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


09/12/10

Started the Day with Church. We had a very good service.

Sam's club run just got to love that.

We had some of Veronica's family over for the Air Show in town. We can sit on our patio and watch the air show. We had a lot of fun.

The Bears won thier opening day game. Da Bears.

Did not spend much time on REI except on this site for a few minutes.

Steve and Veronica.


09/13/10

Today was spent calling repair people and handy men to get them lined up for our new Indiana property. also Veronica and I met with a loan person to set up a loan for some California property. We ar realy giving 100% to our REI this time around.

Steve


Steve

Just got caught up on your post, Glad to see you are taking action. This is what it takes to succeed.

Randy

__________________

www.adeptpropertiesllc.com


Randy

So glad to here from you Randy. You are a big part of the motivation to make this REI work for us.

Thank You

Steve


09/14/10

Today I contacted a handyman in Indiana and requested quotes for repairs on the house we have under contract. I also talked to my brother in-law who lives in the same town where this house is and he offered to do the walk through with the inspector for the inspectore of the house. Veronica and I sat in on Dean's conference call which was on today.

Steve


09-15-10

Today we had the inspection on the house in Indiana. My Dad and brother in-law looked at the house as well. The feed back we have been given is good so far. The house is better than what a standerd 15k house looks like. So far so good.

Steve.


09/16/10

We had to send a POF paper to HUD today. It sounds like we might close faster than 45 days. My wife and I are thinking about flying out to Indiana to do some of the work on the house. Plus see my family. My sister says we can stay with her since she is only 3 blocks away from the house we are buying.

You just got to love family that is willing to help. We have been blessed.

Steve.


09-18-10

Not much today as far as REI. Looked at most of the MLS sites I go to. Waiting on the inspection report for our Indiana House. I won't leave my job untill I retire but it does get in the way of some of our REI time.

Spent some time here on the DG site.

I hope everyone is having a great weekend.
Steve


09/19/10

Today started off by going to church. It was a great sevice. Lincoln Brewster is are worship leader and he sang songs from his new CD Real Life.

On the way home from church we noticed a lot of open houses today. Our daughter is taking real estate classes in college to be an agent and it is fun to hear what she has to say about her classes.

Da Bears won today 2-0 Green Bay next week.

Steve.


9/20/10

I spent most of the day on the phone talking to banks trying to get more money for deals. We will find out tomarrow if it worked.

Steve.


9/21/10

Today we got a personal loan from the bank for 20k. This money will take care of the closing we have coming up. Plus some money for repairs. After we fix the place up and have a renter in place, we will take a mortgage out on the property to pay off the personal loan. We should have a good cash flow on this house. then on to the next one.

Steve


Personal Loan

Thank you Steve and Veronica for your journal! My Fiance and I are just getting started as investors and I am really motivated. I recently bid on a Hud home myself but I could not get the necessary financing because I work for myself. How did you get a personal loan? I am trying to figure out ways to get started but its going to be tough for me since I work for myself. Thanks again and God Bless!

__________________

John Trivett


John

At this point in me and my wife's life we have good credit and income. Remember we only asked for 20k. The HUD home we are buying is only 15k. John you just hang in there. Keep asking banks for loans. Best of luck to you.

God Bless you and your investing.

Steve.


9/22/10

I went to the Dentist office today for a 6 month cleaning. The Hygentist asked me what my wife and I have been up to lately. I told her we just won a bid on a HUD home for 15k in Indiana that we are going to rent out. The Hygentist told the Dentist how much we are paying for that house. The Dentist started to tell me he was at an auction but he did not know what to look for, and you need a root canal. That was not the way I was hopping the conversation was going to go. I will be back to talk to him in Nov.

Steve.


9/23/10

Today I spent a lot of time working on getting things set up for closing in about two weeks for the HUD home in Indiana.

Has anyone ever had a agent ask you to pay for a Document Processing and Storage and Zodas Agreement Fee for $149.00. They say they store your paper work for 7 years.

We hope to close in the first week of Oct.

Steve.


9/24/10

I called the coaching line and talked to Coach Eric. I asked him about the fee my agent wanted to charge for document storage. I guess a lot of agent charge this so look out for it.

Spent the morning signing papers and e-mailing papers.

My agent is not going to make us pay the fee for document storage. We save $149.00 in closing cost.

Steve.


9/26/10

Took time off from REI today. We went to church and had dinner with Veronica's sister and her family. Always try to spend some time here on DG.com with our other family. I hope everyone is having a good weekend.

Steve.


Hi Steve and Veronica!

Just finished your journal! Great work! Congrats on your next deal! I love all the detail you've gone into in your journal. Made me reminisce about those days when homes were appreciating 10K a month! That was when I sold my 2nd home that I had bought for 225K for 580K FSBO! Smiling You are taking so much action and doing so well! I am SO glad you stepped out of CA and out into other states. I wish you all the best! Keep up the great work!

It is CERTAIN we will SUCCEED!

__________________

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“The way to get started is to STOP talking and to begin DOING!!!" ~Walt Disney
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SUCCESSFUL PEOPLE DO IT WITH A HEADACHE! (~Dean Graziosi)


Thank you Tammy

For the kind words. We want to catch up with you Tammy. We wish you and your family all the best in every thing you do.

Steve and Veronica.


09/27/10

Spent some time on line looking for more deals in the Indiana area we are buying in.

We had to watch Monday Night Football Da Bears 3-0.

Steve.


Steve and Veronica

i just closed my first HUD deal. i was the realtor (newbie) and my client is my mortgage broker i found using one of Dean's letters in one of his books. Smiling anyway, despite all the delays and things that went on with HUD, the closing was really smooth. it only took about 15 minutes and it was over and i had checks to take to my broker. have fun with this!!!

__________________

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

Hello Steve and Veronica. I just wanted to thank you for your response a few days ago. Some new things have come up and I would greatly appreciate your advice. To start, I currently am upside down in my home with a mortgage payment of 986.00 monthly and I still owe 154,000. The fair market value is somewhere around 125,000 some selling for less. The good thing is these homes do rent for 1000-1100 monthly. My goal is to rent this house out and possibly find a cheaper home where the owner will finance for me. I was speaking to my future father in law today and he is willing to offer us money, we did not speak about how much but he said he is interested in investing. My question is should I try to invest his money for a quick return or should I ask him to just lend us the money to purchase a smaller home for my fiance and I. He is asking for me to put together a proposal and we will go from there. I guess depending on the money amount will depend on the road we take but just in general do you have any great advice? Im guessing he can come up with 20-30k. Anyway thank you so much and I look forward to hearing from you.

__________________

John Trivett


Steve and Veronica,

...Glad to hear all is going welll. The Bears are perfect at 3-0 and what a game it was! Let me know what types of proeprties your looking for in Indiana and I may be able to assist you. Have a great week! Believe and Achieve! Smiling - Joe

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Linda

Gald to hear you got your first HUD deal as a Realtor. Veronica is working on getting her California Realtor License. Always good to hear from you Linda.

Steve


Steve

Glad to see things are working out, And yes the bears are 3 an 0 but they haven.t played Tn yet lol. I luv it when people like you succeed.

Randy

__________________

www.adeptpropertiesllc.com


John

John if you can get a positive cash flow out of your current home go for it and rent it out. I would find a place you can rent for cheap. Suck it up for a year or so to get your cost of living down and invest the money from your soon to be Father in-law. If you want to use your Father in-laws money for a home for yourself John look at homepath.com you can get owner occupied home loans for as low as 3% down. The best deal is 0 down but in some places the homepath homes are real good deals for a fix and flip for low down payment if you have the money. Again you want to keep your cost of living as low as you can untill real estate investing starts to pay for your living cost.

John keep reading on here and see what others have done with some money or no money. John is there an area that you can buy a ok house in a good neighborhood near were you live for around 20k-30k. I know it has to be away from Myrtle beach area. We are paying cash for a home for 15k and after we do some small repairs we should be able to refi for 40k or so and take that money and reinvest.

Sorry John if this does not make sence it has been a long Day.

Steve

PS John. Randy and Indiana Joe are the ones you really need to read about they have forgot more about a deal than I know about a good deal.


Indiana Joe and Randy

We are always honored to have two of Dean's finest students stop by our journal. Randy thanks for the kind words. Joe I might take you up on your offer.

Randy if Ditka was coaching Tenn they might win LOL. You know Fisher was a Bear.

Joe and I know the Bears are going all the way this year. (I hope)

Steve


Steve

Key word was a bear, It kinda like REI. You have to change with the times if want to be successful.

randy

__________________

www.adeptpropertiesllc.com


9/28/10

Randy that is for sure.

Spent all day in a court house today for work.

I did call my Mom and Dad at my lunch break. We talked about some of the game plan for when we fly out to work on the house in Indiana. did not have time for a lot of REI today.

Steve


STEVE AND VERONICA

Thanks again Steve for taking a time out of you day to respond. There are several condos in the area selling for under 30,000 which most are close to the University. I guess I had an idea that if we could purchase one of the two bedrooms for 25,000 then we could could start saving this way. These units have rental income of 5-6 k a year so I guess after we lived there for a while and saved up we could rent them out. I dont know, there are a lot of options, I am just trying to figure the best to get ahead. Thanks again and I will surely check out Randy and Indiana Jones Journals. Have a great day!!

PS Randy and Indiana Jones, if you happen to read my post to Steve please feel free to let me know your thought.I really do appreciate everyone on here and hope I will be able to help people once I learn!

__________________

John Trivett


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