All Forum Posts by: Danny Day

I use 100% of my info from the MLS. Nothing less, nothing more. If you haven't already, develop a relationship with a realtor. You're going to run into some who don't understand the business, and you'll run into a few who will. They can be a very large asset to your team.

Danny

At least 60-70 hours per week.

Full time RE sales agent (including weekends) and full time real estate investor.

When I'm done in the office, I meet with contractors, etc.

There are no downsides that I can imagine to being a licensed agent as well as RE investor, unless you're doing un-ethical business.

RE agents are licensed by the state, and must ad-hear to NAR standards. This does not pose a problem for most investors, because they are doing ethical business.

Saving 6% on a deal is a great bonus, as well as meeting lenders, and other people in the industry.

Danny

Refinish the floors. I just paid $1.75 per sq foot labor & materials for a full refinish, 3 coats of varnish and buff with shoe molding.

If you go with laminate, after labor you'll be looking at right around the same price and de-valued your house...

I am looking to purchase my first owner occupied house, and have found a Fannie Mae property in which I want to get. Here are the details. I would value BP Nation's input on my offer.

List price: $139,000
DOM: 12

Comps support this price, but some houses in the neighborhood are going for way less.

Here is my initial offer:

$132,000 with $6,000 cash down and financing $126,000. Earnest money deposit of $5,000 and a 25 day closing. 10 day option period with $100 option fee. I used this language in my offer:

BUYERS AGENT IS A PRINCIPAL IN TRANSACTION. BUYER WILL PAY $100 PER DIEM FOR BUYER DELAYS ONLY BEYOND THE AGREED UPON CLOSE OF ESCROW DATE. BUYER HAS VISITED PROPERTY. NON-INVESTMENT PROPERTY, PRIMARY RESIDENCE OWNER OCCUPIED.

I also asked for $0 in expenses for seller to pay at closing, and accept the property in its current condition.

I just wrote the offer up tonight. I am going to submit the offer tomorrow. Do you think feel this is a strong offer? What else can I do to make sure I get this property?

Thanks in advance,

Danny

Thanks for the responses BP

We got the furnace in, $1,800. The tile is being laid right now, and the floors look amazing. The granite is installed everywhere and I am a very happy camper.

We are behind schedule now due to the windows not being ordered on time. Not good news. We will be listing the house here soon, hopefully around the 18th.

On another note, I found my next deal from a listing appointment from a client. I ran a CMA on her property, and we are listing her house at $182,000. The comps support it, and the average DOM for the neighborhood is under 25....

She has 1 active listing competing against her, which is a foreclosure, listed at $115k. I figured it would be in both of our interests to go check it out, so I went and looked at it...

Basically the house needs MINOR cosmetic repairs. The tile is good, the kitchen is good. We will need sheet rock repair, paint, and carpet. I was thinking the rehab price would be around $15k conservative, with appliances.

I will be writing an offer tomorrow. This deal should (hopefully) yield about $32k before taxes.

Enjoy the rest of the weekend!

Danny

I agree with you Michael. I read somewhere that 60% of home sales occur between the months of April - July.

The house is coming along very nice. We are about 90% done. We will be finished this week.

Some cost we have incurred along the way that we did not plan on were:

Windows - This house had double pane windows that were cracked or leaking. We thought we could break one pane and clean the glass inside, salvaging the windows. This was not the case. I got a call today from my GC to replace all our windows for $4,700

Furnace - The furnace would not light, and I found out today it was leaking carbon monoxide into the house. This was $1,800 for a new furnace.

Luckily, my spreadsheet was super conservative. Even though we went about $7k over budget, we will still be making about $23k on this deal. Not bad for the 1st one.

I'll post before and after pics soon.

Danny

Typically in order to be able to list REO's you'll either need to have a few years in the market you're wanting to list them in, or you'll need to know an asset manager at the bank.

If you get licensed, depending on what broker you work with, may get REOs - or have a foreclosure department. You'll need to do a BPO (Brokers Price Opinion) of the property and get it listed to the MLS.

In order to start doing BPO's, you'll need to get on some BPO sites.. Most of the reputable companies require 2+ years experience.

This is all what I have inquired about / understood from my experiences. I have never listed a REO or worked in the foreclosure department. Hope this helps.

Danny

Cool idea Travis.

One thing you might want to look into is the schools rules & regulations. Some schools will make you live on campus for X number of years. When I was doing multi-family student housing development, this is how we picked what campus to move into.

Each (public) school is required by law to post numbers and percentages of people in each class on campus. Something to think about as it could pose a risk to your business model.

None the less, this could very well turn into something great. I would recommend taking on some local students and gathering their ideas.

Good luck!