MEETING:

We had got the cash offer on my first deal. $95,000. I meet with the buyer tomarrow to go over all the paper work and set a closing date. It seems to be going smooth but anything can happen. Worse Case, if the guy backs out of the deal for what-ever reason, there are several other people lined up to see the property. this deal as it stands rigght now will net me over $40,000 profit. That is more than I made all last year!

SETBACK:

i mentioned i secured a lawyer for closings in DE. for my deals. well, it seems thier firm hasnt the slightest idea on closing a creative deal, such as Sub-to (explanation below) . that method of investing is to be my primary focus so I had to pull my ad's and find another lawyer.

It took awhile but i found someone I think can help me with the closings that understands the concept. we will be meeting this tuesday and go over all the details. if all is good, I'll be able to re place the ad's and start looking for my second house.

WHAT IS SUB-TO:

Sub-to is short for Subject to. In the REI field, we are talking about mortgages or pre-existing home loans on a property. what it means is you can purchase a persons house "Subject to Existing mortgage" where you get the deed and the original loan stays in the sellers name. the benifiet is that you do not have to get quilified for every purchase and avoid banks in general. once the deed is in your posession you then can find a buyer and place them in the house to cover the monthy PITI (Principle Interest Tax Insurance) and when the refinance after a period of time and at the price you set, you pay off the original loan and then the rest is yours. the average sub-to deal is worth $20,000 - 50,000.

Time for an update.

First and formost, I was away for work for 2 weeks but that didn't stop me from acomplishing alot.

So where do i stand? well I haven't done a deal yet but almost everything is ready. Up until day 15 It was all research, reading, asking questions. The best Two programs I've read are 'Subject TO' by John $Cash$ Locke and Ron Legrande's Real Estate Course. By Far the best resource I've found for anyone interested in Real Estate Investing is http://www.thecreativeinvestor.com/

Since Day 15 I've:

Spoken to a laywer to get the the paper work done for an LLC (done next week).

Secured him for doing the Closing (in DE. you need one to record the deeds).

Purchased a second Cell phone for buisness use.

Placed Ad's In the paper to find Movitated buyers. (will apear in next weeks paper)

Spoken to the post office about mass mailing post cards promoting my service.

Went to the county court house to firmiariaze myself with proceedures.

More Research/Reading/Question Asking

and....Started working on my first deal!

FIRST DEAL?! YES
really this one doesn't count completely because it sort of fell in my lap and was not a result of my efforts to find a house to buy. what happened was:

My grandmother owns a small property she currently rents out for $500.00 a month. there is no mortgage or leins against it. while visiting, she mentioned that she was going to call a realitor to sell the property and all she wanted was $60,000. I told her, it was a coincidance that she wanted to sell now when i was learing to do real estate and asked if she would consider letting me sell her house instead of a realitor. Not only did she agree, she droped her price some also becuase I'm Family. (no i didn't ask or exspect that, but i wasn't gonig to say no either). After doing my Due Dillagance I find out that the Property's Actual Value is in the nabourhood of $100,000- 115,000.

Well the Sales ad is in the paper and if all goes acording to plan I'll Clear about $50,000 after taxes and closing costs. I'm Very Excited about this and on a update soon, I hope to have a picture of the house and the check to show everyone.