Monthly Archives: February 2007

Great Deals Move Fast & The Secret

Yeah, looks like I was to slow on that 9plex for $505,000.00 that would have been a great deal.  Someone made an offer on it and I’m a little late to the party.  Well thats great, I’ll use the same techniques, to find another one, and this time I’ll beat them to the deal.

scaledimageaspx.jpgWell, I do have a backup property.  There is a small one in Corvallis, one block away from I live.  Not nearly as exciting, it brings in $17,500/yr GROSS compared to $50,000… its $236,000 compared to $505,000.  Intersting though isn’t it, the one for half a million, is double the price, but brings in 4 times the cashflow…. What a deal that was!

Here is the property.  Anyways, tommorow we are throwing out an offer for $210,000.  Hopefully that will go through, I have a prequalification letter going out with this one.  If you want your offer to look more appealing, and stronger, more serious, make sure to include a  document showing that you have been prequalified for the loan amount, to buy that certain property.   That is what might have killed my 3plex deal, no prequalification letter.

And today we had an awesome gathering at the real estate club, we watch the Secret, one of the best personal development movies I have ever seen.  http://www.thesecret.tv

2nd Real Estate Property – NO GOOD

Well this friday I made an offer on a three unit, apartment building in N Portland.  They were asking $295,000, I made the offer of $295,000 and the seller pays $5,000 in closing cost. (Which would net the seller $290,000).  And earnest money of $2,500.

I thought my offer was strong, however, it was not strong enough, they took another offer over mine! They took another offer over mine! INCREDIBLE, now I can look for a better deal.  But instead of just denying my offer, they decided that if the other offer diddn’t go through they would use my as the second offer, and then counter my offer for $305,000 and seller pays $5,000 closing cost.  (Netting seller $300,000), they also wanted to limit my inspection period to 7 days, which is alot different than the 15 I originally asked for.  Regardless, thats like a shaft deal for me, so I said, GOODBYE, and GREAT, I’m going to find a better deal.

As always, for some reason, I logged onto aim today at 1am, (I work till 4am, and then goto school in morning too) and then because of networking 4-5 different buisness partners contacted me and we talked till 4:30am, wow, although I did not get any work on my website done.  It opened my eyes!

My friend, Steve, in N Portland is purchasing 3 HOUSES. WOW, and here I’am just trying to get a small three plex, he has 3 houses accepted offer, total networth around 600,000k, he did his figures, 5% down, and will cashflow.  That is amazing, anyways it got me inspired!  I started looking around on loopnet, and found a 9plex for sale in N Portland, for half a million (lol that sounds big,) but its $505,000, and of course (guys!! I don’t have that cash, the bank does, they loan it to me, and renters pay for the property(simplified verison)).  So, I’m going to make an offer on that one I think, it brings in $53,000 gross a year.  combined with current website that’d be $60,000 gross a year, on reach to my goal to acheiving gross $100,000 a year by January 1st, 2009.

So you may say, well wow Wes, I can’t do what you do.  Well, I’ve been working, not partying for 4 years now, trying to start buisnesses, and this is acculmated over time.  Its called the slight edge, and hopefully your on the slight edge to success.

Success is a few small disciplines repeated every single day, over, and over again.  Stuipid little things, maybe I’m a square not going out and getting wasted (no offense, I use to party, a very little), but I’ve been working dilligently on my buisnesses, buidling assets.  And I knew it would happen, and most people don’t know whats happening, all my party friends are getting further behind, and will be working for the rest of their lives, while we, the successful people who sacrifice FUN, for work NOW, will be enjoying expoentially more freedom, fun, friends, and lifestyle which others think someday they will have.

Don’t be apart of the somedays.  Someday someday someday, and someday never happens.   This is what I hope you are going after, “I WILL DO TODAY, WHAT OTHERS DO NOT, SO TOMMOROW, I WILL HAVE WHAT OTHERS DO NOT.”  You can do whatever you want, separate yourself, thats what I’ve choosen to do, and if you want financial freedom, well, most people aren’t, so don’t go where most people going.

IF YOU HAVE NOT SEEN THE SECRET, you must see this video: http://www.thesecret.tv

You are a success, and I will see you in the winners’ circle.  Don’t accept advice from anyone more screwed up than you.

Sometimes we can network too much!

In the law of diminishing returns, it talks about sometimes the more you do something the less benefit you get.  Just like when we eat that pizza, sure tastes good at first! but after 10 pieces, NOT SO MUCH!, ya know what I mean?

So I’ve been thinking alot lately, that there have been alot of people I’ve been networking with, and people networking with me.  Sometimes, as of lately I’m trying to focus and like my friends are talking buisness with me about real estate, stock investing, entrepreneurship, flipping houses, passive income books, and woah woah woah.  Sometimes, its great, there are alot of people who have befriended me, I appreciate that, but sometimes I get overwhelmed, with so many people that nothing ever gets done on my side.

Its great to build a network but the more I think about it, a super large network of people isn’t really that great if the relationships aren’t that strong.  I’d rather have a few key people and harvest the relationship, instead of having 1000 people who I’m kinda friends with, its just not strong.  Not productive, and its diminishing returns, so sometimes, I’m getting to many networks.  And today, I’m about ready to shut off my cellphone for 2 days, and just work on this web 2.0 project which I’am getting behind on, and NO longer am I am, and have a workout partner, but people talking buisness 24/7 is great, but sometimes very very unproductive.

I noticed, and realized that, you too, reading this blog, we could have massive success in a relatively short time, if we actually just did the work, did it, focused on it, and build momentum, just like Donald Trump says.

Focus, and Momentum is required to do anything.  Something that I have challenge with, and I see a big opportunity with, I hope to launch within 5 years and really do something to change the paradigms in the world.

Anyways, untill I do it, it means nothing, actions speak louder than words, yeah its great I like to blog, and just type my mind out as I can, but lets just do it, and get it done, instead of talking about what if, and talk what we are doing…..

So lets get it done, what are we waiting for? So many distractions, less keep them to minimum.

You are successfully, and I hope you share it with other people along the way.

5 Lines of CREDIT?!?!

So I was talking to our family Bank of America banker today, Liz Miller who has been treating me very well. Because my parents have a preimer banking account relationship with them I was able to get a killer rate. Here is the difference, and its good to shop around, for the best loan, and interest rate for you:

Heres the DEAL:

  • House and Duplex, for $310,000
  • Seller pays $10,000 closing cost.
  • 10% down

1st Mortgage Quote

  • 80/10 mortgage, interest only, 5/6 arm, 3yr pre-penalty One point on the first, and one point on the second
  • Interestate rate around %7.35 on the first, and %12.375 on the second
  • Monthly payments around $2,100 a month
  • 11,000 closing costs

Preimer Banking Quote

  • 80/10 Mortgage, interest only, 5/6 arms, no prepayment penalty, no POINTS!
  • Closing costs at around $5000
  • Interest rates: %6.375 on the first, and $7.375 on the second
  • Monthly payments around $1,900/month

THATS A $200 a month difference, PLUS no prepayment penalties, and LESS THAN $5,000 ON CLOSING COST, W/O POINTS.

That is a HUGE! Difference, and but what I found out today. Is that I don’t qualify because I don’t have 5 lines of credit. 5 Lines of credit, as in 5 credit cards, a loan counts as a line of credit, payments, credit, 5 lines. I only have two lines, a personal credit card with Wells Fargo, and a personal credit card with Bank of America. Although I have another Card in my corporation, it doesn’t count because its a corporation. So surprisngly with this killer rate, I was not accepted!

But, that is super fantastic, I’ll just co-sign with my parents and everything will be ok.

So futher note to anyone, do you have credit? My credit score is 725 as a 19 year old, if you don’t have a credit card, or building your credit in some way, start building credit, if you want to use the banks money to purchase a property, stop delaying, do it. Anyways, looks like more lines of credit is better for, Bank of America, or at least, required in order to get a loan through them.

I’m doing incredible and so should you. I know there is spelling errors, but who really cares? My employeer? LOL!!! I’ll be honest, I’am ANTI JOB, because JOBS just make someone else RICH.  I’am a millionaire or I Is a millionaire, does it really matter? IS You a millioanire too, you can be, and we’ll do it together, build your credit score so you can use the bank’s money to purchase investment property that the renters pay for

I wish you, and your family massive success, look forward to being at the next OSU Real Estate Gathering with you all, and helping you, achieve success.

63 AGLOCO Signups

Well AGLOCO continues to move, it is starting to take off. Already within a week there is 63 sign-ups, not bad with 7 direct referrals. I believe most of the individuals who signed up were personal friends in me, and willing to invest their time into building something because I referred it to them. I truly appreciate the input, and gratitude to my friends, if it were not for you guys I would not be where I would be today.

AGLOCOSome people are scared of the idea of installing a toolbar on their computer, although most of everyone already has a google toolbar installed. It is similiar concept, yet we get paid when other people install the browser. Simply because, instead of google getting paid massive amounts of money when people use their search engine, and click on their ads, they get paid. We now get a share of the revenue, did you know, YouTube is going to move towards giving revenue back to their users I hear.

If you are still wondering about AGLOCO, and curious message me. There is no cost to get started, easy to do, and it could be a huge thing in the next two years. If you are too scared to take risks in anything, and free is to big of a risk for you, I wouldn’t be reading this blog. Seriously, unless you don’t like the idea, the AGLOCO idea has some major potential is spreading across the web, and to think its to risky is crazy, it doesn’t cost a thing.

There were tons of people who were generating large amounts of income off the old toolbar, the company crashed, they paid out to many commissions, now they are reverting to shares/cash, so they do not crash again. I believe the will suceed, and focusing some of my efforts to building an AGLOCO team. This would put three assets in my pocket. My adsense buisness, real estate income, and AGLOCO income, all passive, all residual, all working without me.

Never will I work for a paycheck. Neither should you have to, to signup for AGLOCO click here.

My Primary Objective

“What we focus on grows.”

I have been unable to focus on my web 2.0 project, and sometimes lately its been almost, a, what shall I say, disapointing idea that I have not been working on it.  Although I have been focusing on other areas.  Sometimes, I just need to write stuff down.  By writing down ideas, plans, thoughts, or whatever, when you write something down you clear your mind of that thought, and open up room for new ideas.  If you do not write down your ideas, your mind is to busy focusing on remembering what you have said, so its good to write everything down to make room for more.”

So my focus this week is:

  1. Real Estate Investment Property (Searching, Offering, and Closing)
  2. The Real Estate Investment Club at OSU
  3. School
  4. Agloco
  5. My current website buisness (REI and RebuildingRotaryEngines.com)

What is your focus? Don’t know what your focusing on, what we focus on grows.  Laser Focus, something I’m working on, whats your focus, lets do this together.

Some Properties Are To Much Trouble

Kings Real-Estate 1Today was an awesome day, I woke up at around noon, killed a econ 201 test, and then went ahead and did the visual inspection of the property on Kings Blvd for sale.  My first offer was for $284,000 and the seller pay $9,000 closing cost, he declined with no counter.  A week later, I offered $305,000 and then requested he pay $12,500 in closing cost, he countered, and then I accepted a counter offer of $310,000 and he pay $310,000, netting him $310.scaledimage3aspx.jpg

The property, well, although the property looks very nice from the MLS pictures.  There is alot of problems with the property, the landlord did not particuarly take care of the property like I would, alot of things were what I called, “Band-Aided” together, quick fixes.  Quick fixes, in anything is horrible, the worst way to go, quick fix, relationships, quick fix problems, just end up being needed to be worked on in the future.  Well this property definintely had some quick fixs to it, actually, a whole lot of them.

scaledimage2aspx.jpgThe car port was falling apart, the paint was feeling like it was coming off the walls, the duplexes were extremely small, and cracked windows.  There were cracks in the foundation, a cheap roof on both buildings, and the wiring was extremely old just to name a few.  The property was dirty, and unfortunately not a very nice feeling property, I don’t know if I would like to live there.

scaledimage4aspx.jpgI appreciate my father, greatly, he came down from Portland and helped me do the visual walk through.  We are not even bothering with paying for an inspection.  Sometimes, properties need so much work, it is not even worth purchasing the property when you can buy other properties at similiar prices, but don’t need the work. 

I’am now focusing on a 4plex unit in N Portland, where I believe it is poised for some rapid appreciation.  There is alot of buildings in that area which are doing improvements, “when the neighbors are improving their buildings, making them nicer, it raises the value of the homes around it, this is what you want.”  Unlike this area, no body was making their homes nice, it almost looks like everyone was letting their house fall apart around here?  Maybe its just there area in corvallis I was looking at.  So I’m passing up my offer with the house and duplex, and now focusing on some other units.

We actually looked at two houses, and walked through them one for $179,000, and another for $199,000 which were also very very nice, and I may be interested in throwing an offer at with my realtor, Cody Willner.