The Journal of the Daily Adventures of Indiana-Joe

Well, it was a very happy Columbus Day for me because I was off work and had a long weekend. This is the time of year that is fun because of the anticipation of the upcoming holidays including the "winter chill" real estate deals. Most people do not like to go out in the snow and cold and especially do not want to move in the snow and cold.

Thus, the deals you find in the Winter that have "chilled" and are sale will heat up come Spring time of next year. Thus, if you live in a colder climate be sure to dig out the heavy coat, gloves, hat and snow boots because we are going on future expeditions to track down the next potential deal. Remember unshoveled sidewalks are a good thing because it may allow you to be the first one to make tracks in that fresh snow to track down that next potential deal!

The bank got back to me on the foreclosure that I made an offer on last week. I made an offer around $40k and they countered at $70k. Based on the amount of homes in the surrounding area, I believe they do not have a lot of other offers. Therefore, I countered by only going up on my offer by $2,500. Also, I requested my real estate agent to let them know the following: "This will be my best and final offer. I would appreciate a reply with 48 hours because I do have another property that I am going to purchase if this offer is not accepted within this timeframe. Thank you for your time and consideration".

Yes, it may sound a little agressive but I am hoping for a decision. Sometimes a little motivation can help to move an offer along. I believe I am getting close on this one, but I am still keeping my eyes open for other new listings. Remember to always keep more potential deals on your radar because you can then keep moving on offers and deals. You want to get the deal at your price, not the seller's price.

I hope everyone updated their action plan for this week. If not, make sure you do it today and take action! The deals are out there are you looking for some today? Good luck on all your real estate deals. Believe and Achieve! - Joe

Great post! Excellent thoughts about winter's potential. Now you make me look forward to the cold and snow (did I really just say that?)!

Best of luck on the bank offer -- here's hoping they accept the "last and best offer" but if not, there's is of course another deal around the corner!

Nancy

Think this is great Joe!

Thanks for sharing!

Totally agree with the "always be looking at multiple properties" for one may not work out and you have 4 more to keep working! Right now I've only posted about one property, but want to report and get in the game on others to "keep the cycle of real estate life" going!

Thanks again for sharing this invaluable information on your bank negotiations. APPRECIATE IT!
Louisa

Thanks for the comments and good luck wishes. I believe if you make enough offers, the odds will continue to come back in your favor. For the upcoming winter, we usually have the snow to make the holidays a little more enjoyable, but this year in the months of January and February we can sled around town looking for those next potential deals.

Tip of the day: If the properties are vacant beware of frozen broken pipes, even if there are claims that the home was winterized. Be sure to get the plumbing inspected or checked out. You do not want any surprises after you close on a deal. Believe and Achieve! - Joe

Thanks for the comments. One of the keys in real estate investing is to always have a few properties on your radar, if possible. If your target area is low on prospective deals, it may be a good time to learn about the next closest area that may be a good choice for investing.

Often by driving around a new local area we can learn about the properties that may be available and the local amentities, such as parks, shopping, etc. of each neighborhood. Believe and Achieve! - Joe

Hey my fellow CPA.... You hanging in there alright? Just think, a few more days, and we can put so much more emphasis into real estate rather than taxes. Can't wait!!

Hope you are doing well... I have been on a mini hiatus from DG but will definately get caught up to speed soon!

Glad to hear things are going well and the accounting business is busy. I have noticed so many of the smaller community businesses in our local area really feeling the crunch of the down economy. However, the one thing is for certain, there will always be taxes to keep CPAs busy. Even though it can be part of the busy season, sometimes it is key to setup that "work / life " balance each day. We have to make time for family, friends, finding real estate deals, and fantasy football! And don't forget your free and fun time on the DG website!

Keep up the all the good work. The next few months are going to be a great time for real estate and I am sure you can pick up right where you left off. Good luck on all your future real estate deals. Believe and Achieve! - Joe

The Fall season often brings the winds of change. From the changing colors of the leaves to the bright pink and orange sunsets. The Fall can be a great time in anticipation of the upcoming holidays. I actually saw a Christmas commercial on tv for K-Mart last night. It seems the retailers are really relying on the upcoming holidays to finish the calendar year strong with sales. These sales may be an indicator of the economy and the market as a whole. Will consumers focus more on larger purchases like homes and cars? Only time will tell.

There are more and more homes that are coming on the market in our local area. I believe the amount of inventory may create opportunities for buyer to buy at a price a little lower than some of these sellers want to sell for. I will be taking a drive past a few new listings in the next day or so. Most of the new listings are on my way to or from work so at most I may be only going 5 to 10 minutes out of my way.

I normally have 2 types of offers I submit and 2 different views on making offers. One if you know the area and know the home is listed at a great price, make an offer and put in your "out contingency clauses" in the event the home does not pass your approval. Two, I usually like to go through some homes that are on my radar, because then I can more easily establish "my price" that I want to pay for the home in the future if the seller rejects my initial offer. As there are price adjustments on the property, I can then make additional low offers based I what I already know. Two things can motivate a seller: 1. time and 2. no activity of offers.

I hope everyone has a great day and finds a deal or two. Remember to check your local community papers for FSBOs and look at the MLS for new listings. Make sure you pull out your to do list today and get through at least a few items or as many items as you have time for. Each day you are getting closer to finding that next deal! Believe and Achieve! - Joe

Joe I have a question for you if you don't mind. I am probably going to make a few offers here in the next few days or so and I was wondering what I should do about it. When making offers do you usually go lower than what you can pay for it and hope that I get it at an even better price, or should I make an offer I think might get accepted first?

Offers are kind of based on the local market and the amount of profit or margin you want per property. Once you figure out what you want your profit or margin to be on a property, you can calculate your offer for that property. I kind of use a two fold strategy when it comes to making offers.

Strategy # 1
If a new listing hits the market and is priced right to sell, you may want to access what your best price would be and come in with your best offer. Use this strategy if you believe the property is priced right and may sell fast.

Strategy # 2
If the property has been on the market for at least a few weeks and you want to make an offer, start with lower offers rather than your "highest and best" offer. There is a risk the property could sell, but also the reward that you may get it for less than your maximimum amount you may want to pay. It is a way to feel out the seller. Also, do not be afraid to only go up a little at a time or to make the same offer.

It helps if there are several properties you are interested in at one time because you can try a strategy and hopefully find a deal at a great price. You will be less likely to let emotion get in the way of what you should offer. Another key to remember is to come up with your best price and stick to it. Sometimes you could pay more than you want and end up wth buyer's remorse (and less profit margin). I hope this helps. Good luck on your offers. Believe and Achieve! - Joe

We started out with more rain today, but the day cleared up by mid-afternoon. We have had our fair share of rain during the past few weeks. I realize I will probably have to go to Wal-Mart soon to get my winter wiper blades for the car. These winter blades are a little better for snow and ice. They prevent the snow and ice from getting packed into a regular windshield wiper blades.

As I drove the neighborhoods, I have noticed more for sale signs. I will need to look up a few of these listings I saw on the MLS on-line. I emailed on a few new REOs that I have seen out of state. I will probably not make an offer, I just wanted to gather some additional information and was interested by the bank owned ad. I believe the more new information I gather, the more I can learn about a new area or real estate in general.

I heard from a friend today via email that was considering moving back to the Midwest from the East Coast. A few years ago he purchased a home and put a ton of money into some high end upgrades. Now that he is considering selling, he cannot get out of the home, what he put into the home. Thus, an important lesson is always make sure you do not over improve a property, maybe proceed with caution even with your own residence. When making a $1 worth of improvement, will it get you back $2 to $3 in additional value? If not, do you really need or really want to make the improvement?

Tomorrow I will follow-up on a few offers and make by drive-by plans for a few new listings. The weekend may be a good time for further exploration. I really enjoy the weekends because then I am officially a 100% full time real estate investor (at least until Monday Morning)! Good luck on all your potential deals. Believe and Achieve! - Joe

It was another rainy day in Chicagoland. It almost felt cold enough to snow! I made it through the work day. Sometimes you have "those types of days" and very rarely do you have a really good day where everything is going right. Today, was a really good day for me even though the weather was overcast, rainy, cold and dreary. I had a really great lunch and it made the rest of my day even better!

I received an email form my real estate agent about the REO I made an offer on a few days ago. Just to recap, this home was orginally listed about $100k over 100 days ago. It has been reduced a few times already and is around $80k. I have submitted 2 offers and each time they have dropped $10k off their asking price. They currently countered to me around $60k.

This is a very good price, but I want a great price. Thus, I told my real estate agent that there are too many other homes on the market and I already submitted my "best and final" offer. He stated, let me resubmit the same offer again and remind the bank this is your "best and final offer". Thus, I have nothing to lose so I told him to go ahead and resubmit the same offer I made a few days ago. It will be interesting to see what happens in the next day or two on this property. Once again, hopefully patience will pay off with a deal!

I hope everyone is reading all the great information from the "Successfest" of information that Dean has provided free to all of us. As I said before, all this information is more like a "feast"! I really enjoy learning more each day and I have been so thrilled with this most recent information.

Sometimes I start reading it late at night and can't put it down. Make sure you take a look at this information and start putting that action plan into high gear! Be sure to "feast" on the (Success)"fest" of information! Good luck on all your deals! Believe and Achieve! - Joe

Joe,

May I ask what Successfest is?

If you go to the main page of the DG website you will see 2 different articles on "Successfest". Dean has started a celebration of knowledge for DG Members in October by providing to us free and great information to use. Since there are so many festivals in October, Dean decided to call this latest information blitz of information "the Successfest".

In the first 2 free information guides, Dean has provided tips, information and insight on building a buyer's list and building a seller's list. Thus, we can learn from this great information and there is more to come. You may want to also watch Dean's weekly video blogs where he will explain in a little more detail (there is a link on the left side of the page tha treads "Dean's video blog"). I hope this helps and answers yoru question. If not, let me know and good luck with real estate investing. Believe and Achieve! - Joe

Joe,

May I ask what Successfest is?

You are awsome Joe!!

Thanks

Joe,

I have another question.... I notice I keep getting points on this site when I post.

Can you explain the point system?

There are 3 points awarded each time you reply with a post of information. If you start a new topic you are awarded 5 points. Most of the DG Members just enjoy reading, contributing and helping the other members so the points are not really as important as you expand your knowledge of real estate and help others expand their knowledge as well. Good luck with real estate investing. Believe and Achieve! - Joe

Thanks again!

I am a newbie here and with investing. I am so anxious to get it going.

Thanks for the response and insight! Helped a lot!

Thanks for the comments. I am glad that I could help. Each day you will learn a little more in real estate that will benefit you for years to come. Keep learning and doing all the right things and the deals will soon follow. Belieev and Achieve! - Joe

Friday has arrived! Happy Friday! The one day of the week that so many of us look forward to. It is always great to think about what we plan on doing for the weekend. The rain finally stopped around lunch time, so I decided to take a walk around the city. In a few weeks, it was interesting to see some changes from store displays to new store openings. I even saw several companies begin to decorate a little for the upcoming holidays.

I called another new bank to inquire about their mortgage products. The gentleman I spoke to was rather rude and stated that I should "come in" to their location to complete an application and further discuss questions that I had. I have often learned that when people become "pushy" to just move on to another person in the bank if possible. The other key is to never let anyone throw you from your game plan. If they are having a bad day, sometimes they want to share that "bad day". However you can control the day you are having and the key is to never let anyone detour you from your drive towards your success.

I plan on looking at a few new listings this weekend. This is also another neighborhood where I want to learn more about. I believe it has a lot to offer because it is close to an expressway and borders another desirable community. There are several hoems for sale in this area, so the property owners amy be a little more motivated to sell.

I hope everyone has a great weekend and accomplishes at least one good task on their real estate action plan. What task are you going to take action with today? Good luck with real estate investing. Believe and Achieve! - Joe

It was great the weekend arrived and today was the day to run some errands and clean the garage in preparation of fall and winter. You know its that time of year again when you move the snow brushes and ice scrapers back into the trunk of your car. Last year I held out until the first frost and had to scramble to locate my scraper. This year, I am a little more prepared.

I spent some time on the DG website and found some very good information and inspiring stories. I am so glad to see all the new DG Members jumping into the discussions and asking questions. Each day can be such a great learning experience. I would also encourage the new members to not be afraid of just jumping into the forums. Ask questions, feel free to respond and help out if they have information that can help others.

I reviewed the MLS listings online and did not see anything new in my target areas. I decided to take a drive through some of the areas to look for the "For Sale By Owners" (FSBOs). I did not see too many this weekend. Another tip may be for you to go to your local grocery store on Saturday morning to check the "community listing board". Many FSBOs will put up an ad on the communtiy board on Friday night or early Saturday when listing their home. Its just like a garage sale where "the early bird gets the worm"!

I hope everyone has a relaxing weekend and finds a new lead or a deal. Do not forget to check-out the Sunday papers for any new "For Sale By Owner" (FSBO) new listings. I found some people wait until Sunday to list their ad or they only run the ad on Sunday. Is your next gem of a deal waiting for your call? Are you going to make that call? Be sure to check out that local newspaper and see what's new in the Real Estate For Sale section! It may be time to "feel the deal"! So make that call, so you can "seal the deal"! Good luck on all those potential deals! Believe and Achieve! - Joe

The weather was great today. It was sunny and almost 60 degrees. It is hard to believe but this week has mid 60's forecast. What a change from the 40's! I might even have to get out my lawn mower one more time. This weather is a nice treat towards the end of October. I hope that does not lead into a cold, snowy winter!

I drove around a little this afternoon and stopped at 2 different open houses. Both homes had a "guest real estate agent" rather than the listing agent. Sometimes the top listing agents do not want to work on Sunday and the new real estate agents have an opportunity to work an open house. I enjoy going to open houses for several reasons even if I do not like the home.

Not only do you have an opportunity to talk with a real estate agent but you can also see if they have any contacts they can share. New real estate agents are sometimes more eager to help you with information or comps. Also, it is great to see other homes and get ideas for rehabs or changes you can make to some future properties you acquire. The other interesting thing, in our area the open houses are usually 1:00 PM to 4:00 PM. Thus, this does not give you a lot of time to see multiple homes.

I hope everyone had a great weekend and has a terrific week planned for action. Make sure you look at several properties and you may be that much closer to your next deal. It is a numbers game so lets keep those numbers going! Good luck on all your future deals. Believe and Achieve! - Joe

It was another nice October day. It was sunny and in the 60's. This is great for this time of year and I believe most people left work a little early to enjoy part of their day. It was nice to see joggers and bikers along the Lake Shore Drive sidewalk trails and several boats on Lake Michigan. People just wanted to be outside to soak up the sunshine!

On the way home, I finally had a chance to put my car windows down. For the past few weeks it has been rather cold and rainy. It has been a few weeks since I could drive with the windows down and feel the warm air going through the car. I had the radio on (for the all 1980's hour) and my sunglasses on. The sunshine and the warm weather just makes you feel better. For a few minutes it felt like summer was back!

I made a few calls on new listings that I saw. There were not too many that had peeked my interest. I have an offer pending on a bank REO and another listing in the area. I like the properties but I want to get them at the right price. I am going to look at the MLS listings and see what is happening in my target areas. If homes have sold or went contingent, I want to know what they sell for to keep up with FMVs for the area.

Dean's Successfest is in full swing and Chapter 3 is just as tremendous as Chapter 1 and Chapter 2. I am very excited because all this Free information that Dean continues to provide can really help all of us to go to that next level. Stacey and I want to thank all the DG Members for your positive comments and feedback, we really appreciate it. This is such an exciting time to be involved with real estate. Stacey and I are so happy to be involved with real estate and to be a part of the DG website family. Believe and Achieve! - Joe

The weather was wonderful today and in the high 60's. It was sunny most of the day, as I had to make a few trips for work today through-out the city. It is always excitign to be out and about during lunch because no matter what time you are out there is always so much goingon in Chicago. The expressways are almost always packed so you need to allow for extra time.

I had a late lunch and then went to Borders to see if they had a copy of Hawaii Five-O Season 7. It was released today and I wanted to get a copy before they sold out. As I walked along State Street, I noticed many store fronts that were empty. It is interesting that the economy is affecting each city whether large or small.

I reviewed the new listings on the MLS today and I reviewed some auto-emails that I recieved. A number of the real estate auction sites will auto email you when there are auctions in your desired areas. So the tip of the day is to check out these real estate websites and register for any you may have a interest in. These types of real estate auction websites can be your eye in the on-line) sky!

I hope everyone has a great Wednesday and we are looking forward to more Success Fest information. I want to say hello to all our DG friends and thank you once again for all your kind words. Stacey and I really appreciate the very nice comments. Believe and Achieve! - Joe

I could not believe it, the temperature actually hit 70 degress in late October in Chicago. I know a number of people left work early to get out and enjoy the weather. I have been taking care of a few additional things and did not get out of work until a little later. The weather was still nice in the high 60's and I had a nice smooth drive home.

I stopped at my local grocery store to get a few items and I always look at the community board for FSBOs in the area. I did get 2 numbers that I will call later this week. I also picked up the free real estate books because I enjoy going through these to see whats on the market in various areas and I can find other valuable ads or information in the books.

I forced myself to take the long way home to keep my eyes open for any new listing or FSBOs. One other interesting tip, is when you see an abundance of items being thrown away on trash day it could mean "spring cleaning" or the owner is preparing to move. I know people that are planning on moving often "clear out the clutter" before they go. Thus, this could be a potential tip to consider with garage sales and what you may see on trash day.

The Success Fest is keeping all of us on the edge of our seats and I am looking forward to the next round of information. I am having so much fun with real estate that 2009 has been such an up and down year for us. I hope everyone finds a deal or two this week. Good luck and keep the deal search going. Believe and Achieve! - Joe

The rain is back and it came down all day and night. Several of the streets could not keep up with the downpour of rain as I drove home from work. It is always when it rains really heavy, like coming down in buckets, that you realize you should have replaced your windshield wipers. Thus, that is on my to do list this weekend when I go to Target or Wal-mart.

I want to offer a few little words of advice to new investros or people just getting started with their action plans. I read about DG members wanting to take action and they are looking for a really large deal to complete. I would recommend doing little things each day to get you closer to a deal. Any deal, that is a good deal, even if you only make $1,000 or even $500 on that first deal. Through time and effort it will give you confidence to do another deal and and another deal. Give it time and the larger deals will come. I often think about baseball when a hitter "presses" to hit a homerun they usually will just "strike out". When they relax and try to make good solid contact with the baseball is when they usually get a hit or even a homerun. Thus, as a real estate investor you are going to take your swings at deals, but remember to relax, have fun, make good contacts and who knows you may just hit a homerun!

I have had several projects at work and other personal items that required quite a bit of time and attention during the past few weeks. This is the weekend that I need to complete some projects and help some family members with personal issues. It is never easy to go through hard times, but it is always harder when you see others you care about go through a difficult time and you can't do anything to help them because of a terminal illness. You have limited control and take each day, one day at a time and hope for the best each and every day going forward.

I hope everyone has a great weekend, has some Fall time fun, puts their action plan into high gear and finds some great deals. Don't forget pumkin pie is in season so have a large slice and enjoy the Fall time! Remember to make some good "contact" with real estate and good things will happen as the deals will follow. Believe and Achieve! - Joe

i enjoy reading your journal and all the positive learning experiences you and stacey have shared.i just wanted to share also that you and stacey seem to make a great team together and enjoyed your interview with dean!! keep up the awesome work you two r doing and continue to share with us all that u accomplish as we r learning a great deal from you!! thanks joe and stacey
jay

Just stopped in to check out your recent journal entry. I enjoy reading your posts. Thank you for your REI words of wisdom. I'll keep good thoughts for you & your family & say a prayer.

A slice of pumpkin pie - another great suggestion! We have a meeting coming up with an investor and he wants to meet at a restaurant that has pumpking pie

Lea
SPR Property Solutions, LLC