All Forum Posts by: Danny Day

CCIM and CNE are good ones to have. Some of the others I could care less about (ePro, ABR, LEED, GREEN, etc).

I'm ready . Have been talking with some wholesalers in the area who will be there as well. Looking forward to hearing everyone's updates on their deals. Hopefully I've got a good update by then.

I've been looking at the mobile home RE strategy. From what I've read on here the best play is to buy low ($2-3k per mobile home), rent ready rehab and sell to make $2-3k margin.

You then lease the lot the mobile home is on for $200-300 per month.

So if you had 2 acres, and put down 20 homes at $200 per month, that would gross $4,000 per month ($48,000 per year). Plus an average profit of $2,500 per home sale is $50,000.

Year 1 Costs include:
Development costs--
-Land purchase
-Land clear / stage
-Septic installs
-Electric installs
-Well drill

Housing costs-
-Mobile home purchases
-Property management fees

Land costs-
-Taxes

Year 2 Costs include:
-Property management fees
-Taxes

Year 3 Costs repeat year 2 and so on.

It seems like this might be better than rental properties..? Monthly cash flow without risk or major maintenance.

Can anyone verify that this is correct, or am I missing this entirely?

Thanks in advance

Danny

Wondering what everyone budgets for closing cost as a rule of thumb. I know this can vary based on county to county, who pays title policy, etc. but I'm wondering generally what do you use off your head.

3%, 5%..7%?

Thanks in advance

Forgot to mention that alot of the properties you'll be looking at to rehab might not allow conventional financing due to repairs. Also conventional financing takes at minimum 20 days to close. Hard money can close in 3 days.

It really depends on your local market. Many times over rehabbers on here have said the best place to find the best deals is on your own.. "we buy houses" signs, mailers, etc. This might not be the best approach on your 1st deal though. Finding a good RE agent who can tell you the ARV (after repair value) will be critical in your success , as well as how fast they can sell the house. Tap into local wholesalers and get deals from them. They will make some $$ on the deal but leave enough for you to make a profit.

What I've heard on funding is on both sides of the fence. Some would rather pay cash out right and rehab / sell and pay no interest. Others would rather pay very little down to increase their ROI (return on investment) by using hard money. Typical terms on hard money range from 9-15% interest rate on a 6 month - 12 month term, ranging from 0-5% origination. These lenders might require you to have X$ worth of assets, liquid cash, or others. I wouldn't fund a rehab/sell with conventional financing, no point if you're in and out in 3 months.

Also just realized Dee W. you're in Houston, come out to the BP Houston Meetup on June 7th

Link to thread:
http://www.biggerpockets.com/forums/86/topics/73538-june-houston-bp-networking-june-11th

Yes Real Estate Investing can be very intimidating and have a large learning curve. I started reading this forum years ago, and still feel like I learn every day from here. What I've found is that narrowing down what you're interested in (niche real estate investing) and then read everything you can get your hands on.

The Millionaire Real Estate Investor by Gary Keller is a great first read. It brings me to my next point. Time vs Money. In RE investing you've either got time or you've got money. Wholesalers might not have the cash to rehab so they put their time in to find deals. They bring it to the rehabbers who have the money but not the time to find them.

Find out where you lie on that pendulum and go from there. Ask as many questions as possible and don't feel like you've got any stupid questions. Everyone here was new once and is willing to share, help , and teach you.

Another great resource is local BP meet ups. Just this weekend I called 2 members from BP on a Saturday to run some questions by them and they both spent their Saturday afternoon talking to me about a deal I was doing. Network with other people in your niche and learn from them.

Thats my .02

Like Brian Hoyt said screen your tenants very well. I passed on 5 before one got into my rental. They won't even allow me to wear shoes in their house! I love it...

I'll be there..

Marc Cleverley
Nick Weidner