a duplex, one bed one bath each which had rental income of $550.00 a month together. After the mortgage payment it would cash flow around $150-200 a month. But we did not get this one.

We started working on a two home deal in Danville IL for 34k. I had my Dad go with the realtor to look at the houses for us. Remember we live in California. So my Dad said with a little work they would be good rentals. Both houses were two bed one bath homes that would rent for about $400.00 a month each. We had the down payment money and we wer talking to banks for the rest of funds. We got to the end of the time frame for the loan contingency and all the banks said our debt to income ratio was to high. That crushed us. ( Don’t let this happen to anyone of you reading this post.) We dropped out of the hunt for a deal for a few months.

We tried to see if the stock market would give us the capital to buy homes out right. That did not work out so well.

We refinanced our primary home and dropped our payment by $400.00 a month. I bought the book Profit from Real Estate Right Now. We were back in the game but I wanted to study the classes put on by the Academy and maybe get out of our comfort zone and try something else than just buy and hold. We bought the book Your Town Your Real Estate Profits and we are on fire again making this real estate business work.

I was talking to some coworker of mine about real estate and they said they would be willing to partner up for some deals. This was in May of 2010. We looked at a lot of houses and agreed to go for a house listed for 60k it is the worst looking property in the area in this part of California. The other houses in the area were selling for 150k. It was a two bedroom with one bath on a third of an acre lot. We put an offer in for 55k with the seller paying closing cost. The seller countered with 58k and we said OK. The bank we were working with told us they could not give a loan on this house due to a report of mold. We were dead in the water. We talked to a few so-called Hard Money Loan people and they wanted 30 to 40% down telling us there is no hard money 100% financing. Well with the mold issue which, in my opinion was not that bad we still decided to move on.

A few days later our agent called us and asked if we still wanted that house. The bank was willing to pay $2,100.00 for mold abatement if we would pay 60k for the house. It was worth it to us if the bank could give us something in writing that the mold was removed, so we said yes. Now our partner on this deal moved on to another deal so he would not be able to go through on this deal with us. Veronica and I decided to do the deal on our own. After the inspection report, we felt that there was too much work to be done to this house. The kicker was that the person the bank sent out to remove the mold ended up just wiping the walls down with bleach and not producing a clearance report for the removal of the mold. We countered with a 55k offer with a contingency that the house would appraise at 55k. The bank said no so we exercised one of our exit clauses ad canceled escrow. I just received information that we would get our earnest money back as I am writing this post. There are a lot of deals out there so we know that we don’t have to settle on just one house.

We now have the Set for Life program and are going to try some wholesale deals.

Sorry this was so long but we had to do a lot of catching up.

Steve and Veronica


There were some other offeres

I just did not what to make our first post to long.


Today Edge 2010 VIP Video

Today I was watching the VIP video from the Edge 2010. Matt was saying we need to remove things from are life that slow us down like watching TV or some hobies.

One of the things Veronica and I have done is sold our Bass boat. By selling the boat we have removed $310.00 a month debt. That will help with our debt to income level.

Trying to get our real estate investing going I was not fishing as much, so it only made since to sell the boat.

One other thing we have done was using the infomation from Indiana Joe's book on Graigs list and E-bay to sell off a lot of clutter from our home. It as helped us to buy things like the Set For Life program.

Steve and Veronica


Steve and Veronica,

....Thanks for sharing your updated story. It is always great to learn where people have come from, challenges you run into and the persistence to succeed. Each potential deal can be a good learning experience. It can be frustrating wwhen deals don't go through however we can learn form each potentiaql deal. Always remember to look ahead and don't look behind. The new deal opportunties will come. Keep up the good work. Believe and Achieve! Smiling - Joe

__________________

YOU TUBE CHANNEL - Follow me on my You Tube Channel at Joe Jurek Real Estate Investing Adventures
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Joe Jurek CPA
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Steve

Glad to see your post and wish you the best of luck.

Randy

__________________

www.adeptpropertiesllc.com


Indiana Joe

Thanks for the motivation. We hope to see you at the top.

Steve and Veronica


Thanks Randy

Thanks Randy for stopping by. Thanks for the luck and we hope to see you up at the top.

Steve and Veronica.


Steve and Veronica

so nice to see your journal. i know things will work out for you and as Joe said, each experience is a new way to learn. keep up the great work and you will achieve your dreams! Smiling

__________________

Linda, Army EOD Mom
you can follow my journal at http://www.deangraziosi.com/real-estate-forums/investing-journals/45351/...
IT'S ALL GOOD AND EVERYTHING IS WORKING OUT PERFECTLY FOR ME!
Fear equals:
False
Evidence
Appearing
Real


Steve and Veronica

I really enjoyed reading your post about your past experiences. You two sound very knowledgeable and very motivated. It's very nice to see someone that is familiar with IL real estate. We hope to stop in and say hi to your brother soon as well! Good luck with your real estate investing!

__________________

Sheila

"If God is for us, who can ever be against us?" Romans 8:31 NLT


Linda

Thank you for the encouraging words.

Steve and Veronica.


Sheila

Thanks for stoping by to our post. I hope it was not too hard to read. Veronica is a better writer than me but I wanted to get a post started. Veronica may want to edit the post.

I do hope you get to meet my brother. I would like to get him and his family into REI.

Steve and Veronica.


Sat. 08/28/10

Today started off with running some comps for a friend of mine at work who is buying a home from his in-laws. They want 250k for a home that comps out at 218k. We can only give him the information on the home. We don't want to get in the way of a family deal we know the mother in-law also.

Veronica and I went for a drive to look at some homes were I saw a FSBO sign. We stoped by the home and the phone # was warn off the sign. A man came out of the home to see what we were doing in the drive way. The man spoke spanish and lucky for us Veronica speaks spanish. The man was the renter for the home and was telling us every thing about the home and property. This home sits on 1 acre. The renter said the owner has a boot store just up the road. We went to talk to the owner and asked him how much he wanted for his home. The owner said I will take 350k for the property. Now the home is only a 2/1 and a little worn. I did not use my best negotiating skills and said you know it is not worth that. We left information so if his price comes down we can talk. The property may be worth 120k.

We also found a REO in the neighbering town that we are going to call on Sunday. We ran out of time do to the fact I work on Saturday afternoon.

That all for Todays REI.

Steve


Steve & Veronica

I just read your journal and I am impressed with your persistence. I don't know how you survived all the moves because I have moved only 7 times after getting married. Especially moving across the country. My last move was to Florida where I live today. I am encouraged by the description of your efforts too. I don't mind the long first post. It brought all of us up to speed on where you came from and all the things you two have been doing. Keep up the good work and keep moving forward. I intend to keep tuned into your journal now.

Tim

__________________

Tim
Keep on Keeping On !!! Expect it, God has already given it to you. You just need to get out there and grab it!
If you want to follow my journal:
http://www.deangraziosi.com/real-estate-forums/investing-journals/33874

Do not fear, for I am with you; do not be dismayed, for I am your God.I will strengthen you and help you; I will uphold you with my righteous right hand. Isaiah 41:10


Tim

Thanks Tim for stopping by our journal.

God bless you and your real estate investing.

Steve


Monday 08/30/10

Today started off watching Edge event DVDs. It is nice to put the faces to the names. I have seen Randy428 and a lot more other students that are here on DG a long with the student speakers. All the student speakers have done a real good job explaining what they do to get a deal done. I feel that the Edge DVDs to me are worth the price of the SFL program. I still want to use the online part but I am very happy with the Edge DVDs so far.

I also watched a PMI on demand class from the academy today. I want to get as much of an education as I can on every part of REI. Not only has it helped us but it lets us help others with real estate issues.

I talked with a bank today on refinancing our Illinois home. The rate we have now is 6.25% and we can get 4.875 with Wells Fargo. We still want to try a small bank in Illinois before we lock in.

Steve.


08/31/10

Today started off with putting a bid in on a HUD home in Indiana. We hope to get this one. We know there will be some work needed on this home but it should cash flow + $300.00 a month. We have to wait till 09/07/10 to see if they take our bid.

I called the Coaching line and spoke with Coach Eric about HUD homes. The Coaching staff is the best part of the academy.

I watched the webinar today for the Set For Life. A lot of good information in the webinars.

When Veronica got home from work We started disk 3 of the Edge event. We have realy enjoyed the Edge DVDs. All the information coming at us is like drinking water from a fire hose. If you did not get the Edge DVDs for 2010 you need to get them.

Steve.


HUD

i am waiting on closing for a HUD deal i did as a realtor for investors. i love the online bidding part. Smiling just be real patient because working with HUD is very different and very slow compared to anyone else. but, it will be worth it in the long run. have fun with it. Smiling

__________________

Linda, Army EOD Mom
you can follow my journal at http://www.deangraziosi.com/real-estate-forums/investing-journals/45351/...
IT'S ALL GOOD AND EVERYTHING IS WORKING OUT PERFECTLY FOR ME!
Fear equals:
False
Evidence
Appearing
Real


Thanks Linda

Thanks for the information. Go Hoosiers.

Steve and Veronica.


09/01/10

Watched the Edge DVD with Coach Drew. I called the Coaching line and talked to Coach Criag about who gets the tax credit on a lease option deal. The owner with the mortgage gets the tax credit.

Veronica and I are thinking about putting a bid in on one more HUD home.

That's it for now I am at work trying to write this post.

Steve.


09/02/10

Started the day off by calling a realtor in Indiana about a HUD home. The agent is going to put us on a list to call us if any homes that met what we want.

Watched the webinar on set for life today.

I called coach Greg H. today asked him a few questions.

Not much else going on today.

Steve


09/03/10

Started the day off on DG.com like mosts days. Then I watched Carol Stinson and her patner Lou's video on the edge DVDs. God bless her.

Also watched Bill Rafferty's vedio at the Edge Event. Man that was realy like trying to drinking water from a fire hose.( a lot of info real fast) Good stuff. Very happy with the 2010 Edge DVDs. If DEan puts them up for sale buy them if you don't have them.

I meet Veronica for lunch like we do on most Fridays before I go to work. We talked about properties we want to buy.

Here I am now at work.

Steve.


09/04/10

Veronica watched the Edge DVD on Bill O'rafferty.

Veronica and I ordered our business cards today so we can look more like pros.

Steve.


09/05/10

Sunday we went to church first thing this Sunday morning like we do most Sundays. For Veronica and I it is where we get our batteries recharged for the next week. If you are reading this and your not in a good Bible based church, you need to get in one. I can not tell you how much it has helped our life in every thing we do. If you are in the Sacramento area go to one of the Bayside Churches. You will be glad you did.

We meet with a couple today to go over thier wedding day plans that we are going to DJ for them. We found out that they may be looking to rent a home soon. We are always looking to help someone get in to a home they want to be in. I hope we can help them.

We watched the Edge DVD video on Indiana Joe and Stacey today. You can tell they have fun with REI. Joe and Stacey you are a very big inspiration to us. We know Joe and Stacey are set for life.

One of our goals is to be at the 2011 Edge event.

Steve.


09/07/10

I made some calls today. I talked to my agent in Indiana on the HUD home we put a bid in on. We should know someting on the 8th if we won the bid or not.

I also talked to a mortgage broker to set up a time to go over all of his difrerent types of loans.

I talked to Coach Nathen today about hard money and refi loan.

As always spend time here on DG.com and MLS sites looking for that next deal.

Steve.


Steve,

Keep up the good work. It is great to see that you have done so much today. See another day down and so much accomplished.

I hope you get the property that you bid on, I am sure you are thinking, the 8th can't come quick enough. Good luck, can't wait to hear about that deal.

Happy Tuesday!

Carpe Diem :0) - stacey

__________________

YOU TUBE CHANNEL - Follow Joe on his You Tube Channel at Joe Jurek Real Estate Investing Adventures
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Joe Jurek CPA
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Thanks Stacey

For stoping by our journal. You are right about the 8th. We have had so many deals not make it due to geting out bid or banks not working with us at that time. But we will not give up. I just hope we can pass on some good news on the 8th.

Steve


9/08/10

Veronica and I just won a bid auction on a HUD home in a small Indiana town. I went to high school in this town Covington for my Sr. year after moving from the farm in Illinois.

This is all done from California.

The home is a 3/1 1020 sq ft with a basement. Our bid was $15,105.00 it will need some work but homes rent fast in this town. We will get $450.00 a month or more in rent and the homes av. sale for around 40k-50k for this size and age of home. We will still need to do our inspections but I have a Sister who lives 3 blocks from this house and she says it is worth every penny.

Now time to fix and rent.

Steve.


09/09/10

My agent in Indiana called today and confirmed our inspection date for the new Indiana property. I called my Dad to see if he can go stand by during the inspection. My Dad knows the inspector from working with him on the home we bought for my Mom and Dad to live in.

We hope to keep My family busy back in Illinois and Indiana. I have 3 brothers and two sisters living in ILL and IN.

Steve.


9/10/10

Today I was talking to my Daughter and she was telling me that one of her managers where she works was looking for a place to rent. She was telling her manager that my Mom and Dad buy houses to rent out. God bless her. Our Daughter is taking real estate classes in college to be an agent. She is always on the look out for homes for us.

Other than that just spend time looking on line for deals and DG.com.

Steve.


Steve and Veronica,

...Congratulations on your Indiana real estate deal. As they say, there is more than corn in Indiana. Smiling I am sure you will continue to find even more. Your family can be a real asset as you expand your efforts in Indiana and Illinois. Don't forget about Berrien County Michigan too. Keep up the good work and we look forwarding to hearing about your future deals. ( Go Bears!) Believe and Achieve! Smiling -Joe

__________________

YOU TUBE CHANNEL - Follow me on my You Tube Channel at Joe Jurek Real Estate Investing Adventures
https://www.youtube.com/channel/UCiko62V79zLKX_owbirAYNA

TWITTER - Follow me on Twitter at Joe Jurek CPA
Joe Jurek CPA
https://twitter.com/JoeJurekCPA


09/11/10

First off I hope everyone is doing well that may have lost someone on 09/11/01 our prayers have been with you. If you have love ones serving our country our paryers are with you and the troops. Semper FI.

There is a air show going on just out side my yard today. I live on a closed Air Force base where they have a air show one weekend each year. I love to here the fighter jets.

Then off to work. Some days at work I can do resurch online and other days I can't. Today has been one of the days I can't spend much time online so I have to go for now.

Steve.


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