A New Day

Well, as many of you that follow me that work for Carlisle and Gallagher know, we work there No More.  For me, it's the beginning of a new day. When a door gets shut, a window is opened.  I know several of my friends at CG are struggling to determine what to do next.  I will be thinking and praying for them to make good decisions and work hard to find their next employment opportunity.  For me, I'll probably go back into the mortgage lending arena.  I still have my mortgage license and will see what opportunities present themselves. 
As for my real estate.  Now that I don't have a full-time regular job, my plan of buy-rehab-hold has been put on hold...somewhat.  When refinancing lenders want to see a current JOB for dtir's, or two year's tax returns if your commission-only or base plus commission.  So now my clock starts ticking for the next two year's, unless I get a full-time job with salary.  I may have a solution for it, and I'll know more by the end of today and will let you know about it.

PROPERTIES: Still looking.  I met with Net Worth Realty, a wholesaler, yesterday and let them know my buying areas and price ranges.  By last night they'd sent me a listing, which was in my neighborhood (they didn't know my home address, so it was a coincidence).  1976sf with an ARV of $299 (around $150/sf), purchase price of $175, estimated rehab of $50.  But I know my neighborhood well.  The package listed the 8 properties they used as comps.  When I pulled comps, I didn't get anywhere near what they were showing as a $/sf.  My ARV was coming in around $240.  When I compared the properties he used vs the ones I looked up, I saw several of my current SOLDS not on his list, and several SOLDS on his list not on mine.  I don't know why he left off the SOLDS I had, except for they were a lower $/sf.  When I looked a copies of the MLS listings on the sold properties, I noticed the sales dates of many of them were March-June of 2012.  Lesson:  These comps are 8-10 months old.  An appraiser won't go back that far unless he has to because of no recent sales.  In this case, there were plenty of recent sales.  They just weren't at a higher price/sf.  So this is where you need to be careful of people like this and do your research and homework.  We were going to look at the property at 7:00am but he cancelled while he researched his property acquisition specialist's numbers.  I'll be interested to see what he comes back with!  I told him that for me to make a profit on the house I'd have to buy it at around $120,000 not $175,000.  I'm sure they won't take that, and they'll just wait for some other idiot to believe their numbers and buy it at $175,000 and then take it in the shorts when it comes time to sell it.  It just won't be me.  It's hard to be primed and ready to buy and move forward and then have to stifle on each deal because it isn't right. But that's why you work the numbers.  I've been through the stress on a couple of properties that were close to not selling within my needed time frame and were about to cost me much more than I had budgeted.  Fortunately, I dodged that bullet.  But the closeness of the bullet, and the fretting and sleepless nights I remember cause me to take pause and Make Sure It's Done Right at purchase.  If the numbers don't work, then don't move on it, move on to the next property.  You will be glad you did!  I'm still in the hunt for this house, but not very confident about it.

Today I'm looking at two properties in Plano with Justin that were under contract but have fallen off.  One, on Santa Fe Trail, looks promising.  I've verbally offered an amount about 25% less than the asking price.  The seller's agent has not rejected my lowball offer, just assured my agent that there's no option period, and if I balk on buying it I'll lose my earnest money.  Not a bid deal.  I'll look closer at it today.  I've estimated about 20,000 for repairs on a 1565 sf house, so unless it's a real mess, that should be enough.  We'll see today.  We're also planning on visiting Gwendola in Plano.  I'll let you know how these visits turn out.

OTHER: Continuing education with a Seminar tomorrow morning.  Titled "The Flipping Formula" at the Doubletree Hilton at Campbell Road and Central in Richardson.  Starts around 8:30.  I'm sure it's a sales pitch, but I may make some good connections.  I go to these things, and take a lot of business cards and do a lot of visiting.  I also continue my education by paying $67 to buy Carrie Wilbur's "Rehab Renegade" series.  All online, one time charge.  A lot of stuff I already know, but reviewing pdf's and listening to audios and video's keeps my mind alert to every aspect. She charges $97 for the course, but if you "leave the page" she'll try to keep you by offering you a $30 discount.  After several on the page / leave the page attempts, I realized this was her lowest offer, so, for $67 it isn't a bad deal.  I'm working through it now. There's a lot of "systems" out there that are cheap, like this one. Take them for what they are.  They'll tell you how you'll be making $10,000 a month.  Mostly, they're education, so they'll be cheap and good.  This one will take me awhile to get through, but I've already picked up a few "nuggets" so it's worth the $67.  I'm also looking at Cris Chico's "make money with only a laptop and cellphone" system.  I think his is only $47.  I emailed Carrie and Cris about any "upsells" once inside.  Both have a single upsell attempt inside, but Carrie's is for continual mentoring and coaching calls, for a monthly charge.  I passed on them. If you want to check out her system Click here to find out how.  I don't get any commission for this, just passing on information.

Until next time...

Mark