LO gone, new one in- less than 3 weeks!

In early July my wife got a call from a neighbor of one of our LO rentals. He is a family friend and wanted to know why our leaser’s were leaving. This was a surprise to Shannon since they had not told us anything. She soon learned, by going over to the house, that the husband was forced into early retirement and that they had decided to move to a smaller home in a different city, giving up their option deposit ($7500) and monthly down payment assistance ($2000). They felt they would just send us a letter after they had left. Of course it was the 6th of the month and they had yet to pay their payment. Although surprised at this move, we were more disappointed in their behavior. If they would have just told us the situation we would have worked with them. They had to spend money on moving vans, deposits and new rent when they could have just called us and we would have worked something out. Now we were stuck in the position of getting a new LO or renter in there ASAP.

We could have been concerned about that prospect, seeing that rentals are all over the place here. However, we focused on the great value we would be creating for anyone we put in there. We did the normal putting up a sign in the from yard. Then we did what to many forget to do, told everyone about our place. We let the neighbors know. We told our family members, we told people at church. literally opened our mouths.

Less than three weeks later we had our first potential client. A neighbors’ brother moving in from Chicago. We were willing to take a bit of a negative cash flow on the property since we had made about 20K from our last optionees. Unfortunately, that person thought we were desperate to get it rented and as and attorney, tried to control our terms and fees. (HINT- NEVER let the renter/ optionee control your terms. You should always stay in control. Even if you are desperate to get it rented out, you will pay for it in the end.) So we let that one go.
THE SAME DAY, within an hour we had a referral from another source. This person was willing to pay more; still giving us negative cash flow, but really WANTED the house.
Not an hour later, I called a family friend who has been able to get me cheep refrigerators in the past; she told me that she was just talking about me that morning, wondering if I had any of my houses open because she wanted a place. She could pay enough to cover my payment and a little cash flow with a 5K down payment.

So in less than three weeks I had leased out the place and had a back up. (We took the cash flow family and are looking for a new home to buy for the other)
The point is not to brag but to remind you that sometimes we get so focused on marketing through signs or adds that we forget the most important type of marketing WOM- word of mouth. Don't panic, or get desperate, get talking. Put it out there and it will come back to you.

Happy Investing.

Back and a little late

Hey there-
My trip to NC and MI was great! (And a little painful). NC was really productive. Saw the land and also looked at a few other properties. one is a 18 unit town home complex that looks like it could be a really good prospect. Doing the due diligence on it now.
MI was nice to relax. Well it was until I took a dance class. that's right a dance class. For those of you who don't know, I was a dancer in my younger years. Tap, Jazz, ballet, all of it. I have not taken a class for over 15 years and boy did my body feel it the next day. My old dance partner and I were the oldest ones in the group and I was glad to see that i sort of kept up. What it did was reignite the desire to do it again. My wife has been hounding me for years about getting back to it and I just never took the time, so I am now going to do so.
The lesson here is to not be afraid to try new, or old, things. I always say, creativity= wealth so even if it is something that you haven't done in a long time it doesn't mean you cant get back on the horse again.

This week I am being interviewed by David Newby and Tom Kish and I am interviewing Merrill Chandler. If you are not getting my announcements about calls I am hosting, please let me know. The information they contain is very valuable.

Happy investing.

NC Hear I Come

Tomorrow I leave for NC to get things started with my land deal. If you haven't heard about it, here's the skinny. Partnered with my friend Danny in CA, , 101 acres, 1.4 mill purchase price, 3.5 mill value as is, with only 5K down to hold contract. Seller is going to carry back a second for 65% of purchase price. Just 45% to seller at the end of the due diligence period gives us the deed to the land. The potential of the land, if we just build it to buildable lots, is about 20 mil. In short- a really sweet deal.
This is a stepping out of our element situation. However, it's also a matter of manifestation. I have worked on a few land deals that never panned out and kept telling the universe that I wanted a great land deal with the exact parameters mentioned above.
Moral of the story: Ask and ye shall receive/ your wish is my command!

Have a great Fourth of July!

CA Trip

I just got back for a trip to CA for a Learning Annex class. It was really well received. The trip was fast but worth it.
I wanted to tell you about a quick story that I read on the Internet about a great example of what is going on in the country when it comes to lenders.
I got an e-mail from a man who was working on a subject to deal. After discussing the opportunity with the potential client, she said she would think about it and get back to him. She called a few days later and said that she had talked to her bank about his proposal and that they were taking it under review. He of course thought the deal was shot. After explaining why to her she said that the bank wanted her to give him their contact info to discuss it further. He figured he had nothing to loos so he called.
The bank worker told him that they were taking his offer for review and would get back to him.
After about two weeks the bank called him back and said that they would allow the transaction!
The bank gave him their blessing to take over the house Subject To without qualifying for a new loan.
Now I ask you are banks getting more motivated to not have a house go into foreclosure or what?

Keep working at it, you success is right around the corner.