Friday, March 27, 2009

Grappling with changing market

It's been a loong time since I posted last... I do not have anything new to report regarding properties under contract. We still have our last set of condos to get sold but nothing as of yet. There was a promising call yesterday but haven't heard anything so far today. It was from the guy who bought my very first and second set. If he buys them I will most likely break even or even lose a little but I'm totally okay with that, I just want to be out from under them. Hey, you can't win them all, right?

My market seems to be changing which is weird for me. I haven't gone through a "market shift" before and don't really know what to make of it?! All of the lower priced properties have disappeared. The ones I've been watching that have been on the market FOREVER are now gone. It seems more people are buying! This is good for selling but it's making me change my focus on buying. Up until now I have been focusing on $125k ARV or below but, again, those properties are long gone (at least in my area). I'm not saying the homes are going up in value I'm just saying homes in that price range are few and far between. Soooo, I have moved my price range up to $150k or below. My realtor has been seeing a lot of sales in this price range and I feel comfortable moving up a bit. I am still sticking to the 70% rule but it's just weird looking at houses that have a $113k price tag vs. a $70k price tage. Because of this little shift I've been feeling kind of lost, trying to figure out what to do next. I haven't had this feeling for a while and I'm not liking it! ha, ha. I know other people have said they are seeing fewer REO's on the market but are expecting a flood and I'm hoping for that too. It seems I've been at a stand still since I got my last property under contract and that was probably over a month ago. I don't even have any HUD properties to bid on... they are my favorite!! I'm a little frustrated! I'm still pluggin' away though. Last night my realtor and I looked at 7 properties and are submitting offers on 5, so far. We submitted a few offers over a week ago and still haven't heard from the banks. Seems they are all backlogged now. URGH! I wish I had something better to post!

I still have not called the local bank. I don't know WHY I am putting this off. I MUST do it next week!!! And, I want to get Nate's call about selling to o/o. Once it's out I'm going to get it.

I also have not been re-reading the realtors exam handbook or whatever. I decided I am going to get my license but I am going to have to pass the test first.... I need to get crackin' on studying!

Tuesday, March 17, 2009

Closings/Offer/Lost inches : )

We closed our 2 single family properties successfully. The first closing was this past Thursday and the second was yesterday. Neither was a slam dunk as I had hoped but $8k on one and just about $5k on the other. Unfortunately (or fortunately we shall see) I will not be able to use these profits to pay down my debt as it is going directly into the purchase of the next set of condos (god help me). I'm proud of myself for not backing out of the deal but hope I don't lose my pants! If I can get it sold with zero profit OR losing only $2k (EMD amount) I will be happy. With that said, we now have an accepted offer on my current set of condos which makes me VERY happy! This guy is buying both units and is planning on renting them out. My fingers are crossed that this closes successfully b/c I will be seriously screwed if not. I am at a point where I am not as stressed about things since the first condos are under contract. please, please, please.

Anyhoo, we are closing the other condos this afternoon. Afterward I am hoping to take a look at a property that I put an offer on a while ago. It looks like it's come down quite a bit in price. I also have 2 other properties I want in another town. We're going to look at them tomorrow, I hope. Michelle, my realtor, has just been named the #1 real estate agent in Jefferson county. Nice, huh? I'm very excited and happy for her BUT, me being the selfish person I am, she has less and less time for me. She was always so on top of things but now things are sliding, contracts are getting in days later (instead of that day), phone calls/emails are not being returned in a timely fashion, etc. I like her a lot and I couldn't have done things without her but I'm thinking of getting myself certified again. We'll see...

Onto unrelated REI. Still working out - about 3 - 5 times/week. Only lost 2 pounds but measured myself this weekend and lost about 3.5 inches total. Not a TON but it was something so I am happy!

Gotta run... Hope everyone has a great St. Patty's Day!

Saturday, March 7, 2009

Condos/Closings/Goals

I have still been going back and forth on buying the next set of condos. I'm very stressed! These are the times I wish my husband was more interested/involved in the business. He is there for me and supports me 100% BUT when I come up against serious decisions like this he is really no help. He will either freak out about the situation OR just say whatever I think is best. We are doing a "One Day Only Sale" for my current set of condos next weekend. We'll see what happens with those. Since I am leaning towards following through with the next set of condos, my exit strategy will be lease/option. This makes me really nervous. I listened to Gerald and Williams call again yesterday about owner financing and it gave me a little hope. I think I am so nervous because I have never done it and do not really know where to start. Doesn't everyone start there?? : ) I do have a book that I've read and will re-read this weekend. I will also re-read Williams Ultimate Sub2 Guidebook since I think there is some owner financing info in there. He just purchases Sub2. Anyhoo, some days I'm excited about it and others I'm a nervous, stressed out wreck. If I only had 1 or 2 to worry about then that would be OK but I may have 4. I think that's why I'm stressed.

On to more uplifting news... My Twin Lakes property is closing early. Instead of 3/31 we are closing Thursday, 3/12. He is a cash buyer. I'll have to see if he is looking for anything else in the near future. I have that Silver Lake property closing in April and that is just up the road from Twin Lakes. I also have my Elkhorn property closing a week from Monday, 3/16. YEAH!

We only submitted 1 offer this week. I have a few I want to look at but need to find the time and, quite frankly, my heart really isn't in it at the moment. I feel like I'm just going through the motions. This business is so up and down and I'm on a down turn right now. No biggie, I'll go back up soon!!

I completed 1 goal today. I straightened up my office. It is by no means completely done but boy or boy there is a HUGE difference. I also got everything together (mostly) to get my taxes done. I can't find a HUD closing statement on my second set of condos - weird? I hope I can get a copy from the title company -- hold the phone -- I just found it! ha, ha. I also need 2 invoices for the pre-hab we did over the summer. One was a friend of ours and another was for the floors. I think the floor guy sent me an invoice but I can't find that. I'm going to go through my stuff again and see if it's there. For me, only losing 1 thing is pretty good. I know, that's not saying too much is it?! Hey, just being honest.

I am following up on another goal early next week and that is to call local banks to see if I can find one who does not require 20% downpayment. I listened to Nate/Steph/Steve's phone call about local banks the other day. I'm going to apply what I heard.

One other goal I forgot about (oops, I'm not reading them every day) is calling the "For Rent" signs/Ads. My goal was to call at least 1/week. I need to get on that.

Okay, I'm off to finish dinner.............

Tuesday, March 3, 2009

Follow up from yesterday

I had to cut yesterdays blog short (if you could believe it), work got in the way.

The guy who had a contract on my condo definately backed out. It was a combination of the lender/lawyer that scared him. Again, all future offers need to be pre-approved with my lender. It just sickens me to even have to write this. You know, sometimes I don't know if I'm cut out for this "game". It can be very draining at times - like now. I get exhausted! The ups and downs and all arounds... wow... yep, sometimes I wonder... But then I think, "Hmmm, if I stopped then what would I do? I certainly do not want to work forever". The thought of working for the next 30 years just boggles the mind. I can't see me doing it so I have to do other things... real estate. I must keep going!

The HUD property I looked at yesterday needs waaay too much work. That property needs to be listed at $50k so someone can buy it for $20k. Even that would be a stretch.

We're putting in another 2 offers this week on properties that went down in price.

Nothing else as of today. I'm thinking of calling my "in a pinch" buyer for some tips on being a landlord. He buys/holds and has been doing it for some time. I'm hoping he can help guide me through the process. IF I buy the next set of condos (which I probably will) and my current set are not under contract then I will probably start to rent or rent to own. It just gives me a pit in my stomach. If I didn't have time for stuff before, having tenants is really going to put me in a world of hurt. Oh well, I'm not going to dwell on it. We'll see what happens.

Gotta run again... this damn job.

Monday, March 2, 2009

I've been meaning to post for the past week, a lot has happened!

First, we had a buyer submit a contract for one of our condos at $92k (we're into each for $74k)! Woo hoo! He has 20% downpayment (mandatory), an 810 credit score and very good repore with one of the local banks. He went to them for a loan and they were doing some weird balloon loan because I owned both units. What that had to do with anything is beyond me?!? Then they started going all crazy b/c there is no association formed. Mind you, the buyer is aware of this and was quite okay with the situation. At any rate, the bank insisted he talk to a lawyer prior to approving him for a loan. Once I heard a lawyer was getting involved I knew the whole thing was going to shit. And, that's what happened. I don't really know exactly what happened, if it was the lawyer, the lender or the buyer that actually caused the problem? I struggle with my lack of "control" over selling properties. I have my realtor list most of them for 2 reasons. One, I do not think I can buy/sell more than 4 in one year w/o being licensed. Two, I just don't have the freakin' time to show the properties/follow up with buyers. Anyway, I should have told her to insist all interested buyers go through MY local bank. They do not have issue with no association. Of course I told her now that it is mandatory for all buyers to go through my bank. Too little, too late. Urgh... live and learn.

Second, we got a contract on our Twin Lake property for $81.5k (we're into it for about $69.5k). This is the one where I thought there may be more work than I thought. Anyway, this is an investor and he is closing with cash. So as of right now we have 2 closings (with buyers) in March. It should have been THREE closings. I'm just bitter.

Third, we may be getting another property under contract. This one is listed for $100k, I offered $30k and they countered at $50.6k. Ha, ha. This is another HUD property. We're going to take a peak today. Depending on how it looks I may wait for another price decrease since there hasn't been one since October.

Fourth, we have another set of condos closing on March 13th. I have seriously considered backing out of this and losing my EMD. One of my problems is that I do not have a 20% downpayment for these properties. All my money is tied up in the other properties. Once we close the other 2 properties (3/16 & 3/31) we should have money but then ALL my money will be tied up... again. I called my lender today to talk to her about the situation. I just wish she would let me get into these properties with no downpayment. OR, 10% down would be better. I'm going to call another bank this week and see if they can do anything better for me. This bank has been great and I would still use them but having my money tied up like this puts HUGE limits on what I can do.

So, I gotta run.......