I received a phone call tonight from a very motivated seller. Came from my generic probate leads. I don’t have deceased addresses for those. He lives in Georgia. The house is in a town in southwest Denver area. Needs plenty of work from his explanation. The county records are down, but the house was bought in 98 with a 93k mortgage. Assuming he paid on time, the balance would be 78k. I can’t get a good comp on the house and frankly it sits in a crappy spot for home buyers. My guess is 110-150k. Its right next to plumbing company, but it has an 18k lot (1/2 acre).

After reading Nick’s blog www.subject2.com, he has me believing there can be a deal under every rock. There are several potential possibilities with this one. I’ll go look at it after work tomorrow and get a better feel. Who knows, the plumbing company might just want a new back office and more land.

As far as the other probate goes, its on hold till the lady is ready to sell. I’m not holding my breathe for this one. If it happens so be it. I think its kinda tight, but I want to get my feet wet. Attached is my analysis of the deal. I haven’t seen inside the property, so everything is subject to change. Purchase price 85k (trying for 80k or less), 25k repairs, assume 6 month hold. MY hard money lender offers 15% simple interest with 4 points up front.

PropEval SFR Here is my analysis, because I have no idea how to put a spreadsheet in to wordpress so you can see just like you would see it in excel. If anyone knows how, please let me know. Ignore page one and look at page 2. With full respect to JScott over at www.123flip.com , I took his deal analysis sheet and tweaked it for my use. Jason, if your reading this and wish me to take it down, I will. Just let me know. If anyone has any feedback on my analysis, I am all ears.

Ive been driving for dollars the last few days. I need to purchase a voice recorder. Writing and driving is far worse then texting and driving. I found several vacant properties today. I’ll see if I can’t locate the homeowner. I’m starting to like these new areas in Denver I found.

I am planning to just mail probate leads in generic format from now on. My phone call return has been the same, and it saves me 10 hours a week to do so. Thats all my rambling for now.

I had a fairly busy week. Sadly very little to help my progress in real estate. I thought I would give a quick update.

I am still waiting on the probate house. The owner is still hesitant of selling just yet. The wholesaler is confident that it will happen soon. He doesn’t know it, but I am in no hurry. I will keep working all my other deal paths in the mean time.

I looked at a house on Thursday. The owner is asking 120k now originally 150k. FMV is 120. Their agent is uninformed. I wouldn’t pay more then 50k for the home with the amount of work it needs, its location and a host of other factors. Even if they took that low, I would have to throw an asbestos contingency into the contract. They have some funky tile on the ceiling that I honestly don’t know about. The home is owned outright, so I may throw in an offer and see what happens. I wouldn’t want to do the work, but I can certainly wholesale it. I can also have a buddy at work check the asbestos content.

I want 200/leads per month. With probate costs per lead, that is somewhat cost restrictive atm. I am think of other options to add to that list. Driving for dollars, making low bids on reo’s, and possibly searching melissa data for homes without mortgages. I also like Nick’s subject2 course. I’m trying not to get distracted with 100 ideas, but the real idea is to buy and sell homes. Any one of those things are ways to find the homes, with little extra time and cash.

Some ideas, I’ll have to toy with. I’ve been time mapping my days to improve my efficiency. Mondays are pure work day, Tuesdays are errands and mastermind., etc etc. It has helped somewhat. I’ll have to stick with it. Weeks like this don’t help though. I’m not complaining mind you, but I get frustrated when I can’t get what I want done, because of outside influences. Small update, but thats it for now.

I just got back from sunny (rainy) Scottsdale AZ. I justed completed a 3 day seminar that is self run and self hosted by members of the www.thefastlanetomillions.com. Most attendees, including myself, gave presentations. Of course I presented on probate. Topics ranged from big picture business planning to selling fireworks. Overall a very interesting business event. This was my 2nd year to attend.

Some of our more successful members gave input on the struggles they have faced. Imagine 40% vacancy on 400 apartment units in Phoenix or negative cashflow of 12k per month, or having a bed and breakfast where the city want to put a homeless shelter right next door. The problems don’t change, only the zeros involved.

The reason I love this group, I didn’t hear one complaint from those folks. All they had were solutions and ways to fix their problems. Every single one of them found solutions. Imagine 35 folks all brainstorming together and working together to help each others business. There is true synergy in the air at these events, and it doesn’t take a guru to get there. Keep like minded positive successful folks in your midst and you will be a positive successful person.

So many ideas flow from this event, the key is focus. Stay on topic, but use that energy and innovation to assist your business. I’m doing just that. I made many new contacts and reacquainted with old friends. Very cool stuff. If you ever have a chance to go to a similar event, or even host a local one, I strongly urge you too.

Go out and create that energy, only positive will come of it.

On a side note, I may have a property under contract in a few days. I’ll fill you all in later, as for now, I need to get back to stuffing envelopes. 50 letters and 26 postcards going out tomorrow.

It’s not a life of luxury I seek, it’s a life of living successfully rather than always trying to “reach success”. Success is the journey. The road is paved in gold, not the destination.

I want to have as much time to spend with my fiancé as we both desire. I grew up in a family oriented atmosphere and it is important in my life.

I see myself in 5 years working from home or a small business office. I will be self employed buying and selling real estate. Apartments, houses, self storage, land. I will have time to travel as I desire. There are many places I want to see. Not a single one will be out of my reach. While real estate can be fast paced, my life will slow down to a small town pace. Taking blighted houses, apartments and streets and turning them in to gems in the neighborhood is something that really attracts me. I drive by a rundown apartment and imagine it in its heyday. I desire to return it to that point. I desire to invest debt free as much as possible.

In order to reach that point in life, I will need a certain amount of passive income and earning capacity through real estate. The more passive income I have the less I have to earn to live and the more I earn as a by-product of what I enjoy doing.

Now that I can picture my life, what can I do to work towards that dream. I will clearly define my goals that are inline with my vision in the next post.

Success is simple. Have a strong desire. Create goals to accomplish that desire. Take massive action towards those goals and that desire. That’s all it takes.

Now that I have completed my review of 2009 to see where I stand, it’s time to do my goals. I know it’s Feb and I slacked off, but in truth goals have become so important to me, I don’t want to take them halfheartedly.

As I write these goals, I sit back and think about last week’s mastermind meeting. A simple question was proposed. Are you the employee or CEO of your life?

An employee completes tasks, a CEO works towards a vision of where he or she want to take their company. Employees see in the now, CEO’s handle the now with the future in mind. Employees get caught up in useless items that have no benefit to the company. CEOs always have the company in mind. How can I take this philosophy as I setup my future. Be the CEO of my life.

Nick Johnson over at Subject2.com touched on the subject with his posts on exceeding 500k per year. He focused only on items that would help him reach his goals. I need to do that this year. My priority in tasks will be to accomplish the items that work towards my goals, towards my vision. The others tasks need to be held under a microscope. Do they work towards my goal? If not, are they that important? If so why? If not, should it be abandoned? This should help my SOS (shiny object syndrome), my employee mindset. I will direct the rudder, not paddle the boat. I will focus more this year by becoming the CEO of my life.

20. How much time have I devoted to unprofitable effort, which I might have used to better advantage?
I would say I have spent about 50% more of my available time towards wasted time then I would like. It’s not a matter of not having enough time to get things done. It’s a matter of using the time I available more efficiently.

21. How may I re-budget my time, and change my habits so I will be more efficient in the upcoming year?
I think the best thing I can do is start work immediately. I shouldn’t put something off till tomorrow that I should have done last week. When I get home from work I will start immediately on this 2nd job and work faithfully at it until my tasks are complete. Then I can kick back a bit. As a perk I notice my relaxation time is for more enjoyable when I don’t have tasks hanging over my head.\

22. Have I been guilty of and conduct that was not approved my conscience?
No, I haven’t done anything like that this year. I certainly would know because it would hang over my head for awhile.

23. In what way have I rendered more service and better service then I was paid?
I have many tasks at work that I complete at a competency level above mine. In that regards I have done more then I was paid, but my compensation is just at work for the time being. I have far to much time that hasn’t been used to the best of my employer. I feel I need to work harder for my company and allow now level to slack off. If I do, it will only transfer to my personal business. That would be a tragedy.

24. Have I been unfair to anyone, if so, in what way?
No. I try to treat everyone the way I feel I should be treated. You have to give respect before you can earn it.

25. If I would have been the purchaser of my own services this year, would I have satisfied with my services?
Yes and no. At work, yes. Even though I haven’t been up to my standards, I am usually better then the average worker. In the rentals, no. That’s part of the reason I fired myself. I wasn’t a very good property manager. I didn’t have the time to manage the properties to my liking. My current property manager fills the role very nicely.

26. Am I in the right vocation, and if not, why not?
At work, I am not. It doesn’t stimulate my brain the way I want. I do not feel the same level of accomplishment I do working for myself. In Real Estate, still no. My current level of real estate investing is not where I want to be. When I can pay cash for a building, fix it to how I like and rent it out, that will be where I want to be. I wish to improve neighborhoods in my own little way. I absolutely love taking eyesore homes and making them into gems. I can walk away from a project like that with my head held high.

27. Has the purchaser of my services been satisfied?
Yes, I think so. I have good reviews at work and my tenants seem pleased so far.

28. What is my present rating on the fundamental principles of success?
I would say I am in the very early stages of this mindset. I’m just learning how to walk. I am crawling now, but watch the places I can go when I learn to walk. It’s happening as we speak. My mindset has changed in the last few years and I have a much better understanding on success in life then I ever had. Now it’s just a matter of making it happen.

I called the first lead back with information on what she can do with the property still inside the house. There are several options available and a combination of those options. First, some companies buy household goods in bulk. I opted out searching for those just yet. They are usually smaller and I want to have a referral from someone I trust before I recommend anyone. Second, I informed her about estate auctions. Essentially a company will auction off your goods and take anywhere from 10-40% of the proceeds. Unfortunately, this is a small house and will likely not meet the minimum sale amount for some auction companies. They may need to bulk the items with another estate. Lastly, I found local charities including Goodwill and Salvation army. Most charities have a donation form for your taxes and will estimate the value of your goods for you. Make sure you get a receipt, otherwise you will not have any proof in the eyes of Uncle Sam.

She was very appreciative of me taking the time to look up the info. I think this will help build that trust factor Bill Guerra talks about (Thanks Scott for the prize to Bill’s ebook). I also used the opportunity to see if she will grant me access to the house. She is discussing it with her husband and mother. I actually think my neighbor has the key. We get along very well. Many summer chats while watering the lawn. I mentioned it will allow me to get a price before they come out. Everyone craves knowledge like this. I hope she is willing. Sadly, they will not be out here for another 2 months at least.

I thought about a few options for this house. In order to flip it, I will need to buy at 70k or less depending on fixup costs. The house will sell for 100-105. The exact same model minus the carport is currently under contract next door for 100k. I also thought about owner financing. They have owned this house for 47 years, and by my research it is free and clear. If they are willing, a 6% interest only loan plus taxes and insurance at a purchase price of 75k will be $500/mo. This house will rent as is for 932/mo under sec 8. I figure after other expenses of positive cashflow around $100/mo. Thats not bad. Plus I don’t need to qualify at a bank. The wife is in her 80’s and may be glad to get some monthly income. The last option will be to wholesale it to a landlord at around 85k. Of course I can always try and turn them over to a Realtor if they insist on putting it on the market. I think that generates a commission of 1-2% on my part. I mentioned several options to them, put reminded them that I want to do what is in their best interest.

Plenty of options on this house. If I can get this under contract with them, I will offer to buy their air fare out to Colorado to handle material goods inside the house.. In my best estimate that is likely what is holding them back from coming out here. Now I wait for the daughter to call me back with permission to enter the house. If she doesn’t call back, I will need to figure when I should call her without sounding pushy.

In other news: I was denied the refi on one of my rentals. $600 appraisal costs out the window. It would have also saved me $170/mo. The sad part, they offered for me to refi and I already hold the loan with them. I plan on calling their underwriting department with my inquiry. If I’m good enough for $920/mo to them, then why not $750/mo.

I did my taxes yesterday, having rentals is very nice, very nice indeed. My taxable income was reduced by nearly 14k. It caused me to break even this year. Very cool. Thats it for now.

I read posts and I listen to folks who talk about the future in such odd ways. If I just made an extra $500 dollars a month I could put that into savings. If I just had 2 more hours in the day, I could accomplish my goals. When I’m successful, my money issues will be solved. I just need to get that promotion, sell that widget, finish this big project.

I have a newsflash for you, your absolutely wrong. How in the hell can you be expected to handle more money, and time when you can’t handle it now? Do you really think you can accomplish your goals when you don’t complete them now. Heck you probably don’t even have concise goals now.

“Ah, but if I were rich and wealthy I would have time to do what I want.”
“With more money, I would finally get caught up on my bills.”
Would you? I highly doubt it. Wanna know why?

You haven’t spent the energy to calibrate yourself now. Lets play some poker where money is involved. Lets say you tend to always fold to a bluff. At the $1/$2 table who cares. Pot sizes rarely exceed $50. You only lose a few bucks. You can always make more at your job. But you want to play with the big boys. You want to play at the $100/$200. That simple mistake you never corrected before can now cost you a $5000 pot. How bout them apples. Think that mistake is small now?

“No problem, I’ll just fix that mistake when I move up.”

Do you really want to think about such trivial things as balance and how to shift your motorcycle when your on the highway (or jumping cars for you extreme types). Hell no, you want that to all be natural, to almost be instinctual.

“What do I do then?”

Fix all the little things. Take a hard long look in the mirror. See all those item you need to fix. Be hard on yourself. Look for those things that need fixing. If you can’t manage money, then set your budget and stick to it. Start working down your debt. Make keeping a budget so natural it requires little thought or effort. Set exact goals and work everyday on completing them. Break the big goals in to little bit size goals and make it happen.

Budget your time. Learn to be more efficient with your tasks. For god sake turn off the latest idol, survivor, drudgereport, facebook, twitter, PS3, wii, fastlane forum (yes you read that right) timesink. Get your tasks done then reward yourself. Never ever put off anything till tomorrow. Make it a habit of finishing it now. Complete the task before it gets added to the bottom of that ever growing to do list. You will never get where you want by putting even the smallest thing off. Get it done. Look at all the successful folks out there. Don’t be the guy/gal that is working late because you had that 20 minute chat at the water cooler.

When money and life matter, make it count now. Fix yourself now, while the mistakes don’t cost you as much. That way when you move up in life, you don’t have to think about the trivial.

Look folks very few people learn to do this on their own. Some really good authors have put together some good material on this subject. If you need help, consult them. Napoleon Hill, Zig Zigler, Brian Tracy, Tony Robbins, etc etc etc. Now is the time to get yourself prepared. DO everything the right way now, when your put to the test later it will be much much easier to handle.

Its time to do part 2 of my self analysis. Questions 11-19.

11. Has my relationship with my associates in work been pleasant or unpleasant?
I get along with nearly all my coworkers. The workers at my plant are a fairly tight nit group.

12. Have I dissipated any of my energy through lack of concentration of effort?
Yes, I am easily distracted. I have gone to starting my real estate work as soon as I get home rather then wind down and start. This has helped me stay focused to complete more tasks. Dessert after vegetables.

13. Have I been open-minded and tolerant in connection with all subjects?
This is one aspect I pride myself in. I may disagree with folks on many subjects, but I am always willing to listen to their side. (As long as they make rational arguments.)

14. In what way have I improved my ability to render service?
I had to think about this one, but I think focusing on my tasks with to do lists has helped tremendously this year. It has allowed me to be far more productive for others.

15. Have I been intemperate in any of my habits?
No, I take all things in moderation. I am well past those crazy Navy days.

16. Have I expressed, either openly or secretly, any form of egotism?
Yes, and I do so frequently. Not in the aspect that I feel I am better then anyone else, but I am confident I can do anything I want to. I don’t believe everyone can say that or have the self confidence to say that. If that is a fault, then I’ll gladly have it.

17. Has my conduct toward my associates been such that it has induced them to respect me?
I treat my fellow employees with respect and do my best to set the example with my work practices. I work hard to be dependable.

18. Have my opinions and decisions been based upon guesswork, or accuracy of analysis and thought?
I use my knowledge to rationally come to most conclusions. I am far from perfect in this manner and chide myself when I do jump to quick conclusions when unwarranted. This is certainly something I can work on. I am very opinionated and need to work harder to have more facts for those opinions.

19. Have I followed the habit of budgeting my time, expenses, and my income, and have I been conservative in these budgets?
I am very frugal person when it comes to budget, but far less frugal with my time. That is a real shame. Money can always be replaced, time cannot. I value my time, but need to work more efficiently in all endeavors to help me use that time wisely. I’m not saying I can be willy-nilly with my money, but my priority should be time.

In other news:
I sent off 14 more letters today. I greatly underestimated the time it would take to go through these probate files. I am through about 90 of the 146. 14 known addresses and 10 unknown. The unknowns will get a generic letter that I need to write. Less then 1/3 are property owners. That is somewhat disappointing, but I have to look at my area. Their are a large number of apartments and rental homes. I’m hoping Denver County and Jefferson county will have a bit better ratio. 23 of my leads I need to go through are Denver county.

I will be calling the neighbors house property tomorrow or Saturday to give them the information I promised to look up. I’m still waiting for more accurate comps from my Realtor on this property. I’ll call him tomorrow. Its unlike him to delay something like this, so I imagine he had a fairly busy week.

Got my car back today. They did a good job. My insurance relieved me of fault and will go after her insurance. Hopefully I get my $500 deductible back. My car looks funny now with one faded headlight and one new one. I think I;ll have the old one buffed and clear coated.

Thats it for now. Thanks again Scott for the shout out. www.strugglinginvestor.com

I had this grand plan of getting all my new leads prepped and mailed out by Sunday. It was not to happen. Work decided to call me every half hour to hour from 10pm till 2am Saturday night and call me in for a full work day on Sunday starting at 6am. Reason #342 to keep at it and take massive action.

I got everything copied into my tracking sheets. Its just a matter of looking of the decedents and determining whether they have real property. The number of letters per probate filing is smaller then I expected. Around 30-50% of all the cases I look up own real property. I decided to make an adjustment to who I send letters to this week.

One big problem I have is determining whether they have real property. Both my county records searches are done by property address and not name. I have resorted to looking up the name on www.zabasearch.com and then checking the property address through each county. If the names match, I determine if the PR is the spouse by comparing addresses. If yes, then no letter. If no, then they get a letter.

Unfortunately this system is sketchy at best. Zabasearch has no way of helping me determine which John Smith is the correct one. I end up having to leave a ? on that filing. That is as a good as a no. Also, it does not help me determine if they have any rental property. To solve this problem, I will be sending out generic letters to the PR’s address. It will be a simple we buy properties type letter. I don’t want to even associate with probate. I want it to seem somewhat random they got the letter. If they have property they want to sell me, then great If not it will likely be ignored and thrown away. This way I am not insulting the PR by asking about probate real estate that may not exist.

This will increase my overhead a bit in the form of stamps and letters, but that will easily be offset if I pick up just one property. No new calls yet, but I suspect when I get this list out I will likely get a few. I have more to add on other items, but in the interest of posting more, I will refrain from adding that tonight.