All Forum Posts by: Danny Day

Can you post your strategy? What kind of consideration will you be putting down to get a skyscraper under contract? Do you have a legal team ready to deal with the sellers legal team?

First questions in my head. Not trying to discourage you, but it will be very, very complicated.

Danny

I spent about $1,500 total getting my license, and my 1st deal was my own house. Purchase price was $139,000 which means I made 3% and took home $4,170 (broker didn't make me pay the split)... and even if I did, it would have paid for itself.

So I made money, buying my house? ;)

Danny

I took some advice from this thread, and I've given it a try for 2 weeks now. I really like it. I've gone from clients calling me 10 times per day, to once per day. Not saying its bad they call, but it reduces the time spent on the phone for both of us. I've got 2 times per day where I spend on the phone and I'm loving it.

Good thread!

Danny

Thanks Xavier-

Turned out quite well for me. We have a 12 month lease with an option to purchase. My apprisal came in at $137,000 - I was very happy with that.

We'll see how it pans out. I'm happy with the tenants right now.

Danny

Develop a relationship with a licensed realtor in your area. The MLS will show rental amounts listed / leased for each deal that was done on the MLS. This is great info to have.

Danny

10 Questions I would Ask Potential Buyers (for investment properties):

1. What kind of deal are you looking for?
2. Have you ever done any deals like this before?
3. What areas are you looking to work in?
4. What is your criteria (bedrooms, bathrooms, year built, sq. foot, etc)
5. What repairs will you not consider? (Ex: Foundation, roof, mold, etc)
6. How will you purchase this property? (Hard money? Private money? Conventional financing? If using cash, you will need proof of funds. If hard money / financing, you will need pre-approval letter from lender.)
7. What is your time frame? (How quick are you looking to buy...)
8. Will you agree to pay my finders fee, in the sum of X dollars (if so, sign this attached agreement I assume)..
9. Do you know anyone else looking to buy houses at a discount? (If so, whats their name, and number).
10. Do you have any special requirements I need to know about?

I've never wholesaled a deal before, but I am a licensed agent who works with many types of buyers. These are normal questions I ask them.

Good luck Kevin, you're in the right place. Feel free to ask any questions.

Danny

Just finishing up with a short sale and I wanted to give a run down on my theory why people run when they hear the words "short sale".

Day 1 - Get listing, run CMA, price house at $10k under what I think its valued at. Seller tells me she is not married, and house is in her name only.

Day 3 - Get 4 offers on house, all cash, 1 full price offer. Submit to bank, who was not ready for offers to come in.

Day 4-25 - Bank has no response.

Day 26 - Bank responds with needing a BPO of the property.

Day 35 - Bank completes BPO, $20k higher than my list price.

Day 36 - Full price offer buyer gets tired of waiting, termiates their contract.

Day 37 - I send out highest and best multiple offers, and get 6 more offers in.

Day 40 - I get a cash offer under contract, and bank approves the contract price. Buyer assures me they can close in 7 days. Buyer gets cold feet, backs out before dropping off option fee / earnest money.

Day 44 - Submit highest and best offer to bank, for offer #3.

Day 60 - Bank comes back, tells me to write a report to challenge price to get offer accepted.

Day 67 - Offer #3 is accepted.

Day 70 - Offer #3 falls through.

Day 70 - Buying agent from Offer #3 finds another buyer, we get a contract at same price.

Day 71 - Open title

Day 73 - Title company calls me, and tells me there is 2 outstanding liens on the property totalling more than the accepted contract price. Also my seller is still married, and her husband must sign to close.

Day 74 - Sellers phone gets disconnected.

Day 75 - Get husbands phone number, he tells me let it go into foreclosure.

Day 78 - Get ahold of seller. Doesn't know about the liens. She is in another state, without internet or fax.

Day 83 - Get lien information, and contact lien holders - HOA tells me they won't settle.

Day 84 - Bank tells me I have 1 week to close and fund or its headed to foreclosure.

Day 92 - (8 days later) HOA and 2nd lien want to settle.

Day 92+ - Can't get ahold of bank / asset manager. Wasted 3 months of my life trying to work with a bank who won't budge.

Day 93 - Terminated / taken off market.

Venting.... I feel bad because me and the seller were motivated to sell, and worked hard at it. Our hands were tied by the systems and the people and everyone at the bank who touches the deal. It slowed it down.

From now on, I will probably use a short sale assisting company or something like that.

Any suggestions?

You should check out any internships with developers in your area. I did an internship my senior year of college and rehabbed 2 apartment complexes, totalling 90 units in 3 months.. More expierence than I could ever get in a classroom, or reading books.

I found the internship on Craigslist. It was 50-60 hour a week job that only paid $250 per week, but it was not about the money for me..

Good luck

Danny

Got 2 leads last month off my blog. Both out of state investors who wanted to buy in the Houston market. Said they read my blog and thought I was the right person for the job...

Danny

I know HUD requires you to have no option periods. There is a form for refund of earnest money. I don't think you will lose it all.. maybe a percetnage. I believe 50% at most. Have your agent dig deeper. Post update once you find out.

Call Pemco (http://www.hudpemco.com/) and they will explain more.

Good luck

Danny