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Finding Apartment Buildings Makin' Offers Multi-Units/Apartment Buildings Networking Private Lenders

70% occupied property plus many more



Been looking at several properties this week. We’re definitely trying to make things happen. Kathy and I even had a talk about the types of deals and investors for those deals that we want to target.

So far this week we looked at 2-30 unit properties, 1-36 unit property and I looked at a a duplex, triplex and 4 unit the other day and a 4 unit (possibly 5) property today. I just scheduled a Saturday appointment for a duplex. Normally, we might not be interested in the duplex but I spoke to the lady on the phone before and she just faxed in the fax back form. On the form she gave a price and then said “or best offer” (I love hearing that) and wrote real big: Need to Sell!

After talking to her again and asking why she needs to really sell it’s actually kinda sad. This is the part of investing that I think sometimes may be a bit more difficult for chicks rather than guys. Ya know we get those emotion things involved. I mean I’m not saying that affects my buying decision but I’m definitely super sympathetic and empathetic. Anyway, she lived in a house that had mold issues for sooo long, TOXIC MOLD issues and 1 of her cats and 1 of her dogs ended up dying because of it and now she’s super sick because of it. So she has to move (and no, she doesn’t live in that house anymore and no, that’s not the house she’s trying to sell!)

The properties I seen today were very nice. The nice rental units I have EVER seen….EVER. There are 4 units now (single family house, a duplex, plus 1/2 a duplex.) Plus, the husband wants to make the other 1/2 duplex into an apartment. So it’ll be 5 units total and they want $750k for 4 or $790k if the 5th apartment is done first. Uhhh no. We offered 900k on a 30 unit! (and eventually, I think they’ll go for it, because that’s what it’s worth…) But the sellers I absolutely adored….older couple who just want to retire (home improvement/roofing biz) but they are a lil unreasonable right now.

I’m pretty sure we’ll draw up an LOI for the 36 unit we saw the other day and I’m seriously trying to figure out how on earth we could purchase a 120 unit property that is 70% occupied. I think it’s got HUGE upside……but I’m still trying to get my head around figuring things out that aren’t the “norm” yet.

Things are chugging along….I told Kathy that I don’t think properties are the problem and that we need to concentrate on finding private money more. We decided that for the smaller deals we’re going to seek out debt investors to just lend the entire loan amount and for the bigger deals we’ll use equity investors and just take a percentage of the deal. Equity investors just doesn’t make sense for these smaller deals…..financially speaking for us, anyway.

I finished a free report on Investing in Emerging Markets last night and today or tomorrow I’ll finish our Investor Brochure for folks that are potentially interested in investing in commercial real estate deals.




OHHHHH I almost forgot, I went to poker last Thursday (finished in 4th and more than doubled my money) but more importantly I know one guy in particular has some dough (and some real estate) so I started chatting it up with him and asked him about his properties (he’s trying to get rid of them all, they are shells in not the best parts of philly) and he said he never wanted to be a landlord. So I took that as my key to talk to him about becoming an equity partner with us. He asked in what areas we were looking and how many units are we talking. I answered him and he said “I’ll give you my email address before I leave tonite. Send me some more information. I mean not specifics or anything, but general information. I have some interest.” 🙂

That’s why I put my ass in high gear to get this investor brochure together. The next step is to set up a meeting with him and his wife (I guess he’d want her involved…I dunno??)

So far, my monthly poker tournaments have found me 1 private lender and potentially 1 more. There’s another guy that comes sometimes that I’ll definitely hit up….but haven’t seen him in a bit. I know he’s got bucks too!

Ok off to finish my brochure now. Oh and if you are reading this and you’ve done any deals with 100+ units that had 70% occupancy or around there, please email me. I’d love to talk to ya!

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Categories
Finding cash buyers Finding REO Deals Listed Properties Makin' Offers Networking Wholesaling

Saw some houses today..what to do?

I’m in a bit of a pickle. I don’t quite know how to operate without a damn printer/scanner!

I looked at 8 reo’s this afternoon and also drove past about 5 cash sale properties today (they were in the neighborhood of the 8 reo’s.) I would like to make an offer on every one of the reo’s I saw today but I’m trying to figure out how? I have a real estate contract but it’s a part of a program that real estate agents use called RealFast and it’s just the version on my computer, not a web-based version. If I were to write up the contract in RealFast I a) can’t print it and b) can’t save it as a pdf or any other document type besides a real fast document.

Soooo the big question….how do I draw up my agreements and get them to the agents? I was thinking letter of intents. What do ya’ll think??? I was also going to include in the l.o.i. that I’m not going to be acting as my own agent and they can submit my offer as my agent. Shit. This sucks.

Crap. I’m sure there is a really easy solution that I haven’t figured out yet (I’m like that somtimes…can’t see the easy answer right in front of me.) Anyone? Anyone?

Oh btw, I don’t know if I said this yet but I officially switched real estate offices last Friday or so. I now work for Fautore Realty and I am digging the new broker so far. As I was driving around looking at properties I get a call from him and he says “I know a property that would make a great flip for you. Here’s the address it just popped up on the MLS but you better hurry.” And I went and saw the property and it was awesome (awesome as in it was a nasty, piece of shit, smelly property lol in a decent neighborhood.) Then he says “Oh and this other property I know of got a shortsale approved at $100k and it’s in a great area. It’s going to be released from an agreement tomorrow if you want to go after that one too.” His buyer apparently had it under agreement but is backing out or something. I thanked him and asked him if he would send me his bpo’s too 🙂 He said “absolutely.”

Quick funny story: so Kathy went with me to see houses today. We go to see the one my broker told me about and you could tell the house was beat to shit from the door. She was like “oh boy.” Then we walk through the overgrown bushes to the houses and I open up the door and she goes inside and says “oh my God! This is horrible.” When I hear that I know it’s gonna be good (for me.)

We walk around and one room we go into wellllll let’s just say I ALMOST lost my lunch. I have a very sensitive nose and when shit smells rank I need to cover up because I start to gag and sooner or later it’s coming out. Kathy’s like “this place is disgusting!” And I’m smiling saying I know.

When we get outside she says “they just need to knock that down and start over again. I’d give them $5,000 for that place.” And I say, “Honey you say that every time we see a shitty house like this. And the last time you said that, I offered $50k on the house and made a $15k assignment fee!” She’s like “well they shoulda knocked that house down too!” lol

Gotta love spouses who just don’t get it completely. I give her credit tho, she goes through the nastiness with me and helps me in anyway she can and she does want to get into rentals together when we’ve cleared up our debt, but I think I’ll stick with making the offers on properties otherwise we may just go hungry! 🙂

Oh wait one more thing….I did take down a handful of For Rent numbers and addresses to see if I could add some folks to my buyer’s list.

Can someone help me out with my dilemma? What do you think I should do?

Flippin’ Carey

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Categories
Joint Ventures Makin' Offers Passive Income Random Ramblings Wholesaling

It’s an awesome day!

It’s just beautiful outside and I’m psyched up to get some real estate deals going. No deal yet, but I’ve had some technical difficulties. Since Kathy got laid off she had to send back the printer/scanner/fax that we used for everything so I couldn’t scan in my proof of funds for offers (I got 2 from a high school friend totaling $100k and I got 1 from my uncle totaling $176k.) Soooo kinda hard to make offers without proof of funds.

Anyway, my neighbor hooked me up last nite (and he had technical difficulties too lol but ended up just scanning it for me and putting it on a zip drive for me to take home.) Kathy and I moved one of our worst performing ATM’S (in the month of October the store was probably open for maybe a week?? IF that.) So we moved it to a 24/7 diner and we’re excited about that. We have one other ATM that we need to place somewhere right now.

What else what else? Oh I think Kathy is going to be getting another J-O-B…..since she got laid off she’s had recruiters and other pharmaceutical companies calling her like crazy and even offering her more money. So we talked about it and I told her if she wants to do it and feels more comfortable doing the J-O-B thing with a guaranteed income instead of doing our plan for both being self-employed then I’m all for it, I just ask that she sticks to her budget so she gets out of debt quicker (like we BOTH planned) and therefore can invest in more ATM’s and real estate (we want to buy multi’s together as kind of our retirement and of course as to increase our passive income.) She agreed to stick to the budget.

Oh and believe me when I say how we talked and we agreed or what have you, when we’re talking about a budget and planning money the conversation does not go so smoothly. Kathy is a spender, that’s how she’s lived for a longggg time, that’s how she knows and that’s how I’m sure she’d like to keep doing, but after some tiffs she’s seeing the “light” so to speak but sometimes I have to give her a lil nudge (like yesterday afternoon she wanted to stop somewhere and get something to eat. I reminded her that eating out is not in our budget anymore and we argued for a hot minute, didn’t speak and came home and had lunch and then made an amazing dinner.) I’m sure the only thing about me that she wishes was like her ex-husband has to do with money………all they did was spend, spend, spend…without a care in the world. I’m quite sure tho that she’ll thank me at some point in the future 🙂

I emailed a wholesaler to make sure she was cool with paying each other if we marketed each others deals and sold it, etc. And she was….we just have to still work on the split end of things….she was like “it depends.” I’m more of a “let’s quit the bullshit and say it’s a 50/50 split or whatever.” Know what I mean?

I also emailed another investor/realtor/wholesaler that I know and proposed the 50/50 split for selling each others deals and he said “yes, I’m interested in that arrangement.” He even sent me a form that he uses for his joint venture deals.

I got more bandit signs in finally. Ordered 200- 100 horizontal fluting and 100 vertical fluting with of course 100 H-wire stakes. I’m gonna start putting these bad boys out today. These are the smaller sized ones, so I’ll see how they go. I think they will stay up longer on the poles being this size.

Okey dokey pokeys I’m off to look at houses (for sale,) houses that sold (for cash,) and then back home to make some offers. I’m feeling really good about everything. Oh yeah….I even sold a Rainbow Wednesday nite so will probably make an easy $500 to $700 off of that (remember that’s what I been doing for the past year when I took a hiatus from real estate.)

I’m going to be posting soon a few couple goals/lists that I think are extremely helpful and I’m going to share mine with everyone here in hopes that you do your own at home (you don’t need to post them here, you can keep them private.) But I think they are beneficial.

Flippin’ Carey

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