All Forum Posts by: Danny Day

Hi Simon

Welcome to the the forum. I'm in the Houston area if you ever need anything. Send me a message.

Danny

Looking to connect with Houston investors (fix & flip, buy & hold)

I am an investor friendly, full time agent in the Houston area. I also do fix & flip deals myself.

We should be able to scratch each others backs, reply back if you need CMAs, contracts, etc.

We closed on the deal today!

GC walk through is tomorrow and rehab starts on Sunday.

Thanks for all the support BP nation. This is the best resource out there.

Thanks for all the help guys, I agree with you.

I am going forward with the rehab on this house. There are sold properties similar to this one on my CMA for $138k. If I can get $134k from it with a $20k rehab I'll come out alright.

We delayed the close until tomorrow.

Just got off the phone with the agent and everything is smoothed over. It was miscommunication, his broker relayed that there will be nothing in the contract on how much we will have to rehab.

Good news, closing delayed until tomorrow afternoon.

Paul - We're borrowing roughly $57,500 with a $6,000 allowance in an escrow account that we can use for rehab. The rest of the rehab comes out of pocket.

J Scott - No there is not an agent representing me in this deal. The agent who wants to list the house came up with that number. He gave me active comps to look at that he has listed right now that he is basing his numbers on. I spoke with the agent about the appraised value and he thinks we can get $103k easy, but we may have a problem showing we purchased for $65k and did minor improvements. He said expect to get about $97k as a back up offer.

Some of the houses he sent me are very similar and have full renovations which is what we originally planned. I think we can still make good money on the rehab if we come in around $20k on the deal and plan to list in the $134k ballpark.

Wow. Now I've got a headache. I just got off the phone with the agent I'm working with on the deal. Hopefully everything works out....

The HML got word of me wanting to put minor rehab into it ($2-3k) and relisting the property at $103k. The agent told me to touch base with the lender on this that they were uneasy about this.

Keep in mind, I am only financing $6k in rehab from them - the rest was to be out of pocket due to a 20% Fannie Mae requirement on the house.

I spoke with the lender and they are urging me to spend $25k to rehab this house. They told me that the appraisal came back on the house for $70k as is today. I find that very low, but regardless of the appraisal, they are trying to tell me how much I need to put into the rehab amount - even when I'm not financing it through them.

Have you ever heard of this? We are going to close later today or tomorrow. I told them I wouldn't be signing anything that requires me to put X amount into the rehab. That seems a little ridiculous for them to require that.

They said they are lending based on the ARV of the house, and that it wont have the ARV unless we throw $25k into it.

I asked for the loan documents, and the loan terms and they couldn't send me over either right away. They requested my scope of work and I sent it over to them.

I feel like there is something fishy going on.

Paul - Thanks for the advice. We would be doing owner occupied on this house. I agree with you about the title seasoning, and I spoke to the RE agent about this. He told me it would at least me on the market for 40-60 days before anyone could get financing / etc so it wouldn't be a problem. In that time period, I'll be doing some minimal painting inside and some clean up outside. I have already had the property inspected and will be making the necessary repairs for the next buyer. The biggest issue with the inspection is switching out some plugs. No big deal here. This was my first time speaking with the realtor, but this neighborhood is what he works the most. He has about 6 listings in the neighborhood, and he has been working it about 10 years. I got his name / number from the neighborhood news letter. I am getting a second opinion from other agents as well.

Jordynn - Yes I have considered doing that. After this deal I'll have some money to put into marketing looking for people in that type of situation.

Kyle - The house will pass FHA requirements. Everything in the house works fine. We will be doing minor paint (interior). Exterior paint looks great. See attached pics below, in current condition.

Mat - The profit margin on selling the house as in with minimal rehab is very much larger than sinking $20-25k into it, 4-5 months, and hoping to return the same that I would selling at $103k. Check out pictures below

Front
Back
Kitchen
Living room
Master

Seeking the advice of BP Nation on this one. I'm in a dilemma, but I wouldn't say its bad..

I contacted the local RE agent for this neighborhood. He has a few properties listed and his signs are everywhere. He specializes in the neighborhood I'm in. I wanted to confirm my ARV with him, and get his opinion on the house.

He told me he could list the property, AS IS - NO REHAB for $103k and it would move quick. I have the property under contract for $65k, and got it about 3 days after it was on the market.

So I could list for $103k and take a little less, and walk with no work and smaller time frame.. or put $20k into rehab and list for $128,900

Any input would be appreciated

BBA in Management