Goals for 4/30/2006 - 5/7/2006

1)Stay involved in the purchase process.

2)Find out as much as I can about "Sandwich leases."

3)Start to re-read Start Small, Profit Big in Real Estate

Auctions

If you don't know already auctions area great place to go find bargains for your real estate investments. You can get anything from flooring to windows and siding very cheaply. I believe you can save literally thousands if you go to auctions knowing what you need for any given place. Just my two cents.

52 Homes in 52 Weeks
by Dolf de Roos

I got the chance to read this book a few days ago. I found it very interesting and thought provoking. It wasn't what I would call a "how to" book, or even a book about investing in real estate so much. It was more of a story of Dolf's and his partner's journey through this goal of buying 52 homes in 52 weeks. I really liked their method of sandwich leasing the property. I would think that this would be a very good method for doing pre-foreclosures. I would think that it would eliminate the Due on Sale Clause worries, and let you get into the property with almost none of your own money. The only thing that I can see as a worry would be if they do not use what you pay them for the rent and the house goes in foreclosure anyways. If you have experience with doing sandwich leases please post your thoughts about them. It would be a great help to me.

Goals for 4/23/2006 - 4/30/2006 Update...

1)Monitor the pre-foreclosure process.
- It is going great. Our person is doing everything perfectly. It saves us a ton of time so that we can focus on other important stuff.

2)Find my financials for our financing.
- Found them, and handed them in. Our loan process is going along smoothly, and it looks like it will continue to run smoothly until the end. Lets hope at least.

3)Be as involved in the purchase process as I can be.
- I am doing this as much as I can. I am asking as many questions as I can on stuff that I do not understand or know. I am also trying to stay as involved as I can be at the moment. I can not wait for summer to come, so that I can take a very active role in the whole process, and hopefully get things flying. I have the time where as my partner does not, so I believe that I will be a big help to him and our process.

Goals for 4/23/2006 - 4/30/2006

1)Monitor the pre-foreclosure process.

2)Find my financials for our financing.

3)Be as involved in the purchase process as I can be.


Contract #1 Update

Well to put it simply it looks like we made a goof, or an opps. And unfortunately it is costing us some time. But hopefully it will not cost us this deal. We said that we would give the seller 3 points towards his loan (covers our downpayment). But when it got written we did 3 points of the purchase price, which was not our intent. So we are in the process of fixing that and hopefully making it right again. But I don't believe that this is a deal killer anyways. We shall see. Other than that little misfortune everything seems to be going well. We found a very helpful lender and we got a better interest rate than we thought we would get, so all in all everything is going smoothly I believe.

Goals for 4/16/2006 - 4/23/2006 Update...

1) Implement our strategy for pre-foreclosures.
- Got this all set and done. Our person is working hard to get the letters out, freeing up our time.

2) Analyze the deals that come to us
- This is an ongoing process, that I keep on the best I can. We are getting plenty that come across our table, or computer in this case. Its just a process of finding the good ones.

3) Continue to set up the Cash Flow group
- I am having a blast with this. Each game seems to get bigger and bigger. Not to mention more fun, and I always learn something new.

Contract #1 (Offer #2)

- Huge 5 unit apartment. Almost no repairs (EST. $3,000). Asking $115,000. Offered $90,000 puts it at a 11% Cap rate, which we feel is acceptable. If it is accepted I will place more details about it on here.

Or offer eventually got accepted after some negotiating. They wanted $115k, we offered $90k. They came back with $105k, we gave them three options...

option #1 - $95,000 with 80% conventional mortgage.

option #2 - $97,500 with 3 points paid up front on a (20% seller financing) 8%/15 year 2nd seller mortgage and 80% conventional 1st.

option #3 - $100,000 with 0 points on a $20,000 8%/15 year 2nd seller mortgage and a 70% conventional 1st (10% cash down).

They accepted our offer #2 with the ability to call the 2nd mortgage in 5 years if they chose. So in this deal we have around $3k of our money in it, because they are paying closing costs as well. All we need to do now is get the financing from the bank, which I believe will be the easier part of this deal. I will post the final numbers, when we get all the financing in place.

Goals for 4/16/2006 - 4/23/2006

1) Implement our strategy for pre-foreclosures.

2) Analyze the deals that come to us

3) Continue to set up the Cash Flow group

Goals for 4/10/06 - 4/16/06 Updated...

1. My main goal for this week is to start implementing our strategy for bring us all kinds of deals. This involves talking to the real estate agents, implementing our strategy for bringing us pre-foreclosures without doing the majority of the work, and looking for FSBOs.

- Started implementing this, and so far it has been working really well. I get about 10 to 20 leads every week that meet a certain criteria that I gave my real estate agents. And on Monday I will start implementing our pre-foreclosure strategy. So far so good.

2. Because of my father, finish reading The Millionaire Real Estate Investor

- Finally finished it. A great read for anybody at ay level I believe.

Offer #1

- 3/1.5 House. REO, needed a lot of repairs (EST. $15,000). Asking price $27,500. Offered $23,600. Sold for $25,500. Comps put it around $45,000 - $50,000.
All in all we lost the bid by $1,900.

0ffer #2

- Huge 5 unit apartment. Almost no repairs (EST. $3,000). Asking $115,000. Offered $90,000 puts it at a 10% Cap rate, which we feel is acceptable. If it is accepted I will place more details about it on here.

Goals for 4/10/06 - 4/16/06

1. My main goal for this week is to start implementing our strategy for bring us all kinds of deals. This involves talking to the real estate agents, implementing our strategy for bringing us preforeclosures without doing the majority of the work, and looking for FSBOs.

2. Because of my father, finish reading The Millionaire Real Estate Investor

Goals for 4/3/06 - 4/9/06 Update...

1. Continue to work on my strategy for bringing in deals.
- Came up with a good strategy, just need to implement it

2. Finish reading The Millionaire Real Estate Investor.
- Almost done. My dad is kicking my butt to finish it. He is just selfish, he wants it all for himself. :)

3. Continue setting up the Cash Flow Group in Rochester.
- Made great progress in this. Had my first group meeting that about 5 people played in. I had lots of fun, and learned a lot. I also believe that everyone else had a lot of fun as well, along with learned a good amount. I believe that as time goes on the popularity of this increases, because they advertising will increase, as well as the word of mouth advertising.

4. Finalize our goals for our real estate investments.
- I believe that we finalized our temporary goals, if that makes sense. In other words we have finished our goals for now, but I am sure they will change as time goes on, and as we get further along in the process.

I am no longer going to put the "possible deals" up, because there are just to many to keep up with. I will however put up all the deals that we have in contract (ex. Contract #1), and those that actually get purchased (ex. Purchase #1).

Goals for 4/3/06 - 4/9/06

1. Continue to work on my strategy for bringing in deals.
2. Finish reading The millionaire Real Estate Investor.
3. Continue setting up the Cash Flow Group in Rochester.
4. Finalize our goals for our real estate investments.

Goals for the 3/27/06 - 4/2/06 Updated

1. Finish forming a better strategy for bringing in deals that go with my purchase strategy.
- Finished what I believe to be a rough workup for bring in many deals that maybe worth investing in.

2. Finish working up a communications plan with my partner.
- I believe that this is an on going thing, but for the time being I believe that things are going good in this department. I believe that the RDPD get together in Arizona helped spark the fire which started our communications going.

3. Finish reading The Millionaire Real Estate Investor.
- Almost done, it is a bigger book than you might think it is. I would highly recommend reading it to anyone who is interested in real estate. It is packed with useful information.

4. Write down our goals for our real estate investments (what we start purchasing at, when we decide to move up to the next level, etc)
- Have a rough work up of this, and when I finalize it I will post it on this blog

5. Start implementing that strategy for bringing in potential deals.
- I have started implementing my strategy, and have had very good success with it so far. I plan on bring a lot more people on board when it comes to this so that I and my partner do not have to look for deals any more.

6. Start a Cash Flow game in Rochester.
- Working on this at the time. Started getting the word out to all the students, and am now thinking of ways to come up with more Cash Flow 101 games. If you have any ideas please share.