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Old NI Member, First LP Success Story

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It's been a looong time since I came into this forum, but I wanted to share my success story (along with lessons learned).

 

The last time I was here I was in the middle of the blazing hot market in Virginia Beach, VA, and struggling and frustrated. Never did get a deal done there. We eventually moved & sold our house there for a nearly $100k profit between what we bought for and sold for 3 years later.

 

Anyway, now we're in Ohio in a slow market, and I've finished my first sandwich lease (well, I'm in the middle of it).

 

I found the seller from a lead service. Initially the seller wanted to sell outright, so he Optioned with me, but I couldn't find a suitable buyer in the time he gave me. So he went ahead with a sandwich lease - it was a pain in the butt, because he got so caught up in all the potential details instead of just making a blasted decision & eliminating all the other options. I had a hard time getting him to make a decision about anything. I finally started making a few for him & he started coming around (and this is a military guy!).

 

It took me about 2 weeks to find a suitable T/B'er, she had a credit score of 490, but could make the $1400/mo payment, and had 2 years+ of on time payments with her landlord. The credit score concerned me, but her payment history eased that concern. I've since found a law firm specializing in credit repair that's working with her. Due to my lending sources, I can get her a subprime loan with a 575-600 score. So they're working on that. She is a victim of identity theft.

 

Here are the numbers on the deal & some of what I learned:

 

I contracted with the sellers at $145,000, they wanted a couple thousand to move. I contracted with the T/B'er for $153,000, she put $5000 down. Here's where I screwed up: my T/B'er put down $1500 and financed the other $3,500. The sellers were a couple days past due for their monthly payment so they took the $1,500 to cover that payment. And, because the military man who couldn't make a decision irritated me so bad, I just gave him the $3500 to move - just to shut him up & get him off my back. It worked, but I got nothing up front at all. I do have $3000 on the backend coming, and I'm working with my buyer to get her score up.

 

My buyer is hell bent on buying the house (my saving grace) & she wants to do it by March. She got irritated with the seller, too, because he just kept coming up with potential problems and not making any decisions. So she and I have a "common enemy" and are both motivated to get her qualified.

 

Turns out she's been sweet talking all kinds of people about me, developing potential referrals for me. So my T/B'er is very happy.

 

If I had to do this one over again, I would assign it or do a CA - get in, set it up, and get out. Also, I would have gotten at least 1/2 that $5000 option fee. I also learned that I need to LEAD both the sellers and the buyers. By the time I found my buyer in this transaction, I'd figured that out, but I was having all my troubles because I didn't lead my seller - he had me by the tail. It wasn't 'til I started making decisions for him that the deal came together.

 

Now, I'm a little ear shy because this deal was such a pain in the neck. But the deals here are plentiful & I now have a (small) buyers list, so I'm going to go back out & try this again, being a little wiser.

 

Here's a little aside: I did not have my Naked Investor manual through this whole process. If I had, I would've done the CA. What happened was that when we moved to Ohio from Virginia I packed all my real estate courses in a couple boxes & in the moving process managed to misplace them. I thought they were lost - and absolutely sick over it. But, we found them just a couple weeks ago & I've been pouring back over it all - almost like my kids were lost and I found them.

 

Well, I've got some phone calls to make B) And some deals to do. I hope this has helped somebody here. If I can do this without a manual to refer back to, then anybody can, especially WITH it!

 

~Naomi Kockentiet

Beavercreek, OH

 

PS, the law firm credit repair company I've utilized is www.lexingtonlaw.com I've made a clause in my option agreement with my tenant buyers making it required that they work with LL, or they're in violation of the contract.

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Wow, thanks for the post!

 

I have a few questions...

 

What made you give up all of that $3,500? It was just out of frustration basically?

 

And, what forms of marketing did you use to find deals, and T/Bs?

 

Thanks,

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Welcome back, Naomi! :o It has been a long time, hasn't it?

Your deal is a good one if, for nothing else, the education you gained from the experience. I don't need to point out all the things you did wrong. You already know that. So don't let the negatives of this deal, (and there were plenty), deter you from doing other deals. Instead, use this as a springboard to bigger and better things.

One questions gnaws at me, though. Why didn't you turn here for help during the process? We're mostly a harmless bunch, and only grumpy before feeding time. B)

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You never mentioned if you paid lexington law. The only incentive I can see for them to repair the credit if you didnt pay them is that they would be doing the loan. Please clarify. Also how do other go about helping repair a T/B credit? and do you help repair T/B credit if you are doing a C/A? Thanks

 

-BEN

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Wow, thanks for the post!

 

I have a few questions...

 

What made you give up all of that $3,500? It was just out of frustration basically?

 

And, what forms of marketing did you use to find deals, and T/Bs?

 

Thanks,

 

 

The frustration of the seller is what made me give it up. I had some forms from another course I have. It sure was nice to find my more beloved (ie helpful) courses, though. ~nck

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Welcome back, Naomi! :P It has been a long time, hasn't it?

Your deal is a good one if, for nothing else, the education you gained from the experience. I don't need to point out all the things you did wrong. You already know that. So don't let the negatives of this deal, (and there were plenty), deter you from doing other deals. Instead, use this as a springboard to bigger and better things.

One questions gnaws at me, though. Why didn't you turn here for help during the process? We're mostly a harmless bunch, and only grumpy before feeding time. :o

 

Well, I usually turn to my written courses first when I have a question. Also, looking at/through them reminds me of the forums available in association with them. But without the courses, I was just kinda flying by the seat of my pants, and flat out didn't remember about the forum. Something else bugging me is that I can't find the digital course on my computer when I downloaded it (at least I thought it was a downloaded course). Either way, that deal is over now, I have my precious courses back & my future is looking brighter B)

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You never mentioned if you paid lexington law. The only incentive I can see for them to repair the credit if you didnt pay them is that they would be doing the loan. Please clarify. Also how do other go about helping repair a T/B credit? and do you help repair T/B credit if you are doing a C/A? Thanks

 

-BEN

 

I'm not sure what you're asking; Lexington Law does require payment for their services, but that would be on the T/Ber, however I'll work it into the monthly payment. It's not expensive (at least compared to some I've seen), it's $99 down & $39-$59/mo (depending on which program is chosen) for however long the client decides, usually 4 to 6 months (per LL's website). At that point the client's credit is up to snuff for what they need and they get off the program.

 

Lexington Law is not a lender, just a credit repair law firm.

 

In the future, when I plan to do a C/A or a sandwich, I'll make it clear to the seller and the T/Ber that the credit repair is required, work it into the monthly payment, and make it a clause in my contracts. And I'll definitely explain why I'm making it required - if the T/Ber is serious about homeownership (and if you pre-screen properly they should be serious) then they won't have any problem with it at all. The seller should absolutely love it because they'll see how it'll help the T/Ber to buy their house, hopefully sooner rather than later. For a C/A where you'll be out of the deal, it's another benefit to working with you and helps justify your price.

 

Did that answer your question?

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Naomi, if you are referring to my course, no, you definitely didn't download it. I don't offer an electronic version of The Naked Investor manual.

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Naomi

 

I used Lexington once before and I would not recommend them to anyone. I have been a member of creditboards.com for several years and I have been able to clear up mine and my husbands credit by myself. I believe that a person should do it themselves to learn not to screw up again. Please check out their forums. I think you will see that they are a bunch of really nice people that are always willing to help out just like here.

 

I hope I didnt' break any rules with my recommendation.

 

Bobbi

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