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Louisville Real Estate Investment Training
Jeffrey and Melanie Bland
Finding Deals In Louisville!
Day One Monday, October 27, 2008
9:00 I arrived at Jeff and Melanie’s house. Jeff and I sat down and reviewed what marketing he and Melanie had been sending out. Melanie was not going to be able to join us for the week as she could not get off of work, but Jeff had taken a 3 week leave to get some things going. They were mailing to the foreclosure list along with pulling lists of probate and divorces from the countywebsites.
10:00 After reviewing the marketing letters, I had Jeff post 5 Craigslist ads to help build his private investors, wholesalers, buyers, and sellers list. I also showed him how to repost them as well.
11:00 We then reviewed the list of appointments for the week and pulled up Active Rain to try and schedule a few appointments with realtors in the area. We sent out several emails to 4 realtors with short sale and REO experience. After that we headed out to lunch
1:00 After lunch, I had Jeff pull up 8 hard money lenders off of REIclub.com along with pulling a few from the local Kentuckian Real Estate Investment Association Newsletter. We called and set an appointment with one of the local hard money lenders for the following day.
2:00 We pulled up Jeff’s email and he had received a few hits from his Craigslist marketing. He received one handyman, wholesale, note seller, realtors, and a private money lender response. He was pretty excited to see the responses come in.
3:00 After responding to his Craigslist responses and setting up appointments with two realtors over the next two days, I showed Jeff how to pull a list of REO’s off of the Countrywide, Bank of America, Wells Fargo and HomEq websites. We then spent the rest of the day reviewing the REO’s for areas that he was familiar with.
5:00 Wrapped up the day with me having Jeff complete the Daily Journal.
Day Two Tuesday, October 28, 2008
9:00 I arrived at Jeff’s house and we headed out to look at 4 homes in the west end of Louisville that he had pulled off of the Wells Fargo REO website.
10:30 After looking at the four houses, we arrived at Century Mortgage and visited with Kathy Small, mortgage broker, and discussed their lending programs. Kathy had been in the loan business for over 20 years and she gave us several recommendations for title companies, realtors, and even a few hard money lenders. Kathy was also an investor and was looking at multi-family properties for her investing.
12:00 We met Frank Posciana and Glenn Edelmen (investor and realtors) for lunch at the local tavern. Frank and Glenn were business partners who were trying to set up something similar to what I was doing with Jeff as they were looking for wholesalers to give them properties in return for a 5-10% finder’s fee. Glenn had 20 years of real estate experience, but was pretty foreign to non-traditional financing along with notes and REO’s. I think we probably educated and gave them more tips than they shared with us but it at least put Jeff in an expert seat when compared to them and I believe that they both saw that. Glenn did extend the availability to pull comps on some properties so we told him we would send him some to pull.
1:00 We headed out to meet with James Newman (Hard Money Lender) who actually turned out to have some semi-private funds available. James would also lend money for the purchase of notes as well. James gave us the run down on his fees: $1500 on loans less than $25K and $2500 flat fee on loans greater than $25K. 12-15% interest with no points and a 1 year prepayment. Along with this, James would also review properties prior to contract to make sure that they fell into his lending criteria and to double check how good a deal it would be for Jeff. We then headed out to meet with our realtor appointment.
2:00 We arrived at Keller Williams and met with Linda Hayes. Linda had been a realtor for about 8 years and was active in both the REO and short sale arenas. She seemed like a good fit for Jeff and she had done some research on both Jeff and me! We had found her on Active Rain and it seemed like she would be a good fit. We then headed back to Jeff’s House.
3:30 We spent the rest of the day calling a few of the leads from Jeff’s marketing along with some from the Craigslist ads. We also reviewed some of the local hard money lenders websites for rates, terms, and LTV.
5:00 Wrapped up the day with Jeff completing the Daily Journal and us reviewing the next day.
Day Three Wednesday, October 29, 2008
9:00 I arrived at Jeff’s and we headed out to meet with Simone Mancuso, Realtor and investor. We had found Simone’s info from her advertisement. Simone actively negotiated short sales and loved the idea of our marketing plan. She immediately pulled a list of REO’s listed between 100 and 200K and started to fill out a generic contract for Jeff to be able to fill out and use when submitting his offers. We were there for quite some time just visiting and getting to know her before heading out to meet with Brother’s and Brother’s Title Company.
11:00 We arrived at Brother’s and Brothers’ and met with Tanya Sivori (office manager) and Harry Brothers (owner). They both echoed that they loved investors and that they would be glad to earn Jeff’s business. He also stated that there would never be a charge to write up the note and deed’s of trusts or leases for his owner financing deals or lease options as they considered that a part of their service for closing. He also stated that they gave preferred rates to investors on the title policies and to make sure and bring that up with the closers. We thanked them both and headed to lunch.
1:00 After lunch, we headed back to Jeff’s to work on a couple of the contracts. While reviewing the properties, we identified a couple that Jeff really liked and that seemed to make sense so we headed out to review them.
2:00 We looked at and were able to enter 3 REO’s that were in okay shape that needed mostly paint and carpeting. Jeff decided to make offers on all three.
3:30 We arrived back at Jeff’s. Jeff started to fill out contracts on the 3 REO’s and to start filling out the rest of the contract for the other 18 REO’s that we were going to make offers on from the list that Simone had pulled for us.
4:00 I was under the weather, and so I had Jeff fill out the Daily Journal along with me assigning him the homework of filling out the remaining contracts, and then I headed home!
Day Four Thursday, October 30, 2008
9:00 I arrived at Jeff’s house and we began to roll play on calling mortgage bankers. I went online and was able to pull a list of mortgage bankers for the state of Kentucky and we started to pull phone numbers and contact emails from Googling the lenders name and city, state.
11:00 After working on the list, we collected the remaining contracts that Jeff had filled out the night before and headed to Simone’s to turn them in. We arrived there, just missing her, so we dropped them off with her assistant and headed to lunch.
1:00 After lunch, we arrived back at Jeff’s and I worked with him to come up with their marketing plan. I discussed weekly, monthly, and quarterly goals and we discussed implementing the plan with Jeff still working full time. We also discussed him attending other investment club meetings during his days in Lexington along with working part of his days in Louisville from home to be able to focus some of his time on real estate to stay plugged in.
2:00 We worked on calling more secondary marketing managers. We got a great response from most who were eager to talk to scratch and dent note buyers. We also expected to receive within the next couple of days a small pool of scratch and dent loans from 3 bankers.
3:00 Jeff had to leave to go to a doctor’s appointment, so I spent the next 90 minutes calling secondary marketing managers to track down paper.
4:30 Jeff arrived back from the doctor and I discussed with him the calls that I had made to the mortgage bankers and what he could expect.
5:00 We wrapped up the 1:1 with Jeff completing the Daily Journal and Mentor Evaluation. We then headed out to meet Melanie at PF Chang’s for dinner.
7:00 We wrapped up dinner and I headed back to the hotel to get ready for Bob’s bi-monthly conference call.