All Forum Posts by: Danny Day

Lonnie I got started rehabbing / flipping with an internship for a developer. We were rehabbing apartment complexes. 90 units (2/3 bedrooms 1/2 baths) in 90 days. It was the best expierence I ever had. This place is a goldmine for information.

Welcome back

Danny

Wow this is great. BP conference on my birthday. Can't wait!

This was on a deal back in March. I've got it leased right now, selling when ever my tenant wants to buy.. until then I'm cash flowing $675 per month. When he buys I'll make around $22k (not including my cashflow on rent).

I was asking this for my next deals going forward. I'm looking at 7 homes tomorrow to rehab / sell, but 2 are Fannie mae owned. They might get an X from my list before I even check it out...

Yes, I was going to provide jobs with that $30,000. Sad isn't it. The Gov lends to the banks, and puts restrctions on the banks to lend to the businesses.

Danny

Has anyone ran into this issue with Fannie Mae? They have a clause in their contract which states you can not finance more than 120% total of the contract price of the property...

So on my last deal, I purchased for $65,000 and could only borrow $78,000 total. That left me about $6,000 for rehab cost, when I needed about $30,000.

How do you work around this?

Danny

Congrats Dwaun!

Welcome to BiggerPockets Ryan!

I miss that part of Texas.. I went to school in San Marcos, and was frequently in San Antonio. Hows the market up there doing?

As you said, you'll find a lot of useful information on here.

Danny

Speak with a RE attorney, it might cost you $250-350 but its going to be well worth its weight in gold.

Rich I'm interested in this as well. More of a long term goal of mine. What market are you in here in Texas?

Danny

The 1st deal went under contract to an owner occupant buyer. I'm assuming they will close. I am going to keep an eye on it.

The 2nd deal got removed from HUDhomestore.com for no reason. It's still on the MLS and the listing agent does not know whats going on. She keeps telling me to look on HUDhomestore. Does HUD communicate to listing agents about whats going on?

On another note, I looked at a house today a wholesaler sent my way. I am passing on that one. Some good advice I read in another thread said try and talk your self out of every deal that comes your way. Too many negatives on the one I saw today.

I've got 7 more to look at this weekend. They have all been on the market now 90+ days.

Also, I am using a new hard money lender. We're getting rates at 9% with 2% origination, no up front fees.. closing in 7-10 days. Its better than my previous 14% lender with 4% origination.

I'll post more updates as they arise.

Danny

The best book you can buy for rehabbing / selling properties is FLIP: How to Find, Fix, and Sell Houses for Profit by Rick Villani and Clay Davis.

Another good one (not just for flipping) is The Millionaire Real Estate Investor by Gary Keller.

Danny