Daily Adventures in Real Estate

Roofing Job

2011-07-24T23:22:00.000-07:00

Latest project is a 3/2 1649 sq ft house in a great East Vallejo neighborhood. Purchased for $153k and will be spending approx. $12k on rehab.

Will be putting new roof on, granite counter tops, new stove, tile in kitchen/bathrooms and some painting.

Permits - Mama Mia

2011-07-24T23:13:00.000-07:00

The ongoing question - when to get permits and when to chance it!

Recent experience where I sent electrician in to get a permit to change out a panel.

Two folks from the Building Dept. pulled up an aerial picture of the house and told my electrician that it looked like the storage sheds at the back were less than the required five feet from the property line - Are you kidding me???

Withheld electrical permit until we could confirm. Lucky me - 4'2" - seriously!

Ended up demolishing one and looking for mercy on the second - got input from asst City Manager who said that was reasonable and I shouldn't have any trouble!

Remains to be seen.

Closing Tomorrow

2011-06-20T16:23:00.000-07:00

This is a 3/2 1600 sq ft. home on a big lot in a very nice neighborhood. Sold for $177k in 1993 and we are closing on it tomorrow at $155k. Buyer in place as is (want to redecorate themselves) on an All Inclusive Trust Deed (have underlying investor) for $190k with $20k downpayment.

Latest Acquisitions

2011-05-12T12:25:00.000-07:00

Looks like the bigger houses here in Solano are a good buy - two houses below, both light fixers - each $150k 3 bedroom, 2.5 bathrooms 1700 sq ft. both with nice views - can't beat that.

Rents $1795 per month. Have buyer for one at $185k as is with them doing the paint and carpet.

Women in Real Estate Event

2011-04-03T11:49:00.000-07:00

I recently attended a Women in Real Estate event put on by SJREI.

Great to meet and listen to very experienced and successful women in the industry share their successes and failures.

Have closed on 5 properties so far this year - price ranges $52k to $115k and combination of condos and houses.

Two very happy rent to own tenants - both have been working for Kaiser for over 10 years and one referred the other to me - love when that happens.

Two regular rentals with possible future interest in seller financing or rent to own.

Fifth deal being rehabbed and will be ready by end of month.

Robert Campbell Economic News

2011-01-21T20:07:00.000-08:00

Had a combination of fun and learning hanging out with Robert Campbell yesterday afternoon and attending his presentation at the Holiday Inn in San Francisco sponsored by BAWB.

Robert has a great book called Timing the Real Estate Market - invaluable to assisting investors in assessing market timing.

Two new properties in escrow - one which will be re-sold with financing and one which will be a long term rental.

Our Latest Homeowners Signing Papers

2011-01-05T16:31:00.000-08:00

We were thrilled to be able to put one more family into homeownership before the year end. The young couple are here signing their documents - this was a seller financed transaction using an All Inclusive Trust Deed to wrap the underlying financing. How the numbers worked were as follows:

Sales Price: $249,900 with $22k down and interest rate of 7.5%.
Purchase/Closing/Rehab: $179,000.00 (Overall profit of $71k combined cash/paper)
Monthly payment to them: $1595.00 plus taxes and insurance
If renting: $1995/month
Benefits to them - payment less than rent, PLUS write off for interest payments.
Benefits to Investor: No responsibility for repairs/taxes/water/sewer etc.

My favorite type of deal :)

Signing out - Caroline Hegarty

http://www.solanocommunityinvestorsgroup.com/

Local News and New Deals

2010-12-09T16:01:00.000-08:00

Watch out for an interview with some of the women from Solano Community Investors Group coming up in January in a local online community examiner.

Website Address: www.examiner.com/x-2336-Vallejo-Community-Examiner

The online newspaper features local events, businesses, activities, restaurants etc. Three of us were interviewed about our business model of combining investors' capital with the provision of homeownership to those who cannot qualify conventionally.

The interview will be published some time in January.

In the meantime we had two offers accepted - $75k for a 2/2 1100 sq ft condo in Bencia and a 4/2 1700 sq ft townhouse in Vallejo for $110k - rents are $1200 and $1650 respectively. Picture of 4/2 on Daniels Avenue above.

Well, that's it for today. Caroline Hegarty signing out!

Recent Activities

2010-11-19T17:03:00.001-08:00

Well, we have had NO offers on our house listed on the MLS even though we dropped the price to $219,900

We do not want to have the house vacant going into winter, so we are seller financing the house to a lovely couple and their two daughters who are moving from Burlingame.

Our deal will be a purchase price of $249,900 with 10% down, 7.5% full amortizing loan with a five year balloon. This will give them a payment of approx $1600/month plus taxes and insurance.

They are moving from a rental apartment where they have been paying $2200/month - win/win for everyone.

Looking to pick some new properties, but market has shifted considerably in several ways - huge reduction in inventory, very slow response time by banks and an overall very cautious buying and selling environment.

On pins and needles waiting to see what 2011 has in store!!

Rehabbed House on MLS

2010-10-11T19:08:00.001-07:00

Latest acquisition was 4/2 1900 sq ft 2 storey home in quiet cul de sac - nice part of town.

Bought for $145k, $25k in rehab and listed for $229,900.

Two open houses, but no offers yet - alot of inquiries to rent, rent to own, or seller finance.

Will wait for a few more weeks to see what happens.

Winding down for rest of year to evaluate all of the recent turmoil in the big banking world.

Will be spending alot of time planning and preparing for next year to see if I can find some predictability in this mad environment!

Eviction Process

2010-10-11T19:02:00.000-07:00

So had my first two evictions this year. One was smooth, as in defaulted. However, she was still there when I met the Sheriffs one morning but left fairly easily. Called me to make appointment to pick up her stuff in a UHaul van one week later, and actually left the place clean - wow.

The other one - not so lucky. Dramatic personality shift from the nice God-fearing woman I rented to! Gave ME notice that she was moving due to mold. Still there after 30 days. Left before Sheriff move out, but really trashed the place - $3,500 later, now rented again.

I will definitely not be writing a book called The Joys of Landlording.

I Survived Real Estate 2010 Event

2010-09-20T11:08:00.001-07:00

Just came back from Los Angeles where I attended a great event put on by the Norris Group to benenfit Breast Cancer.

Over 400 people attended and the event was broadcast on You Tube.

After the dinner, a panel of experts were interviewed regarding their opinions on where the economy is headed both generally and in terms of real estate in the coming years.

The panel included Peter Wayman, Sr. REO Sales Director for Freddie Mac, Sarah Letts, Director of Credit Loss Management for Fannie Mae, and Joseph Magdziarz
President Elect of The Appraisal Institute.

You can find the recording of the live event on You Tube or on the Norris Group's website.

Latest Purchase

2010-08-08T19:55:00.000-07:00

Our latest House was a short sale acquisition - a lead given to me from a prior transaction.

The house is 3/1 1284 sq ft single storey home with a single car garage, separate side car port and small back yard.

Purchased house for $70k, spent $18k on rehab, and recently rented out for $1300/month.

We currently have a $130k offer on it from an investor.

Bought house with owner still in place. Took about one month to get him moved out, including assisting with packing, moving, storage facility and temporary accommodation in the form of a hotel for a week!

Two of Our Latest Acquisitions

2010-06-11T17:50:00.000-07:00

Our two latest purchases are both 3/2 ranch style homes, the first is 1378 sq ft on a 10,000 sq ft lot - completely updated but missing the master bath! We are selling it with seller financing (before 1st July!!) in its "as is" condition to a young couple who will probably be able to finance us out within 6 months.

Purchased house for $165k and seller financing for $200k with 10% down at 7.5%.

We will be working with this couple on getting them financed through traditional means by working with our team of credit repair and mortgage specialists.

Couple are very excited and have been calling every other day during closing process to find out when we can get them into ownership - very cute!

Our second acquisition, also a cosmetic fixer, (actually closing next week) is an approved short sale at $110,000. We have a potential young couple who will also take it in as is condition for $155k. This couple will be in a rent to own situation for approx. 6 months while we work on getting them financed. We are not willing to seller finance to them due to not having enough down for our comfort. We are working with them as they have good, long term jobs and their payment upon purchase will be less than what they are currently paying in rent by about $200/month.

Latest Underwriting Condition

2010-06-11T17:44:00.000-07:00

We have been really busy with all of the transactions we have going on.

Things to be concerned about for us right now are the ongoing appraisal issue, increasingly onerous underwriting and funding conditions that are coming from the banks, and of course the highly controversial new SAFE Act which seriously affects investors' right to seller finance.

One of the most recent funding conditions we had was based on an underwriter's viewing of some chipped paint on an outside garage which we had to paint prior to funding (pictured here beautifully repainted in its entirety at a cost of $200)

Seller Financing Continued

2010-05-10T21:16:00.000-07:00

SO, we have a total of 3 seller financed transactions in progress in addition to one closed.

Our goal is to set up notes that create at 9-11% yield to a note buyer. The second of these is as follows:

Purchase Price: $175,000
Downpayment: $17,500
First Note: $130,000 @7.5%
Second Note: $27,500 @7.5%

We will be marketing first note for $115,000 which will give a nice passive yield.

This creates a great win/win situation for a couple who could not qualify for conventional financing and an investor who appreciates the opportunity to earn a better than average return on investment secured by local real estate!

John Schaub Class

2010-05-10T21:13:00.000-07:00

Went to hear John Schaub speak at the SJREI club in Pleasanton on Wednesday - great information as always. One day class on Saturday followed by dinner at local restaurant.

WHAT A KERFUFFEL

2010-05-03T09:35:00.000-07:00

Well, we have had an exciting few weeks in Real estate on our end.

First of all, we have a new website which gives info. on all of the great ladies I am working with - we can be found at www.solanocommunityinvestorsgroup.com

On the Real Estate Side, having had 2 of our houses fall out for the second time, we are now switching to Seller Financing.

First House:

2749 Tuolumne Street, Vallejo

This was a profit sharing deal with half of net profits to underlying financing. As this is not longer a "cash out" deal, we will be adjusting the underlying note UP by half of net profits (more now as no RE commissions) and looking to cash out by selling note.

Buyer is a RE Agent with 10% down on purchase price of $164,900 30 yr fixed at 7.5% fully amortized 5 year balloon . Underlying Financing is currently at $92k and will now adjust up to $109,500 at 7.5%

Stay tuned!

First Quarter Review

2010-04-25T23:00:00.000-07:00

We have certainly had an interesting first quarter in the "residential redevlopment" market with all of the changing market conditions.

Of the properties we rehabbed and put up for sale, we have had two fall out at the underwriting stage, several extensions on the others, and a couple scheduled to finally close this week.

Of the two that have fallen out (twice), we are now entering into a seller financing/rent to own option to avoid having any more non-income-producing down time.

Our plan is to structure the seller financed notes to be able to cash out of a first and stay holding a second - stay tuned to see how it works out!

There has definitely been a shift in our market this quarter.

We have noticed the usual last minute rush to get the $8k tax credit.
We have noticed an increased number of rehabbed listings for sale, thereby shifting the supply/demand balance.
We have noticed an increased number of listings of the bigger houses (1600 sq ft and up)
Definite increase in strategic walkaways.

Curious to see what unfolds this next quarter!

New Listing

2010-03-26T16:56:00.001-07:00

This is another little house that is going on MLS tonight.

2/1 900 sq ft - ok part of town although not East Vallejo.

Bought for $62k, spent $12k and back on at $105k

With 3% down and 5% interest rate, someone can own this house for $546/month plus taxes and insurance (probably another $120 or so per month) Still cheaper than rent!!

The Trials of Buying and Selling in this Market

2010-03-26T16:43:00.000-07:00

Just some information on some of our recent experiences on selling some of these rehabbed homes.

While several have gone smoothly, here are a few of the issues with some of our recent transactions.

First one - appraisal and inspection all done. Bank required borrower (750 credit score and 15% down) to go an open an additional trade line and wait for it to hit the credit bureaus. Then required additional documentation from CPA on tax returns. Each of these requirements involved a 2-3 week delay, and this house which has been in contract since end of January is now scheduled to close on 7th April.

Second one - attorney buying one of our houses upgrading from a condo she owned which she planned on renting out. Inspections and appraisal done and underwriting turned down loan saying she could not own 2 properties within a 5 mile radius of each other - Seriously!! This house is now back on the market after 4 weeks of working on that sale - ouch!

Seller Financing House

2010-03-26T16:37:00.000-07:00

So here are some pictures of the house I wrote about a few weeks ago. Had a couple who wanted to buy it seller financing as is and then fix it up themselves. Well, looks like they got cold feet, so now we started the rehab this week.

This is a 5/3 3000 sq ft house - originally 3/2 1500 sq ft but has a legally permitted addition. We will be putting in new windows/doors, refinishing kitchen with current cabinets, refinishing hardwood floors throughout (were covered with carpet), some re-wiring, 2 new bathrooms, some roof repairs, re-converting illegally converted garage. Expect to have it completed in about 3 weeks. We will then look for a family that would like to live in this house but cannot get a loan, and we will seller finance it to them at 7.5%

Stay Tuned!!

Update on 229 Toledo Court

2010-03-26T16:30:00.000-07:00

Well folks, had a great open house last week. Accepted an offer of $227k ($2k above asking) even though we had higher offers. Based decision on tight lending guidelines and the fact that the buyer had some cash to put down on the deal. Will keep you posted as things progress with inspection, appraisal and underwriting - always an adventure in this climate!

Toledo Court Finished

2010-03-21T11:12:00.001-07:00

Finished product on 229 Toledo Court. On MLS yesterday and open house today from noon to 2pm. Been shown 5 times so far and one offer submitted for full asking price. This home is 3/2 1600+ sq ft with views over the city.

Bits and Pieces

2010-02-19T17:01:00.001-08:00

Just some various updates on what we have been up to for past few months. I have taken on some new partners and we are looking to expand our territory into Fairfield and Vacaville in addition to growing our ability to offer seller financing to people who want to own but do not qualify for financing.

We are in the middle of our first such deal - 5/3 3000 sq ft house (odd for neighborhood as was originally about 1400 sq ft and they LEGALLY added a two storey addition.

We are purchasing this house for $159k and then seller finaning it "as is" to a couple for $220k at 7.5% with $25k down.

This couple run a home for autistic children and were paying $2500 per month for a smaller place in Fairfield. Their new payment on this house will be $1400 or so plus taxes and insurance!!

Napa Rehab

2010-02-19T16:57:00.001-08:00

Here are some interior pics of our 3/2 house in Napa midway through renovation - about another two weeks to go.

Biggest challenge with this house is the 150' high Redwood tree that the City of Napa says has to be removed due to encroaching on street and preventing sufficient access to garage - will definitely have pics to show when doing that work.

Progess Report Toledo Court Vallejo

2010-02-19T16:40:00.000-08:00

Here are some progress pictures of our 3/2 in Vallejo. We are about 2 weeks into the project and expect to be finished and back on the market in another week or so.

News and Latest Projects

2010-01-25T20:17:00.001-08:00

229 Toledo Court

Obviously delighted at the waiving of the 90 day seasoning rule for FHA buyers - stay tuned to get clear on parameters on 25% net profit stipulation.

Check out our latest listing for sale on redfin.com- 371 Idora Avenue, Vallejo

Purchase $64K
Rehab: $25K
Listed: $119k

Also our newest house under contract (first pic above)- 229 Toledo Court - tri-level 1600 sq ft with views - for $130k with $35k rehab and planned relist of $225K

Currently dealing with two impending vacancies - one due to job loss, and the other a bit messy - one sister moved out, the other sister can't afford rent - sisters now not speaking and me in the middle - The joys of landlording!!

Latest Project and Plans for 2010

2010-01-05T17:30:00.000-08:00

Just back from a great trip to Ireland for Christmas to see my family. Had a great time, although came back with the flu.

Have 3 finished rehab projects currently listed for sale on MLS and two being rehabbed with expected relisting time within the next 2-4 weeks.

Expect a few more accepted offers in the next few days and planning on looking at a bunch more houses at the end of this week once I have recovered from flu.

Pictures of most recent rehab here - 3/2 SFR purchased for $90k, $35k in rehab and approx $10k in resale costs. Partnership arrangment with prenogotiated split to each partner.

Looking forward to expanding into other Solano County markets this year and working on adding seller financing opportunities to homebuyers , so stay tuned!

Open House

2009-11-22T20:58:00.000-08:00

Had open house today on rehab in Vallejo - the green and white one I posted one picture of about 6 weeks ago. Hard to believe it is the same house.

Here I am holding the cabinet in place a few days before completion!!

Purchased for $70k, spent $40k in rehab and listed it for $185k

Two offers in already, one for list and one for $6k above list. Expected at least 5 more offers based on open house today.

Closed on next reahab on Friday, so getting ready to start rehab on Tuesday. Also had offer accepted on 3/2 in Sacramento, so heading up there tomorrow with lead contractor to sharpen our pencil on rehab numbers.

Wrote about 10 offers this week and 4 more in the works after looking at 7 properties this afternoon following open house.

Whew - looking forward to my 10 day trip to Ireland on 17th!!

Noteworthy Convention 2009

2009-11-13T11:58:00.000-08:00

Just got back from the annual Noteworthy Convention. Wanted to educate myself further on note manufacturing, buying and selling paper etc.

Met some great people and learned alot. Noteworthy have a newsletter for anyone who is interested in staying up on what is happening in the business - www.noteworthyusa.com

I am sure everyone agrees that the lack of conventional financing to well qualified buyers is going to dramatically increase the need for private financing.

On the rehabbing side, just about finishing up with one house and have 2 more in escrow to close, rehab and sell.

Also have 2 long term buy and holds that I have private financing on giving the holder an 8.5% return on their money passively, secured by a First Note and Deed of Trust.

To receive updates automatically on what we are doing, please register at www.reiinformation.com

Latest Happenings

2009-10-15T11:14:00.000-07:00

Super busy time for me for past 3-4 weeks with the rehabs in progress, partnering with other investors locally and helping them to find tenants/rent to own buyers for their properties (which they will be seller financing to me afterwards!)

Noticing a softening in rental market with longer vacancies and fewer income qualified applicants.

Increased amount of listings in Vallejo this month for the first time in 4-5 months.

Rainstorm sparked a few issues in one rental house with leaking window.

Had one rent to own couple both lose their jobs and gave me notice that they had to move - sad to hear as I really wanted them to own house.

Getting more educated on Self Directed IRAs as this is a great way to go for private financing - I offer an 8% interest rate secured by First Deed on cashflowing property in my own town - can't beat that for passive!

Lots of data, studies, changing rules and regulations in the industry right now - hard to keep track sometimes. Spend alot of time reading emails, newsletters, ezines etc. to keep up!

House in Napa Update

2009-10-15T11:09:00.000-07:00

Finished house in Napa in 4 days - love my crew! Got a great deal on fancy insulated carriage doors - ooh la la

Bought for $145k, $15k in rehab and under contract for $225k with $8k credits to VA buyer.

Inspections done, waiting on appraisal (not anticipating any issues due to strong recent comps)

New Rehab Project

2009-09-21T23:12:00.000-07:00

Started work on house in Napa today. One of my partners and I closed on it on Friday and started rehab today. Should take about a week - conversion of illegal garage, upgrade wiring, paint/carpet and a few other items.

End buyer in place who will be coming by tomorrow to direct some choices of color etc.

Bruce Norris Event

2009-09-13T19:30:00.001-07:00

It's been fairly quiet on real estate front. Making lots of offers and have two more new projects in the works. One in Napa scheduled to close on Friday 18th Sept. and the other the following week.

Both are rehabs and the intention is to rehab and sell them - end buyers lined up on both right now which is great.

Went to Orange County to attend Bruce Norris "I survived Real Estate 2009" Event. Event was also recorded and can be seen on youtube. Great networking and very interesting panel of seven experts in their field. Check it out if you have time.

Rehab Update

2009-08-14T16:26:00.001-07:00

So , this property went on MLS last Friday night at $179,900 and we had a full price offer by the following afternoon.

Buyers are moving back to area and have their house in contract for sale. They want to move asap.

Here are the current terms we are looking for - Rent to own for 3 months or less with $40k down and the balance in cash once their other house closes. 3% towards closing if they close in 90 days or less, 1% if they close after 90 days.

We will be posting the final numbers once this deal has closed, but the rough numbers right now are purchase price of $83,000 and Rehab $25,000

Another one in Vacaville just finished and will be on market by tomorrow.

Cash Flow Depot Speakers - Ken Burge

2009-08-11T02:06:00.000-07:00

Ken has more energy than an leprauchaun after 10 pints of Guinness!! Seriously, I don't think his brain stops - ever.

Fabulous presentation on amplifying one's presence in the social networking platform (as I am here at 2am tapping away!)

Just for fun, check out the "uberman's sleep schedule" - pretty radical.

Some great hints for outsourcing cheaply (www.odesk.com), free phone and voice mail (google voice), and free software to add visuals to your online conversations (www.jingproject.com)

He has also persuaded me to get an iphone - Thanks Ken as I have not had my blackberry for very long!

Ken is co-author of a book called "Twitter Power" which is available on Amazon.com

His presentation has revolutionized my perception around social media and how to make it work in business.

Check out his website at www.kenburge.com

Cashflow Depot Speakers - Gary Johnston

2009-08-11T01:56:00.000-07:00

Gary Johnston is a full time investor from Idaho.

He had a great presentation which included some exercises around defining what success was for each individual, exploring belief patterns, environments etc.

He also had some examples of deals and various ways of structuring them and had us use financial calculators to come up with the differente ROIs etc.

Gary will be doing a 3 day workshop in Santa Clara at the end of this month which I plan on attending. Further info. can be found at www.GaryJohnstonSeminars.com (sign up for his newsletter also!)

Cash Flow Depot Speaker - Jim Ingersoll

2009-08-11T01:47:00.000-07:00

Jim and his wife Cheryl live in Richmond, Virginia. Jim started out very aggressively doing wholesale deals and made alot of money very quickly.

He and his wife (and one of his daughters who is just 17) now do a combination of selling and keeping for long term rentals.

Jim describes himself as a wheeler-dealer (much like myself!)

Jim shared some great information on how to find motivated sellers, wholesale buyers and how a wholesale transaction works.

He also shared a couple of recent deals he did which was very helpful for everyone. His website can be found at www.cheaprichmondhomes.com

Cash Flow Depot Speaker - Danny & Ann Williams

2009-08-11T01:35:00.000-07:00

Danny & his wife Ann (obviously not in this picture!) live in Fayetteville, GA

Danny used to work full time for Delta before making the transition to real estate full time. While he was working full time builing their RE portfolio, his wife Ann was the main breadwinner until such time as she could quit her job.

Great tips on goal setting, partnering ideas and more from these two. You can see their testimonial on cashflowdepot.com

Cash Flow Depot Speaker - JB Banning

2009-08-11T01:29:00.001-07:00

I am fortunate to have JB as both a personal friend and mentor. JB is mainly a "paper" guy and lives in Hot Springs, Arkansas.

He has been a follower of some of the great teachers such as Jack Miller, Peter Fortunato, John Schaub, David Tilney and others for many years and frequently brainstorms with Peter on deals and scenarios.

JB shared both mindset and technical strategies that were helpful to him on his path to success - again, he was very forthcoming with some of the personal and business adversities he encountered along the way.

Cash Flow Depot Speakers - David & Kandace Phelps

2009-08-11T00:56:00.000-07:00

David and Kandace Phelps live in Rockwall, Texas.

They shared their story with us, and provided some great advice and insight, in addition to sharing some of the adversities (both business and personal) that they encountered along the way.

Their website is www.sellerfinancesolutions.com

Weekend Happenings

2009-08-11T00:50:00.000-07:00

Just came back from a 3 day event in Las Vegas put on by Jackie Lange of Cash Flow Depot. Excellent weekend with lots of great speakers, content and attendees.

Check out Jackie's website at http://www.cashflowdepot.com/ Met some of the people who give testimonials on website, and they have been following her training succesfully for years. For $97/year, you can have access to alot of training materials from some of the masters, including Jack Miller (his son, Chris, runs cashflowdepot with Jackie) Well worth the investment.

Finished Product in record time

2009-08-04T22:39:00.001-07:00

Here is the final product (took pictures before microwave installed over stove)

Looks great - listing it tomorrow and having open house on Sunday.

Rehab Finishing Stages

2009-08-01T22:44:00.000-07:00

Very excited that last stages of rehab are in progress. Hope to advertise it by Monday - not a bad turn around time - quite impressed myself!!

Pictures include master bathroom (new tiled floor, new window, refinished shower, sink and toilet)

Next are the new mirrored closet doors in the master bedroom (other bedrooms the same)

Third is new custom window in living room, and finally the installation of new kitchen cabinets and granite counter tops.

Final pictures on Monday!

Andy Heller Workshop

2009-07-28T23:17:00.001-07:00

Spent Saturday in San Francisco at Andy Heller's workshop. Andy is the author of "Buy Low, Rent Smart, Sell High" among other publications.

Andy specializes in Rent to Own, or Lease Options, which is my chosen exit strategy also.

Great workshop, lots of good info. Highly recommend his material for anyone wanting to pursue rent to own business.

Andy's website is www.regularriches.com

My Day Today

2009-07-28T23:08:00.000-07:00

Just thought I would expand on my day today as it was quite busy.

Was in Vacaville at 8am this morning to get a roofing crew started, only to discover the former homeowner had not completed her move out having been given an extra week.

Ended up taking her to Uhaul (for the second time) to get the rest of her stuff loaded and moved out - in addition to paying $1000 of her security deposit on her new place.

However, still cheaper than her original plan of sledge hammering the house before leaving!

Then onto house in Suisun City at 10am to meet haul out crew to do a clean out on a house that tenant left a bunch of stuff behind - including their cat and 2 kittens who were starving - of course I went to the store, bought cat food and fed them. Going back tomorrow to pick up and take to humane society.

Same house had carpet cleaners at 12.30 and janitorial crew at 4pm. All ready for new tenant to begin moving in tomorrow morning (I will be there to meet her for inspection at 8am tomorrow before proceeding onward to inspect roof progress in Vacaville).

At 2pm, spend 2 hours looking at some new prospective properties, some for Joint Venture deals and some for just finders fee. Then went by to check on rehab here in American Canyon - looks great - will be posting more pics tomorrow.

Made offer on one tonight on one of the properties from today.

Alot of other admin type tasks - printing out agreements, emails, faxing docs etc.

Just finishing up now - as I said, long day today!!

Rehab Update

2009-07-28T23:04:00.000-07:00

Here are some pictures from last Saturday where house was painted on outside and prepped on inside. Alot of other detail items done also.

Rehab Day 2 - July 09

2009-07-19T19:22:00.000-07:00

On Saturday, new windows and doors were installed. Walls were being skimmed, some more demo work etc.

From Purchase to Flip Day One

2009-07-17T12:37:00.000-07:00

This is a 3/2 property that was purchased from the MLS at a price of $89,000. Property is a 3 bed 2 bath 1400 sq ft Single Family Residence.

Closed on property on Wednesday, started the demo on Thursday, and above are some pictures of the property today. We are currently expected to spend $22,000 on the rehab which includes new kitchen, new furnace, some new windows, carpet, paint etc.

Current comparable sales are in the $150-$165k range.

Updates

2009-07-17T12:32:00.001-07:00

It has been a while since I posted anything, so this is just a synopsis of what has been happening since the last posting.

There has been an ongoing shortage of inventory, so have been looking at alot of properties, making offers (cash) and getting outbid alot of the time.

On the management of existing rentals and rent to own properties, we have had some hard times with a few tenants getting either laid off or hours cut, so have been working out temporary payment plans or move outs (3 over last 2 months).

The rental market is a little soft right now - lots of properties being advertised for rent for longer than average time frames compared to a few months ago.

At this moment, we have 3 partnership deals going which we plan on flipping. We have chosen one of these to do a daily diary on from demo to finished product, through to sale.

Hope it is educational.

Robert Campbell Even

2009-05-11T23:16:00.000-07:00

Last Thurday I took a trip to San Jose to listen to Robert Campbell speak at the San Jose Investment club run by Geraldine Barry.

I had heard he was dynamic speaker, and having seen him in person, I am now a big fan!

Robert Campbell is strictly a data man and specializes in capital gains deals - none of those buy and hold investments for him!

He offers a montly newsletter service on a yearly basis which keep people updated with data on changes in the real estate market. These newsletters are definitely a great tool for investors.

Robert has also written a book, "Timing the Real Estate Market" which is a great read.

Worlds Hidden Masters

2009-05-11T23:09:00.001-07:00

I had recent exposure to a couple of young guys who run a company called Worlds Hidden Masters. I heard them speak at a real estate investment club in Pleasanton where they gave a brief demonstration on negotiation skills.

I have had the pleasure of attending 3 of their follow up events since then, and I have to say it has been quite amazing.

For anyone who is looking to change the results they are having in their life, I strongly endorse these two based on my own personal experience and changed results. The two men in question are Jeff Slater and Kane Minkus, both of whom have had tremendous success in their life to date.

Feel free to contact me for more information on how to learn more.

Someone Call the Cops!

2009-05-11T22:53:00.000-07:00

Here is a recent experience which was another first for me. Was rehabbing a condo next door to one which I had already rented.

Property had power switched off at main breaker which, unfortunately, was on the side of the condo which was rented. Tenant was very picky about having someone present any time someone needed to do work.

I sent email requesting that they check box on side and flip switch - they reported back that there was a lock on the box and that if I arranged an appointment with PG&E they would see if they could coordinate.

In the meantime, I called HOA to inquire as to who had put locks on. They said it was not them and that there should not be locks on box. They indicated that they would come and take care of it.

Off I go down to the property which was being rehabbed, met the HOA crew there - they reminded me that the HOA owns the gardens of the condos and have the right to come and go as they please, especially if there is any kind of emergency.

They knocked on door and noone answered, so they proceeded to side of house to cut locks from box so that the electricity could be turned on next door.

Next thing, I hear this shouting and screaming coming from the back yard, and there is my tenant hysterical, not listening to anyone, and runs in the door to call the police!

Next thing, 3 police cars arrive (this is 10am in the morning). I am knocking on door and tenant opens door just as police officer walks up. Unfortunately again, the HOA maintenance crew walk out pretending to turn around to be handcuffed, and police officer smiles (they know all HOA crew).

Of course, this did nothing to help the situation, and more shouting followed, mostly directed at police officer at this point as he had smiled at HOA.

Anyway, the end was a slammed door and everyone left. Then, oddly enough, have not heard anything since!

The joys of being a landlord!

HOA Blues

2009-04-23T12:12:00.001-07:00

Whoever thinks real estate investing creates passive income, take my most recent experience into consideration!!

Just attended HOA board meeting to resolve a convoluted HOA dues situation, after already having spent many hours trying to resolve it unsuccessfully with management company and collection agency.

Had a property close in May 2008. Settlement statement showed payoff amount to HOA and an advance payment for July 2008. Therefore set up automated payments to go out beginning August 2008.

Next thing I know, a collection agence letter arrives in January 2009 with 4 of these checks enclosed, indicating there was a $2400 balance due and the checks were insufficient to pay off debt!!!

To summarize the events that led to this - HOA had bigger balance on books than payoff demand (approx $600) - cashed the first two bank drafts and then sent account to collection. Had wrong mailing address, so no notice received until January 2009.

Was told by collection agency that they could not do anything other accept the full payment on their books unless otherwise advised by HOA. HOA said same thing in addition to informing me that they would not be accepting any current payments!!

Lots of emails and phone calls back and forth, including an attorney letter with no real resolution largely due to difficulty in dealing with HOA management company.

Anyway, off I go to the meeting with all of my documentation. Finally ending up with unanimous decision to waive all late fees, accept payment and move forward!!

Total time involved between myself and JV partner was over 10 hours!!

Now, onward and upward. Still a shortage of inventory, but sources indicate a flood of more REOs being released Mid May and beyond.

As a reminder of our services, we have hourly mentoring to help with goal setting etc., fee based services for finding properties, supervising rehabs, finding rent to own tenants etc.

Sign up on our website at http://www.reiinformation.com/ to receive advisories.

Happy investing.

More Possible Flips

2009-04-08T09:48:00.000-07:00

Went to see some newly listed properties on Monday - great deals with possible flip possibilities with net profits of $20k to $40k

List prices were from $55k to $114K with rehab costs in the neighborhood of $15k to $35K

Inventory is still moving quickly here as the banks are beginning to understand the advantages of pricing inventory attractively to both investors and buyers.

Have been having negotiations with some transactional funding sources to see how it might fit in to my investing strategy and will post some information on the subject in the next few days.

Private money lenders seem to be getting more confident again as I see better terms coming accross my email these days.

For anyone wanting to see how we can work together on some of these flips or rent to own deals, please feel free to contact me at (707) 704 4904

More later.

JACK SHEA SEMINAR

2009-04-06T10:53:00.000-07:00

Last weekend I attended a one day workshop given by Jack Shea, author of "Secrets of Lease Option Profits" which was hosted by Geraldine Barry of San Jose Investment Club (check out her website at http://www.sjrei.net/)

Great event with lots of good, honest advice from someone who has been in the business for a long time and been through the trials and errors of getting to know how the business really works.

Geraldine interviewed me after lunch - I naturally gave my "no holds barred" answers of my experience in real estate the good, the bad and the ugly!

The next event I will be attending is the 3 day with more seasoned masters (Jack Miller, Peter Fortunato and John Schaub) being hosted by Mike Morrongiello of the BAWB Mill Valley. Event will be held in San Francisco May 29th, 30th and 31st.

Going to look at some well-priced houses this afternoon and will be posting some pictures and evaluations afterwards.

Don't forget to become a registered user at http://www.reiinformation.com/ to receive information on good deals as they come up.

RECENT REPAIR ITEMS

2009-04-06T10:35:00.000-07:00

Have had some recent minor repair issues on properties, and am attaching some pictures on one of the repairs. This is a floor furnace that needed a pilot light mechanism replaced. This entailed going in through the crawl space to access the unit - messy job as it was wet and slimey under there - could be on the tv show featuring dirtiest jobs!!

Cost of replacement and installation was $202.00

Other Markets and First Mortgages

2009-03-15T21:45:00.000-07:00

This post is just a reminder that we do have opportunities in other markets, some California, and some out of State.

Right now I am concentrating on Vallejo primarily because I live here, it is still Bay Area, the prices are super low and cash flow is great.

Additionally, it really is prudent, in my opinion, to invest in California right now as it has historically shown consistent appreciation over time, and does not usually cash flow (based on 20% down at 6.5% interest or so) in most markets.

We will ocassionally send out deals in other cities and/or States via our registered user list at http://www.reiinformation.com/

Also, if anyone is just looking for passive income with a first lien on cash flowing real estate, we can offer a 9% interest only payment for 3-5 years.

MARKET UPDATES

2009-03-15T21:16:00.000-07:00

Looked at some more properties yesterday and drafting some offers. In terms of numbers right now in Vallejo (my home town), there are currently approx 700 listings, down from 1400 in December. The banks seem to be pricing alot of properties attractively, and there are still multiple offer situations occurring.

One of the properties I looked at yesterday is a 4/2.5 townhouse, 1700 sq ft, built in 2003. Were selling for $375K and currently listed at $114K. Rents are $1700 for such a house - beats the 1% rule!!!

Of course, there are alot more REOs in the pipleline, so it will be interesting to see what happens with the future batch brewing. Some of the new programs/stimulus package incentives may cause a slow down.

First time homebuyer credits ($8k Federal and $10K State) are likely to influence some buyers who have been waiting on the sidelines (have spoken with several in the past few days).

Additionally the federal incentives being offered to loan companies to modify loans, changes in the bankruptcy rules that allow a judge to change loan balances etc., may all work towards a pattern of stabilization.

Getting ready for REO Bus tour next Saturday 21st March - have 3 rent to own tenants coming along in the hopes of getting them matched up with an investor to create a win/win situation.

Busy Week

2009-03-12T22:44:00.000-07:00

Well, it has been a busy week in real estate. The inventory here in Vallejo, CA has shrunk by 50% since December causing multiple offer situations.

Have been outbid on 4 properties in the last week - ouch! I hate the "highest and best" shennanigans.

Went to a RE investment club event where two young guys were talking about negotiating skills, both in real estate and in life - very impressive. Signed up for their 3 day event at the end of this month - at seminar special of $97!!! Probably the cheapest seminar I've ever signed up for.

Getting ready to do an REO bus tour on Saturday 21st March. Have a 47 seater bus booked. Lining up some local leaders to be available to meet some of the out of town investors coming to look at investing in some of the properties here.

Looked at 5 new properties yesterday and working on making offers with some joint venture partners. For more info on JV program, see our website at www.reiinformation.com

Also, a reminder of a great tool I use for analysing CA properties - www.krunching.com

Stay tuned!!

Great Weather for Plumbing Issues!

2009-03-03T18:04:00.001-08:00

More plumbing issues during the past few days. Just spent 3 hours this morning on the latest issue with a leak from an upstairs bathroom.

Had to go to three different plumbing supply stores to get that naughty looking part on the left - Home Depot did not have it!!

Also have leaking faucet in another unit, so back to Home Depot for new faucet, which will be installed tomorrow morning.

On a related issue, another unit where there were drainage issues causing standing water under units has just had $7k worth of new drainage work performed (paid for by HOA thankfully!) and we are now waiting on a determination on whether or not the furnace will work (tenants living with pluig in heaters for past 6 weeks - thankfully they are understanding of the circumstances).

If it does not, we will be no doubt going up against the HOA to determine who will bear the financial responsibility for repair or replacement.

On the admin side of real estate, my hair is getting more gray by the day! Some really time consuming issues including HOA receiving checks and not cashing them, then sending account to collection with no notification to owner (one of my Joint Venture Partners - learn more at http://www.reiinformation.com/).

More fun stuff when evaluating property tax situation on a property to be told by tax assessors office that there is no such address - Must advise tenant that they are living in a Bermuda Triangle type property!!!

Looking at more houses today and working hard to keep updated on what is happening in industry with all of the new incentives for first time homebuyers, new modification packages etc. Attending several real estate investment club meetings in the coming weeks to promote my Vallejo REO tour on 21st March.

New Listings

2009-02-24T14:28:00.000-08:00

We looked at a couple of new properties today here in Vallejo.

3/1 and 3/2 SFR in good neighborhoods needing light to medium rehab.

Listing prices from $85K to $140K with rents from $1200-$1500

We have received 2 new qualified rent to own tenants. Would probably be able to structure a 24 month option at $180K-$225k with properties like these.

For any investors looking for a partnership opportunity as well as a chance to put a family into (or back into) homeownership, check out our Joint Venture Program http://www.reiinformation.com/

Update on plumbing for condo - spent another hour there today, only to be told that it looks fine for now, but if it happens again, they will come and remove the extra valve fitting that was installed!!

Possible Investment Property

2009-02-23T15:52:00.000-08:00

So, just came back from viewing a potential Joint Venture investment. Subject property (pictures attached) is a 2/2.5 1100 sq ft two storey condo with garage. Nice neighborhood, close to decent schools, hospitals, freeways and shopping.

No deferred maintenance, although reserves are low at the moment. Have inspection report in hand indicating $5100 in section one work (mostly dry rot in bathroom). Can be done much cheaper by contractor.

Estimated repairs should be in the $15K range.

Will be going in with a $38,000 initial offer (listed at $56K) These units were selling at $300k in 2006!!

Rents $1200-$1300

HOA $251/month

Taxes approx $100

Stay Tuned!

Items for Today

2009-02-23T10:24:00.000-08:00

Got a call last night from a tenant telling me her sink was blocked again, having just spent $290 to have it unclogged and some hardware replaced last week.

However, the report back from the Plumbers advised me that there was a shared drainage pipe in the wall with the unit next store. As this unit is a condo (see picture attached), clever clogs that I am, I called the HOA and advised them that the sink was blocked again and that in view of the shared drainage situation, it should be their responsibility - they agreed and will call a plumber - I will still have to and meet them there to let them in as my tenant is at work.

Shower turned out very nice, although over budget - surprise, surprise! Happy tenant buyer, so life is good on that property for now.

Have appointment to go look at another 2/2 condo with a garage - listed for $79,900 (good luck with that), but I have a rent to own tenant lined up at $99k with $950/month in payments if she likes the place.

Also having a paperwork day - the amount of trees that are killed for real estate is mind boggling! I will have to order more filing cabinets soon.

Solano County Business News: Vallejo real estate investor markets rent-to-own homes

2009-02-22T12:19:00.000-08:00

Solano County Business News: Vallejo real estate investor markets rent-to-own homes

2009-02-22T10:18:00.001-08:00

As an active real estate investor for the past five years, people frequently ask me questions about how to get started.

This question is essentially like asking "how long is a piece of string?"!! The answer is it depends on your personal circumstances.

What "personal circumstances" you might ask:

Risk Tolerance
Goals
Capital Available
Time available
Prior experience
Skill sets that will be necessary to be successful investor

Etc. Etc.

I have an Ebook available FREE to help identify and answer some of those questions - but again that is only a book and does not prepare you for the ACTUAL experience of investing.

For more information or to request the EBook, you can email me via my website, http://www.reiinformation.com/ (still a work in progress as things change!)

Anyway, I decided that a good way for people to get to know what it might be like on a day to day basis is to actually write about the experiences I have daily - the good, the bad and the ugly!!!

Starting today, Sunday 22nd February, 2009, I Caroline Hegarty, will be blogging (a big step for me as I am seriously technically challenged and had to get very specific help from a good friend of mine, Cara Cavanaugh, technically superior!!) about my daily duties in real estate.

I expect today to be non-eventful, although will be visiting one of the properties I am joint venturing on to inspect a new shower that was installed (house in picture - 3/2 1575 sq ft)
Tune in tomorrow!!