All Forum Posts by: Danny Day

Do you have a buyers list yet? You mentioned you were getting into wholesaling.

Also, do you have the numbers on the house? How much its worth, how much in repairs, how much you're willing to offer, etc?

Go with the "yellow note" idea on the door, and follow up with a phone call. Tell them you were in the neighborhood, and you're interested in buying.

Hard money makes sense for certain types of deals. If you're going to hold the house, then obviously you would go a different route.

That being said, the lowest HML in Houston I've found is at 13.99% with 0 pts down lending on 70% LTV on a 6 month term.

The highest I've seen here is 16% with 3 pts down lending on 70% LTV on a 6 month term.

I just did a rehab using hard money, but here is what paid off more: Making friends in the lending community. I've been offered an unsecured line of credit with a 5.5% interest rate with 20% down on everything I do now.

If it were me, I would try my best to avoid paying the hard money fees. They can add up quick. It is good to have a relationship with a hard money lender, as if the need arises, I can make a move on a property quickly.

Danny

Directing traffic to the internet is a great idea. Over 80% of home searches are originating online..

You can also use a catch page to get the information you need, quick.

For example, this is one that I use:

http://investors.danny-day.com

Danny

Good post Eric. Very informative.

Jeff, the transaction would be different in that your realtor would write the contract and negotiate the deal. Yes, you should tell the realtor that you are a wholesaler. The earnest money will vary depending on each deal. Try and start out with $500 or $1000 and work your way up.

I do not recommend trying to "hide" anything from realtors. The real estate community talks, and you do not want to develop a bad name for yourself in the RE community. Be up front with them, they will appreciate your honesty. You will find some agents who are not interested. Simply move on to an agent who understands your business.

The most important thing you should take from this, in my opinion, is:

Take care of your realtor, and they will take care of you.

:cool:

Danny

Don't even waste your money with direct mail. Craigslist has been by far a home run for leads for me. Although I do target a small niche market, it works very well (and its free).

Here is my finished product:

http://search.har.com/engine/11506-Canyon-Trail-Dr-Houston-TX-77066_HAR6528940.htm

Thanks BP Nation! Lets hope for a quick sale!

Pick an area you would like to farm, and learn the area. Check out lots of different areas on your MLS based on how active the neighborhood is, as well as how saturated the market is by number of relators by transaction(s). Typically, if one broker has over 30% transactions (down here in Texas) you'll have some major competition.

You can use direct mail campaigns from QuantiumMail or 8touches. Check those out.

Danny

I'd like to hear an answer on this as well. 1031 from investment to owner occupied, if its possible.

Keep the cost down on your rentals. Typically renters will not take care of a house that owners would.

Ex: laminate flooring, formica counter tops, etc.

Took my ARV to my broker with a CMA in the area today with actives, sold, and expired listings 6 months back today.

She thinks I'm crazy for listing it so low.

I based my original ARV at $125,000 .. At the time I thought it would be nice to be around $132,000.. According to my CMA, if I want this property to move I need to list around $139,000.

My broker feels that I am listing too low - almost $10k under value.

We'll see what happens.

Danny