my fastlane plan

[^eagle^]

For your critique,

My fastlane plan consists of a two pronged attack.

E book.
This has been on the drawing board for a while. I tried to launch it in one fashion last year but it did not have enough mass appeal so I scrapped the implementation but I knew it was a good idea.

After reading FHWW I saw how my idea could be implemented. I tested the market and found it was not only feasible but could be a golden opportunity if marketed correctly. The ebook is a launch pad for guys who are so stuck in the ratrace they can't even comprehend that there is another way. It's designed to create a great paradigm shift in thinking and has a lot of controversy and shock to create interest. I will reveal it shortly. (warning: it is adult in nature and may be offensive to some.) Other's may even think I am crazy Because of the subject matter. But it is designed to create shock and awe to gain attention.


Realestate

I am currently looking at REOs and offering banks their asking price if they alllow 6% concession to closing and prepaids. This will put all my money into equity. The houses I look at are 20% to 30% below market value. I do this by looking at comps in the retail market. My current bid is a house that just listed

3/2/1 block house $85000
Houses are selling $105,000 on average (this needs to be updated. My first house I presented here two months ago is in the same neighborhood.)

I am offering 80,0000 if they give me 6% towards closing and prepaids. The agent hasn't even had a chance to clean up after the people left and the house needs a lot of cleaning and cosmetics but seems stucturally sound. So I'm asking for 5000 off the asking in exchange for cleaning it up myself.

House is in a great neighboorhood of 150,000 to 200,000 homes. This particular house is older than some of the current models around it. It's exactly what i want in a home except it has no in ground pool. I have one of those big seasonal pools that i can use in my closet. My yard isn't big enough for it.

Future plans are to partner up with someone and buy real estate and buy smaller multi units and SFRs on my own.

The payments on this house will be $100 more than my current rent.

I will leverage the equity on my personal residence to buy the next property.


exit strategy from this home is lease option or rental if the numbers work but I intend on being in this home for some time. at least three to five years. and its anyones guess where the market will be by then.

Anyway by the end of the year I intend to have the ebook in full swing and be looking for investment properties. I'm not sur ehow I am going to use the ebook money yet because I do not understand all the tax laws associated with this type of business.

JB enterprises LLC will be the name of the e book company.

Now I have to go to Diane K to figure out this trust sandwich thing for my realestate ventures.

That's all I got at this point.

 

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[rcardin]

I am not sure what Dianne is doing with the trust sandwich approach but I just got back from my dad's house where we were filling out the paperwork to by a house "subject to" existing mortgage. We are putting it into a trust for the current owner then she is transferring the beneficial interest to me. The deed will show it belonging to Ridley Sea Turtle Trust with my father as trustee. The mortgage company will receive a letter from her directing them to send all future statements to my company since we are "managing" her property. I am still not 100% sure on exactly how we are doing this but my dad has bought 5 or 6 in this fashion. When I finish the transaction I will post how we did it. Should be done by next week.

 

[Mrs. BRKb]

Eagle, great niche. This blog might be one you could trade links with someday:

http://www.escapefromcubiclenation.com/

 

[^eagle^]

Eagle -

Sounds like you've been doing a lot of thinking about your plan, which is great. I'm not sure I understand the RE part of it, though?

Is the REO you're looking at going to be used as an investment short-term? Or are you planning on living in it? If it's going to be an investment, you should decide up-front what your exit strategy is going to be (you mentioned lease-option or rental, but they are very different economically).

Also, if you're going to be paying $80K and the ARV is around $105K, you could be cutting it pretty thin if there is much repair needed. Have you walked through the place with an inspector and/or contractor? Make sure you know how much you'll need to put into the place so you can ensure you can still come in under ARV.

Speaking of ARV, are you confident you can find a buyer (if you plan to lease-option) or a renter (if you plan to rent)? What is the market like in your area? If you're planning to rent, have you run the numbers to ensure that you can get positive cash-flow on the place?

Just some things to think about...

This is going to be my home. Not an investment property. I currently live in a rental 2/2/1 manufactured home in a lower middleclass neighborhood with some riff raff but mostly good people.

. I have a subject to inspection clause in my contract that if there are more than $1000 dollars in repairs I can walk. That doesn't mean I'll walk if there are $1001 in repairs. It's just a loophole if the place is infested with termites or mold. Both of which are a concern with this place. I found minor mold around the acess panel of the bath tub and evidence of termites in a piece of furniture left behind. Other than that it was some slight cosmetic damage and a lot of cleaning. I don't think I will need to paint! Just a LOT of clean up and yard work. The house is all ceramic tile too! Great for an investment proerty. No carpets for tenants to destroy!

I have a basic knowledge of building and what to look for and I have an inspector lined up and ready.


Houses in my market are stabilizing in the better neighborhoods but they continue to drop in the cheapest neighborhoods because of the foreclosure rate and the investors keep getting them at lower and lower prices.
Some have dropped below 50 grand. I bought my ex wifes house for 50000 in 2000 and its worth 107000 now.

The house I'm looking at is 15 years younger and 400 sq ft bigger than my ex wifes house. The yard is also HUGE and the neighbors houses are under new code stilt homes pricing well over 200,0000.


Now if the bank will just accept my offer......
My financing is in place and my broker basically just needs to push the send button.

Oh and there is a waterfront property across the street about to go into foreclosure next month. It's on a small spring fed brackish lake.

this is a flood zone area so flood insurance is required. that is why the newer houses are on stilts. The no name storm of 93 put this area under water. And the house across the street flooded during the 04 hurricane season. Just a price you pay for living in Florida.

 

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[^eagle^]

Eagle, great niche. This blog might be one you could trade links with someday:

http://www.escapefromcubiclenation.com/

I will probably take you up on that. i need more links to raise my search ranking.

:thankyousign:

 

[Mrs. BRKb]

I see that EscapeFromCubicleNation does have a Technorati authority rank of 508 when I looked there just now.

>>Technorati Authority is the number of blogs linking to a website in the last six months. The higher the number, the more Technorati Authority the blog has.<<

 

[^eagle^]

I am not sure what Dianne is doing with the trust sandwich approach but I just got back from my dad's house where we were filling out the paperwork to by a house "subject to" existing mortgage. We are putting it into a trust for the current owner then she is transferring the beneficial interest to me. The deed will show it belonging to Ridley Sea Turtle Trust with my father as trustee. The mortgage company will receive a letter from her directing them to send all future statements to my company since we are "managing" her property. I am still not 100% sure on exactly how we are doing this but my dad has bought 5 or 6 in this fashion. When I finish the transaction I will post how we did it. Should be done by next week.

cool! waiting in anticipation!

 

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[^eagle^]

I see that EscapeFromCubicleNation does have a Technorati authority rank of 508 when I looked there just now.

>>Technorati Authority is the number of blogs linking to a website in the last six months. The higher the number, the more Technorati Authority the blog has.<<

rep++ on your website. Looks interesting. I will have a better look when I have some time.

 

[^eagle^]

ok the big unveiling!

drum roll!
tttttttttttttttttttttttttttt crash!
URL REMOVED

It's ok to laugh!:smilielol:

 

[Peter2]

It's ok to laugh!:smilielol:

I think you should change your last name to Off. :smx3:

 

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[Redshft]

I think you should change your last name to Off. :smx3:

Or first name to Master

 

[Mrs. BRKb]

rep++ on your website. Looks interesting. I will have a better look when I have some time.

Eagle, just to clarify... It is a site I mentioned, but not *my* site.

 

[Russ H]

. . . that old joke about not being much of a master fisherman, but being a master baiter comes to mind . . .

Hoping your e-book has some advice on how to fish, and not just how to handle the . . . er . . worm . . . :smx3:

-Russ H.

 

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[^eagle^]

. . . that old joke about not being much of a master fisherman, but being a master baiter comes to mind . . .

Hoping your e-book has some advice on how to fish, and not just how to handle the . . . er . . worm . . . :smx3:

-Russ H.

LMAO

Fishing would be a good distraction plan. i'll make a note of it!

 

[^eagle^]

Eagle, just to clarify... It is a site I mentioned, but not *my* site.

Looks like this site and my site have a similar goal. To launch people out of from infront of their computers and into the fastlane.

Different methodologies but same end goal.:smx9:

 

[phoenix_ent]

now why would i want to stop doing this??

 

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[^eagle^]

????? now why would i want to stop doing this??

It's not really about masturbation itself. It's about porn addiction. I couldn't reveal it til I captured my number one keyword for a domain
(URL deleted since it links to a variety of porn sites)

read through the website. If it's not for you then don't bother with it. If pornography addiciton is a concern then email me for your tips. No gimmicks, spam, guilt or meetings. My book is slated to be out by the end of the year.


edit: Russ, I amy have accidentllay used the dot com instead of the dot net. The dot net should have returned a link not found page.

My apologies. Mylinks will not be mentioned again.

 

[^eagle^]

I wrote this letter to the bank for my latest REO purchase.

I figured it was worth a shot.

I asked my agent to forward it to the selling agent and the bank.



Thank you for taking time to consider my offer. I want to offer a fast closing before the end of the financial quarter for you. In addition to that I am more than willing to clean the property for a reduced price. When I visited the property with my agent I found the landscape to be overgrown and unkempt. The inside of the home is very dirty. The previous owner left behind quite a bit of garbage and junk. I would like to save you the trouble of having someone clean it up and close quickly.

I have excellent credit and can provide verification of timely rent payments on my current residence. This will be my home. Not an investment property.

Sincerely,

^eagle^

 

[^eagle^]

Finally,
The bank accepted my offer.
+++++insert "the Jefferson's" Theme song!++++++:banana::chatter::smx4::smxG::eusa_clap::smxF:atriot:

 

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[Mrs. BRKb]

Yippeeeeeeeeeeee !!!

 

[Yankees338]

Finally,
The bank accepted my offer.
+++++insert "the Jefferson's" Theme song!++++++:banana::chatter::smx4::smxG::eusa_clap::smxF:atriot:

Congrats! From what I remember, this will be your first personal residence that you own, correct? Are you going to focus on your eBook now or get started looking for investment properties?

 

[M&T]

Congrats on the home! In the future I would offer even less in a market like this.you did THEM a favor by taking it off their hands. They didn't do you a favor by excepting your offer... Like my attorney told me a while back" the bank needs you more than you need them" !
Congrats again and good luck with the cleaning..
M&T...

 

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[^eagle^]

Congrats! From what I remember, this will be your first personal residence that you own, correct? Are you going to focus on your eBook now or get started looking for investment properties?

Not sure yet. The ebook deadline is looming so I need to do that but i just figured out my instant equity

Tax appraisal of house $122,000
Purchase price $80,000
Down payment $8,000
Equity $50,000
ROI (on paper) 625%
HELOC 80/20 cash available (if I am able to get it........ )
$24,400


Time to seek financial counselling.:eusa_clap::chatter:

 

[^eagle^]

Not to burst your bubble (it looks like a good deal), but don't tie you tax appraisal to any real value of the house. Oftentimes a tax appraisal is off by up to 50% of the real value, and probably doesn't take into account the short-term market influences.

Your house is worth what you can sell it for. The best way to determine that is to compare it to other houses in your area that are similar and find out what they've recently sold for.

yeah I know. Houses are comping around 110,000-130,000 I don't have a ARV but I know nothing is under $110,000 in that area. My ex wifes home appraised at 107,000 two months ago and it's in a much lower class neighborhood. so I think my tax appraisal is pretty accurate.

as far as selling that is a few years off and nobody can perdict the market that far out.
I think we have almost hit rock bottom here. Unless there is another great depression.

 

[^eagle^]

Zillow appraises the house at 150,000

Even I think that is too high.

there is a comp on canal with gulf acces that sold for over 200,000 so I think that is where this value is coming from.

the House was bought 18 months ago for 118,000 so I think I 'm in the ball park. tax appraisal is probably a little high

I would guess its actually about 112,000 right at this moment.

 

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[rcardin]

Be careful with zillow. In Texas we are a non disclosure state( discalaimer: as far as I have heard, can't verify) so zillow is not a good comp site. In Theory you should not be able to find out how much a property is sold for unless you are a real estate agent. Find a realtor and get the comps for the sub division.

 

[^eagle^]

The bank went ahead and sent a clean up crew to clean out the house! My agent called and told me this so after my JOB I went there.

It was great because there were only a few items that the previous owner left behind that I wanted and I got them all. Met some really nice people who clean up foreclosures and rentals for a living. So I got their business card and helped them out a little.

They just saved me about three weekends worth of work and I still get the reduced price.

A second closer inspection revealed
two cieling fans not working.
Shower head missing.
portable Spa is inoperable
garbage disposal either jammed or burnt out.
Missing bottom basket in dishwasher.

It looks as though some work was done to the septic tank and drain field recently (this is a concern) When the lawn was mowed evidence of digging was revealed.
I meet with my inspector tommorrow.

 

[^eagle^]

Had house inspected. Inspector was very knowledgeable/

House has an electrical problem That may be as easy as a five dollar fix or I may have to bring in an electrician.

Mold issue should be relatively easy to deal with. The inspector used to be a mold inspector and he told me what to do to fix the probelm.

Septic does not seem to be an issue. probably was pumped some time ago and dirt was never placed back properly. I'll find the lids later and build lid boxes to mark there place.

I'm waiting for my report to getan estiamte of costs but a rough figure including hiring an elctriican is about $2000.

Inspector said that home has a lot of updates and is a great buy!:fastlane:

 

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[^eagle^]

House three blocks away sold for $150K! same house as my new purchase!

$150,000
-80,000
--------
$70,000!


$8000 down
+~$2,000 in repairs (probably less)
--------
$10,000


ROI (on paper)=700%!:eusa_clap:

 

[Mrs. BRKb]

Bravo!!