All Forum Posts by: Danny Day

Welcome AggieInvestor!

I am in the Houston area - Looks like we are neighbors.

You are in the right place to learn about this type of business. Read as much as you can and soak everything up here. This site has a lot to offer.

Houston-

Right now houses are staying on the market an avg. 6 months. Some areas more, some areas less. Of course this can be shifted based on your price, marketing, etc.

Houston has some areas that are being redeveloped, and other areas that are growing.

The Heights & Bellaire are being redeveloped. Bellaire is having homes taken down to put up bigger ones. The Heights has older homes that are being remodeled.

Cypress, Katy, and Pearland are all growing areas of Houston. These areas are moving "out" of town. You can find deals in these areas from $40k - $400k. It all depends on what you're looking for.

There are people who are flipping in Houston right now. Some realtors here will tell you that doesn't exist. Move on and find another one.

For hard money, I would recommended ISB capital. They have a great reputation around town, and with other investors alike.

If you have any other questions you can send me a message.

Good luck

Yes

You need to speak with someone at the Pro Desk (at Lowes) or the Bid Desk (at Home Depot).

Before you go and speak with them, have a good idea of what you'll need (item numbers and quantities) and they will draw a bid for you.

We were buying toilets at one time for $17 per toilet....

Adam

Haven't been looking recently for deals. I've been tied up all through December, and have been waiting for the banks to unload the Jan. foreclosures.

I've been working with Shawn from Networth Realty in Houston, which is a wholesale brokerage, and they have provided me with excellent service and unparalleled advice. I highly recommended them in the Houston area if you're looking for deals.

Currently, I am working to secure financing through a HML or Private Lender (credit union) to finance these deals. Once everything gets established, it hopefully should be easier from then on...

Update:

Went to check out the property today, and gave the listing agent a call. She informed me the property was under contract and a sale was pending.

Sounds like I missed my opportunity on this one. I'll keep an eye on it, and see if they end up closing. If its a new home buyer, I've got a feeling this is too much work for them to take on (or willing to take on).

Other than that, I'm going to check out that house in pre-foreclosure today.

Just got back near a computer and saw this thread had some action. Here is where I'm at right now (since my last post):

I contacted the agent to set up an appointment to check the inside out. I really wanted to see if I could smell mold, and check the attic for any leaks. She never called me back, or showed up to show the property.

I've been looking at other deals in the area, and have 3 on the table right now. This house (the one I've posted pics of) seems to be the most promising. Comps and the neighborhood support this. A few others are in warzones, etc.

Yesterday I got a tip on someone in pre-foreclosure who is trying to FSBO for $80k. They need $61k to walk away. I am going to talk to them tomorrow. Don't have any comps yet, and have not seen the property.

I contacted the listing agent again (and got a new agent) for the $90k property (pics I posted) and left a voice mail. No call back this time.

It seems as if I was a RE agent, I would have an incentive to pick up the phone... or at least call back? It could be worth a few thousand $$.

I'm going to keep calling. I'll keep everyone informed. Thanks for the posts. Very informative.

Can someone point me in the right direction (or refer me to an article) on how much I should expect to hold for capital gains tax for fix & flip deals?

I am in the process of forming my LLC right now, and will be purchasing houses under the LLC.

Is there a way to avoid the tax if I keep the money in the company / reinvesting?

Thanks

Danny

So you're taking a conventional loan then refi with a commercial lender in less than a year on your ARV, while you have residents in your house?

Am I getting this right?

Are you less regulated with the commercial lending approach?

So I could take a loan out on the ARV while having a renter in the house?

I'm a little confused

I'm working on my business plan, and currently working on my exit strategy part of the plan.

Ideally the exit strategy would be to sell of the house and make a nice profit.

Would a contingency to not moving a home in, 4-5 months possibly be

1. Rent the house for 12 months
2. Rent the house and market as investment property
3. Lease with purchase agreement

Any other thoughts or ideas?

Thanks

Danny

I'm interested in Houston wholesale deals as well

Glad to see all my neighbors in here !!