All Forum Posts by: Danny Day

Be careful to take note where your supplier gets the backsplash made.

We get our formica from a company who buys them from China. It's a 3 week lead time... and this past week, our 25 box order came in the wrong colors.

This can really set you back fast.

I'm starting this thread because I am going to keep a running update on my first flip.

Today I have got the OK for all the funding I will need for my 1st home purchase / flip !! :cool:

I'm talking with a few wholesalers looking for something under $80k that needs minor work - nothing structural or foundation.

I'm meeting with a mortgage broker this week to get pre-qualified for the loan.

Now all I need is HOUSE to come my way...but I do want to have all my ducks in a row.

Question: A friend of mine told me you can not purchase homes from a wholesaler with a conventional mortgage loan. Is this true? I don't see why you couldn't.

Keeping my fingers crossed!! I'll keep you guys updated

Danny

So I've found a few distressed properties, and none have anyone living there (from what I can tell). One of them has some things taped to the door - I didn't go snooping.

So now what? I mail them a letter saying your house looks like it needs some TLC, and I'm interested?

I could get the MLS info on where the payments are sent and mail there, or is that digging too deep?

Thanks!

Got a house in pre-foreclosure. She found out her notice, and is ready to sell fast. Wants to get out of state. Heres what I got:

Built in 1983, 1,904sq.ft 3bd/2 bath. Back deck.

- House is tax value on HAR.com for $117,500

- She wants $100k

- $83k left on loan

- She paid $26k down payment on house

- No major repairs (2 tub resurface, and one bedroom needs carpet)

- $350 known home owners assoc. lien

The area is pretty good. Lots of homes are being paid off, and people are renting them out.

When doing property analysis, I need to calculate ARV. How do I estimate the ARV?

Thanks in advance,

Danny

Do you use a website that you advertise to qualify leads for foreclosure investing?

Just wondering how this is working for you

Danny

Thanks for the input. I really appreciate the follow up. I've been working on getting my main site up, and then getting a seller form site up as well.

Would anyone mind checking out my site? I'm trying to legitimize myself by an online presence.

I've got a few houses on the table, and some realtors from my area have contacted me about my site. I figure with my 1st sale I'm going to get my LLC.

Thanks for the contracts Nick.

Steve- I'll have full details today. Sounds like she wants to sell for $100k and try and make some money - doubt thats going to happen.

I'll keep you guys updated.... until then, let me know what you think [LINK REMOVED]

2 thumbs up!!!

BiggerPockets has been by far the best resource I've had for RE advice. I've got a few questions I'm trying to get the kinks out of before I go full force.

I'd like to get into pre-foreclosure / foreclosed homes. My capital is limited, so I figured I could wholesale some deals - and that would help me out getting my feet wet.

I know in wholesales, you must get the house under contract for a specific price, and then contact your list of investors to buy. I'm building my list of investors right now. Once you have the investors, and you start finding property... where do you get the contract from? RE Lawyer?

Also, I've heard that many title companies stay clear from dual escrow deals due to the high chance of fraud. Is this committing fraud by dual closing without a broker?

Here is my situation: I've got a pre-foreclosure on my hands right now thats got about $15k in equity in it, and they want around $87k to walk away. I'd love to jump on this because the area is great, and home values are increasing - but I have no investors in this city yet! Could I bird dog this deal and hook someone else up? Where could I go to do this?

Thanks in advance, I'm sure I'll have many more Q's. Tomorrow I'm heading to my 1st foreclosure auction - just to get a feel of things.

Looking to get into wholesale. I'm trying to break my way into the pre-foreclosure / foreclosure market and need some start up capital. I figure if I wholesale a few deals I should have some cash to play with. I had a few questions regarding wholesales.

From what I can tell, a wholesale plays out like this:

I have a list of investors, who know I am a wholesaler.
I find a house for sale for $25k
I get this house under contract for sale to me for $25k
I let my investors know I have a house for $35k
Dual escrow with a title company
Close deal for $35k
Profit $10k

Just wondering now how someone would feel knowing I put $10k in my pocket for doing nothing. How does that usually go with the dual escrow?

Do you have to disclose what you got the property for? When you plan to put a house under contract, do you let the owner know you will be wholesaling their house?

What kind of cost is associated with a transaction like this

Thank you for your time

Danny

So if the loan was for $180k, and they had no equity in the property why would the lender agree to let the property go for less than $180k and not take the property to auction?

Does the pre-foreclosure process include contacting the lender and having them agree to a price? Whats the normal discount on a pre-foreclosure

I guess I'm not understand what a short sale is then. What do you mean by the need for a short sale? They need to dump the property ASAP?

How does it change things if there is equity on the property?

Thanks for the info