All Forum Posts by: Danny Day

Thanks Joshua Dorkin - just got the notification! What a pleasant surprise!

Check this out ...... http://www.cnn.com/2012/09/21/living/small-homes-irpt/index.html?hpt=hp_c1

Tiffany Robinson you might get better results with " we buy houses " signs. I see them all over in Houston. Good luck !

I agree with Joel Owens that price will determine how fast your property sells. The fact of the matter is that there are many (more than you might think) agents who only look out for themselves, and not their fiduciary duty to their clients.

I've had buyers interested in my properties, ready to buy and sign on the dotted line. Then mr. real estate agent walks in and asks the buyers to leave. The 1st question out of his mouth is what is my bonus. Typically I have none. As you said, "our properties sell themselves". Then the agent takes his clients away and looks at other properties.

I've had that happen over 5 times now. Going forward I'm going to call them out on their practice of diving for properties with a bonus. Doesn't NAR make you take an ethics test?

It really depends on what you're planning to do with it. What kind of repairs does it need for $5k? How large is the house? What year was it built? Do you have an inspection report?

Dan Golden, first welcome to BP. I notice this is your first post. Congrats on finding this deal. Here are the issues I see right off the top.

1.) Zillow as an accurate ARV. This doesn't work, what does your local MLS have for a market price, and days on market?

2.) Lets say it is $171k arv. At paying them $155 you're already 90% in without doing any rehab. This is not a deal. Use this formula to calculate your offers:

Max Offer = (ARV * 70%) - Repairs

So if your repairs were.. lets say, $25,000 and you knew you could sell it for $171,000 here is how we would formulate your highest offer:

Max offer = ( $171,000 * .70 ) - $25,000
Max offer = $119,700 - $25,000
Max offer = $94,700

This is assuming the after repair value is $171,000 and that the house needs $25,000 in repairs. You will need to verify the after repair value with a local realtor, and get your cost estimation down for the construction cost.

If they won't agree to your max offer amount then walk away. There are many more deals. Also don't start with your max offer as your initial offer. Start lower.. $10k-15k lower. Then if you need to come up, you've got room to make it towards your max offer.

The one who wins negotiation is the one who has the ability and strength to walk away.

Good luck

Danny

Post up the numbers and ARV. Also how fast each one is selling. Carrying a note worth $700-800k might be pricey if the houses are taking 4-6 months to sell. Although your margin could be much higher. We will need more specifics. Good luck

Danny

I've demoed two pools now. One was much larger than that one, the other was about the same size. You're going to need to get in touch with your local city permitting office (if applicable). If not here is what you do:

1. Get a sump pump and empty the pool

2. Hire an excavator to come in and drill holes in the bottom of the pool. Many holes.. like 75-200. . The more holes the better. This will allow drainage below the pool after its demoed. This cost $2,500.

3. Get the excavator to bust off the ledges of the pool. Many people do not do this! You must do this! IF you do not do this, your grass will grow in and will have ledges in the yard.

4. Again, check with your local city ordinance. Some cities require X% of the pool be filled with dirt. Try and reuse as much concrete as possible to refill.

5. Get on craigslist and find someone with fill dirt. Check the free section, etc. I paid $180 per load delivered for fill dirt. This was a dump truck load. It took 12 loads ($2,160) .

Edit: Getting sand is a very cost effective way to reduce price than dirt. Will be the same and cost way less.

6. Once the surface is filled up ... level it off with top soil on top if you like. Put sod on top and water it.

If you've done it like I posted above, you'll have no issues. If you do not drill the holes you will have a inground pool that will retain water, and is a hazard to your property.

Here is a pic of one I did for reference:

Good luck

Danny

Karen M. We do have self developed communities, as well as co-developed and purchase lots in pre-developed communities as well. When you say construction , do you mean infrastructure (roads, plumbing, street lights, etc) or do mean the home itself? We manage subs for the construction of our product.. Alot like rehabbing. We have tile guys, framers, foundation , etc. We build 45' to 80' homes. The town homes will be a smaller product, 35' but 72' deep. I am enjoying single family more, because of the quality of our product. When I was in multi-family it was, re-development, but also like painting an old car.. (you still have an old car). I have never been into new construction multi-family myself, might be different. I enjoy working with master planned community developers... fitness centers.. luxury pools, spas, lakes, landscape, etc.

Here is a strategy.. and a very good one.

Go talk with every home builder in a 50 mile radius. Ask them if you can market their properties and bring in buyers. They won't have an issue with it. They might even pay you a bonus for it!

Take pictures of their inventory homes and organize them in folders by the community, builder, and address. Create an account at postlets.com and create an individual postlet for each property.

Post craigslist ads on the housing section daily , you will find specific areas, houses, and prices gets a lot of hits. You will get buyers. Depending on the price point, you will get listings as well.

Bring your new buyers to your builders.. show them you are working for them. Enjoy closing more deals than you can handle, and getting in good with the heavy hitters in your area. Many times builders pay an extra 1%-2% Bonus plus the normal 3% commission.

Good luck.............