Week 6 – Wheelin’ and Dealin’

I love getting a new deal and seeing a pay day in sight. This week I felt I got a lot accomplished toward my overall goals which obviously feels great! Take a look at the action this week.

Monday Feb. 1st – Sunday Feb. 7th, 2016

Monday (3 hours)

  1. Our Tipton property went on the market officially today for $52,000.
  2. Received the BPO back from our realtor for the new deal in Pittsburgh, PA. The value was right on point with our expectation.
  3. Paid 2 invoices to our vendors for recent work that was completed. Checked in the progress of our current deals.
  4. Explored distressedpro.comdistressedpro.com, which helps source non-performing notes and REO (foreclosures) direct from banks, credit unions, and servicers with BankProspector software. I had heard a lot about it but finally tried it our for myself. Lets just say its AWESOME! It really does help you find the exact banks in the markets your are targeting that not only are healthy enough to sell but see if they have a history of selling and are prepared to sell now. Instead of calling every bank I could, I now have a super targeted list of qualified banks to call.

Tuesday (1 hour)

  1. One of our borrowers called and wants to modify her loan. I provided her with our servicing companies info to get her income verification and see if a modification or forbearance plan will work.
  2. Received title back on our newest pending purchase in Pittsburg, PA. There were WAY more taxes than expected so I had to reopen negotiations. I was able to knock down our purchase price from $57,500 to $50,000.

Wednesday (4 hours)

  1. Got an offer of $50,000 for our Tipton, IN listing (only $2,000 off asking) just 3 days on the market! We accepted and will have inspection next Tuesday with closing on the 29th of Feb. Considering we’re all in this deal at $29,500, we’re expecting to see some great results in our total ROI (expecting a $16,000K profit and a total of 54% ROI!)
  2. Attended my monthly REIA meeting at CFRI (Central Florida Real Estate Investors Association). While I wasn’t speaking this time, I did volunteer which is always a great opportunity to meet and network with new individuals and really make myself present within the organization. After we had a few drinks with fellow real estate investors and talked really good shop! We got some great ideas for additional income streams.

Thursday (3 hours)

  1. Finally received the electronic collateral files for the Pittsburgh, PA purchase and 66599346had some major new findings. The borrower is contesting (although their case is not very strong) and there was even more taxes owed than the title report showed. Because of the risk we run with this borrower in particular and their past correspondence in regards to this loan, we renegotiated. We came to an agreed upon closing price of $40,000 (a $17,500 deduction from our original purchase price)!
    (In PA , to get the most accurate info requires a tax verification to be pulled. This takes about 10 days – 2 weeks to receive. This is why I did not have that information until the collateral files were sent).
  2. Looked at 4 new assets, decided not to place a bid on them. Just didn’t meet our buying interests.

Friday (day off)

Saturday (2 hours)

  1. Wrote this post.
  2. Updated a lending agreement, executive summary, and docs for our lender for Pittsburgh deal. We should be closing Wednesday.

Total Income for this Week: $443.95

 

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