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Friday, March 13, 2009

Good Deal, Bad Timing

I am sitting in SLC airport. I missed my flight. I was stuck in inspection and then I decided to waste time getting a Starbucks. I don’t know why I did that. I could be on a plane sleeping, but instead I am sitting in an airport very tired. I will use this time to my advantage and get my credit card statements entered into Quick Books.

I had a great trip here. I am in escrow on a 4 unit building. It has a garage that is rented out @ $165 a month as well. The units are currently rented at $300-$395 each. I believe they should be about $600 each and will immediately implement my beliefs on the wills of the existing tenants. Based on my projections I should be able to get about $1000 a month cash flow out of this bldg. I am very excited about this. I purchased the property for $162,000 with 10% down. Seller to carry back financing at 6.5% amortized over 30 years due in 10. I have the option of extending for another 5 years if I pay 10% of remaining principal balance which is to be applied to principal balance. Essentially, I get 90% LTV for 10 years and 80% LTV for the last 5. I think this may be the best deal I have ever done as far as negotiating a purchase for long term hold.

Sunday, March 1, 2009

Never Accept Defeat

I just wanted to say that I was prepared to lose $10K on Nicola. I don’t know how my partner pulled it off, but he came up with a marketing idea that got us an amazing offer at $207K. That is going to get all our cash out of that deal. Yes, we don’t make any money, but I learned so many thing from that deal. It was information that I will use again and again to make money. I would also like to point out that it has been the most stressful 2 months probably of my life. I had moments when I wanted to crawl under a rock and hide. It is amazing how the tide has changed. I also took charge of my SEP IRA and put all $49K that is left to work. If you do not have a self directed IRA, please visit the previous link and see about setting one up ASAP. I will never trust someone else with my money again and neither should you.

Happy Anniversary

So much time has passed. Time does march on endlessly doesn’t it. Well, lets see.. I just put the Palm Springs house into escrow. Selling price $207,000. Looks like I will net about $2,000. Unbelievable! I don’t know how this happened. When I did this deal I thought for sure this was going to put $20K in my pocket. At least I haven’t lost any capital. Lost lots of time and other opportunities, but I am pressing forward. Speaking of Press-Forward, I have just finished negotiating a deal with a seller on a 4 plex for $162K with 10% down. He is carrying back a first for the balance at 6.5% amortized over 30 due in 10 with an option to extend for 5 more years if I pay another 10% of the remaining balance. It is located in Ogden, UT and should rent for somewhere in the neighborhood of $2,000-$2,500 a month. Sounds like cash flow to me. For some reason I question if this is a good deal now that I have finished the negotiation. I have to fly back over there soon to inspect the inside. Maybe next Wed AM so I can catch their investor’s lunch. That would be sweet.
We are still sitting on the Brea mobile home. My partner referred to this as our Pro Bono work for the year. Not the business I was hoping to get into.

Lunch is going great. I think we have developed a great group of people. Everybody seems to be doing business and we have excellent discussions almost every week. I now have a gavel!!

I am speaking at the North San Diego Investment Club. I have been working on something, but not really sure where I am going to take it. So much to talk about. I was reading the earlier part of my notes and see that I started investing with a Mike C deal in Aug 06. This is my 2 ½ year anniversary!!

Oh, I also am in escrow to purchase a duplex in Syracuse, UT. Not much cash flow, but seller financing. It is in a great area and I think once the outside of the building is pimped out it will rent for much higher. I really like UT. Very nice over there. I have also been working on my books. I will try to get something done tonight. I am almost finished and I would like to get my taxes done.
Looking for the next deal!